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AAOIFI issues three new financial accounting standards

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02 Jan 2022

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has issued financial accounting standard (FAS) 1 (Revised 2021) 'General Presentation and Disclosures in the Financial Statements', FAS 39 'Financial Reporting for Zakah', and FAS 40 'Financial Reporting for Islamic Finance Windows'.

The revised FAS 1 supersedes the earlier FAS 1 General Presentation and Disclosures in the Financial Statements of Islamic Banks and Financial Institutions and introduces the concepts of quasi-equity, off-balance-sheet assets under management and other comprehensive income to enhance the information provided to the users of the financial statements.

FAS 39 improves upon and supersedes FAS 9 Zakah and aims at setting out the accounting treatment of Zakah in the books of the institutions, including the presentation and disclosure by an Islamic financial institution.

The objective of FAS 40 is to establish financial reporting requirements for Islamic finance windows and is applicable to all conventional financial institutions providing Islamic financial services through an Islamic finance window. The standard improves upon and supersedes FAS 18 Islamic Financial Services Offered by Conventional Financial Institutions.

More information on the standards is available through the press releases on the AAOIFI website:

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