AAOIFI reporting standards: Measuring compliance

Vinnicombe, Thea

doi:10.1016/j.adiac.2010.02.009

Cited by 62 publications

(91 citation statements)

References 19 publications

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“…Interestingly, they found that the Islamic banks of Bahrain were in full convergence with AAOIFI accounting standards. Vinnicombe (2010) conducted a study for measuring and evaluating the compliance level to which Islamic banks in Bahrain fulfill the different issues in the FASs issued by the AAOIFI.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Another study Vinnicombe (2012) conducted as an extension of his previous works (Vinnicombe, 2010) for examining the compliance of AAOIFI standards by the Islamic banks in Bahrain. This study is an advanced study which evaluated the compliance status based on multiple indexes to remove the methodological limitations of Vinnicombe (2010). Out of two compliance indexes, one was developed using an "easy rule" and another one using a "tough rule".…”

Section: Literature Reviewmentioning

confidence: 99%

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Comparative compliance status of AAOIFI and IFSB standards

Ullah

Khanam

Tasnim

2018

JIABR

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Purpose This paper aims to examine the compliance status of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Financial Accounting Standards-1 and Islamic Financial Services Board (IFSB) Standard-4 by Islami Bank Bangladesh Limited (IBBL), recognizing the regulatory influence for complying with AAOIFI and IFSB standards and identifying the factors influencing the compliance with these standards. Design/methodology/approach The present study used content analysis approach for investigating the compliance status. The study considered IBBL as the only sample because it is the only Islamic bank in Bangladesh which is the member of both AAOIFI and IFSB. Hence, this paper investigated the compliance status of IBBL as a member of AAOIFI and IFSB. The study examined the annual reports of 2008-2012 as these were the latest and contemporary reports in 2013 when the study was conducted. SPSS software version 22.0 was used to analyze the data. A total of 203 items under 13 categories of AAOIFI standard and 133 items under 17 categories of IFSB standard were considered. Ordinary least squares was run to test the hypotheses of the study. Findings The study found that IBBL on an average complied 46.31 per cent of AAOIFI and 52.50 per cent of IFSB standards during the period, and importantly, IBBL did not comply some of the categories of required disclosures. The study also observed that size, as measured by total asset and number of branches, has a significant influence on compliance with IFSB standard, but not AAOIFI. The findings of the study depicted that IBBL did not reasonably recognize the importance of complying with AAOIFI and IFSB standards. Poor compliance or non-compliance with AAOIFI and IFSB accounting and reporting standards by IBBL exposed that the bank is not efficient in managing Shari`ah compliance risks, operational risks and transparent financial reporting. Therefore, recognition of the Shari`ah standards by the respective IFIs and a “regulatory push” is vital for improving the level of compliance with these standards. Research limitations/implications The study considered IBBL as the only sample of the study because it is the only Islamic bank in Bangladesh which holds the membership of both AAOIFI and IFSB. The fiscal years 2008-2012 only were selected to evaluate the compliance status of the AAOIFI and IFSB standards in preparation and presentation of the financial statements of IBBL for comparative analysis because IFSB standard for accounting and disclosure was formulated in 2007; hence, the study could not evaluate the compliance status before 2008. Practical implications The study will help IBBL in identifying their limitations in complying AAOIFI and IFSB standards and also the regulators in designing the accounting and reporting frameworks in regulating Islamic banks in Bangladesh. The study would help IBBL in identifying the reasons for non-compliance, how improvement in compliance level may help the bank in mitigating Shari`ah compliance and operational risk and how new legal and institutional framework may improve the level of compliance with those standards. Social implications The study observed that the AAOIFI and IFSB standards were set for increasing the level of Shari`ah compliance, but the compliance status showed that different classes of accounting and reporting were ignored from compliance by IBBL. This study will benefit the stakeholders in choosing a Shari`ah-compliant bank. Originality/value This is a unique study which considered both AAOIFI and IFSB accounting and reporting standards in evaluating the reporting compliance status of an Islamic bank and identified the influence of reporting compliance on managing Shari`ah compliance risks, operational risks and transparency. This study expects to instigate the Islamic banks in complying accounting and reporting standards for being Shari`ah-compliant.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Comparative compliance status of AAOIFI and IFSB standards

Ullah

Khanam

Tasnim

2018

JIABR

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“…Isu normatif mengenai tujuan bank syariah dan pengaruhnya terhadap kinerja dibahas oleh Khan dan Bhatti (2008b), Abu-Tapanjeh (2009), Chong dan Liu (2009), Khan (2010) dan Vinnicombe (2010). Sedangkan Dusuki (2008), Awan and Bukhari (2011) dan Pepinsky (2012) membahas isu normatif tentang tujuan bank syariah.…”

Section: Hasil Dan Pembahasanunclassified

Pemetaan Penelitian Kinerja Bank Syariah dengan Menggunakan Informasi Keuangan

Yuliana

2014

JAMAL

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Abstrak: Pemetaan Penelitian Kinerja Bank Syariah dengan Menggunakan Informasi Keuangan. Artikel ini membahas pemetaan penelitian mengenai penilaian kinerja bank syariah dengan menggunakan informasi keuangan. Pemetaan tersebut bertujuan mengidentifikasi peluang penelitian mendatang terkait dengan dunia perbankan syariah di Indonesia. Hasil pemetaan menunjukkan bahwa terdapat dua kategori informasi keuangan yaitu infomasi umum dan khusus. Penggunaan informasi khusus untuk mengukur kinerja bank syariah masih relatif terbatas dan hal itu merupakan peluang bagi peneliti berikutnya. Selain itu, isu penelitian seputar bank syariah masih jauh tertinggal dibandingkan dengan isu penelitian pada bank konvensional. Namun demikian, isu tersebut ternyata relevan dengan fenomena perbankan syariah di Indonesia dan oleh karena itu semakin memperkaya ide penelitian berikutnya. Abstract: The Mapping of Financial Information-Based Syariah Bank Performance Research. This article discusses the mapping of research on performance evaluation of Islamic banking by using financial information. The purpose of the mapping is to identify opportunities for future research related to Islamic banking in Indonesia. Mapping results indicate that there are two categories of financial information that is general information and specific. The use of specific information to measure the performance of Islamic banking is still relatively limited and it is an

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“…The need to develop standards on accounting that are based on Islamic financial reporting guidelines become a significant issue in the Muslim world (Vinnicombe, 2010). As a result of the need of accounting reporting based on Islamic conventions, in the year 1991, a body known as the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) was formed.…”

Section: Accounting and Auditing Organisation For Islamic Financial Imentioning

confidence: 99%

“…Therefore, development of Islamic financial reporting accounting standards become a significant issue (Vinnicombe, 2010). Also, Sarea and Hanefah (2013) concluded that, the need to fill the gap (differences) between Islamic and conventional reporting require Islamic accounting reporting.…”

Section: Introductionmentioning

confidence: 99%