24 December 2024

PR/25/2024

The Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI’s) Accounting Board (AAB / the board) has officially issued FAS 50 “Financial Reporting for Islamic Investment Institutions (including Investment Funds)”.

The new standard outlines financial reporting principles applicable to Islamic investment institutions (IIIs). It particularly emphasises on bringing harmony and standardisation with regard to the form and contents of the financial statements of IIIs. It also prescribes the overall requirements for the presentation, minimum contents and recommended structure of their financial statements in a manner that facilitates truthful and fair presentation in line with Shari’ah principles and rules.

This standard supersedes the earlier FAS 14 “Investment Funds” which was identified for revision and improvement as a result of the comprehensive FAS review and revision project initiated by the board.

On this occasion, Mr. Hamad Al Oqab, chairman of the AAB, stated: “The board recognised the need for developing new standards and revising existing standards for the growing needs of the Islamic capital markets. The revision of the financial accounting standard applicable on Islamic investment institutions  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 sincerely thank the AAB members, working group members, the consultants and AAOIFI’s secretariat for their extraordinary hard work for the development of this standard.”

Mr. Omar Mustafa Ansari, secretary general of AAOIFI, stated: “The issuance of this standard marks another milestone of the comprehensive FAS review and revision project. Its positive impact on the Islamic investment institutions industry is eagerly awaited. This is further aligned with AAOIFI’s increased focus on harmonising and standardising the practices in Islamic capital markets.”

The standard can be accessed on AAOIFI website: standard Link