Egypt: Accounting and Audit

The Egyptian tax system has undergone a significant change following the enactment of Law No. 151 of 2026, amending certain provisions of the Income Tax Law No. 91 of 2005. Article 6 of the new law repealed Article 18 of the Income Tax Law, which had provided the legislative basis for issuing specific rules and principles for the tax assessment of small enterprises.

Market movements occur irrespective of the calendar used for the financial reporting cycle. Interest rates may shift in between reporting dates, exchange rates can shift within a short while, market multiples can shift rapidly, and news about the entity itself might influence the expectations of the market participants until the next reporting date.

In today’s complex business world, companies are under more and more pressure from all types of investors, auditors, regulatory bodies, and other stakeholders in relation to carrying amounts stated in their accounting statements. When it comes to the issue of goodwill, the above-mentioned problem becomes especially acute since usually the asset constitutes one of the biggest assets recorded in a company’s financial statement and also involves much judgement on the part of accountants. It should be noted that unlike other assets, goodwill cannot be depreciated using IFRS guidelines.