“For
the Islamic finance industry -though emerging, but
rapidly growing and evolving- standards are
important as they give shape to the market and help
to define characteristics of the industry… and also
provide the basis for continuing the development of
this industry.”
Since
1991, when the Islamic banking and finance industry
itself decided that the existing international
standards were inadequate to cater for its needs, we
have come a long way to being recognized as the main
standard-setting organization.
We
have now issued up to 70 standards on accounting,
auditing, and governance, in addition to codes of
ethics and Shari’a standards.
At the same time, we are working diligently on
preparing new standards, redrafting current ones
taking into account all newly emergent requirements
and needs of IFIs all over the world, and conducting
relevant researches and consultancies crucial to
activating and enhancing all efforts and skills
available...
AAOIFI was established in
accordance with the Agreement of Association signed
by Islamic financial institutions on 1 Safar, 1410
H, corresponding to 26 February 1990, in Algeria. It
was registered on 11 Ramadan 1411 H, corresponding
to 27 March 1991 in the State of Bahrain (Kingdom of
Bahrain, now) as an International autonomous
not-for-profit corporate body. AAOIFI is
responsible for developing accounting, auditing,
ethics, governance, and Shari’a standards for the
international Islamic banking and finance industry.
In addition, AAOIFI contributes significantly to the
professional development for the industry. AAOIFI is
supported by over 160 institutional members from
around 40 countries. It has its corporate
office in Kingdom of
Bahrain.
● "Objectives
of Financial Accounting for Islamic Banks and
IFIs" and "Objective and
Principles of Auditing"
Accounting encompasses several areas, generally
agreed to include financial accounting,
managerial accounting, cost accounting, and
accounting for non-for-profit organizations.
We are concerned here only with financial
accounting.
“For
the Islamic finance industry -though emerging, but
rapidly growing and evolving- standards are
important as they give shape to the market and help
to define characteristics of the industry… and also
provide the basis for continuing the development of
this industry.”
Dr. Mohamad Nedal Alchaar,
