Transcript INTERNATIONAL CENTRE FOR EDUCATION IN ISLAMIC …

FN 6103
Accounting for Islamic Financial Transactions
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To develop an understanding of the accounting
issues in Islamic Finance in the framework of
Islamic accounting concepts and the tension
between Islamic accounting theory and
international financial reporting practices
At the end of the course, the candidates will inshaAllah be able to:
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Understand Islamic accounting theoretical concepts
Apply fiqh rules to record Islamic financial transactions
Apply AAOIFI and Malaysian Islamic accounting standards
Read, understand and interpret Financial statements of Islamic Financial
Institutions
Discuss the tensions between International Financial Reporting Standards and
AAOIFI/MASB/BNM standards
Understanding the effect of proposed and existing products on the income
statement and balance sheet
Critically appraise extant Islamic accounting and auditing standards and
contribute to the development of better standards.
Conduct financial and nonfinancial performance analysis of Islamic financial
institutions
Contribute to the evolving debate and practice of accounting and auditing from
the shariah perspective
Be aware of current developments in Islamic finance and their impact on market,
shariah acceptability and accounting impact
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Lectures,
News Report Presentation and Discussion
Tutorial Presentation and Discussion
Preparation of an academic term paper.
Presentation, argumentation and discussion
skills,
Report writing skills, analytical skills
News Report
 Term Paper:
 Presentation
 Written Paper
 Tutorial Presentation:
(10 report and 5 for presentation)
 Final Examination
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5 marks
10 marks
30 marks
5 marks
50 marks
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Total
100 marks
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Barjoyai bin Bardai
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[email protected]
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012 273 8414
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Qur’anic foundations of Islamic Accounting
The need for Islamic accounting in relation
to the objective and operations of Islamic
Financial Institutions and socio-economic
implications of Islamic Institutions
Push factors – limitations of conventional
accounting
Pull factors – the emergence of Islamic
institutions and Islamic financial system
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A quick look at the financial statements of Islamic
and conventional financial statements
Objectives of financial accounting for Islamic
financial institutions
SFA 1 objectives of financial accounting for IFIs
(AAOIFI 2005)
SFA2 concepts and financial accounting for IFI
(AAOIFI 2005)
Presentation and Disclosure in Financial
Statements of Islamic Financial Institutions
Presentation of financial statements (AAOIFI 2005)
MASB FRSi-1
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An introduction to Islamic financial
contracts and how they are applied in
Islamic banking
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Al Wadi’ah and Mudaraba and Qardul Hasan
Accounting Recognition of Islamic Deposit
Profit sharing and loss bearing
Profit allocation
Provisions and Reserves
Accounting for Mudaraba Financing
Capital recognition
Profit recognition and allocation
Loss bearing
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Capital recognition
Profit recognition and allocation
Profit and loss sharing
Musharaka mutanaqqisa (diminishing
musharaka)
Early redemption
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Fiqh and accounting issues
Urboun and Hamish Gidyah (deposits)
Controversies of BBA
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Fiqh rules on ijara and comparison with
operating and financial lease
Accounting recognition and measurement of
ijarah as lessor and lessee.
Various types of IMBT
AITAB differences between AITAB and IMBT
and MASB
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Fiqh rules of salam and istisna
Quality and quantity and time of delivery
Payment mode
Gurantees and penalties
Accounting recognition and measurement
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Shares and sukuk
 held for trading,
 available for sale
 and held to maturity
 Real estate investments
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Differences between the objectives,
operations and accounting for conventional
insurance and takaful
Business Models
Presentation and Disclosure
Treatment of premiums and contributions
Provisions and Reserves
Treatment of surpluses
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Role and Influence of Shari’a Supervisory
Institutions.
Importance of Shari’a and Corporate
Governance of Islamic Institutions.
Extending Shari’a Auditing
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Performance in relation to the socio
economic objectives of Islamic Financial
Institutions
Financial measurements
Non- Financial Measurements
Shariah ratings
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Possible topics (no two groups can present the same topic): selected papers will be sent for
publication
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Compare IFRS4 and the aaoifi standardsfor islamic insurance and argue that IFRS 4
cannot be used for takaful companies
Islamic accounting and the cash waqf.
Shariah auditing – how Malaysia can generate future cash flow by inventing the
profession.
A critique of shariah reports of Islamic banks
Takafaful models in Malaysian Industry practice- a holistic shariah ranking
Measuring the performance of Takaful companies; a participant perspective
A review of non financial performance of Islamic banks in Malaysia.
A review of financial performance of Islamic banks in Malaysia – a depositors
perspective.
MASB Islamic standards – reasons for lack luster performance and what are the future
options
Ijarah accounting headaches for the auditor in AAOIFI jurisdiction– IFRS vs AAOIFI.
An assessment of the CIPA qualifications of AAOIFI
The role of a new breed of Islamic accountants in relation to Islamic institutions.
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