Regulatory Alerts2025-05-11
Added · Updated
Circular on Accounting for Investments in Subsidiaries and Associates by Cost or Equity Method
The Central Bank of Egypt mandates that banks prepare separate financial statements applying all Egyptian accounting standards, allowing them to account for investments in subsidiaries and associates either at cost or using the equity method. Banks must apply the same accounting treatment to all investments within each category, and if the equity method is chosen, the result must be approved by the bank's auditors. Realized retained earnings at the start of application cannot be distributed without prior reference to the Central Bank, and disclosures must include cost balances for comparative analysis.
Topics
Share