Eass vs Ifrs Essay

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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 • Later, 3 more standards were drafted by ESAA and issued by the minister with the withdrawal of 3 standards withdrawn by IASB.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…show more content…
EAS is silent regarding the accounting treatment for acquisitions between entities under common control. Capital lease Under IFRS, lease classification depends on whether substantially all of the risks and rewards incidental to ownership of a leased asset have been transferred from the lessor to the lessee. Under EAS, the leased asset is recognized in the lessor books and depreciated, and the lessee recognizes lease payments in the income statement in the period in which it is paid. Profit sharing to employees and board of directors Under IFRS, profit sharing to employees and board of directors is recognized when incurred in the income statement (using the accrual basis of accounting). Under EAS, profit sharing to employees and board of directors is recognized as a dividend distribution through equity and as a liability when approved by the relevant company’s shareholders meeting. ESAA’s standards committee started a project to update EASs to comply with changes and additions to IFRSs. It is expected to completed this project by end of 2010. © 2010 KPMG Hazem Hassan, the Egyptian member firm of KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm visà-vis third parties, nr does

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