Islamic financial accounting standards in Pakistan: a comparison with AAOIFI

IF 2.5 Q2 BUSINESS, FINANCE Journal of Islamic Accounting and Business Research Pub Date : 2024-06-18 DOI:10.1108/jiabr-10-2023-0335

Muhammad Bilal Zafar

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Abstract

Purpose

This paper aims to compare the Islamic financial accounting standards (IFAS) prevailing in Pakistan declared by the Securities and Exchange Commission of Pakistan (SECP) with accounting standards of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

Design/methodology/approach

Both standards related to Islamic financial accounting have been thoroughly reviewed, compared and discussed to find out the differences and similarities, along with the depth needed to meet the needs of Islamic finance.

Findings

AAOIFI accounting standards provide a comprehensive view of complex transactions, whereas SECP standards have limitations. The proposed recommendations aim to bridge the gap by conducting periodic reviews and revisions of IFAS prevailing in Pakistan to keep up with the dynamic nature of the Islamic finance industry.

Practical implications

The regulators should establish institutional arrangements for adapting AAOIFI accounting standards, enabling efficient and effective upgrading of existing accounting standards for Islamic financial institutions and alignment with international best practices.

Originality/value

There is a dearth of studies related to Islamic financial accounting in the context of Pakistan; this is one that contributes to this area.

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巴基斯坦的伊斯兰财务会计准则：与 AAOIFI 的比较

目的本文旨在比较巴基斯坦证券交易委员会（SECP）宣布的巴基斯坦现行伊斯兰金融会计准则（IFAS）与伊斯兰金融机构会计与审计组织（AAOIFI）的会计准则。研究结果AAOIFI 会计准则提供了对复杂交易的全面看法，而 SECP 准则则存在局限性。提出的建议旨在通过定期审查和修订巴基斯坦现行的《伊斯兰金融会计标准》来弥补这一差距，以跟上伊斯兰金融业的动态发展。

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来源期刊

Journal of Islamic Accounting and Business Research BUSINESS, FINANCE-

CiteScore

4.80

自引率

22.70%

发文量

期刊介绍： The journal provides a dynamic forum for the advancement of accounting and business knowledge based on Shari’ah and Islamic activities that have an impact on the welfare of society. JIABR publishes articles on the interplay between Islamic business ethics, accounting, auditing and governance, in promoting accountability, socio-economic justice (adl) and everlasting success (al-falah). It seeks to inform, among others, current theoretical and empirical research and practice in Islamic accounting, auditing and corporate governance, management of Islamic organizations, accounting regulation and policy for Islamic institutions, Shari’ah auditing and corporate governance, financial and non-financial performance measurement and disclosure in Islamic institutions and organizations. All styles of research, theoretical and empirical, case studies, practice-based papers and research notes that are well written and falling within the journal''s scope, are generally welcomed by the journal. Scope/Coverage Development of accounting, auditing and corporate governance concepts based on Shari’ah Socio-political influence on accounting and auditing regulation and policy making for Islamic financial institutions and organizations Historical perspectives on Islamic accounting, auditing and financial management Critical analysis on issues and challenges on accounting disclosure and measurement, Shari’ah audit and corporate governance Controls and risks in Islamic organizations Financial and non-financial performance measurement and disclosure.