Abstract:

The major challenges faced in terms of the reporting of interest-free financial instruments are the difficulties faced in different accounting standards, the inclusion of different expressions and the comparability, reliability and compliance of the financial statements produced as a result. The existing standards established on the basis of traditional frameworks remain insufficient in describing and measuring non-profit financial instruments. Since there is no single Islamic financial reporting set applied throughout the world, it appears that different financial reporting approaches are applied to interest-free financial instruments in different countries. In this context, the study assessed the need for Islamic accounting standards and included the standards, comments and assessments implemented in the framework of the AAOIFI (Islamic Financial Institutions Accounting and Audit Organization), MASB (Malaysia Accounting Standards Board) and IASB (International Accounting Standards Board) for the financial instruments used by Islamic financial institutions. The methods used by Islamic financial institutions in the accounting and measurement of financial instruments are also indicated.

Abstract:

The greatest challenge in terms of interest-free financial instruments is the difficulties encountered in different accounting standards, the involvement of different expressions, and the resulting comparability of financial statements in terms of reliability, reliability and compliance. The existing standards, based on traditional frameworks, are insufficient to explain and measure interest-free financial instruments. Since there is no single Islamic financial reporting set applied worldwide, different financial reporting approaches are applied to interest-free financial instruments in different countries. In this context, the need for Islamic accounting standards has been assessed and the standards, interpretations and evaluations of Musharaka, Mudarabah, Ijarah, Sukuk and Qard, which are the most used financial instruments of Islamic financial institutions, within the framework of AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions), MASB (Malaysian Accounting Standards Board) and IASB (International Accounting Standards Board) are included in this study. The methods applied by Islamic financial institutions in accounting and measurement of financial instruments are specified.

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