On December 23, 1999, the Shariat Appellate Bench of the Supreme Court of Pakistan announced its landmark judgment on Riba. The Institute of Chartered Accountants of Pakistan, cognizant of its proactive role in furthering the profession of accountancy, formed a sub-committee with the following objective:
“To consider the current legal, fiscal and economic framework and to identify issues and problems which inhibit the adoption of Islamic Modes of Financing and consider ways and means to expedite their implementation.”
This sub-committee was later converted into Committee on Accounting and Auditing Standards for Interest Free Modes of Finances and Investment.
The Committee has developed the following Islamic Financial Accounting Standards: