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International Standards for Islamic Finance
AAOIFI – Introduction AAOIFI & IFRS - Comparison on structural objectives AAOIFI & IFRS - Categories of accounting standards for Islamic financial institutions AAOIFI & IFRS - Examples of main differences Adoption of AAOIFI Standards How AAOIFI Standards Support Islamic Finance Industry www.aaoifi.com
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AAOIFI – Introduction • Responsible for formulation and issuance of international Islamic finance standards. • Has issued 68 standards: 25 accounting standards; 5 auditing standards; 6 governance standards (incl. on Shari’a supervision); 2 codes of ethics; and 30 Shari’a standards (rules for application of Shari’a). • Also developing new standards and reviewing existing standards. • Supported by over 165 institutional members from over 35 countries. Members include central banks and regulatory authorities; Islamic and conventional financial institutions; accounting and auditing professions; and Islamic financial support services providers. • In order to support technical application of standards, AAOIFI offers the following professional qualification programs: - Certified Islamic Professional Accountants (CIPA), and - Certified Shari’a Adviser and Auditor (CSAA).

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AAOIFI & IFRS - Comparison on structural objectives A. Differences on coverage of standards … AAOIFI • • Specific for Islamic finance industry. Based on requirement of Islamic finance practices. • • IFRS For entire economic and social activities. Generic, mostly not industryspecific.

B. Differences on types of standards … AAOIFI • • All-encompassing. Accounting, Auditing, Ethics, Governance, and Shari’a. • • IFRS Type-specific. Accounting.

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