EGYPTIAN ACCOUNTING STANDARDS (EASs) vs IFRSs

History

For Private Sector

For Public Sector

In 1985
• IASs were informally introduced to the Egyptian market by the representatives of the big 8 at that time.

• Unified Accounting System (UAS)

In 1992
• Issuance of law 95 for 1992 (Capital Market Law) imposing the use of
IAS.

• Unified Accounting System (UAS)

In 1997
• The 20 standards drafted by ESAA were issued by Minister of Economy in compliance with IASs with 4 deviations
*

• The preface of EASs stated that any subject not dealt with in the EASs, IASs should be applied.
• Later, 3 more standards were drafted by ESAA and issued by the minister with the withdrawal of 3 standards withdrawn by IASB.

In 2005
• ESAA’s standards committee started a project to go in line with the international development.
• The existing 19 EASs were revised.
• The remaining 16 EASs were drafted.

Present status

• The 35 EASs were issued. They are in number equal to what is issued internationally up till 2006 through IAS series or IFRS series.
• The new set of EASs are to be applied on Financial Statements started on or after 1 January 2007.

* ESAA: Egyptian Society of Accountants and Auditors

EGYPTIAN ACCOUNTING STANDARDS (EASs) vs IFRSs

Summary of Egyptian Accounting Standards (EASs) vs IFRSs
Property, plant and equipment
Under IFRS, the use of historical cost or revalued amount is permitted. Frequent valuations of entire classes of assets are required when the revaluation model is chosen. Under EAS, evaluation is not permitted except in certain circumstances (e.g, a merger or a change in the legal structure).

Acquisitions from entities under common control
Under IFRS, there is no specific guidance for transfers of net assets or exchanges of equity interests between entities under common control. In practice, the approaches