Egypt IFRS Profile – Accounting Standards and Differences from EAS
Last Updated: 31 January 2024
Sources: IFRS Foundation, Ministry of Investment, Financial Regulatory Authority (FRA)
Regulatory Authority
- Main bodies: Ministry of Investment and Financial Regulatory Authority (FRA).
- Standard Setting Committee – Established by Prime Minister Decree No. 2115/2023 to develop and review Egyptian Accounting Standards (EAS) and auditing standards.
- Committee members include FRA Chairman, investment authority representatives, state audit authority, professional accountancy bodies, and independent experts.
- The Minister of Investment issues accounting standards through ministerial decrees published in the Egyptian Gazette.
Commitment to IFRS
- No formal public commitment to adopt IFRS as the single set of global accounting standards.
- Egypt uses Egyptian Accounting Standards (EAS), based on but not identical to IFRS.
- Originally issued in Arabic; updated in 2019 to align with IFRS 9, IFRS 15, and IFRS 16.
- In 2023, a standard similar to IFRS 17 (Insurance Contracts) was added, effective 1 July 2024.
Key Differences – EAS vs IFRS
- Employees’ profit sharing – Treated as equity distribution (EAS) instead of an expense (IFRS).
- Foreign currency translation differences – Special model for devaluations in 2016 & 2022, extended to 2023.
- Revaluation models – Not permitted until Jan 2023 for PPE, intangibles, and investment property (now allowed for investment property as per PPE model).
- Statement format – Profit or loss presented separately; no single statement of comprehensive income option.
- Equity method – Not permitted in separate financial statements.
IFRS Usage in Egypt
- Domestic listed companies – Must use EAS, not IFRS.
- Foreign companies listed in Egypt – IFRS permitted with FRA approval.
- Auditor reports – Reference EAS only (no dual IFRS/EAS reporting).
Translation of IFRS
The IFRS Foundation publishes an annual bound volume of IFRS in Arabic.
IFRS for SMEs
- Not adopted in Egypt.
- SMEs follow EAS with special SME requirements effective 1 January 2016.
- IFRS for SMEs is not under consideration in Egypt.
Egypt's IFRS Jurisdictional Profile Summary
- This Profile provides information about the application of IFRS Accounting Standards (Standards) in Egypt.
- The Standards are developed and issued in the public interest by the International Accounting Standards Board (IASB).
- The IASB is the standard-setting body of the IFRS Foundation (Foundation), an independent, private sector, not-for-profit organization.
- The Foundation has prepared this Profile 'for Egypt' based on information from various sources.
- The starting point was the answers provided by standard-setting and other bodies in response to surveys the Foundation conducted on the application of the Standards around the world.
- The Foundation drafted the profile and invited the respondents to the survey.
- The Foundation also invited others (including regulators and international audit firms) to review the drafts.
- Their comments are reflected in this Profile.
- The purpose of the Foundation’s Jurisdictional Profiles is to illustrate only the extent of implementation of the Standards across the globe.
- The Profiles do not reflect the intellectual property licensing status of the Standards within any given jurisdiction.
- The Standards are protected by copyright and are subject to licensing arrangements agreed upon within their jurisdiction.
- For further information, please contact permissions@ifrs.org. Egypt's Profile last updated: 31 January 2024
The key points in the jurisdictional profile of Egypt are:
- RELEVANT JURISDICTIONAL AUTHORITY
Organization
1) Ministry of Investment. Official website https://www.gafi.gov.eg/
2) Financial Regulatory Authority (FRA), Egypt. Official website https://fra.gov.eg/
Contact Email FRA: info@fra.gov.eg
Role of the organization
By virtue of Prime Minister Decree number 2115 of 2023, a Standard Setting Committee for accounting and auditing standards was formed.
The objective of this Committee is to develop and review accounting and auditing standards adopted in Egypt, to issue explanations, disclosures and providing technical opinion for other authorities related to EAS and to present its recommendations to the Minister of Investment to issue the relevant standards.
The Standard Setting Committee is composed of professionals from different organizations concerned with the accounting and auditing profession.
The committee is composed of the: IFRS Foundation
1 • Chairman of Financial Regulatory Authority (FRA) (who chairs this committee);
2 • CEO of the General Authority for Investment and Free Zones (delegate);
3 • Representative of State accountability authority;
4 • President of Egyptian Society of Accountants and Auditors (ESAA);
5 • Chairman of the Egyptian Institute for Accountants and Auditors (EIAA);
6 • Head of accounting and auditing division for practitioners at commercial syndicate;
7 • Two experts in accounting and auditing (selected by committee president). The Minister of Investment has the authority to issue financial accounting standards in Egypt.
Each issue or change to a Standard is made by virtue of a Ministerial Decree, which is published in the Egyptian Gazette (Formal Government publisher).
COMMITMENT TO GLOBAL FINANCIAL REPORTING STANDARDS
Has the jurisdiction made a public
commitment in support of moving towards a
single set of high quality global accounting
standards? [No]
Has the jurisdiction made a public
commitment towards IFRS Accounting
Standards as that single set of high quality
global accounting standards? [No]
EXTENT OF IFRS APPLICATION
Foreign companies listed on The Egyptian Exchange may apply IFRS
Accounting Standards if approval is granted from Egyptian Financial
Regulatory Authority (FRA).
IFRS ENDORSEMENT
Egypt has not adopted IFRS Accounting Standards; however, EAS are close
to IFRS Accounting Standards but not identical or as comprehensive. The
Standards were prepared from the outset in Arabic.
There are two major differences between EAS and IFRS Accounting Standards such as:
1• Employees’ profit sharing is recognized for as equity distribution rather
than expenses in the statements of profit or loss.
2• A completely different accounting model is used for foreign currency
translation differences arising from currency devaluation in 2016 and 2022,
which was extended until the end of 2023 (one-time application but has
consequences on depreciation of remeasured assets).
The following options available in IFRS Accounting Standards are not permitted:
1• The revaluation models for Property, Plant and Equipment, Intangible
Assets and Investment Property were not permitted under EAS, until
January 2023. Investment properties are accounted for as in the Property,
Plant and Equipment revaluation model.
2• Statement of profit or loss is presented as a separate component of
primary financial statements. The option to have one statement for
comprehensive income is not available under EAS.
3• Equity method accounting is not an alternative in the separate financial
statements.
TRANSLATION OF IFRS ACCOUNTING STANDARDS
The IFRS Foundation coordinates the publication of an annual bound volume
of IFRS Standards in Arabic.
APPLICATION OF THE IFRS FOR SMEs ACCOUNTING STANDARD
The EAS effective 1 January 2016 include special requirements for small and
medium-sized entities. The IFRS for SMEs Accounting Standard is not under
consideration.
For those SMEs that are not required to
use the IFRS for SMEs Accounting
Standard, what other accounting framework
do they use? EAS, which include special requirements for SMEs.
Abbreviations used in the jurisdictional profile statement
IFRS International Financial Reporting System
SME Small and Medium Enterprises
IASB International Accounting Standards Board
EAS Egyptian Accounting Standards
Conclusion
Egypt’s accounting framework is EAS-based, closely aligned with IFRS but with significant differences in treatment for profit sharing, currency revaluation, revaluation models, and statement formats. While foreign companies can apply IFRS with approval, local listed entities remain under the EAS framework.
Disclaimer
The information in this Profile is for general guidance only and may change from time to time. You should not
act on the information in this Profile, and you should obtain specific professional advice to help you in making any decisions
or in taking any action. If you believe that the information has changed or is incorrect, please contact us at
ifrsapplication@ifrs.org.
Source https://www.ifrs.org/use-around-the-world/use-of-ifrs-standards-by-jurisdiction/view-jurisdiction/egypt/
link to this post: https://accountinwithexcel.blogspot.com/2025/08/accounting-ifrs-2025-egypt-profile.html
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