The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Accounting Board (AAB / the board) has officially issued the exposure draft of Financial Accounting Standard (FAS) “Control (of Assets and Business).”

The objective of this standard is to establish the principles of assessing as to whether and when an institution controls an asset or a business, both in the case of underlying asset(s) of a participatory structure, as well as, for the purpose of consolidation of financial statements of subsidiaries.

On this occasion, Mr. Hamad Al Oqab, Chairman of AAB, stated that; “Due to the unique nature of instruments and structures pertaining to Islamic finance including participatory arrangements, it was important to establish the guidelines on the criteria of control due to its pervasiveness and the need to prescribe the same at one place for many considerations including consistency and ease of reference.”

The issued standard can be accessed exclusively by the digital version (of AAOIFI standards) subscribers, and free subscription can be attained, on the AAOIFI website: www.aaoifi.com