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Technical Analysis of the International Financial Reporting Standard 9

  • Samir Alamad
Chapter

Abstract

This chapter aims to examine the International Financial Reporting Standard 9 (IFRS 9) from a technical perspective in light of the most common and widely used financing instruments that are equity-based and sale-based in the Islamic finance industry. As part of this technical analysis of IFRS 9, I identify some contractual clauses that are embedded in equity-based and sale-based financial products, such as the home finance products as well as inter-banking treasury products and analyse whether cash flows are compliant with the requirements of IFRS 9. The analysis provided here outlines a blue-print that would serve as a guide for the Islamic finance industry. This framework will help all Islamic financial institutions (IFIs) tailor any accounting or reporting standards, such as IFRS 9 to reflect their Shariah governance and requirements while still complying with that standard.

References

  1. International Accounting Standard Board (IASB). (2016). Issues in the application of IFRS 9 to Islamic Finance, A paper prepared by the IASB Staff, Outreach on Shariah-Compliant Instruments and Transactions, IASB, February 2016, page 2.Google Scholar
  2. Sori, M. Zulkarnain. (2016). Accounting for Musharakah Mutanaqisah Home Financing: The Malaysia Case, (July 8, 2016). Available at SSRN: https://ssrn.com/abstract=2806947 or  https://doi.org/10.2139/ssrn.2806947, (accessed on 11 September 2018).

Copyright information

© 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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