13 May 2025

PR/06/2025

AAOIFI’s Accounting Board (AAB) Translation Committee has finalised and approved for issuance the Arabic version of Financial Accounting Standard (FAS) 44 “Determining Control of Assets and Business”. The English version of this standard was issued in December 2023.

Previously addressed across multiple AAOIFI FASs and the “AAOIFI Conceptual Framework for Financial Reporting”, the definition of control plays a critical role in determining the classification and presentation of participatory instruments—whether off-balance-sheet or on-balance-sheet, and their appropriate placement within the statement of financial position. Recognizing the significance of a unified approach, the AAB has taken the initiative to integrate all relevant requirements into a single, comprehensive standard.

This standard establishes the principles of assessing as to whether and when an institution controls an asset or a business, both in the case of underlying asset(s) of a participatory structure, as well as, for the purpose of consolidation of financial statements of subsidiaries.

This standard is effective immediately.

The Arabic version of the standard can be accessed on AAOIFI website: Click here