Mohamed Farid, Chair of the Egypt Financial Regulatory Authority, used a keynote address at the Arab Union of Accountants and Auditors’ international conference in Cairo to highlight recent upgrades to Egyptian Accounting Standards and related auditor oversight measures, framing them as steps to strengthen transparency and support investor decision-making as capital flows increasingly target sustainability-managed assets. He pointed to Egypt’s first green bond issuance and the launch of an organised voluntary carbon market as signs of the shift toward sustainable finance. The accounting standards changes he referenced include amendments to the Egyptian standard on the effects of changes in foreign exchange rates to align with International Accounting Standard Board amendments to IAS 21, including requirements for entities to estimate foreign exchange rates and provide related disclosures. The package also introduces a revaluation model for property, plant and equipment and intangible assets, applies a fair value model to investment property, and adjusts the accounting treatment and presentation of foreign exchange differences. Farid also cited eased rules for registering external auditors with the Authority’s registers, alongside requirements for audit offices to pursue ongoing professional development, and highlighted a Prime Ministerial accounting interpretation on carbon emission reduction certificates that sets out scope, classification as a financial asset or intangible asset depending on purpose, and treatments for issuance and purchase scenarios including cancellation for carbon offsetting and purchase for trading. Capacity-building was flagged as a key implementation issue, with plans for the Arab Union’s training centre to coordinate with the Authority on developing and delivering training programmes on updated standards.
Egypt Financial Regulatory Authority 2025-09-28
Egypt Financial Regulatory Authority chair outlines Egyptian accounting standards reforms including carbon certificate accounting guidance
Mohamed Farid, Chair of the Egypt Financial Regulatory Authority, highlighted upgrades to Egyptian Accounting Standards and auditor oversight at an international conference, emphasizing their role in enhancing transparency and supporting sustainable finance. Key changes include alignment with International Accounting Standards, a revaluation model for assets, and eased auditor registration rules. Farid also noted Egypt's first green bond issuance and the launch of a voluntary carbon market as indicators of a shift towards sustainable finance.