AAOIFI issues exposure draft on “Presentation and Disclosures in the Financial Statements of Takaful Institutions” and invites opinion from Islamic Finance Industry

The Accounting Board (AAB) of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) approved the issuance of the exposure draft on Financial Accounting Standard (FAS) on “Presentation and Disclosures in the Financial Statements of Takaful Institutions”.

Work on Takaful project was initiated with the objective of aligning AAOIFI standards as close as possible to global accounting standards, duly addressing the specific Shari’ah requirements. Due to complexity inherent in Takaful products, the board decided to develop one standard prescribing the presentation and disclosure matters, and one or more separate standards prescribing the accounting treatments specific to Takaful products.

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