AAOIFI’s Accounting Board (AAB) Translation Committee has finalized and approved the issuance of the Arabic version of Financial Accounting Standard (FAS) 34 “Financial Reporting for Sukuk-holders”. The English version of this standard was issued on 30 December 2018.
The objective of this standard is to establish the principles of accounting and financial reporting for assets and business underlying the Sukuk to ensure transparent and fair reporting to all relevant stakeholders, particularly Sukuk-holders.
As this standard prescribes the accounting principles and reporting requirements for underlying assets of a Sukuk instrument and it addresses the requirements of the financial reporting for the benefit of the Sukuk-holders and other stakeholders with regard to the assets and businesses underlying the Sukuk. It is expected that with the introduction of the same, the Sukuk market will have an improved level of transparency and financial discipline, as well as, enhance the level of compliance with Shari’ah.
To view the Arabic version, please CLICK HERE