PR/08/2025

28 May 2025

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) held a focus group roundtable on a draft accounting technical release on illustrative condensed interim financial statements for Islamic banks and similar institutions, via video conferencing on Monday, 26 May 2025.

The roundtable was attended by more than 40 subject-matter experts and industry practitioners from various jurisdictions for an in-depth discussion on the presentation of, and disclosures in, interim illustrative financial statements prepared in accordance with the requirements of AAOIFI Financial Accounting Standard (FAS) 41 “Interim Financial Reporting”.

During public consultations on FAS 41 “Interim Financial Reporting”, the AAOIFI Accounting Board (the board / AAB) had noted a need for further clarification and practical guidance. Specifically, certain stakeholders had highlighted the need for illustrating presentation and disclosure requirements outlined in the said standard, aligning the same with other AAOIFI FASs, and incorporating additional disclosure elements from generally accepted accounting principles .

In order to address these concerns, the board decided that a set of illustrative condensed interim financial statements be developed as a separate pronouncement by the AAOIFI Technical Advisory and Interpretation Committee (TAIC) that will be issued as an accounting technical release (ATR).

Omar Mustafa Ansari, AAOIFI’s secretary general gave an interactive presentation on draft technical release on the occasion. The participants, based on their professional / industry experiences, provided insightful comments to improve the draft.

During the session, the industry representatives were requested to test the Excel version of the condensed interim illustrative financial statements and to provide their input, along with any other comments on the draft ATR, by the mid of June 2025.