Egypt- FRA directs insurers to set up reserve against EAS 47 application risks
Thursday, 10 08 2020, Category: Insurance and Reinsurance, Country: Egypt
Egypt's Financial Regulatory Authority (FRA) has directed insurers to set up a reserve to mitigate the risks of applying the Egyptian Accounting Standard (EAS) No. 47 for financial instruments to insurance companies.
The reserve shall be 1% of a company's total assets and allocated from the net profit after withholding tax for the previous fiscal year ending 30 June 2020.
The reserve will be included in the shareholders' equity, and only used after the approval of the FRA.