IFSB Standard on Accounting and Auditing for Islamic Financial Institutions

IFSB Standard on Accounting and Auditing for Islamic Financial Institutions

1. Introduction This standard is issued by the Islamic Financial Services Board (IFSB). It provides guidance on accounting and auditing for Islamic financial institutions (IFIs).

2. Scope This standard applies to all Islamic financial institutions, including Islamic banks, investment funds, and other financial entities operating under Shariah principles.

3. Accounting Framework IFIs shall prepare their financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Adjustments shall be made to ensure compliance with Shariah principles where IFRS provisions conflict with Shariah requirements.

4. Auditing Requirements IFIs shall engage external auditors who possess expertise in Islamic finance. Audits shall be conducted in accordance with International Standards on Auditing (ISA) and additional IFSB auditing standards specific to Islamic financial products and transactions.

5. Effective Date This standard shall become effective for financial years beginning on or after [Date].

6. References

• International Financial Reporting Standards (IFRS)
• International Standards on Auditing (ISA)
• IFSB Shariah Governance Standards