Regulatory Alerts2022-01-01
Decision No. 1378 of 2022 Amending Decision No. 843 of 2022 on the Accounting Treatment for Foreign Exchange Rate Changes Against the Egyptian Pound
The General Authority for Financial Supervision (GAFI) issued Decision No. 1378 of 2022 to amend the accounting treatment for foreign exchange rate fluctuations against the Egyptian Pound under its prior Decision No. 843 of 2022. This amendment introduces a mandatory requirement for regulated entities to obtain GAFI's prior approval before applying specific accounting treatments for foreign currency exchange rate changes. Effective the day after its August 16, 2022 issuance, the decision was published in the Egyptian Gazette and on GAFI's official website following statutory consultations with the Egyptian Insurance Union.
Egyptian Gazette – No. 189, dated August 29, 2022
34 General Authority for Financial Supervision Decision No. 1378 of 2022 Dated August 16, 2022 Amending Decision No. 843 of 2022 regarding the Accounting Treatment for Changes in Foreign Exchange Rates Against the Egyptian Pound
Chairman of the Board of Directors of the General Authority for Financial Supervision, Having reviewed Law No. 10 of 1981 issuing the Law on Supervision and Control over Insurance in Egypt; And Law No. 15 of 2004 regarding the regulation of electronic signatures in Egypt; And Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments; And Presidential Decision No. 192 of 2009 issuing the Basic System for the General Authority for Financial Supervision; And Council of Ministers Decision No. 1568 of 2022, issued on April 27, 2022, regarding the amendment of certain provisions of Egyptian Accounting Standards; And Investment Minister Decision No. 356 of 2007 regarding the application of Egyptian Accounting Standards to insurance companies; And Investment Minister Decision No. 110 of 2015 regarding Egyptian Accounting Standards and its amendments; And Investment Minister Decision No. 16 of 2017 regarding Egyptian Accounting Standards and its amendments, issuing Appendix (A) to Standard No. (13) amended in 2015; And GAFI Board Decision No. 70 of 2016 issuing the Implementation Guide for Egyptian Accounting Standards in the Insurance Sector; And GAFI Board Decision No. 27 of 2017 issuing Appendix (1) to the Implementation Guide for Egyptian Accounting Standards in the Insurance Sector; And GAFI Board Decision No. 68 of 2017 regarding the controls for using the special reserve established pursuant to Appendix (1) issued by GAFI Board Decision No. 27 of 2017; And GAFI Board Decision No. 75 of 2019 amending GAFI Board Decision No. 68 of 2017; And the letter from the Chairman of the Egyptian Insurance Union dated April 19, 2022; And GAFI Chairman Decision No. 843 of 2022 regarding the accounting treatment for changes in foreign exchange rates against the Egyptian Pound; And the memorandum prepared by the Central Department for Supervision and Control of Insurance Companies on this matter;
DECIDES:
35 (Article One) A new paragraph is added to the end of Article Two of GAFI Chairman Decision No. 843 of 2022, referenced above, with the following text: "except after obtaining the prior approval of the Authority in this regard".
(Article Two) This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its issuance. The competent authorities are tasked with its implementation.
Chairman of the Board of Directors General Authority for Financial Supervision Dr. Mohamed Fared Saleh