This Standard covers investment accounts managed on the basis of Mudarabah and the principles and conditions of realization and entitlement to profit. The Standard also covers how profits are to be distributed between the institution as a Mudarib and the holders of investment accounts as Arbab al-Mal, and to discuss the procedural aspects of profit realization such as determination of the expenses to be charged to investment accounts and the allocations and reserves to be deducted from the profits. The standard does not cover the accounts managed on the basis of investment agency because such accounts require a separate standard.

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