31 December 2025

PR/15/2025

Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI’s) Accounting Board (AAB / the board) has officially issued FAS 52 “Deferred Delivery Sales: Salam and Istisna”. The board also approved FAS 53 “Istisna-Based Development Contracts” in principle, to be issued shortly after completion of due process. The two standards collectively shall supersede the earlier FAS 7 “Salam and Parallel Salam” and FAS 10 “Istisna’a and Parallel Istisna’a” which were identified for revision and improvement as a result of the comprehensive AAOIFI FASs review and revision project initiated by the board.

FAS 52 “Deferred Delivery Sales: Salam and Istisna” prescribes the accounting and financial reporting principles applicable to buyers / customers and sellers / developers of Salam- and Istisna-based deferred delivery sales transactions. The standard improves on its predecessors in several aspects, inter alia, by way of aligning better with the newer standards and generally accepted accounting principles, by providing counter-party accounting in line with AAOIFI’s revised standard-setting strategy and by simplifying the treatment of parallel Salam and Istisna contracts.

On this occasion, Mr. Hamad Al Oqab, chairman of AAB, stated: “The board recognised the need for developing new standards and revising existing standards for the growing needs of the Islamic finance industry. The revision of the standard applicable on Salam and Istisna-based deferred delivery sales transactions was considered fundamental for alignment of the relevant accounting requirements with the growth of the industry, as well as, advancements in global best practices.” He further expressed: “We understand that a great deal of commendable effort has gone into the development process of this standard by the AAB members, working group members and the AAOIFI’s secretariat.”

Mr. Omar Mustafa Ansari, secretary general of AAOIFI, stated: “The issuance of this standard marks another milestone of the comprehensive AAOIFI FASs review and revision project. The standard is aimed to positively impact the Islamic finance industry. The issuance of the same is a step forward in the direction of harmonising and standardising the market practices.”

The standard can be accessed on AAOIFI website: Link