AAOIFI’s Accounting Board (AAB) Translation Committee has finalised and approved the issuance of the Arabic version of Financial Accounting Standard (FAS) 39 “Financial Reporting for Zakah””, The English version of this standard was issued on 31 December 2021.
This standard improves upon and supersedes AAOIFI Financial Accounting Standard (FAS) 9 “Zakah” issued previously. This standard aims at setting out the accounting treatment of Zakah in the books of an Islamic financial institution (the institution), including the presentation and disclosure in its financial statements.
The standard describes the financial reporting principles applicable, depending upon the institution’s obligation to pay Zakah. In addition, where an institution is not required by law or by virtue of its constitution documents to pay Zakah, it is still required to identify and disclose the amount of Zakah due in respect of the various stakeholders.
This standard becomes effective for the financial periods beginning on or after 1 January 2023.
To view the Arabic version, please click on the following link: Link