The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), held a roundtable event with industry experts, via video conferencing, on its exposure draft of Financial Accounting Standard (FAS) 1 “General Presentation and Disclosures in the Financial Statements of Islamic Banks and Financial Institutions (Revised 2020)” on Thursday, 15 July 2021. The online roundtable event, attended by around 40 industry experts and practitioneer from across the professional banking sectors, audit firms, academicians from various parts of the world, culminated the public hearings phase for the standard where a series of hearings had earlier been conducted online this year.
The agenda of the roundtable included a session with the presentation and overview of the exposure draft. This covered the main objectives and concepts underlying financial reporting and the general presentation and disclosures in the financial statements of Islamic banks and financial institutions as well as improved accounting treatments prescribed in line with global best practices.
The second session held discussions on key accounting and financial reporting issues and their respective treatment as proposed in the exposure draft. The event concluded with an open floor discussion for further comments on the exposure draft by the participants.
The event was chaired by Mr. Hondamir Nusratkhujaev, Manager, Financial Control Department Islamic Development Bank (IsDB) and AAOIFI Accounting Board (AAB) member. Mr. Omar Mustafa Ansari, Secretary General, AAOIFI, presented the exposure draft and the discussion points, shedding particular light on understanding the accounting requirements, and discussing the key issues in implementation of FAS 1.
AAOIFI expressly acknowledges and appreciates the support of the industry. 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 thereafter will be raised to AAOIFIs Accounting Board (AAB) for further deliberation before issuance of the final standard which is expected by end of 2021.
Those who are interested in providing comments on the exposure draft may still do so by sending their feedback to [email protected]