Prime Minister's Resolution No. (1847) of 2023

2 The Official Gazette – No. 19 Repeated (A) on May 16, 2023 Prime Minister's Resolution No. 1847 of 2023 Regarding the Amendment of Certain Provisions of Egyptian Accounting Standards Prime Minister

Having reviewed the Constitution;
And Law No. 159 of 1981 concerning Joint Stock Companies, Commandite by Shares Companies, Limited Liability Companies, and Single-Person Companies, and its Executive Regulations; And Capital Market Law No. 95 of 1992, and its Executive Regulations; And Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments; And Presidential Decree No. 269 of 2018 forming the Cabinet; And Presidential Decree No. 279 of 2018 delegating certain authorities to the Prime Minister; And Prime Minister's Resolution No. 909 of 2011 forming the Committee for Reviewing Egyptian Accounting Standards, Egyptian Auditing and Limited Assurance Standards, and Other Attestation Engagements; And Investment Minister's Resolution No. 110 of 2015 concerning Egyptian Accounting Standards; And Investment Minister's Resolutions No. 16 of 2017 and No. 69 of 2019 concerning the amendment of certain provisions of Egyptian Accounting Standards; And Prime Minister's Resolutions Nos. 1568 and 4706 of 2022, and No. 883 of 2023 concerning the amendment of certain provisions of Egyptian Accounting Standards; And upon the proposal submitted by the Chairman of the Board of the Financial Regulatory Authority (FRA);

3 The Official Gazette – No. 19 Repeated (A) on May 16, 2023 IT IS RESOLVED:

(Article One)
The provisions of paragraphs 5/(c), (7), and (9) of Annex (C) attached to Egyptian Accounting Standard No. 13 concerning "The Effects of Changes in Foreign Exchange Rates", and added by the aforementioned Prime Minister's Resolution No. 4706 of 2022, are replaced with the following provisions:

Paragraph 5/(c): The financial period for applying the special accounting treatment provided in this Annex is the year or financial period that begins before October 27, 2022 ("the foreign exchange rate movement date") and ends on or after this date, as well as the subsequent financial year or period.

Paragraph (7): An entity that, prior to the foreign exchange rate movement date, acquired fixed assets and/or real estate investments and/or exploration and evaluation assets and/or intangible assets (excluding goodwill) and/or right-of-use assets from lease contracts, financed by liabilities existing on that date in foreign currencies, may recognize within the cost of those assets the debit currency differences resulting from the settled portion of these liabilities during the financial period for applying this special accounting treatment, in addition to the currency difference resulting from translating the remaining balance of these liabilities at the end of December 31, 2023, or at the end of the financial statement closing date for the financial period applying this special accounting treatment, using the exchange rate applied on that date. The entity may apply this option for each asset individually.

Paragraph (9): As an exception to the requirements of paragraph "28" of the amended Egyptian Accounting Standard No. (12) "The Effects of Changes in Foreign Exchange Rates" concerning the recognition of currency differences, an entity whose operating results were affected by net foreign exchange profits or losses due to the movement of foreign exchange rates, whether its recording currency is the Egyptian Pound or any other foreign currency, may recognize within Other Comprehensive Income items the net debit and credit currency differences realized during the period, in addition to the differences resulting from retranslating existing monetary item balances at the end of December 31, 2023, or at the financial statement closing date for the financial period applying this special accounting treatment, using the exchange rate applied on that date, net of any translation differences recognized within asset costs in accordance with paragraph "7" of this Annex. This is on the basis that these differences arose essentially due to unusual foreign exchange rate movements.

(Article Two)
This Resolution shall be published in the Official Gazette, and shall take effect from the day following its publication date.

Issued on: / 2023/
Prime Minister
Dr. Mostafa Kamal Madbouly

Chairman of the Board

Deposit Number at the National Library: 65 of 2023 709 - 2023/5/16 - 2022 / 26024