AAOIFI’s Accounting Board (AAB) Translation Committee has finalized and approved the issuance of the Arabic version of Accounting Standard FAS 37 “Financial reporting by Waqf institutions”. The English version of this standard was issued on 15 December 2020, the issuance of this standard, in English and Arabic, marks the culmination of the comprehensive Waqf standards project that has been carried out by AAOIFI in cooperation with Future Investment and support from Shaikh Mohammad Saleh Al-Shawi Charitable Foundation, Kingdom of Saudi Arabia.
The objective of this standard is to establish principles of financial reporting by Waqf institutions, which are established and operated in line with Shari’ah principles and rules. and this AAOIFI FAS introduces the main objectives as well as the concepts underlying financial reporting, general presentation and disclosures in the financial statements of Waqf institutions. It is expected that, unless otherwise indicated, recognition and measurement of financial transactions by Waqf institutions will follow existing AAOIFI FASs or, where no suitable FAS exists, the relevant generally accepted accounting principles applicable to not-for-profit organizations as long as these standards are not in contravention of Shari’ah principles and rules.
This standard shall be applicable to all types of Waqf institutions and other institutions constituted on the concept of Waqf, and operated in line with Shari’ah principles and rules, irrespective of their legal status, including virtual Waqf institutions. As such a Waqf formed by an entity, or endowed on that entity, for which it is the beneficiary itself (referred to as internal Waqf) is also a virtual Waqf institution and shall be subject to the requirements of this standard.
To view the Arabic version, please click on the following link: click here