19 December 2024

PR/23/2024

The Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI’s) Accounting Board (AAB / the board) has officially issued FAS 49 “Financial Reporting for Institutions Operating in Hyperinflationary Economies”.

FAS 49 prescribes principles of financial reporting for the institutions applying FASs operating in hyperinflationary economies, duly considering the relevant Shari’ah principles and rules and their unique business models.

On this occasion, Mr. Hamad Al Oqab, chairman of the AAB, stated: “Post COVID-19 one of the many economic challenges faced by the global economies has been hyperinflation. The board considering the business model challenges and Shari’ah principles and rules requirements in financial reporting, decided to develop a specific FAS addressing the unique circumstances posed by hyperinflation”. He added: “We hope the standard will improve transparency and comparability in financial reporting while adhering to the Shari’ah requirements.”

Mr. Omar Mustafa Ansari, secretary general of AAOIFI, expressed appreciation for the board, working group members and AAOIFI secretariat’s dedication in consistently striving to improve financial reporting for Islamic financial institutions, particularly while developing this standard. He added: “The objective of AAB is to address the evolving financial reporting needs of all stake holders by adding value for the financial statement users, in line with Shari’ah principles and rules. The challenges arising in development of this standard were enormous, and we thank all stakeholders for their relevant input and support.”

The standard can be accessed on AAOIFI website: standard Link