Regulatory Alerts2017-01-01
Minister of Investment Decision No. (16) of 2017
The Egyptian Minister of Investment issued Decision No. 16 of 2017 to amend Egyptian Accounting Standard No. 13 by adding Appendix A, which introduces a special optional accounting treatment for entities affected by the November 3, 2016 foreign exchange rate liberalization. The decision permits eligible entities to capitalize foreign exchange differences arising from foreign currency liabilities financing fixed assets, real estate, and intangible assets into the asset's cost, or alternatively recognize such differences in Other Comprehensive Income. It establishes an adjusted cost model using a specific adjustment factor to restate historical costs and accumulated depreciation, with detailed disclosure and transitional requirements to mitigate the financial impact of the currency float.