Aaoifi Shariah Standards Pdf
The Saudi-British Bank (SABB) in Riyadh has signed an agreement with the AAOIFI whereby the content of all Sharia’a standards in issue at November 2017 in both, Arabic and English, will be accessible and downloadable for personal use through AAOIFI’s website and social media portals. The SABB sponsorship also includes any yet to-be issued, reviewed or updated Sharia’a standards, in both languages, up to 1 January 2020. Please click for on the AAOIFI website.The proposed AAOIFI accounting standard on risk reserves intends to define the accounting principles for risk reserves maintained for the benefit of participatory stakeholders such as investment account holders and Sukuk-holders. It is intended to encourage a financial reporting environment that is risk averse and transparent but that also ensures better safeguarding of the interest of such stakeholders and providing better stability to the Islamic finance industry. Please click for on the AAOIFI website.
The above diagram shows the sukuk structure with the initial and periodical cash flows. The unwind transactions are not shown.
This diagram was created specifically for this website article, and was not present in the published book chapter for space reasons. IFRS accounting for the sukuk transactionUnder IFRS, one is required to consider the economic substance of the transactions.From the perspective of Trader plc, under the sukuk transaction it receives £100, is required to pay five annual rental payments of £5 and to pay £110 at the end of the transaction when legal title to the building will be returned to Trader plc.
The repurchase price of £110 is fixed regardless of whether the building soars in value or whether its value reduces. Accordingly, Trader plc is fully exposed to all changes in the economic value of the building. This means that under IFRS the sukuk transaction is regarded purely as a financing transaction; Trader plc recognises a financial liability in respect of the sukuk while retaining the building on its balance sheet even though Trader plc does not own it during the life of the sukuk transaction. © Mohammed Amin 2010-2018.Everything on this site, other than comments made using the comments facility, is written by me in a personal capacity and should not be attributed to any organisation with which I may be associated. None of it constitutes professional advice, and no legal responsibility is accepted to anyone who acts, or refrains from acting, as a result of reading or watching anything posted on this site.Comments made on this site using the comments facility are the responsibility of the individual comment authors. If you consider that any comment defames you, please email Mohammed Amin using the facility on the 'Contact me' page, specifying the page, the comment author and the date and time of the comment, and the reasons it is defamatory so that the comment can be removed.I do not use cookies to track my visitors or to gather data on them.
Aaoifi Shariah Standards Pdf Template
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Aaoifi Shariah Standards Book Pdf
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