In this blog, Mustafa Adil, Head of Islamic Finance Proposition at Refinitiv, reviews the growth of the Islamic finance industry, why regulators and practitioners have recognized the need for harmonious financial standards, explains who the Accounting and Auditing Organization for Islamic Financial Institutions (
- Regulators and practitioners recognized the need for harmonious financial standards in the Islamic finance industry.
- The Accounting and Auditing Organization for Islamic Financial Institutions was created to maintain and promote Shariah standards for Islamic financial institutions, participants, and the overall industry.
- Refinitiv has partnered with the AAOIFI to be the first global information platform providing full access to AAOIFI content, through its newly released AAOIFI Eikon page.
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In Islamic finance, the absence of unity and the lack of uniform reporting standards followed by the Islamic financial institutions causes difficulties for analysts and investors.
As the Islamic financial industry is growing across borders and promoting financial inclusion, regulators and practitioners have recognized the need for harmonious financial standards, and that is what necessitated the establishment of AAOIFI back in 1991.
Who is the AAOIFI?
AAOIFI is a not-for-profit organization that’s goal is to maintain and promote Shariah standards for Islamic financial institutions, participants, and the overall industry.
It provides a complement to the international reporting conventional standards, which fills in gaps between conventional and Islamic finance transactions.
As an international standards-setting body, it harmonizes accounting procedures and provides clear interpretations and policies for Islamic financial institutions that operate across different borders.
AAOIFI develops standards about accounting, auditing, ethics, and governance for Islamic financial institutions.
These standards are necessary for sustaining Islamic financial transactions in accordance with the primary sources of Sharia.
Additionally, the organization engages in standards-related activities such as promotional events through conferences and training, standards and journal publications, membership, and professional certifications.
The founding and associate members of AAOIFI, as well as the regulatory and supervisory authorities define the acceptable standards for various functions.
This includes areas such as accounting, governance, ethics, transactions, and investment.
Consequently, it is essential that these standards and publications become handy to all market practitioners who are analyzing financial data, trading instruments, monitoring financial markets and making investments.
That being said, and as part of its continuous efforts to build on its Islamic finance, Refinitiv has partnered with The Accounting and Auditing Organization for Islamic Financial Institutions to be the first global information platform providing full access to AAOIFI content, through its newly released AAOIFI Eikon page.
For Eikon users, access the AAOIFI Eikon page here.
The Eikon page is a gateway to this leading international Islamic finance standard setter. It offers access to their latest standards in dual languages, along with periodic publications, courses and related news. Additionally, it provides a directory to AAOIFI’s members and Boards.
With this unique content being added to our strong Islamic finance presence on Eikon, Refinitiv aims to remain a leader as a data provider, across different Islamic finance areas.
Access the page to stay up do date and learn all about the Islamic finance industry standards.