Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), the international standard-setting organization for Islamic finance, held the second meeting of its newly formed Accounting Board (AAB) on 30^th  – 31^st July 2016, in the Kingdom of Bahrain.

The meeting was graciously hosted by Al Baraka Banking Group (ABG) at its headquarters, where Mr. Adnan Ahmed Yousif, President and Chief Executive of Al Baraka Banking Group (ABG), welcomed Board members, and re-assured ABG’s keenness to support AAOIFI and the broader Islamic finance industy’s initiatives.

Mr. Hamad Eqab, Chairman, AAB, opened the meeting and welcomed the Board members, and Mr. Omar Mustafa Ansari, Deputy Secretary General, AAOIFI, welcomed the Board memebrs and thanked them for their sacrifice of valuable time towards AAOIFI’s mandate. He also expressed gratitude to ABG for hosting the meeting.

The board reviewed updates and follow-up on its work plan for 2016 including projects on several financial accounting standards that were assigned to respective working groups.

In particular, the Board discussed the following:

• Draft financial accounting standard on Murabaha, which was assigned to the working group for finalization with specific directions, and whereby the Board set up target date for issuance of the exposure draft by end of 2016;
• Preliminary studies on Ijarah and Sukuk standards, whereby it provided specific guidance to the working group with target of finalizing the two standards by end of 2016. The Board discussed its approach for the work on these draft standards including identification of the key questions and issues that need to be adressed in the new editions. With respect to the new Sukuk standard, and the Board defined its approach for collaboration with the respective working group for Shari’ah Standard on Sukuk (a parallel project undertaken by AAOIFI Shari’ah Board);
• Preliminary study on Zakah was approved to be taken over by the working group with expected target by end of 2016.
• Plan of a workshop on accounting matters for Sukuk to be held in October 2016 in Al Khobar, Kingdom of Saudi Arabia.

The next AAB meeting will be held at the end of September 2016 in Manama, Kingdom of Bahrain.