AAOIFI Issues Three Final Standards: FAS 1, FAS 39, and FAS 40

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has issued a few final standards by the AAOIFI Accounting Board (AAB). The standards released include the Financial Accounting Standard (FAS) 1 (Revised 2021) “General Presentation and Disclosures in the Financial Statements”, FAS 39 “Financial Reporting for Zakah,” and FAS 40 “Financial Reporting for Islamic Finance Windows”. AAOIFI has also announced the issuance of the exposure draft of Governance Standard for Syndicated Financing (exposure draft) by the AAOIFI Governance and Ethics Board (AGEB) for Industry Feedback.

Why it Matters?

The revised and new standards are set to improve and supersede the earlier standards by AAOIFI relat...