Standards Development and Revision Processes


Standards Development and Revision Processes

In carrying out the standards development and revision processes of AAOIFI standards, the relevant standards board will be working with AAOIFI General Secretariat and, if deemed necessary, external consultants.  The relevant standards board may also form committees or working groups, in coordination with the General Secretariat, to assist with the board’s work programs.

Such committees or working groups may comprise representatives of the relevant standards boards together with other representatives of the international Islamic finance industry stakeholders.

The standards development and revision processes can be summarised as follows:

(a) Work program or agenda

The relevant standards board, in coordination with the General Secretariat, will draw up a tentative work program or agenda to include potential new standard to be developed, or existing standard to be reviewed.  In preparing the work program or agenda, suggestions and feedback from the international Islamic finance industry as well as members of AAOIFI standards boards will be collated.  The work program or agenda is to be updated whenever necessary.

(b) Preliminary study or research

When a new standard is to be developed, or an existing standard to be reviewed, a preliminary study or research will be prepared.  The preparer of the preliminary study or research may be members of the General Secretariat or/and external consultant/s.

The preliminary study or research is subject to discussions with the relevant committee or working group (if applicable) and the relevant standards board.

(c) Consultation note

Subsequent to the preliminary study or research, a consultation note will be prepared by members of the General Secretariat or/and external consultant/s to give include an outline on proposed major points of a new standard, or proposed major changes to an existing standard.

The consultation note is subject to discussions with the relevant committee or working group (if applicable) and the relevant standards board.

When the relevant standards board has agreed with the consultation note, it will then be released to the international Islamic finance industry and beyond, for comments and suggestions.  The consultation note may also be submitted to technical workshops, public hearing meetings or/and similar forum.

Comments and suggestions received will need to be considered when developing an exposure draft of the standard.

(d) Exposure draft

Subsequent to the consultation note, an exposure draft of a new or revised standard will be prepared by members of the General Secretariat or/and external consultant/s.  The exposure draft shall be prepared in the same format as a final standard.

The exposure draft is subject to discussions with the relevant committee or working group (if applicable) and the relevant standards board.

When the relevant standards board has agreed with the exposure draft, it will then be released to the international Islamic finance industry and beyond, for comments and suggestions.  The consultation note will also be submitted to technical workshops, public hearing meetings or/and similar forum.

Comments and suggestions received will need to be considered when updating the exposure draft (which may be subject to further discussions with the industry) and when developing the final standard.

(e) Final standard

Subsequent to the exposure draft, a final new or revised standard will be prepared.

The final standard is subject to discussions with the relevant committee or working group (if applicable), and approval by the relevant standards board.

Upon approval by the relevant standards board, the final standard is then issued to the international Islamic finance industry and considered binding (taking into account effective date of the standard).

Announcement on the issuance of the standard will be made, amongst others, through press releases and on AAOIFI website.

It should be noted that all issued standards are subject to continuous review.  Revision to the standards will be carried out, through the above processes, as and when necessary.