The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) organised a public hearing, via video conferencing, on exposure drafts of its Financial Accounting Standard (FAS) “Control (of Assets and Business)” and “Off-balance-Sheet Assets Under Management”.

The virtual public hearing was held on Monday, 27 March 2023, in collaboration with Participation Banks Association of Turkiye (TKBB) and Public Oversight Accounting and Auditing Standards Authority (KGK) with the participation of more than 150 experts, practitioners and stakeholders.

Mr. Mohammad Majd Bakir, Director, Professional Standards Development, AAOIFI, presented welcoming remarks and a brief overview of the planned development project for the standards.

Ms. Fatma Cinar, Director, TKBB delivered a welcome address, shedding particular light on the current situation in the Islamic finance industry in relation to TKBB’s jurisdiction in the Republic of Turkiye.

In his welcome address, Mr. Sezayi Toprak, Expert, KGK presented a brief background about the role of KGK as a market oversight authority for accounting and auditing standards in the Republic of Turkiye.

The main session was presented and moderated by Mr. Omar Mustafa Ansari, AAOIFI Secretary General highlighting the content and structure of the two exposure drafts, the rationale for issuance and the need identified by the board for a revision of FAS 27 “Investment Accounts”, particularly for the purpose of enhancing the financial reporting requirements in respect of such product and matters. The session was accompanied by an interactive Q&A round during which the participants raised specific questions and comments.

AAOIFI expressly acknowledges and appreciates the support of the industry and expert participants who included professionals and subject matter experts from various fields and backgrounds as well as academicians and Shari’ah scholars. All industry feedback received — in the form of questions, comments, suggestions, and recommendations — will be collated and taken back to the respective working group and raised to AAOIFIs Accounting Board (AAB) for further deliberation. The final standards are expected to be issued within the third quarter of 2023.

The exposure drafts can be accessed through these links:

• [ED of] “Control (of Assets and Business)” Click here
• [ED of] “Off-balance-Sheet Assets Under Management” Click here