the challenge of new/revised islamic accounting standards
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The challenge of new/revised Islamic accounting standards. Fawad Laique, Partner, Ernst & Young Bahrain 5th November 2010. The marketplace. Kal, The Economist, Kaltoons.com. A perspective on the economy. Kal, The Economist, Kaltoons.com. Current accounting standards in AAOIFI. - PowerPoint PPT PresentationTRANSCRIPT
The challenge of new/revised Islamic accounting standards
Fawad Laique, Partner, Ernst & Young Bahrain
5th November 2010
Islamic Financial ServicesPage 2
The marketplace
Kal, The Economist, Kaltoons.com
16 November 2009
Financial Reporting Outlook 2009Welcome and opening remarks
Page 2
Islamic Financial ServicesPage 3
A perspective on the economy
Kal, The Economist, Kaltoons.com
16 November 2009
Financial Reporting Outlook 2009Welcome and opening remarks
Page 3
Islamic Financial ServicesPage 4
Current accounting standards in AAOIFI
Topic Effective
Statement of Financial Accounting
SFA 1 October 1993
SFA 2 October 1993
Financial Accounting Standards
FAS.1 1 January 1996
FAS .2 1 January 1998
FAS.3 1 January 1998
FAS .4 1 January 1998
FAS.5 1 January 1998
FAS .6 1 January 1999
FAS.7 1 January 1999
FAS .8 1 January 1999
FAS.9 1 January 1999
FAS .10 1 January 1999
Topic Effective
FAS.11 1 January 2001
FAS.12 1 January 2000
FAS.13 1 January 2002
FAS .14 1 January 2002
FAS.15 1 January 2002
FAS .16 1 January 2002
FAS.17 1 January 2003
FAS .18 1 January 2003
FAS.19 1 January 2004
FAS .20 1 January 2004
FAS.21 1 January 2005
FAS .22 1 January 2005
FAS.23 1 January 2010
FAS .24 1 January 2010
Islamic Financial ServicesPage 5
AAOIFI accounting standards by 2013
Topic Effective
Conceptual Framework
SFA 1 1 January 2011
Financial Accounting Standards
FAS.1 1 January 2012
FAS .2 1 January 2012
FAS.3 1 January 2013
FAS .4 1 January 2013
FAS.5 1 January 2012
FAS .6 1 January 2012
FAS.7 1 January 1999
FAS .8 1 January 2012
FAS.9 1 January 1999
FAS .10 1 January 1999
Topic Effective
FAS.11 1 January 2012
FAS.12 1 January 2012
FAS.13 1 January 2012
FAS .14 1 January 2002
FAS.15 1 January 2012
FAS .16 1 January 2002
FAS.17 1 January 2011
FAS .18 1 January 2003
FAS.19 1 January 2012
FAS .20 1 January 2004
FAS.21 1 January 2005
FAS .22 1 January 2012
FAS.23 1 January 2010
FAS .24 1 January 2010
FAS 25-28 1 January 2011-2013
Islamic Financial ServicesPage 6
Revised Conceptual Framework
► Replaces the SFA No 1: Objectives of Financial Accounting and SFA No
2: Concepts of Financial Accounting for Banks and FIs
► Effective 1 January 2011
► Key changes
► Scope is broader.
► Investment accounts – on versus off balance sheet treatment based on
“authority to make decisions in relation to use of and deployment of funds”
► Form and substance argument
Islamic Financial ServicesPage 7
Revised Consolidation standard
► Effective 1 January 2010
► Scope
► Control
► “The power to govern the financial and operating policies of an entity with the
objective of obtaining benefits from its operations”
► Not a strict legal form over substance assessment anymore.
► Where control is temporary, no need to do a line by line consolidation.
► Disclosures
► Disclosures widened.
Islamic Financial ServicesPage 8
THANK YOU!