Recent AAOIFI developments
11 May, 2017
The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) is an Islamic international autonomous non-for-profit corporate body that prepares accounting, auditing, governance, ethics and Sharia'a standards for Islamic financial institutions and the industry. Recently, the AAOIFI has approved and published two exposure drafts and one final standard and a comprehensive report on its activities since 2014. The AAOIFI has also embarked on a major project to develop guidance on Islamic endowments.
The exposure drafts regard an AAOIFI accounting standard on impairment and credit losses as well as an accounting standard on sukuk (comparable to conventional bonds). More information is available here:
The new standard regards repurchase transactions and the applicable Shariah rulings for the Islamic financial institutions. The new standard is the 58th standard issued by the AAOIFI. More information is available here.
The report AAOIFI in 850 Days, which was already released in February 2017, covers AAOIFI developments, activities, projects, and achievements from September 2014 to the end of 2016. It can be downloaded in an English and an Arabic version through this press release.
Finally, the AAOIFI board has approved a plan to issue guidance covering sharia-compliance, accounting and governance of awqaf, with a working group established for the project. Awqaf are Islamic endowments that receive donations to operate specific social projects, such as mosques, schools and welfare schemes. Most awqaf do not disclose full financial figures yet. More information is available in this press release.