Challenges in applying conventional international accounting standards for Islamic finance
04 Nov 2011
On 23 and 24 October 2011, the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) was hosting the World Bank Annual Conference on Islamic Banking and Finance. One of the sessions of the meeting was dedicated to 'Challenges in applying conventional international accounting standards for Islamic finance'.
A speech given by Sutan Emir Hidayat, Senior Lecturer at the Islamic Finance University College of Bahrain, outlined the benefits of applying IASs / IFRSs but also showed that full application of international accounting standards by Islamic Financial Institutions (IFIs) can run counter to the objectives of Shariah-compliant banking.
The conclusions from his very detailed analysis are:
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The full deck of slides for this speech is available on the AAOIFI website (PDF 692k). This AAOIFI page offers an overview of the whole programme of the conference with many links to speeches given.