The exposure draft of a new standard on off-balance-sheet assets under management has been approved in principle by Accounting Board (AAB) of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
The Bahrain-based standard-setting body said the announcement follows a meeting of the AAB, where a review was done on standards development and implementation update undertaken by the board for the period January to September 2022, including the projects in the pipeline for the year.
During the period, multiple working group meetings and short sub-committee and executive meetings had been held for a host of projects.
Review
With respect to the revision of FAS 27 ‘Investment Accounts’, the standard on quasi-equity and standard on control were approved in principle in the previous board meetings while in this meeting, the third output, off-balance-sheet assets under management, has been approved in principle.
The board agenda included a review of the first version of the exposure draft of this standard, which aims to establish the principles of financial reporting related to off-balance-sheet assets under management in line with the AAOIFI Conceptual Framework for Financial Reporting (the conceptual framework).
The review process entailed discussion on the recommendations received from the respective working group. Accordingly, the board adopted the draft and approved it for issuance in light of the proposed changes.
AAB chairman Hamad Al Oqab said: “In this meeting, the board approved the exposure draft for issuance and also approved an updated list of projects and plans for the year. The board is keen, as always, to ensure that AAOIFI financial accounting standards keep pace with the industry’s emerging needs and best practices.”
The board plans to hold its next meeting this month.
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