9 December 2024

PR/22/2024

The Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI’s) Accounting Board (AAB / the board) has officially issued FAS 48 “Promotional Gifts and Prizes”.

FAS 48 “Promotional Gifts and Prizes” prescribes the accounting and financial reporting principles for recognition, measurement, presentation and disclosures applicable to promotional gifts and prizes awarded by the Islamic financial institutions to their customers, including quasi-equity and other investment accountholders.

On this occasion, Mr. Hamad Al Oqab, chairman of the AAB, stated: “The board recognised the gap in guidance on the accounting and financial reporting aspects of promotional gifts and prizes, and accordingly, decided to develop a specific FAS on this subject”. He further expressed: “We extend our sincere gratitude to the AAB members, the working group members, and AAOIFI’s secretariat for their steadfast commitment to addressing emerging market needs in line with the development in global best practices.”

Mr. Omar Mustafa Ansari, secretary general of AAOIFI, also stated: “Market practices are evolving rapidly, and we at AAOIFI are cognizant about the need to enhance financial reporting for Islamic financial institutions”. He added: “As part of the robust AAOIFI standard setting process, due consultation and engagement with all stakeholders has been done and valuable feedback from industry experts and Shari’ah scholars has been incorporated.”

The standard can be accessed on AAOIFI website: standard Link