International Accounting
 

The basics of accounting standards for Islamic financial institutions

Vol. 21, Iss. 2, FEBRUARY 2018

Received: 21 November 2017

Received in revised form: 12 December 2017

Accepted: 26 December 2017

Available online: 15 February 2018

Subject Heading: INTERNATIONAL STANDARDS OF ACCOUNTING AND REPORTING

JEL Classification: M40, M41

Pages: 138–148

https://doi.org/10.24891/ia.21.2.138

Kharisova F.I. Institute of Economics, Management and Finance of Kazan (Volga Region) Federal University, Kazan, Republic of Tatarstan, Russian Federation
firdavsun@mail.ru

ORCID id: not available

Yusupova A.R. Russian Islamic University, Kazan, Republic of Tatarstan, Russian Federation
zijatdinova@mail.ru

ORCID id: not available

Kharisov I.K. OOO Ekspertnye tekhnologii, Kazan, Republic of Tatarstan, Russian Federation
ildarkin@gmail.com

ORCID id: not available

Subject This article discusses the general characteristic of financial accounting standards developed by the Accounting and Auditing Organization for Islamic Financial Institutions – AAOIFI.
Objectives The article aims to study the financial accounting standards for Islamic financial institutions in order to define the standards in terms of their scope of application.
Methods For the study, we used the methods of analysis, synthesis, and grouping.
Results The article describes the basics of accounting standards for Islamic financial institutions. It presents the considered standards in a tabulated form, including their numbers and dates of introduction into effect. The article shows the requirements to the content of the information provided in the financial statements of Islamic financial institutions and the contents of the reporting. As well, it describes the scope of application of each particular financial accounting standard.
Conclusions Accounting in Islamic financial institutions aims to form information on the basis of which users of financial statements can assess the extent to which Islamic organizations are exercising the rights and obligations of all the parties concerned, in accordance with the principles of Sharia, Islamic law. From the general characteristic of the standards reviewed, it follows that financial statements should be credible, relevant, reliable, and transparent to users. Further study of the AAOIFI financial accounting standards is of great interest to organizations that plan to introduce Islamic banking services.

Keywords: financial accounting standard, mudarabah, murabaha, salam, istisna

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