ICAEW.com works better with JavaScript enabled.

Accounting for Islamic finance

The accounting practices adopted by firms in the Islamic finance sector have not unexpectedly varied 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.

Contact the Library

Expert help for your enquiries and research.

E  library@icaew.com

T  +44 (0)20 7920 8620


The Library provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.

Financial and accounting principles in Islamic finance

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.

The substance and form of Islamic finance instruments: an accounting perspective

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. The authors focus on the accounting standards issued by the Financial Accounting Standards Board (FASB) in the USA, and the most common Islamic finance contracts and instruments in the areas of home financing and short-term financing.

The need for Islamic accounting standards: the Malaysian Islamic financial institutions experience

Research into the financial reporting practices of Malaysian Islamic Financial Institutions (IFIs). Interviewees at seven IFIs discuss their views on the relevance of Accounting and Auditing for Islamic Financial Institutions (AAOIFI) accounting standards and the application of International Financial Reporting Standards (IFRS) in Islamic financial reporting.

Islamic banking looks to stable growth

Sharia-compliant asset growth slowed in 2018 to conventional banking rates, according to S&P Global's 2019 Islamic Finance Outlook. The article considers how adopting IFRS 9 has impacted Islamic banks and provides a table ranking the GCC's largest Islamic banks by assets.

Showing 3 of 9 items

Useful links

News updates

Islamic accounting
A dedicated section of the IAS Plus (Deloitte) website focused on recent developments in Islamic accounting requirements and practices.


Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
AAOIFI develops, prepares and issues Financial Accounting Standards (FASs) and Shari'a Standards (SSs). A full list of the standards developed by the AAOIFI can be found through the publications section of their website.

Asian Oceanian Standard Setters Group (AOSSG)
The Asian-Oceanian Standard-Setters Group is a grouping of the accounting standard-setters in the Asian-Oceanian region. The AOSSG has established a working group on Financial Reporting Issues relating to Islamic Finance

International Accounting Standards Board (IASB)
The IASB established a working group with a focus on Shariah-Compliant Instruments and Transactions in 2013, now called the Islamic Finance Consultative Group. Papers from the group are available on the IASB website. 

Malaysian Accounting Standards Board (MASB)
The MASB is an independent authority which issues accounting and financial reporting standards in Malaysia.

Reports and papers

Adoption of international financial reporting standards and international accounting standards in islamic financial institutions from the practitioners' viewpoint
A 2013 article published in the Middle East Journal of Scientific Research; the authors examine whether Islamic finance practitioners encounter Shariah issues when adopting IFRS and International Accounting Standards (IAS) to report Islamic financial transactions.

Reporting Islamic financial transactions under IFRS: 2018 update
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. Published in January 2018.


Accounting and Islamic finance in the Middle East and North Africa
International survey conducted by the AOSSG from July to October 2013. Topics include: practitioners' views on the reporting environment and accounting for Islamic financial transactions.

Financial reporting by Islamic financial institutions: 2017 update
An update to 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, with a particular focus on lessor accounting for ijarah, classification of customer investment accounts and recognition and measurement of finance income.

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
(AAOIFI, 2015)
Contains sections on financial accounting standards, auditing, governance and ethics for Islamic banks and financial institutions.

Islamic finance in a nutshell
Kettell, Brian (John Wiley & Sons, 2010)
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. If you would like to borrow this title, please contact the enquiry team.

To find out how you can borrow books from the Library please see our guide to book loans.

You can obtain copies of articles or extracts of books and reports by post or email through our document supply service.

Can't find what you are looking for?

If you're having trouble finding the information you need, ask the Library & Information Service. Contact us by telephone on +44 (0)20 7920 8620, by web chat or by email at library@icaew.com.

ICAEW accepts no responsibility for the content on any site to which a hypertext link from this site exists. The links are provided ‘as is’ with no warranty, express or implied, for the information provided within them. Please see the full copyright and disclaimer notice.