Professional Documents
Culture Documents
presented by
STAKEHOLDERS
Management Security Analysts Authorities – BNM, SC, IRB
Board of Directors Investment Advisors Staff
Fund Managers Public
Traditional Model of Accounting
Accounting entity
- owners ≠ managers
On-going concern
- no perceivable time horizon
Economic events
- measurable in $$ terms
Decision usefulness
STAKEHOLDERS
Management Security Analysts Authorities – BNM, SC, IRB
Board of Directors Investment Advisors Staff
Fund Managers Public
Managers
- to ensure their own well-being and future earnings potential, need to be
concerned with the financial condition, profitability and prospects of their
company
Directors
- responsible for protecting the shareholders’ interest by vigilantly overseeing
the company’s activities. This demands an understanding and appreciation of
financing and operating activities.
STAKEHOLDERS
Management Security Analysts Authorities – BNM, SC, IRB
Board of Directors Investment Advisors Staff
Fund Managers Public
Authorities
- Use analysis techniques in their supervisory and rate-determination roles. The
IRB applies tools of financial statement analysis to audit tax returns and check
the reasonables of reported amounts.
Staff
- enquire knowledge on the performance, financial condition and profitability
of the company.
Public
- analyse the performance of the company, for investment purposes
Accounting and Islam
(Surah Al-Baqarah:282)
Lessons from verse 282 Al-Baqarah
21 Shari'a Standards
AAOIFI: Accounting, Auditing and Governance Standards
Statement of Financial
Accounting Financial Accounting
Objectives Standards
Concepts Investment Account
Holders
Financial Accounting Salam Financing
Standards Ijarah Financing
Presentation and Zakah
Disclosure of Financial Istisna’ Financing
Statements of Islamic
Banks Provisions and Reserves
Murabaha Financing Presentation and
Disclosure of Financial
Mudaraba Financing Statements of Islamic
Musharaka Financing Insurance Companies
Profit Allocation Basis
AAOIFI: Accounting, Auditing and Governance Standards
(3) Examining any inquiries referred to the Shari’a Board from Islamic
financial institutions or from their Shari’a supervisory boards, either
to give the Shari’a opinion in matters requiring collective Ijtihad
(reasoning), or to settle divergent points of view, or to act as an
arbitrator.
http://www.masb.org.my/masbstd_FRSi-1.htm
Why not IAS, AAOIFI?
AAOIFI
Shariah issues
General principle
Format
Practicality
Legal requirement
Aim
Objective
The objective of this Standard is to lay down the basis for the
presentation and disclosure of financial statements of Islamic
financial institutions that conduct Islamic banking activities. This
Standard sets out the overall considerations for the presentation and
disclosure of the financial statements specific to these institutions in
order to ensure comparability of these statements with those in
previous periods and with those of other Islamic financial institutions.
Islamic banks
Islamic windows of Commercial Banks
Development banks/ Cooperative banks
Finance companies
Investment banks
Discount houses
that carry out Islamic banking business or Islamic financial
business
Shariah Requirements
Balance Sheet
Income Statement
IFI should prepare its FS, except for cash flow info,
under the accrual basis of accounting unless
otherwise by SAC.
Consistency of Presentation
Income Statement
Identification of FS
Display prominently:
Name of the IFI
Whether individual of group FS are presented
The BS date or the period covered by the FS:
IFI is encouraged to include the Muslim calendar date
Reporting currencies
The level of precision used in the presentation of figures in
the FS.
Reporting Period
An IFI should issue its FS within six months of the balance sheet
date
www.bankislam.com.my
Background of samples (cont.)
www.shamilbank.net
Background of samples (cont.)
www.gfhouse.com
Background of samples (cont.)
www.db.ae
Background of samples (cont.)
www.kfh.com
Accounting Standards
Thank you