Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) organised a roundtable event to hold focus group discussions on the [Revised ED of] Financial Accounting Standard 29 “Sukuk in the Books of the Originator” via video conferencing on Wednesday, 30 August 2023.

The roundtable event hosted more than 80 subject-matter experts and industry practitioners from a number of jurisdictions, worldwide, for an in-depth discussion on multiple issues, including Shari’ah, and related aspects of accounting for Sukuk issuances.

This roundtable was part of the industry consultation process, which aimed to deliberate on Sukuk issuances and its implications on the Islamic finance industry from Shari’ah and accounting perspectives with attendance of experts from regulatory across the industry including senior management of islamic financial institutions, Shari’ah scholars, lawyers, accountants, auditors and academicians.

Mr. Mohammad Majd Bakir, Director, Professional Standards Development, AAOIFI, presented welcoming remarks and a brief overview of the revised exposure draft.

Mr. Hamad Abdulla Al Oqab – Chairman, AAOIFI Accounting Board, delivered a keynote speech, shedding light on the importance of a dedicated standard in this regard, highlighting the main areas where IFIs require special financial reporting and accounting guidance under AAOIFI conceptual framework for financial reporting for Sukuk origination and issuance. The first session involved a discussion on Shari’ah perspective led and presented by Dr. Aznan Hasan – Chairman, Shari’ah Committee, MayBank; member, AAOIFI Shari’ah Board.

The second session featured a presentation on understanding the accounting requirements and discussion on key issues, delivered by Mr. Omar Mustafa Ansari, AAOIFI Secretary General. This was followed by an interactive Q&A round shedding a particular light on understanding the accounting and presentation requirements as reflected in the exposure draft.

AAOIFI expressly acknowledges and appreciates the support of the industry and expert participants. The department team will compile the main comments and recommendations provided during the session and will submit the proceedings and conclusion remarks of this event to the respective working group for its further elaboration and recommendation to the AAOIFI Accounting Board (AAB).