The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), in partnership with the Turkish Accounting and Auditing Standards Institution (KGK), the Accounting Oversight Body of Turkey, held a public hearing for its exposure drafts on two financial accounting standards on Sukuk Issuances  (FAS No. 29), and FAS No. 34  on “Financial Reporting for Sukuk-Holders”.

The public hearings were conducted at KGK headquarters, in Ankara, Turkey, and were attended by personnel from the banking and finance profession, Shari’ah Scholars, members of KGK, academicians, and students of Islamic finance from local universities. The hearing was convened by Mr. Omar Mustafa Ansari (Deputy Secretary General, AAOIFI). The participants actively interacted and provided their comments and views on the content of these two standards.

FAS 29 sets out accounting and classification guidelines for Sukuk issued by Islamic financial institutions and other types of Sukuk issuers, while FAS No. 34 aims to make sure the Sukuk-holders and other stakeholders are provided with suitable financial information about the assets/venture at the back end.

Mr. Omar Mustafa Ansari thanked the management of KGK and the Central Bank of Turkey for supporting the initiative and expressed hopes that AAOIFI will work closely with these bodies for promotion of Islamic finance growth and standardization in Turkey.

All industry feedback received—in the form of questions, comments, suggestions, and recommendations—during the public hearings will be collated and taken back to  AAOIFI Accounting Board to become a subject of further discussion and deliberation before the issuance of the two standards.  Those interested in commenting on the exposure drafts for the two proposed standards may still do so by emailing at accounting@aaoifi.com.