PRU-EPRS 1.17 PRU-EPRS 1.17 Instructional Guidelines — Form B40 — Income Statement -Islamic Financial Institutions
Form B40 — Profit and Loss Statement is intended to capture the results of operations of an
Islamic Financial Institutionduring the reporting period.
This form is applicable to
Authorised Firmscategorised under prudential category 5.
The form is designed to capture information pertaining to an
Islamic Financial Institution's income, expenses and profit for the reporting period.Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
PRU-EPRS 1.17 Instructional Guidelines1. All figures relating to income statement items in any of the quarterly returns should correspond to the current reporting period (quarter) and not cumulative or year-to-date amounts.2. The instructional guidelines below are regarding certain specific data elements in the form:
Item No. Item Instructional Guidelines B400_1010 Income from jointly financed accounts Authorised Firms should include in respect of this item income earned on funds from jointly financed investment accounts (i.e. Unrestricted PSIAsand self-financed). The income should be gross before allocating to the Unrestricted PSIAsand the bank's Mudaribfee. B400_1020 Allocated to unrestricted account holders (before Mudaribfee) Authorised Firmsshould include in respect of this item the amount allocated from B40 item no. B400_1010 above to the Unrestricted PSIAsas their share of the income. Note that this number should be entered as positive amount. B400_1030 Authorised Firm's Mudarib fee from managing jointly financed accounts Authorised Firmsshould include in respect of this item the amount of the Mudaribfee that they are entitled to receive for the management of the Unrestricted PSIAs. B400_1040 Authorised Firm'sfees from managing other (restricted) accounts Include any amounts owing to the Authorised Firmas fees for managing PSIARaccounts. B400_2010 Authorised Firm'sincome from its own non-financing activities Authorised Firmsshould include in respect of this item the income received from non-financing activities (e.g. Murabaha sales) that result from the employment of the Authorised Firm'sown funds and current accounts. The income should have been generated from funds that have been employed separately from the PSIAfunds. B400_2020 Authorised Firm'sincome from its own financing and investment activities Authorised Firmsshould include in respect of this item the income received from financing and investment activities that results from the employment of the Authorised Firm'sown funds and current accounts. The Bankis solely entitled to profits/ (losses) from these activities. B400_2030 Net fees and commission income Authorised Firmsshould include in respect of this item the income received for services provided such as trade related letters of credit, corporate advice, investment management and trustee services, Kefala (guarantees) and indemnities. B400_2040 Other operating income Include income from any other source not included in any of the above. B300_3700 Staff expenses Include costs such as:• Wages and salaries;• Social security contributions;• Contribution to any pension schemes (employer's share); and• Costs of staff benefits paid. B400_3040 Premises and equipment costs Should include rent, property tax, lighting, heating, maintenance costs etc. B300_3800 Depreciation and amortisation Charges relating, for example, to depreciation / amortisation of property, plant and equipment and other amounts written off in respect of tangible and intangible fixed assets. B400_3060 Provision for losses on Islamic Contracts Provision for losses on Islamic Contracts: refer to FAS 11 of AAOIFIwhich requires the inclusion of bad and doubtful Islamic financing and non-financing contracts and investments. B400_3070 Other provisions Include here all other provisions other than for Islamic Contracts. B300_3900 Other operating expenses Include all other expenses not included in any of the above. B300_4100 Net income from subsidiaries and associated companies Report share of profits and losses of from subsidiaries and associated companies. B300_4200 Profit (loss) from extraordinary items For example:
Profit or losses on sale or termination of an operation; and
Profits or losses on disposal of fixed assets.
B400_3130 Zakah Include Zakah amount calculated with reference to FAS 9 of AAOIFI. B300_5100 Tax on profit / loss Any amount that has been or is expected to be paid in taxation. B300_7100 Dividends, and other distributions, declared or paid The amount to be distributed in the current year to shareholders out of the profits of a company. B300_7300 Other adjustments Any other adjustments that affect the retained profits.Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]