Exposure Draft of IFAS 5 General Presentation & Disclosure in the Financial Statements of Institutions offering Islamic Financial Services

The Institute’s Working Group on Accounting and Auditing Standards for Interest Free Modes of Financing and Investments (the Working Group) has developed an Exposure Draft (ED) of Islamic Financial Accounting Standard 5 (IFAS 5) on “General Presentation and Disclosure in the Financial Statements of Institutions offering Islamic Financial Services” along with the illustrative financial statements.

Background

The Working Group consisting of various stakeholders, regulators, scholars and practitioners has deliberated the IFAS 5 in detail. IFAS 5 is based on the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), Financial Accounting Standard (FAS) 1 ‘General Presentation and Disclosure in the Financial Statements of Islamic Banks and Financial Institutions’. In addition to FAS 1 guidance has been taken from SBP BSD Circular 4 of 2006, financial statements of local financial institutions / banks and that of other jurisdictions. While finalizing IFAS 5 any subsequent change in SBP BSD Circular 4 format will also be duly reflected.

The Working Group is pleased to expose the draft IFAS 5 along with illustrative financial statements for the purpose of members’ consultation.

You are invited to offer your comments on the ED of IFAS 5. The comments would be more helpful if they indicate the specific paragraph or group of paragraphs of ED to which they relate, clearly explaining the issue(s), and providing a suggestion for the alternative text or solution preferably giving rationale for the suggested change.

The full text of the draft standard can be downloaded from the Institute’s website at:

http://www.icap.net.pk/wp-content/uploads/2017/04/IFAS-5-final-for-exposure.docx.pdf

You are requested to send your valued comments to the Directorate of Technical Services at   dtscomments@icap.org.pk  latest by July 10, 2017.

Circular 7 Exposure Draft of IFAS 5 General Presentation & Disclosure in the Financial Statements of Institutions offering Islamic Financial Services