Introduction
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Addition of the conventional
disclosures (on functions
On policies: relates to the
policies adopted but not
On earnings /
consistent with the
expenditures
concepts of financial
prohibited by the
accounting for Islamic
Shariah
banks
AAOIFIs
Disclosures related to recommended On valuation: the policies,
unrestricted and disclosures bases, and method use for
restricted investment revaluation. Cash equivalent
accounts value over historical value
Disclosures on the
distribution of Disclosure of the method used by the
unrestricted investment Islamic bank in allocating investment
accounts, by types, in profit (losses) between unrestricted
accordance with investment account holders or their
maturity equivalent
Addition of the conventional disclosures (on functions):
1. The role of the Shariah adviser/Shariah board in supervising the banks activities and the
nature of advisers or boards authority in accordance with the banks by-laws and in actual
practice
2. zakah
On earnings / expenditures prohibited by the Shariah.
Disclose the amount and nature which are not permitted by Shariah
Disclose how IFIs intends to dispose of the assets generated by/through prohibited
earnings/expenditures
Rationale: To enhance the confidence of the stakeholders on the integrity of IFIs
Disclosures related to unrestricted and restricted investment accounts
Disclosures on the distribution of unrestricted investment accounts, by types, in accordance with
maturity
Changes in the maturity period used should be disclosed
Rationale: to ensure transparency on the accounting & management of the unrestricted
investment accounts
Financial statement for changes in
restricted investments
Additional
statements
review by:
Unique disclosure:
On shariah advisor and zakat obligations disclose the role and authority
of the Shariah advisor /board in monitoring, pertaining Shariah matter;
responsibility towards payment of zakat on behalf of depositors,
shareholders and others.
Para 73, disclose:
Amount and nature of earnings from not permitted by Shariah
activities
Amount and nature of expenses not permitted by Shariah
Manner of disposal of prohibited earnings
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