Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), the international standard-setting organisation for Islamic finance, has published its new standards publications entitled Shari’a Standards 2010 and Accounting, Auditing, and Governance Standards 2010.
The Shari’a Standards 2010 publication contains a total of 41 Shari’a standards including 11 new standards which are on stipulations for gharar (uncertainty) in financial transactions, arbitration, waqf (endowment), ijarah (leasing) on Labour, zakah (alms), contingent obligations, credit facilities, online financial transactions, rahn (pledge), investment accounts and profit distribution, and Islamic reinsurance. The new publication was made possible by the support from Alimtiaz Investment of Kuwait and Barwa Bank of Qatar.
Dr Mohamad Nedal Alchaar, Secretary General of AAOIFI, said that the standards have helped Islamic financial institutions throughout the world to ensure that the products and services they offered complied with Shari’a. He also added, “the standards have also managed to introduce a high degree of harmonisation of Islamic finance practices across the major Islamic finance markets and consequently place the industry in a stronger position to expand”.
Meanwhile, AAOIFI’s Accounting, Auditing and Governance Standards 2010 publication contains a total of 40 standards covering the areas of accounting, auditing, ethics, and governance for Islamic financial institutions. Among the new standards included in the publication are accounting standard on investments in associates, statement of governance principles, and governance standard on corporate social responsibility.
Development of AAOIFI’s standards was undertaken by its Shari’a Board – acknowledged as the leading global authority on Shari’a for international Islamic finance – and Accounting and Auditing Standards Board.
The Shari’a Standards 2010 publication contains a total of 41 Shari’a standards including 11 new standards which are on stipulations for gharar (uncertainty) in financial transactions, arbitration, waqf (endowment), ijarah (leasing) on Labour, zakah (alms), contingent obligations, credit facilities, online financial transactions, rahn (pledge), investment accounts and profit distribution, and Islamic reinsurance. The new publication was made possible by the support from Alimtiaz Investment of Kuwait and Barwa Bank of Qatar.
Dr Mohamad Nedal Alchaar, Secretary General of AAOIFI, said that the standards have helped Islamic financial institutions throughout the world to ensure that the products and services they offered complied with Shari’a. He also added, “the standards have also managed to introduce a high degree of harmonisation of Islamic finance practices across the major Islamic finance markets and consequently place the industry in a stronger position to expand”.
Meanwhile, AAOIFI’s Accounting, Auditing and Governance Standards 2010 publication contains a total of 40 standards covering the areas of accounting, auditing, ethics, and governance for Islamic financial institutions. Among the new standards included in the publication are accounting standard on investments in associates, statement of governance principles, and governance standard on corporate social responsibility.
Development of AAOIFI’s standards was undertaken by its Shari’a Board – acknowledged as the leading global authority on Shari’a for international Islamic finance – and Accounting and Auditing Standards Board.
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