Updated AOSSG survey on the financial reporting practices of Islamic financial institutions
08 Apr 2024
The Asian-Oceanian Standard-Setters Group (AOSSG) has released the results of a follow-up survey into the financial reporting standards that Islamic financial institutions (IFIs) are legally required to comply with in their jurisdiction and the extent of compliance. The research was previously carried out on 2014 and 2016 data and has now been updated for 2022 data.
The 2022 update indicates that there has been only limited movement in the various practices among the sample of IFIs reviewed. The financial reporting frameworks applied by the IFIs continue to vary, with IFRS Accounting Standards being applied by the majority.
It was also observed that in some financial statements that adopted FAS (the accounting standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)), IFRS Accounting Standards were typically applied for transactions that are not accommodated by FAS. However, the reverse was not noted for financial statements that asserted compliance with IFRS Accounting Standards. The study concludes:
This helps demonstrate that IFRS Accounting Standards as global financial reporting standards are generally able to accommodate a wide range of transactions including those related to Islamic finance.
Please click for access to the study on the AOSSG website.
