GEN 8.2.1 Guidance
Past version: effective up to 28/02/2010
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1. AAOIFI FAS 18 sets out the accounting rules for recognising, measuring and presenting the assets managed and funds mobilised on the basis of Islamic Shari'a rules and principles in the financial accounts and statements of conventional financial institutions that offer Islamic financial services, as well as the income generated from these services. The standard also determines the necessary disclosures related to these services.
2. Under AAOIFI FAS 18,
Authorised Persons which operate Islamic Windows must disclose (in their relevant financial statements) the following:
a. whether or not they co-mingle funds related to
Islamic Financial Business with funds relating to conventional financial business;
b. the sources and applications of funds mobilised and invested through their
Islamic Financial Business and the sources of funds used to cover a deficit if it occurs;
c. any reserves of expenditures prohibited by Shari'a and the disposition of any revenues, the latter shall be determined by the
Shari'a Supervisory Board;
d. any reserves deducted from the funds mobilised according to Shari'a, the purpose of such reserves and to whom the reserves shall revert in the case where the activities in respect of which the reserves were deducted have ceased; and
e. the percentage amount of funds relating to
Islamic Financial Business in comparison with the percentage amount of funds relating to conventional financial business.
Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]