Islamic Financial Instruments: Accounting of Sale-Based Contracts

  • Samir Alamad


This chapter discusses the accounting and financial accounting treatment of sale-based Islamic financial instruments. The sale-based contracts category includes the Islamic finance principles of Murabaha in its various forms, Istisna’, Salam and Ijara. This chapter builds on the influencing theories and the Islamic worldview about money and accounting that I discussed in earlier chapters to formulate the practical aspects of the Islamic accounting system. In that respect I analyse here the accounting treatment and financial reporting of the second category of the Islamic finance principles; the sale-based financial instruments in Islamic finance and its requirements.


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© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Samir Alamad
    • 1
  1. 1.Head of Sharia Compliance & Product DevelopmentAl Rayan BankBirminghamUK

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