Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has been awarded being the Most Outstanding Standard Setting Body by Islamic Finance News, an industry publication.
The award was presented to AAOIFI at a ceremony in Dubai, United Arab Emirates, recently and accepted by Dr. Khaled R. Al Fakih, Secretary General and CEO of AAOIFI.
“In receiving the award, we are honouring the exceptional work of members of our Shari’a Board as well as Accounting and Auditing Standards Board and their committees in developing and reviewing AAOIFI standards. The award also reflects the tireless effort of the Chairman and members of our Board of Trustees in providing strategic oversight and guidance for AAOIFI operations,” Dr. Al Fakih said.
Dr. Al Fakih also paid tribute to the institutional members of AAOIFI that have given tremendous support for the work it is carrying out on standardisation and harmonisation, and for driving the adoption of AAOIFI standards.
AAOIFI has over the past year issued 7 new Shari’a standards covering the topics of financial rights and disposal of those rights; insolvency; liquidity management relating to sources and uses of liquidity; capital and investments protection; investment agency; rules on bases for determination and calculation of profit from investment instruments; and “Amanah” options, covering rights relating to options for termination of legal contracts due to bad faith. It had also issued a new accounting standard on investments in real estate as well as exposure drafts on proposed revised accounting standards relating to investment accounts.
AAOIFI is also revising its existing accounting standards on Takaful (Islamic insurance), Ijarah (leasing) and Murabaha (deferred-payment sale), and developing a new accounting standard on issuance of Sukuk.
There are altogether 88 standards that have been issued by AAOIFI in the areas of Shari’a, accounting, auditing, ethics, and governance for international Islamic finance. The standards are currently followed by all the leading Islamic financial institutions across the world and have introduced a progressive degree of harmonisation of international Islamic finance practices