FINANCIAL SECTOR TALENT ENRICHMENT PROGRAMME

ACCOUNTING FOR ISLAMIC FINANCIAL INSTITUTIONS

presented by

En. Sulaiman Omar, AmIslamic Bank Berhad

Pn. Hasleenda Onn, OCBC
 FINANCIAL REPORTING
ENVIRONMENT & FRAMEWORK FOR
ISLAMIC FINANCIAL INSTITUTIONS
 Definition and Purpose of Accounting

In 1996 the American Accounting Association

defined accounting as:
“…the process of identifying, measuring and communicating
economic information to permit informed judgements and
decisions by users of that information”

In 1975 they added that the purpose of the

process was:
“…to provide information which is potentially useful for making
economic decisions and which, if provided, will enhance
social welfare”
 ACCOUNTING
a process of

recognising, recording, measuring, analysing,

classifying and interpreting result of reporting & presenting
summarising business operation financial position
transactions

Documents Profitability Financial Statement

Vouchers = Income – expenses = Balance Sheet

Ledgers Growth = Income Statement

= Stmt of Changes in Equity
Trial Balance Liquidity
= Cash Flow Statement
Report (Mgmt) Profitability = Notes to the Accounts

STAKEHOLDERS
Management Security Analysts Authorities – BNM, SC, IRB
Board of Directors Investment Advisors Staff
Fund Managers Public
 Traditional Model of Accounting

ƒ Accounting entity
- owners ≠ managers

ƒ On-going concern
- no perceivable time horizon

ƒ Economic events
- measurable in $$ terms

ƒ Decision usefulness

ƒ Maximisation of wealth of stakeholders

 Objectives of Financial Accounting and Reporting

ƒ Provide information that is useful to present and potential

investors and creditors and other users in making rationale
decisions.

ƒ Information should be comprehensible to those who have

reasonable understanding of economic activities and are
willing to study the information.

ƒ Accountability framework – the objective is to provide a fair

system of information flow between the agent and the
principal.
 Users of Financial Statement

STAKEHOLDERS
Management Security Analysts Authorities – BNM, SC, IRB
Board of Directors Investment Advisors Staff
Fund Managers Public

ƒ 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

ƒ 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.

ƒ Security analysts, investment advisors and fund managers

- thru restructuring the operations (mergers, acquisitions): estimated intrinsic
values, equity analysis
 Users of Financial Statement

STAKEHOLDERS
Management Security Analysts Authorities – BNM, SC, IRB
Board of Directors Investment Advisors Staff
Fund Managers Public

ƒ 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.

ƒ Staff
- enquire knowledge on the performance, financial condition and profitability
of the company.

ƒ Public
- analyse the performance of the company, for investment purposes
 Accounting and Islam

“ O ye who believe! When ye deal with each other, in transactions

involving future obligations in a fixed period of time, reduce them to
writing let a scribe write down faithfully as between the parties; let not
the scribe refuse to write: as Allah has taught him, so let him write. Let
him who incurs the liability dictate, but let him fear his Lord Allah, and
not diminish aught of what he owes. If the party liable is mentally
deficient, or weak or unable himself to dictate, let his guardian
dictate faithfully. And get two witnesses, out of your own men, and if
there are not two men, then a man and two women, such as ye
choose, for witnesses, so that if one of them errs, the other can
remind him. The witnesses should not refuse when they are called on
(for evidence). Disdain not to reduce to writing (your contract) for a
future period, whether it be small or big: it is juster in the sight of Allah,
more suitable as evidence, and more convenient to prevent doubts
among yourselves but if it be a transaction which ye carry out on the
spot among yourselves there is no blame on you if ye reduce it not to
writing. But take witnesses whenever ye make a commercial
contract; and let neither scribe nor witness suffer harm. If ye do (such
harm), it would be wickedness in you. So fear Allah; for it is Allah that
teaches you. And Allah is well acquainted with all things.”

(Surah Al-Baqarah:282)
 Lessons from verse 282 Al-Baqarah

ƒ The importance of proper recording

ƒ Fear God in recording transactions (Islamic true and fair view)
ƒ Justice in financial transactions (e.g. the rights of debtor and
creditor)
ƒ Islamic materiality concept
ƒ Financial transactions require trustworthy witnesses
ƒ Witnesses must be independence and protected by law
ƒ Proper accounting to avoid doubts and disputes among
human beings
 User Groups of Accounting for Islamic Banks

ƒ Investors (potential and existing): lawful and equitable

investment
ƒ Creditors (potential and existing): lawful trade assets
ƒ Regulators
ƒ Shari'a Supervisory Board & Advisory Council (Shari'a
compliance)
ƒ Customers (lawful goods and services)
ƒ Others who may be effected by the disclosure or non
disclosure of information
Objectives of Islamic Financial Accounting and Reporting

ƒ Determine rights and obligations of all interested parties in

accordance with the principles of Shari'a

ƒ Subscribe to the safeguarding of the Islamic financial

institution’s assets, its rights and the rights of others

ƒ Subscribe to the enhancement of managerial and productive

capabilities of Islamic financial institutions

ƒ Report useful information to users, thus enabling them to make

legitimate decisions in their dealings with Islamic banks
Needs for Accounting Standard for Islamic Financial Institutions

ƒ Islamic banking financial reporting practices of central banks

regulation in respective of Muslim and non-Muslim countries
ƒ In Malaysia, for example, it is under the purview of BNM
through guidelines (GP8i), Companies Act 1965, applicable
MASB accounting standard and International Accounting
Standard (IAS)
ƒ Lack of Shari'a consistency as each bank relied on Shari'a
advisors of respective banks even with the supervision of the
central banks
ƒ Lack of comparability and consistency on the accounting
treatment on recognition, measurement and disclosure of
Islamic-based transactions
Needs for Accounting Standard for Islamic Financial Institutions

ƒ Measurement and comparison financial performance of the

banks
ƒ Lack of sound regulation on accounting hinders the
development of Islamic banking
ƒ In Malaysia, efforts by MASB with the guidance of AAOIFI’s
standards to develop Malaysian accounting standard for
Islamic financial institutions
Accounting and Auditing Organizations of Islamic Financial
Institutions (AAOIFI)

ƒ AAOIFI, formerly known as Financial Accounting Organization

for Islamic Banks and Financial Institutions, was established in
accordance with the Agreement of Association signed by
Islamic financial institutions on 1 Safar, 1410 H, corresponding
to 26 February 1990, in Algeria.

ƒ It was registered on 11 Ramadan 1411 H, corresponding to 27

March 1991 in the State of Bahrain (Kingdom of Bahrain, now)
as an International autonomous non-for-profit corporate body.

ƒ AAOIFI is responsible for developing accounting, auditing,

ethics, governance, and Shari’a standards for the
international Islamic banking and finance industry. In addition,
AAOIFI contributes significantly to the professional
development for the industry. AAOIFI is supported by over 150
institutional members from around 40 countries. It has its
corporate office in Kingdom of Bahrain.
Accounting and Auditing Organizations of Islamic Financial
Institutions (AAOIFI)

ƒ As an international standards setter, AAOIFI develops,

prepares and issues Financial Accounting Standards (FASs)
and Shari'a Standards (SSs) and their relevant exposure drafts
through a system of due process and industry practitioners'
consultations. In addition, the publishing of books on general
banking and finance knowledge, notably one -so far- on
banking operations, is sponsored by AAOIFI.

ƒ 22 Accounting Standards, 5 Auditing Standards, 4

Governance Standards and 2 codes of ethics.

ƒ 21 Shari'a Standards
AAOIFI: Accounting, Auditing and Governance Standards

Statement of Financial
Accounting Financial Accounting
ƒ Objectives Standards
ƒ Concepts ƒ Investment Account
Holders
Financial Accounting ƒ Salam Financing
Standards ƒ Ijarah Financing
ƒ Presentation and ƒ Zakah
Disclosure of Financial ƒ Istisna’ Financing
Statements of Islamic
Banks ƒ Provisions and Reserves
ƒ Murabaha Financing ƒ Presentation and
Disclosure of Financial
ƒ Mudaraba Financing Statements of Islamic
ƒ Musharaka Financing Insurance Companies
ƒ Profit Allocation Basis
AAOIFI: Accounting, Auditing and Governance Standards

Auditing Standards New Financial Accounting

ƒ Objectives and Principles
of Auditing
ƒ The Auditor’s Report
ƒ Terms of Audit
Engagement
Governance Standards
ƒ Shari'a Supervisory Board
ƒ Shari'a Review
ƒ Internal Shari'a Review
Code of Ethics
ƒ Code of Ethics for
Accountants and Auditors
of IFI
Standards
ƒ Investment Fund
ƒ Disclosure Bases for
Determining and
Allocating Insurance
Surplus (and Deficit)
New Auditing Standards
ƒ Audit Tests for Shari'a
Compliance
AAOIFI STRUCTURE
 AAOIFI GENERAL ASSEMBLY

ƒ The General Assembly is composed of all founding, associate,

supporting and observing members and regulatory and
supervisory authorities.

ƒ Observer and supporting members have the right to

participate in the meetings of the General Assembly but
without a right to vote. The General Assembly is the supreme
authority and convenes at least once a year.
 AAOIFI BOARD OF TRUSTEES

ƒ The Board of Trustees shall be composed of twenty part-time

members to be appointed by the General Assembly every five
years and they shall continue in office until members of the
succeeding Board are appointed. The members of the Board
of Trustees shall be elected from among the following
categories, taking into account their geographical
distribution:
ƒ Regulatory and supervisory authorities (central banks, monetary
authorities, etc).
ƒ Islamic financial institutions
ƒ Accounting and auditing firms whose professional work relates to
Islamic financial institutions.
ƒ Shari'a Fiqh scholars
ƒ Users of financial statements of Islamic financial institutions.
ƒ The Standards Board meets at least twice every year and its
resolutions are adopted by the majority of the votes of the
members voting. In case of a tie, the chairman of the
Standards Board shall have the casting vote.
 AAOIFI SHARI'A BOARD

ƒ The Shari’a Board is composed of not more than twenty

members to be appointed by the Board of Trustees for a four-
year term from among fiqh scholars who represent Shari’a
supervisory boards in the Islamic financial institutions that are
members of AAOIFI, and Shari’a supervisory boards in central
banks.
ƒ The powers of the Shari’a Board include, among others, the
following:
(1) Achieving harmonization and convergence in the concepts and
application among the Shari’a supervisory boards of Islamic
financial institutions to avoid contradiction or inconsistency
between the fatwas and applications by these institutions,
thereby providing a pro-active role for the Shari’a supervisory
boards of Islamic financial institutions and central banks.

(2) Helping in the development of Shari’a approved instruments,

thereby enabling Islamic financial institutions to cope with the
developments taking place in instruments and formulas in fields of
finance, investment and other banking services.
 AAOIFI SHARI'A BOARD

(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.

(4) Reviewing the standards which AAOIFI issues in accounting,

auditing and code of ethics and related statements throughout
the various stages of the due process, to ensure that these issues
are in compliance with the rules and principles of Islamic Shari’a.
 MASB

ƒ The Malaysian Accounting Standards Board (MASB) is

established under the Financial Reporting Act 1997 (the Act)
as an independent authority to develop and issue accounting
and financial reporting standards in Malaysia.

ƒ The MASB, together with the Financial Reporting Foundation

(FRF), make up the new framework for financial reporting in
Malaysia. This new framework comprises an independent
standard-setting structure with representation from all relevant
parties in the standard-setting process, including preparers,
users, regulators and the accountancy profession.
 MASB

ƒ The functions and powers of the MASB as provided under the

Act are to:
ƒ issue new accounting standards as approved accounting
standards and to review, revise or adopt existing accounting
standards as approved accounting standards;
ƒ issue statements of principles for financial reporting;
ƒ sponsor or undertake development of possible accounting
standards;
ƒ conduct public consultation as necessary;
ƒ develop a conceptual framework for the purpose of evaluating
proposed accounting standards;
ƒ make such changes to proposed accounting standards as
considered necessary;
ƒ seek the view of the FRF in relation to new and existing standards,
statement of principles, and changes to proposed standards;
ƒ determine scope and application of accounting standards; and
ƒ to perform such other function as the Minister of Finance may
prescribe.
 MASB Working Group

ƒ The Malaysian Accounting Standards Board (MASB) has

established 60 Working Groups to date, each is responsible for
different projects.

ƒ A Working Group is chaired by a member of the MASB and

comprises a project manager, representatives from the
accounting profession, commerce, academia as well as
regulatory authorities. The Working Group plays an important
role in the standards due process. Against this backdrop, it is
formed by the MASB to debate on emerging issues of
significance to the accounting profession. The Working Group
is responsible for reviewing and undertaking detailed studies of
assigned project, giving due regard to the statutory and
regulatory reporting requirements, practical implications as
well as practices in other major jurisdictions.

ƒ Islamic: Working Group 36

 WG 36

ƒ WG 36, Presentation of Financial Statements of Islamic Financial

Institutions
ƒ (Chairman: Y.Bhg. Datuk Dr. Abdul Samad Hj. Alias; Project
Managers: Dr. Syed Musa Syed Jaafar Al-Habshi, Encik Syed Ghazali
Wafa S. Adwam Wafa)

ƒ WG 36 was responsible for developing MASB i-12004 Presentation of

Financial Statements of Islamic Financial Institutions. This is the first
Islamic accounting standard ever issued by MASB. This Standard is to
streamline the accounting procedures of Islamic Financial Institutions
and to ensure comparability of financial performance of Islamic
banks and conventional banks that participate in Islamic Banking
Scheme. The MASB will continue to develop the Islamic Accounting
Standards in the near future and has established a working structure
to ensure a smooth implementation of this new and challenging
area. The Standard was renamed FRS i-12004 with effect from 1
January 2005.

ƒ http://www.masb.org.my/masbstd_FRSi-1.htm
 Why not IAS, AAOIFI?

ƒ Inadequacy of IASs and FASs (by AAOIFI)

ƒ IAS
ƒ General principles
ƒ Shariah issues

ƒ AAOIFI
ƒ Shariah issues
ƒ General principle
ƒ Format
ƒ Practicality
ƒ Legal requirement
 Aim

ƒ Provide guidance in the preparation of a complete set

of Financial Statements
ƒ Harmonise accounting practices where Shari'a allows
alternatives
ƒ Bridge gap where IASs and AAOIFI standards have not
been addresses adequately
ƒ Ensure comparability of performance
ƒ Promote growth in Islamic transactions
Due Process
 General Presentation & Disclosure
Requirements in the Financial Statements of
Islamic Financial Institutions:

The Case of MASBi-1 (FRSi-1)

 The Need for Islamic Accounting Standards

ƒ IN1. Islamic banking operations in Malaysia have been in existence

for nearly two decades and have experienced rapid growth due to
wider understanding and public acceptance, as well as the
introduction by the government of a structural framework and a set
of facilitative measures to nurture a healthy development of the
industry. Hitherto, Islamic banking financial reporting practices have
been under the purview of the Central Bank of Malaysia (Bank
Negara Malaysia) as well as the Companies Act 1965 and applicable
Financial Reporting Standards. In the absence of a comprehensive
set of accounting standards, Islamic banks and other Islamic
financial institutions, as well as conventional banks that provide
Islamic banking services, have relied heavily on the prevailing
guidelines issued by the Bank Negara Malaysia and on Shariah rulings
issued by Shariah advisors appointed by the respective banks. The
current practice has raised a number of serious concerns. The
absence of a proper set of accounting standards for the recognition,
measurement, and disclosure of Islamic-based transactions
complicates or hinders attempt to compare financial performance
among banks or between periods for individual banks. It has become
increasingly evident that in the long run the lack of dedicated
standards will also hamper the development of Islamic investment
vehicles as well as a robust Islamic capital market.
 Scope

ƒ Mandatory: IFIs that conduct Islamic banking business

ƒ Mandatory: IFIs that lodge report to BNM

ƒ Mandatory: Conventional banks with IBS

ƒ Encouraged: Other Islamic institutions or those other than IFIs

that offer Islamic banking scheme
 General Presentation & Disclosure Requirements in the Financial
Statements of Islamic Financial Institutions: The Case of MASBi-1 (FRSi-1)

Objective
ƒ 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.

ƒ In addition, this Standard provides guidelines for the structure, and

basis of the content of financial statements to ensure conformity with
Shariah requirements. It also prescribes minimum disclosure
requirements. The recognition, measurement, and disclosure of
specific Islamic-based transactions and events will be dealt with in
other MASB Islamic Standards.
Islamic Financial Institutions???
 Islamic Financial Institutions

ƒ Islamic banks
ƒ Islamic windows of Commercial Banks
ƒ Development banks/ Cooperative banks
ƒ Finance companies
ƒ Investment banks
ƒ Discount houses
ƒ that carry out Islamic banking business or Islamic financial
business
 Shariah Requirements

ƒ Refers to Shariah principles and rules issued by SAC

ƒ Shariah rulings promulgated by the Shariah Supervisory Board

of IFIs

ƒ In cases of differing opinions, the rulings promulgated by SAC

shall prevail
 Purpose of Financial Statements

ƒ To provide information on:

ƒ Financial position
ƒ Financial performance
ƒ Cash flows of IFIs

ƒ Portrays management’s stewardship

ƒ Assessing the degree of Shariah compliance

Review Annual Report??
 Responsibility of Financial Statements

ƒ Board of directors or the equivalent governing body of an IFIs

is responsible for the preparation and presentation of its
financial statements.
 Components of Financial Statements

ƒ Balance Sheet

ƒ Income Statement

ƒ Statement of Changes in Equity

ƒ Cash Flow Statement

ƒ Accounting policies, explanatory notes and appendices

 Accounting Policies

ƒ Management should develop policies to ensure that the FS

provide information that is:

ƒ Relevant to decision making needs of users; and

ƒ Reliable in that they:

ƒ Represent faithfully the results and financial position of the IFI
ƒ Neutral
ƒ Prudent
ƒ Complete in all material respects

ƒ In the absence of specific FRS, management uses its judgement

in developing accounting policy; consider Shariah requirements.
 Going Concern

ƒ FS should be prepared on a going concern basis unless

management either intends to liquidate the IFI or to cease
trading.

ƒ Material uncertainties that may cast doubt upon the IFI’s

ability to continue as going concern should be disclosed.
 Accrual Basis of Accounting

ƒ IFI should prepare its FS, except for cash flow info,
under the accrual basis of accounting unless
otherwise by SAC.
 Consistency of Presentation

ƒ Presentation and classification of items in FS should

be retained from one period to the next unless:

ƒ can demonstrate that change results in a more

appropriate presentation; or

ƒ a change is required by FRS, or regulation.

 Structure & Content

ƒ Identification of FS ƒ Statement of Changes in

Equity
ƒ Reporting period
ƒ Cash Flow Statement
ƒ Timeliness
ƒ Notes to FS
ƒ Balance Sheet

ƒ Income Statement
 Identification of FS

ƒ FS should be clearly identified

ƒ Display prominently:
ƒ Name of the IFI
ƒ Whether individual of group FS are presented
ƒ The BS date or the period covered by the FS:
ƒ IFI is encouraged to include the Muslim calendar date
ƒ Reporting currencies
ƒ The level of precision used in the presentation of figures in
the FS.
 Reporting Period

ƒ FS should be presented at least annually

ƒ In cases when IFI’s BS date changes & the annual FS are

presented for a period longer or shorter than a year, the IFI
should disclose:
ƒ Reason for a period other than one year being used; and
ƒ Fact that those comparative amounts for the income statements
(IS), changes in equity, cash flows & related notes are not
comparable.
 Timeliness

ƒ An IFI should issue its FS within six months of the balance sheet
date

ƒ More specific deadlines, for e.g. set by BNM for licensed

institutions
 Balance Sheet & Income Statement

ƒ BS should include the IFI’s assets, liabilities and

equity

ƒ IS should include income, expenses and net profit/

loss for the period
Balance Sheet (Illustration)
Balance Sheet (Illustration)
Income Statement (Illustration)
Income Statement (Illustration)
Statement of Changes in Equity & Cash Flow Statement

ƒ A statement of changes is equity should show:

ƒ Net profit or loss for the period
ƒ Each item of income & expense, gain or loss which, as
required by other FRSs is recognised directly in equity, & the
total of these items
ƒ Cumulative effect of changes in accounting policies & the
correction of errors

ƒ Cash flow statement reports cash flows during the

period classified by operating, investing and
financing activities
Statement of Changes in Equity (Illustration)
Statement of Changes in Equity (Illustration)
Cash Flow Statement (Illustration)
Cash Flow Statement (Illustration)
 Notes to FS
ƒ Structure
ƒ Presentation of Accounting
Policies
ƒ Additional Disclosures in FS
ƒ Unusual Supervisory Restrictions
ƒ Shariah Advisor / Board & Zakat
Obligations
ƒ Prohibited Earnings &
Expenditure
ƒ Concentrations of Asset Risks
ƒ Concentration & Distribution of
Investment Accounts
ƒ Distribution of Assets
ƒ Commitments & Contingencies
ƒ Changes in Accounting
Estimates, Errors & Accounting
Policies
ƒ Profit Distribution Policy
ƒ Related Party Disclosures
ƒ Specific Investment Accounts
 Case Study: Overview of the Financial
Statements of Islamic Banks -
Malaysia and Foreign-based Islamic Banks
 Case Study Approach

ƒ Overview of the Financial Statements of Islamic banks

operating in 4 Islamic financial centers – Kuala Lumpur,
Bahrain, Dubai and Kuwait

ƒ Focus on 2 main areas :

ƒ Presentation of financial statements
ƒ Accounting standards and disclosures
 Background of Samples

ƒ BIMB Holdings Berhad (Kuala Lumpur based, listed on Bursa

Malaysia)
ƒ Financial statements for year ended 30 June 2006
ƒ Total assets of RM14.6 billion
ƒ Shareholders funds of RM880 million
ƒ Operations in commercial banking, Takaful, brokerage and
fund management
ƒ First and leading Islamic bank in Malaysia

ƒ www.bankislam.com.my
 Background of samples (cont.)

ƒ Shamil Bank (Bahrain based, listed in Bahrain)

ƒ Financial statements for year ended 31 December 2006
ƒ Total assets of USD1.7 billion
ƒ Shareholders funds of USD353 million
ƒ Funds under management of USD1.9 billion
ƒ Main operations – fund management, investment banking
and financing
ƒ Operations in Bahrain, Yemen, Qatar, Pakistan and
Switzerland

ƒ www.shamilbank.net
 Background of samples (cont.)

ƒ Gulf Finance House (Bahrain based, listed in Bahrain and

Kuwait)
ƒ Financial statements for year ended 31 December 2006
ƒ Total assets of USD1.5 billion
ƒ Shareholders funds of USD668 million
ƒ Funds under management of USD1.5 billion
ƒ Main operation – financing infrastructure projects, fund
management, subsidiary in commercial banking
ƒ Projects in Bahrain, Qatar, Dubai and Jordan

ƒ www.gfhouse.com
 Background of samples (cont.)

ƒ Dubai Islamic Bank (based in Dubai, listed in Dubai)

ƒ Financial statements for year ended 31 December 2006
ƒ Total assets of AED64.4 billion
ƒ Shareholders funds of AED8.8 billion
ƒ Main operations – financing and investing, real estate
investment and development
ƒ Main operations in UAE, banking subsidiary in Sudan, real
estate investment also in Egypt, Ireland, Lebanon

ƒ www.db.ae
 Background of samples (cont.)

ƒ Kuwait Finance House (based in Kuwait, listed in Kuwait)

ƒ Financial statements for year ended 31 December 2006
ƒ Total assets of KD6.3 billion
ƒ Shareholders funds of KD702 million
ƒ Main operations of financing (corporate and retail),
investment, leasing and fund management

ƒ www.kfh.com
 Accounting Standards
ƒ BIMB (Malaysia)
• FRS based (‘old’ FRS,
exclude IAS 39) including
local FRSi
• BNM Guidelines, especially
GP8i and GP3
ƒ Gulf Finance House (Bahrain)
• AAOFII based, and
• IFRS (include IAS 39)
ƒ Shamil Bank (Bahrain)
• AAOFII based
ƒ Dubai Islamic Bank (Dubai)
• IFRS based (include
adoption of IAS 32 and 39)
• Sharia rules and principles
• Kuwait Finance House (Kuwait)
• IFRS based (include IAS 39)
• Regulations of Central Bank
of Kuwait
FINANCIAL SECTOR TALENT ENRICHMENT PROGRAMME

Thank you