Manama, Kingdom of Bahrain

15 August 2024

AAOIFI’s Accounting Board (AAB) Translation Committee has finalised and approved for issuance the Arabic version of Financial Accounting Standard (FAS) 33 “Investments in Sukuk, Shares and Similar Instruments”. The English version of this standard was issued in January 2019.

This standard improves upon and supersedes AAOIFI’s Financial Accounting Standard (FAS) 25 “Investments in Sukuk, Shares and Similar Instruments”. This standard aims at setting out principles for the classification, recognition, measurement, presentation and disclosure of investment in Sukuk, shares and other similar instruments made by Islamic financial institutions.

Furthermore, this standard defines the key types of instruments of Shari’ah compliant investments and defines the primary accounting treatments commensurate to the characteristics and business model of the institution under which the investments are made, managed and held. Also, the revision process of the standard involved careful consideration of critical aspects that correspond with changes in the industry and the most effective global accounting practices along with comments and feedback from Shari’ah perspective related to specific set of terminologies and approaches included in the standard.

This standard became effective for the financial periods beginning on or after 1 January 2021.

The standards can be accessed on AAOIFI website: Click here