AAOIFI publishes Shariah Standards 2010

Accounting and auditing organisation for Islamic financial institutions (AAOIFI), the international standard-setting organisation for Islamic finance, has published its new standards publications entitled Shariah Standards 2010 and Accounting, Auditing and Governance Standards 2010.   

The Shariah Standards 2010 publication contains 41 Shariah standards including 11 new standards that are on stipulations for gharar (uncertainty) in financial transactions, arbitration, waqf (endowment), ijarah (leasing) on labour, zakah (alms), contingent obligations, credit facilities, online financial transactions, rahn (pledge), investment accounts and profit distribution, and Islamic reinsurance. 

Dr Mohamad Nedal Alchaar, Secretary-General of AAOIFI, said the standards have helped Islamic financial institutions throughout the world to ensure that the products and services they offered complied with Shariah. 

He also added, “the standards have also managed to introduce a high degree of harmonisation of Islamic finance practices across the major Islamic finance markets and consequently place the industry in a stronger position to expand”.

Meanwhile, AAOIFI’s Accounting, Auditing and Governance Standards 2010 publication contains 40 standards covering the areas of accounting, auditing, ethics, and governance for Islamic financial institutions.

Among the new standards included in the publication are accounting standard on investments in associates, statement of governance principles, and governance standard on corporate social responsibility.

Development of AAOIFI’s standards was undertaken by its Shariah Board – acknowledged as the leading global authority on Shari’a for international Islamic finance – and accounting and auditing standards board.

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