AAOIFI Governance and Ethics Board approves Basis for Conclusions for two governance standards

The Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI’s) Governance and Ethics Board (AGEB) has approved the Basis for conclusions (BoCs) for its governance standards for Islamic financial institutions on (GSIFI) No. 8, Central Shariah Board (CSB) and GSIFI No. 9, Shari’ah Compliance Function (SCF) at its 12th meeting held in Karachi, Pakistan.
BoCs summarize the considerations that were taken during the course of the development of the standard and in reaching the conclusions. These include reasons for accepting particular views and opinions of the stakeholders and rejecting others, and include major issues as well as to interpret relevant requirements that were under discussion during the working group and board meetings and also during the public hearing for the respective standards. Accordingly, AGEB in its 8th meeting recommended to add the BoCs for all new governance standards that are being / have been issued recently. The BoC will form part of the appendices to the main standard and appended thereto as appendix. As a practise BoCs were initially published for AAOIFI’s Shari’ah and accounting standards.
Mr. Omar Mustafa Ansari, Secretary General, AAOIFI stated, “We believe that BoCs form an important part of AAOIFI standards that will guide the stakeholders on reasons for arriving at conclusions on significant topics deliberated. This also aim to promote transparency in the standards development process. We are glad that these will now form mandatory part of governance standards as well”.
The complete standards for Central Shariah Board (CSB) and Shari’ah Compliance Function (SCF) can be viewed BY CLICKING HERE