Accounting and reporting for Islamic financial products

Instruction Language

English

Country

United Arab Emirates

English Abstract

Financial accounting and reporting is an integral part of any business and Islamic Finance Institutions (IFIs) are no different.

With the development of Islamic banking and finance, conventional accounting principles appeared inadequate to properly reflect the nature and reality of an IFI’s transactions.

Consequently, it became imperative that a separate set of accounting standards be developed based on Islamic accounting principles to ensure IFIs accounted for and reported their transactions and operations correctly.

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), based in Bahrain, was tasked with the responsibility of developing a set of accounting standards that would cater to the specific requirements of the Islamic banking and finance industry.

To date AAOIFI has issued 27 accounting standards, while constantly reviewing and updating existing standards where considered appropriate.

Objectives

- The aim of this two-day course is to give an introduction to the basic concepts governing Islamic accounting, cover accounting and reporting rules for Islamic finance contracts and related accounting issues, and to review current practice of IFIs operating under different accounting and reporting frameworks.

Field work

The course will be beneficial to many areas of the financial industry such as accountants, bankers, lawyers, product developers, investors, capital markets personnel, private equity professionals, multilateral lenders, regulators, product developers, investment managers, Sharia'a department personnel and risk managers.

Features of the course

--Understand the importance of effective reporting and accounting. -The need for separate Islamic accounting principles for Islamic Financial Institutions. -Islamic accounting standards covering all the basic contracts, specific accounting issues and Zakat. -Understand reporting under conventional and Islamic accounting principles. -Introduction to important new Islamic accounting standards. -Examination of various Financial Accounting Standards (FAS).