Manama, Kingdom of Bahrain

22 August 2024

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) held multiple public hearings sessions (three in English language and one in Arabic language) over the period from January to August 2024 via video conferencing, on the exposure draft of its financial accounting standard (FAS) “Promotional Gifts and Prizes” in collaboration with certain organisations and stakeholders within the Islamic industry.

The objective of this standard is to prescribe 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. The exposure draft particularly provides guidance on the accounting treatments of such gifts and prizes aiming to account for market needs in this regard.

During the sessions, the content and structure of the exposure draft was presented along with the need identified by AAOIFI Accounting Board (the board) for FAS “Promotional Gifts and Prizes”. These sessions were accompanied by an interactive Q&A round during which the participants raised specific questions and received answers and explanations on the same. They also provided comments and suggestions for improvement of the draft.

Overall, the sessions were attended by more than 400 practitioners and experts in the areas of Islamic finance, Shari’ah, accounting, auditing, consulting, and the academia.

AAOIFI expressly acknowledges and appreciates the support of the industry and expert participants. 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 will be raised to the board for further deliberation and consideration.

The exposure draft can be accessed through these links:

• For the English exposure draft, please click on: https://rb.gy/c2ybl0
• For the Arabic exposure draft, please click on: https://bit.ly/3wNfIId