Egyptian Accounting Standards: Recent Amendments and Effective Dates

Executive summary

• The current standards were issued by Minister of Investment Decree No. 110 of 2015, in force from 1 January 2016, and at issue comprised 39 standards and a framework for the preparation and presentation of financial statements.
• Decree No. 69 of 2019 added three standards: (47) Financial Instruments, (48) Revenue from Contracts with Customers, and (49) Leases.
• Since 2022, three temporary optional appendices to Standard (13) have dealt with currency differences from the exchange-rate movements of March 2022, October 2022 and March 2024, and Decree No. 636 of 2024 added permanent provisions on the lack of exchangeability between currencies for financial years from 1 January 2024.
• Decree No. 883 of 2023 replaced five standards in full and added a new insurance contracts standard, (50), applying to annual periods beginning on or after 1 July 2024.
• The latest decree amending the Egyptian Accounting Standards shown in the decree listings of the Financial Regulatory Authority and the Ministry of Investment and Foreign Trade as of 29 September 2026 is Prime Minister's Decree No. 3527 of 2024, which added Standard (51) on financial statements in hyperinflationary economies.

From the base standards to financial instruments, revenue and leases (2015-2019)

The current Egyptian Accounting Standards were issued by Minister of Investment Decree No. 110 of 2015, and took effect from 1 January 2016 for entities whose financial year begins on or after that date. At issue the set comprised 39 standards and a framework for preparing and presenting financial statements.

Minister of Investment and International Cooperation Decree No. 69 of 2019 (Al-Waqa'i al-Misriyya, the Official Gazette supplement, Issue 81 (continued) (a), 7 April 2019) added three standards: (47) "Financial Instruments", aligned with IFRS 9; (48) "Revenue from Contracts with Customers", aligned with IFRS 15, replacing Standards (11) Revenue and (8) Construction Contracts; and (49) "Leases", issued under the Financial Leasing and Factoring Law No. 176 of 2018, replacing Standard (20). It also replaced eight other standards, amended paragraphs of ten, including (15) on related-party disclosures, and took effect from the effective date stated in each standard.

Exceptional treatments for exchange-rate movements (2022-2024)

Since 2022, three temporary, optional appendices have been added to Egyptian Accounting Standard (13) "The Effects of Changes in Foreign Exchange Rates". Each lets an entity add currency differences on foreign-currency liabilities that financed fixed assets and similar assets to the cost of those assets, and recognise net translation differences on monetary items in other comprehensive income rather than in profit or loss. Each appendix is limited to the financial statements of the financial period it defines, without adjusting comparatives. After the rate movement of 21/22 March 2022, Prime Minister's Decree No. 1568 of 2022 (Official Gazette, Issue 16 bis (a), 27 April 2022) added Appendix B. After the movement of 27 October 2022, Decree No. 4706 of 2022 (Official Gazette, Issue 51 bis (h), 27 December 2022) added Appendix C, which Decree No. 1847 of 2023 (Official Gazette, Issue 19 bis (a), 16 May 2023) extended to the following financial period or year.

Decree No. 636 of 2024 (Official Gazette, Issue 9 bis (a), 3 March 2024) then replaced Standards (13), (17) and (34) in full. The 2024 version of Standard (13) added, for the first time, permanent provisions on "lack of exchangeability between two currencies", applying to annual reporting periods beginning on or after 1 January 2024, with early application permitted. After the exchange rate was liberalised on 6 March 2024, Decree No. 1711 of 2024 (Official Gazette, Issue 21 (continued), 23 May 2024) added Appendix E to the 2024 version of Standard (13), an equivalent optional treatment limited to the financial period that included that date, without adjusting comparatives.

Replacing the asset and investment-property standards, and a new insurance contracts standard (2023)

On 6 March 2023, Prime Minister's Decree No. 883 of 2023 (Official Gazette, Issue 9 bis) replaced the standards' preface and Standards (10) Fixed Assets and Depreciation, (23) Intangible Assets, (34) Investment Property, (35) Agriculture, and (36) Exploration for and Evaluation of Mineral Resources with updated versions whose amendments apply to financial periods beginning on or after 1 January 2023. It also added an entirely new standard, (50) "Insurance Contracts", applying to annual periods beginning on or after 1 July 2024, with earlier application permitted if disclosed, and repealed the old Standard (37) on insurance contracts.

An expected-credit-loss exception and the new hyperinflation standard (2023-2024)

Decree No. 4575 of 2023 (Official Gazette, Issue 47 bis (f), 28 November 2023) added Appendix C to Standard (47) "Financial Instruments", permitting entities to exclude debt instruments issued by the Egyptian government in local currency, and local-currency current accounts and deposits at banks operating in Egypt maturing within one month or less of the balance-sheet date, from the recognition and measurement of expected credit losses, provided the entity discloses the election. It applies to annual periods beginning on or after 1 January 2023.

The latest decree amending these standards is Prime Minister's Decree No. 3527 of 2024 (Official Gazette, Issue 42 bis (c), 23 October 2024), which added an entirely new standard, (51) "Financial Statements in Hyperinflationary Economies", with the decree in force from the day after publication. The standard sets no absolute rate at which an economy becomes hyperinflationary; it lists characteristics of the economic environment, among them that "the cumulative inflation rate over the three years before the date the economy is classified approaches, or exceeds, 100%" (paragraph 5). Paragraph 6 provides that "a decree is issued by the Prime Minister or his delegate setting the start and end date of the financial period or periods during which this standard must be applied where the functional currency is the local currency". The standard then applies from the start of the period in which the economy is classified, with comparatives restated, while for foreign operations the status of the economy is determined by judgement. As of 29 September 2026, the decree listings of the Financial Regulatory Authority and the Ministry of Investment and Foreign Trade show no decree setting that period for the Egyptian pound, and no later decree amending the Egyptian Accounting Standards.

Table: recent years' main amendments

What this requires

• Do not extend the exceptional treatments in the appendices to Standard (13) beyond the financial period each appendix defines; they apply only to that period's financial statements.
• Apply the "lack of exchangeability" provisions of the 2024 version of Standard (13) to annual reporting periods beginning on or after 1 January 2024 whenever a currency cannot be exchanged into another, with the disclosures required by paragraph 57A.
• Check whether the entity's local-currency government debt instruments and short-term local-currency deposits meet the conditions of the expected-credit-loss exception in Standard (47)'s appendix, and disclose its use.
• Review any insurance contracts against Standard (50).
• Track the decree of the Prime Minister or his delegate setting the period for applying Standard (51) to the Egyptian pound, and judge whether the economy of any foreign operation of the entity (branch, subsidiary, associate or joint venture) is hyperinflationary.
• Do not confuse these standards with the Egyptian Standards on Auditing issued by Decree No. 3725 of 2025, which govern audit and review work, not the preparation of financial statements; they are covered in Egypt's new auditing standards.

The firm's Audit & Assurance Department tracks amendments to the Egyptian Accounting Standards and assesses their effect on entities' financial statements and the timing of their application.

Mahmoud Nassef — Chartered Accountant (Egyptian Register), Founder Partner

Member, Egyptian Society of Accountants & Auditors
Member, Egyptian Tax Society
Member, Egyptian Society for Public Finance and Taxation

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