FRA updates accounting standards, supports carbon markets

Daily News Egypt
3 Min Read

The Financial Regulatory Authority (FRA) aims to achieve the goals of regulators of the non-banking financial sector, which include ensuring its stability and safety, as well as improving the business environment, said Mohamed Farid, Chairperson of the FRA.

Farid noted the improvement of stock market indicators and said that the FRA is working to ensure the safety and validity of transactions in the capital market and to issue rules that facilitate liquidity and trading.

He also highlighted the amendments to the Egyptian accounting standards that were issued by a decision of the Prime Minister based on the recommendation of the Egyptian Accounting Standards Review Committee. The amendments introduce the revaluation model on fixed assets and intangible assets and the fair value model on real estate investment, which allow companies to re-evaluate their assets to reflect their fair and true value under Egyptian accounting standards. Farid said that this reflects the state’s keenness to facilitate foreign investments and encourage international companies to invest in Egypt.

Farid also announced the FRA’s decision to issue Egyptian standards for the financial evaluation of establishments, by developing methodologies and models that suit the nature and work of emerging companies.

He said that the FRA is digitizing non-banking financial transactions and making them a top priority in implementing the law to use technology in non-banking financial activities.

Farid confirmed that carbon markets will be officially activated soon in support of the state’s efforts to achieve carbon neutrality following international standards and Egypt’s 2030 vision to achieve sustainable development.

He added that reducing carbon emissions is “no longer a luxury” and that the FRA submitted to the Prime Minister a proposal to introduce some amendments to the executive regulations of Capital Market Law No. 95 of 1992 that would allow the issuing of various financial instruments that are compatible with the environment and climate protection, including carbon certificates. He said that this is to establish the legislative framework for trading the new financial instrument.

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