The Financial Regulatory Authority (FRA) has announced its decision for insurance companies to apply Egyptian Accounting Standard (EAS) No 50 on insurance contracts, starting with financial statements for the year 2025.
In tandem with this move, the FRA has amended the financial year of insurance and reinsurance companies in the Egyptian market to begin on 1 January and end on 31 December of each year, reported Amwal Alghad. The new accounting period begins on 1 January 2025. Currently, the 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 EAS 50 statements next year.