“For
the Islamic finance industry -though emerging, but
rapidly growing and evolving- standards are
important as they give shape to the market and help
to define characteristics of the industry… and also
provide the basis for continuing the development of
this industry.”
Since
1991, when the Islamic banking and finance industry
itself decided that the existing international
standards were inadequate to cater for its needs, we
have come a long way to being recognized as the main
standard-setting organization.
We
have now issued up to 70 standards on accounting,
auditing, and governance, in addition to codes of
ethics and Shari’a standards. At the same time, we
are working diligently on preparing new standards,
redrafting current ones taking into account all
newly emergent requirements and needs of IFIs all
over the world, and conducting relevant researches
and consultancies crucial to activating and
enhancing all efforts and skills available...
AAOIFI was established in
accordance with the Agreement of Association signed
by Islamic financial institutions on 1 Safar, 1410
H, corresponding to 26 February 1990, in Algeria. It
was registered on 11 Ramadan 1411 H, corresponding
to 27 March 1991 in the State of Bahrain (Kingdom of
Bahrain, now) as an
International autonomous not-for-profit corporate
body. AAOIFI is responsible for developing
accounting, auditing, ethics, governance, and
Shari’a standards for the international Islamic
banking and finance industry. In addition, AAOIFI
contributes significantly to the professional
development for the industry. AAOIFI is supported by
over 160 institutional members from around 40
countries. It has its corporate office in Kingdom
of Bahrain.
● "Objectives
of Financial Accounting for Islamic Banks and
IFIs" and "Objective and
Principles of Auditing"
Accounting encompasses several areas, generally
agreed to include financial accounting,
managerial accounting, cost accounting, and
accounting for non-for-profit organizations.
We are concerned here only with financial
accounting.
English version
“For
the Islamic finance industry -though emerging, but
rapidly growing and evolving- standards are
important as they give shape to the market and help
to define characteristics of the industry… and also
provide the basis for continuing the development of
this industry.”
Dr. Mohamad Nedal Alchaar,
