The Adoption of AAOIFI Standards by Islamic Banks: Understanding the Microeconomic Consequences

El-Halaby, Sherif; Sarea, Adel; Alnesafi, Awwad; Al-Absy, Mujeeb Saif Mohsen

doi:10.3390/economies11020039

Cited by 3 publications

(3 citation statements)

References 72 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, the desired economic growth is that which is surely achieved with the help of finance, but also through behavior guided by ethics (Le Velly, 2006). It is a behavior that is that of a social being whose action he leads is an action oriented more towards society and simultaneously obeying financial and economic incentives (Elhalaby et al, 2023). It is a conception of wellbeing where the individual is not favored to the detriment of society.…”

Section: Crisis Of Ethical Awarenessmentioning

confidence: 99%

“…The Islamic financial system has specific services, products and accounting. This has led to the formation of accounting standards which reflect distinctive characteristics by becoming an important mechanism to meet the various requirements of Islamic financial institutions (Elhalaby et al, 2023). These Islamic financespecific standards cover products, accounting, governance and ethics, and are not limited to regulatory concerns (Farooq, 2022).…”

Section: Specificity Of Islamic Financementioning

confidence: 99%

“…These Islamic financespecific standards cover products, accounting, governance and ethics, and are not limited to regulatory concerns (Farooq, 2022). Thus, it is essential to advance the sector through the full adoption of these standards, which increases investor confidence in Islamic financial institutions and develops the quality of financial information (Elhalaby et al, 2023).…”

Section: Specificity Of Islamic Financementioning

confidence: 99%

See 2 more Smart Citations

Inefficiency of Financial Markets and Paths to the Development of a Modern Financial Theory

Kobiyh

Amri

2023

FMIR

View full text Add to dashboard Cite

The purpose of this work is to examine new avenues for developing financial theory, including the role of ethics and cognitive psychology. This paper explains the Inefficiency of the financial markets and the paths to the development of a modern financial theory. Compliance with Islamic ethics means embarking on a far-reaching reform to transform the dominant financial model and tackle socio-economic objectives; it means pursuing life's broader aspirations, such as cooperation and solidarity. Similarly, investor emotions, such as over-confidence and optimism, affect investor behaviour and are implicated in their investment choices. Exploring these new avenues of finance means deciphering the behaviour of financial market participants, and thus shedding light on the decision-making process of financial investors. The aim is to see how psychological appeals and ethical attitudes have come to occupy an undeniable place in finance. More specifically, the aim is to explain the factors contributing to the emergence of Islamic finance and behavioural finance and to analyse how the limited efficiency of financial markets marks the starting point for these approaches and thus the development of modern finance. By allowing the use of financial capital, this finance makes itself available to the real economy and serves it. Its growth and development will have favourable repercussions on the entire socio-economic system. The key is to focus on projects and investments that are in line with the prerogatives of behavioural finance and ethics. This is a solution to the inefficiency of the financial markets, as it will result in better performance.

show abstract

Section: Crisis Of Ethical Awarenessmentioning

confidence: 99%

Section: Specificity Of Islamic Financementioning

confidence: 99%

Section: Specificity Of Islamic Financementioning

confidence: 99%

See 1 more Smart Citation

Inefficiency of Financial Markets and Paths to the Development of a Modern Financial Theory

Kobiyh

Amri

2023

FMIR

View full text Add to dashboard Cite

show abstract

Islamic financial accounting standards in Pakistan: a comparison with AAOIFI

Zafar

2024

JIABR

View full text Add to dashboard Cite

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.

show abstract

Comparative Study on Aaoifi Fas 1 and Ias 1 and Exploring the Compliance of Aaoifi Fas 1 for Islamic Financial Institutions (Ifis) in Brunei and United Arab Emirates (Uae)

SAMRA,

BESAR

2023

J. Bus. Econ. A.

View full text Add to dashboard Cite

This paper has two main objectives. First, it aims to compare the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Financial Accounting Standard 1 (FAS 1) with International Accounting Standard 1 (IAS 1). Second, it seeks to assess the level of compliance of Islamic Financial Institutions (IFIs) in the United Arab Emirates (UAE) and Brunei with the AAOIFI standard on General Presentation and Disclosures (FAS 1). To achieve these goals, the author conducted a content assessment of annual reports from selected financial institutions, using checklists designed for the AAOIFI standard on General Presentation and Disclosures. The study found that UAE IFIs displayed greater compliance with AAOIFI FAS 1 compared to their counterparts in Brunei. In 2021, Emirates National Bank of Dubai (Emirates NBD) achieved a compliance rate of 74.3%, while BIBD recorded a lower compliance rate of 70.8%. In summary, this paper sheds light on the differences between AAOIFI FAS 1 and IAS 1, offering valuable insights into compliance levels among IFIs in the UAE and Brunei. However, it acknowledges certain limitations, such as limited generalizability, reliance on secondary data, subjective content analysis, absence of primary research, evolving regulatory frameworks, and resource constraints. Overall, this research contributes to the field of Islamic accounting by employing content analysis techniques to compare AAOIFI FAS 1 and IAS 1 and assess compliance in IFIs in Brunei and the UAE. It aligns with previous studies on International Financial Reporting Standards for IFIs and aims to advance the understanding of Islamic accounting and financial reporting practices.

show abstract

The Adoption of AAOIFI Standards by Islamic Banks: Understanding the Microeconomic Consequences

Cited by 3 publications

References 72 publications

Inefficiency of Financial Markets and Paths to the Development of a Modern Financial Theory

Inefficiency of Financial Markets and Paths to the Development of a Modern Financial Theory

Islamic financial accounting standards in Pakistan: a comparison with AAOIFI

Comparative Study on Aaoifi Fas 1 and Ias 1 and Exploring the Compliance of Aaoifi Fas 1 for Islamic Financial Institutions (Ifis) in Brunei and United Arab Emirates (Uae)

Contact Info

Product

Resources

About