PR/09/2025

29 July 2025

The Accounting Board (AAB / the board) of Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI’s) held its 43^rd meeting on 28-29 July 2025, at AAOIFI’s head office, in the Kingdom of Bahrain. The board approved, in principle, the issuance of AAOIFI Financial Accounting Standard (FAS) 52 “Deferred Delivery Sales: Salam and Istisna” and FAS 53 “Istisna-based Development Contracts”. It may be noted that FAS 52 and FAS 53 will be replacing FAS 7 “Salam and Paralell Salam and FAS 10 Istisna’a and Paralell Istisna’a”.

The board members discussed the draft statement to withdraw FAS 26 “Investment in Real Estate”, providing transitional guidance on accounting treatment for property investments and the requisite disclosures. The board also decided to hold a roundtable to get inputs from relevant stakeholders on the transitional guidance on the planned withdrawal of FAS 26.

In line with its strategy to align the existing FAS with generally accepted accounting principles where there is no Shari’ah issue or difference in business model, the board had earlier formed a working group to review FAS 23 “Consolidation” and FAS 24 “Investment in Associates”. The board tasked the working group to develop detailed guidance on business combinations, consolidation, joint ventures and equity accounting.

Mr. Hamad Al Oqab, chairman of the AAB, stated on the occasion: “The former and current board has worked diligently in completing the review and revision of the existing FAS, including the timely Arabic translation of the standards.”

He acknowledged and appreciated the contributions of the board members, working group members and the secretariat team.