AAOIFI's standard on impairment and credit losses may be early adopted
24 Jan, 2018
In November 2017, the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) issued its new standard FAS 30 'Impairment, Credit Losses and Onerous Commitments'. The AAOIFI's Accounting Board has now approved transitional arrangements that will allow for an early adoption of FAS 30 from 1 January 2018.
Transitional arrangements had to be found since while FAS 30 was issued in November, its companion standard FAS 35 Risk Reserves is still only an exposure draft and will need some more time to be issued.
Please see the press release on the AAOIFI website for the transition arrangements.