Transcript Slide 1

Dr. Khaled Al Fakih
Secretary General & CEO
Accounting and Auditing Organization for Islamic
Financial Institutions
Session I: Establishing a Solid and Supportive Legal
Framework for Islamic Banking and Finance
Oman Second Islamic Banking & Finance Conference
Establishing a solid and supportive
legal framework for Islamic banking
and finance
Oman 2nd Islamic Banking & Finance Conference
Muscat, Sultanate of Oman
17 March 2013
Framework and infrastructure for Islamic financial system
Framework and infrastructure for Islamic financial system
Overall objectives *
Additional considerations for
Islamic finance
• Effectiveness
• Uphold principles of Shari’a
• Sustainability
• Resilience
* For both Islamic
conventional systems.
and
Framework and infrastructure for Islamic financial system
Overall objectives *
Additional considerations for
Islamic finance
• Effectiveness
• Uphold principles of Shari’a
• Sustainability
• Capture structure and essence of
Islamic finance transactions in
financial reporting and
accounting
• Resilience
* For both Islamic
conventional systems.
and
Framework and infrastructure for Islamic financial system
Overall objectives *
Additional considerations for
Islamic finance
• Effectiveness
• Uphold principles of Shari’a
• Sustainability
• Capture structure and essence of
Islamic finance transactions in
financial reporting and
accounting
• Resilience
• Strengthen the link between
Islamic finance and real economy
* For both Islamic
conventional systems.
and
Strengthen the link between Islamic finance and real economy
AAOIFI
Governance
Standard on
Corporate
Social
Responsibility
Recommendations, amongst others, for policies
on financing and investment schemes relating
to:
- Provisioning of health and medical services,
- Development of research and education
facilities,
- Development of SME etc,
- Promotion of economic growth potential,
- Development of basic infrastructure,
- Alleviation of social and economic
disadvantages.
Brief update on AAOIFI standards
AAOIFI
Standards
Total of 88 standards issued:
• 48 Shari’a standards.
• 26 accounting standards.
• 5 auditing standards.
• 7 governance standards.
• 2 codes of ethics.
• In addition, new standards are
being developed and existing
standards reviewed.
Shari’a
Standards
New Shari’a standards (issued in 2012) on:
•
Financial rights and disposal of those rights;
•
Bankruptcy;
•
Liquidity management relating to sources and uses of
liquidity;
•
Capital and investment protection;
•
Investment Agency;
•
Rules on bases of determination and calculation of
profit from investment instruments;
•
“Amanah” options, covering rights relating to options
for termination of legal contracts due to bad faith.
Development of new standards and review of existing
standards.
Accounting
Standards
New accounting standard (issued in 2012) on:
• Investments in real estate.
Review of existing accounting standards on:
• Equity on investment accountholders (2
standards).
• Takaful (4 standards).
• Murabaha.
• Ijarah.
Development of new accounting standard on:
• Issuance of Sukuk.
Standardsrelated
programs
• Certified Shari’a Adviser and Auditor (CSAA)
• Certified Islamic Professional Accountant (CIPA)
• Compliance certification for financial contracts and
software solution.
Thank You
www.aaoifi.com