The request for papers states that the group does not judge whether products are compliant with the requirements of Shariah law as this is beyond the group's remit. Rather, the members of the group intend to focus on challenges that may arise in applying IASB pronouncements to Islamic products and to make recommendations to the Board about steps that it might take.

The working group was formed as a result of the IASB's 2011 agenda consultation and held an initial meeting in Kuala Lumpur in July 2013. During the meeting, the group identified four areas that it wants to address and invite papers on. These areas are identified in the request for papers as follows:

• The application of IFRS 9's classification and measurement principles;
• the application of the IASB's proposed lease standard to Ijarah;
• whether restricted and unrestricted investment accounts are to be presented on- or off-balance sheet; and
• profit equalization reserves (PER) because of significant differences in practice.

The request for papers published today addresses the first of the four issues. Respondents are asked to answer whether some or all of the Islamic products typically owned by Islamic banks qualify for amortised-cost classification.  If they believe the answer is "yes," they are asked to provide the basis for their conclusion. If they believe the answer is "no," they are asked to explain what steps, if any, the Board should take to either clarify the classification of these contracts or to amend IFRS 9 Financial Instruments. Papers should be submitted by 1 August 2014.

Additional information available on the IASB's website:

• Press release
• Request for papers
• Comparison of 17 Islamic banks and the Islamic products offered
• Notes on the bank comparison

Please see also our IAS Plus page with general information on Islamic accounting.