Accounting for Islamic Financial Products

One of the issues raised during the recent KLIFF 2010 (3-4 August 2010) held at Nikko Hotel Kuala Lumpur was the need to strengthen the accounting/financial reporting harmonisation by Islamic financial institutions globally. Participants were reminded of the Accounting and Auditing Organisation for Islamic Financial Institutions' (AAOIFI)primary objectives are: firstly to develop standards on accounting and auditing, ethics and governance and disseminate them to their target market. Secondly to bring the industry towards greater harmonization of the policies and procedures of Islamic banks within local jurisdictions and accross nations. Thirdly to provide greater consistency in the shari'ah fatwas of the various shari'ah supervisory boards, hence adding development of shari'ah standards as another key activity within their roster and fourthly to address the human capital strain faced by the industry. This is achieved by providing professional qualification courses to the industry
(Note: These objectives were extracted from CERT's Mini Guide Book written by Syed Alwi Mohamed Sultan. In a nutshell, there remains a gap to be filled by special-trained accountants in the area of Accounting for Islamic Financial Products....