PHOTO
Basel El-Hini, Chairman of Misr Insurance Holding, has contracted with United Accountants Members Of Nexia International; To apply Egyptian Accounting Standards Numbers 47 for financial instruments, 48 for revenue from contracts with customers, and 49 for leasing, to apply this to the group and its subsidiaries.
El-Hini said during the signing ceremony, that they have chosen United Accountants Members Of Nexia International as one of the best professional Firms in applying accounting standards No’s. 47, 48 and 49, stressing the importance of applying these standards in compliance with the decision of the Financial Supervisory Authority, by following many urgent and necessary procedures To meet the requirements of international standards.
These procedures are represented in strengthening coordination between specialized units, such as risk departments, technical and financial departments, compliance, internal audit and information technology, and the need to work to achieve integration and compatibility between financial data and risks, in addition to the need to collect and preserve historical data necessary to develop models for expected losses.
Haytham Torkey, the executive partner of United Accountants, stressed that there are challenges with Misr Insurance Holding Group and its subsidiaries, which requires raising the capabilities and skills of employees keeping pace with the latest developments in insurance at the international level.
Torkey pointed out the need to strengthen the role of research departments to identify future economic scenarios in preparation for preparing expected credit losses models, as well as identifying business models that will be used when applying Standard No. 47 and the revenue recognition approach, as well as accounting treatments for lease contracts. As well as the need to develop the risk management environment, underwriting and investment policies in the companies operating within the group. He added that the application of the three new standards may lead to some insurance companies within the group forming a greater amount of provisions, which would lead to affect profits, and consequently affecting the regular capital, so all companies within the group must speed up. In determining the financial and operational effects on its financial statements.
-Ends-