The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) held multiple public hearing 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 “Financial Reporting for Institutions Operating in Hyperinflationary Economies” in collaboration with certain organisations and stakeholders within the Islamic industry.

The objective of the standard is to establish the principles of financial reporting for the institutions applying AAOIFI Financial Accounting Standards operating in hyperinflationary economies, duly considering the relevant Shari’ah principles and rules and their unique business models.

During the sessions, the content and structure of the exposure draft were presented. The session featured an interactive Q&A round, during which participants posed specific questions and provided comments, and received detailed answers and clarifications thereto.

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

AAOIFI expresses its gratitude and recognition for the support received from industry professionals and subject matter experts across multiple fields. All industry feedback received — in the form of questions, comments, suggestions, and recommendations — will be presented to the relevant working group and raised to AAOIFIs Accounting Board (AAB) for further deliberation. The final standard is expected to be issued within the fourth quarter of 2024.

For the English version of exposure draft, please click on: https://rb.gy/iu6wh2

For the Arabic version of the exposure draft, please click on: https://shorturl.at/RUor8