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Accounting for Islamic finance

Research guide

Published: 16 Jun 2014 Updated: 21 Dec 2023 Update History

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The accounting practices adopted by firms in the Islamic finance sector vary across the world, being largely dependent on the regulatory environment of each jurisdiction. On this page we highlight some of the articles, research papers and reports from the ongoing discussion on the application and development of accounting standards for Islamic finance.

The Business & Industry Guides series is produced by the Library & Information Service for ICAEW members and ACA students.

We can compile tailored key players reports, mailing lists, market reports, benchmarking reports and industry news. Our enquiry team can also research other industry-specific information, such as taxation, for you. Call us on +44 (0)20 7920 8620 or email library@icaew.com.

eBooks

Our eBooks are available to logged-in ICAEW members, ACA students and other entitled users.

See the A–Z of eBooks for a complete list of titles available across all subjects.

Exclusive Financial and accounting principles in Islamic finance
  • eBook
  • 2019
  • Samir Alamad
  • Springer
This book provides an original account detailing the origins and components of a faith-based accounting system (Islamic finance) that was founded around 629 CE. By examining the historical development that the accounting systems underwent within the context of faith-based rules and values, the book explains what is meant by the term "faith-based accounting", together with a discussion of its characteristics in relation to various product structures and the underlying Islamic finance principles.

Terms of use: You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

Online articles

The ICAEW Library & Information Service provides access to a range of content on Islamic accounting from various online sources, including a selection of articles from premium databases. Access to full text articles is provided for ICAEW members, ACA students and other entitled users subject to the conditions listed in the terms of use statement.

Journal of Islamic Accounting and Business Research
ICAEW members and ACA students can obtain articles from the Journal of Islamic Accounting and Business Research free-of-charge by contacting the ICAEW Library (abstracts are still accessible through the links below). The journal publishes a wide range of articles to advance accounting and business knowledge based on Shari’ah, with topics including current practice in Islamic accounting, auditing and corporate governance.

Exclusive Implementation of AAOIFI standard no.35 by Saudi Islamic banks: Opportunities and challenges
  • Article
  • 01 Aug 2023
  • Kefah Abdelkader Al-Souri, Abdallah Izzat Mahmoud Barakat, Hussein Mohammad Samhan
The authors present their research, which analyses the reality of reserves in Islamic banks in light of Financial Accounting Standard No. 35 issued by AAOIFI in 2018. They also studied the extent to which Saudi Islamic banks adhere to this standard and identify the advantages and challenges facing these banks in this field.
Exclusive The substance and form of Islamic finance instruments: an accounting perspective
  • Article
  • 04 Aug 2021
  • Tarek Abdelfattah, Ahmed Ebrahim
  • Journal of Islamic Accounting and Business Research
Article analysing the fundamentals of major Islamic finance accounting instruments and contracts, in reference to the concept of substance over form in the accounting conceptual framework.
Exclusive Compliance and determinants of the AAOIFI financial standards: Evidence from the MENA region
  • Article
  • 01 Apr 2021
  • Oumayma Bechihi, Salem Lotfi Boumediene, Olfa Nafti
Research analysing the level of compliance of financial disclosure with accounting standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in Middle Eastern and North African (MENA) Islamic banks. Based on 40 Islamic banks in seven MENA countries over the period 2010-2016, the authors used a disclosure index to measure the compliance level.
Exclusive The need for Islamic accounting standards: the Malaysian Islamic financial institutions experience
  • Article
  • 01 Jan 2019
  • Nor Farizal Mohammed
  • Journal of Islamic Accounting and Business Research
Research into the financial reporting practices of Malaysian Islamic Financial Institutions (IFIs).

Useful links

News updates
Islamic accounting
  • Website
  • Deloitte
A dedicated section of the IAS Plus (Deloitte) website focused on recent developments in Islamic accounting requirements and practices.
ZAWYA Islamic Finance news
  • Website
  • ZAWYA.com
Islamic finance gateway from ZAWYA.com, which includes latest news stories, featured research reports and economic indicators. A free Zawya Daily email newsletter alert is available.
Organisations
Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
  • Website
  • AAOIFI
AAOIFI is a not-for-profit organisation which develops, prepares and issues Financial Accounting Standards (FASs) and Shari'a Standards (SSs) for the global Islamic finance industry.
Asian-Oceanian Standard-Setters Group (AOSSG)
  • Website
  • AOSSG
The Asian-Oceanian Standard-Setters Group is a grouping of the accounting standard-setters in the Asian-Oceanian region. The group has been formed to discuss issues and share experiences on the adoption of International Financial Reporting Standards (IFRS) and to contribute to the development of a high-quality set of global accounting standards.
Islamic Finance Consultative Group
  • Website
  • IFCG
The International Accounting Standards Board (IASB) established the Islamic Finance Consultative Group (IFCG) to provide an advisory forum where members support the IFRS Foundation in its objectives, and contribute towards the development and consistent and rigorous application of IFRS Accounting Standards. The group's agenda and meeting papers are available on the IASB website.
Malaysian Accounting Standards Board (MASB)
  • Website
  • MASB
The MASB is an independent authority which issues accounting and financial reporting standards in Malaysia.
Reports and surveys
Financial reporting by Islamic financial institutions: 2017 update
  • Website
  • 2017
  • AOSSG
An update to the Asian-Oceanian Standard-Setters Group (AOSSG)'s 2014 international study of financial statements of 132 Islamic financial institutions from 31 jurisdictions. The surveys identify the financial reporting standards that the institutions are legally required to comply with and the extent of compliance.
Reporting Islamic financial transactions under IFRS: 2018 update
  • Website
  • 2018
  • AOSSG
An update to AOSSG's 2010 Financial Reporting Issues relating to Islamic Finance report. Topics covered include: recognising a financing effect, profit-sharing contracts, Ijarah, Sukuk, Takaful, embedded derivatives, additional Shariah related disclosures and departures and exemptions from IFRS requirements.

Further reading

The library provides access to a range of online articles from leading business and finance journals on accounting for Islamic finance, supplemented by a collection of articles and books that can be obtained through the library's enquiry service.

Accounting, auditing and governance standards: full text of accounting, auditing and governance standards for Islamic financial institutions as at Safar 1437 A.H.
  • Library book
  • 2015
  • AAOIFI
  • AAOIFI
Contains sections on financial accounting standards, auditing, governance and ethics for Islamic banks and financial institutions.
Islamic finance in a nutshell: a guide for non-specialists
  • Library book
  • 2010
  • B.Kettell
  • Wiley
A pocket sized guide for non-specialists which includes a chapter on financial statement analysis for banks with five example Islamic financial statements (detailed balance sheets) to show how different these are to the statements that would be prepared for their conventional counterparts.
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