The Technical Advisory and Interpretations Committee (TAIC), constituted by the AAOIFI Accounting Board (AAB) of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has officially issued Accounting Technical Release (ATR) “Illustrative Financial Statements for Islamic Banks and Similar Institutions” in line with the Financial Accounting Standard (FAS) 1 “General Presentation and Disclosures in the Financial Statements”.

The TAIC, has guided and steered the project of developing the model general-purpose financial statements covering a wide range of products, services and transactions provided by and pertaining to Islamic banks and similar institutions.

The illustrative financial statements have been subject to a thorough review process, including deliberations and input by subject-matter and industry experts from various jurisdictions from around the world, in the form of multiple roundtable events and discussion forums. In addition to covering presentation and disclosure requirements provided in earlier AAOIFI FASs, the illustrative financial statements also demonstrate in detail the presentation and disclosure requirements of the newly introduced concepts of quasi-equity, off-balance-sheet assets under management and other comprehensive income.  

Mr. Firas Hamdan, the chairman of TAIC, stated that “We are grateful for the efforts exerted by the members of the TAIC and all contributing experts, as well as, the AAOIFI secretariat team, for the completion of this comprehensive project. We are hopeful that these illustrative financial statements shall not only form a valuable and conceptually correct foundation for financial reporting for Islamic banks and similar institutions, but also encourage more jurisdictions to adopt AAOIFI FASs as their financial reporting framework”.

These illustrative financial statements will be revised on an on-going basis as and when new AAOIFI FASs are issued. 

The AAOIFI Accounting Technical Release (ATR) “Illustrative Financial Statements for Islamic Banks and Similar Institutions” can be accessed by clicking here.