“Challenges and Adaptations of IAS 19: Employee Benefits in EGYPT Evolving Economic and Actuarial Landscape”

Samy Said El Azab, Ahmed; Salah Eldin, Zahra; Ali Abdelrahman, Raghda

doi:10.21608/alat.2024.433877

“Challenges and Adaptations of IAS 19: Employee Benefits in EGYPT Evolving Economic and Actuarial Landscape”

نوع المستند : المقالة الأصلية

المؤلفون

¹ Department of Insurance and Actuarial Science, Faculty of Commerce, Cairo University, Cairo, Egypt,

² Department of Insurance and Actuarial Science, Faculty of Commerce, Cairo University, Cairo, Egypt.

10.21608/alat.2024.433877

المستخلص

Abstract
The implementation of International Accounting Standard 19 (IAS 19), which governs the accounting and reporting of employee benefits, has presented several challenges in Egypt, reflecting broader issues experienced in emerging markets. IAS 19 mandates that entities recognize obligations for employee benefits, such as pensions and other post-employment benefits, with detailed disclosures on how these are measured and managed. However, adaptation in Egypt faces unique hurdles, including a lack of comprehensive actuarial data, limited local expertise in IAS 19 applications, and differences between international standards and Egypt's traditional accounting practices.
A key challenge in implementing IAS 19 in Egypt is aligning local regulatory requirements with the standard's complex stipulations. Egyptian entities must move from traditional accounting methods for employee benefits to actuarial valuations, incorporating assumptions regarding discount rates, inflation, and longevity. This shift requires specialized expertise, which is still emerging in Egypt's financial and actuarial sectors. Economic volatility and inflation further complicate these assumptions, making accurate long-term projections difficult.
While the IAS 19 has enhanced transparency and comparability in financial reporting, the complexities related to actuarial assumptions and the handling of remeasurements continue to pose significant challenges. Therefore, the role of the actuary becomes essential in ensuring the accuracy and reliability of the calculations, further strengthening the effective application of IAS 19 in determining and disclosing provisions related to employee benefits.

الكلمات الرئيسية