Egypt: New Egyptian Accounting Standard for insurance contracts in 2025
Source: Middle East Insurance Review | Nov 2024
The Financial Regulatory Authority (FRA) has directed insurance companies to apply Egyptian Accounting Standard (EAS) No 50 on insurance contracts, starting with financial statements, for the year 2025.
Simultaneously, the FRA has amended the financial year of (re)insurance companies in the Egyptian market to a 1 January - 31 December period, said news outlet Amwal Alghad.
The new accounting period becomes effectives on 1 January 2025; the current financial year is from 1 July to 30 June.
(Re)insurance companies are required to prepare transitional financial statements for the period from 1 July 2024 to 31 December 2024, with the financial statements to be reviewed and accompanied by a report from auditors and approved by shareholders at the general assembly.
The FRA has also instructed insurance and reinsurance companies to prepare hypothetical financial statements to be used as comparative figures in EAS50 statements next year. M