The effects of new AAOIFI standards on Sukuk in choosing the most authentic Islamic principles

Naim, Asmadi Mohamed; Isa, Mohamad Yazid; Hamid, Mohd Liki

doi:10.1108/17590811311314302

Cited by 11 publications

(7 citation statements)

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“…According to the categories of AAOIFI standards, literature shows that several empirical studies have been conducted to investigate AAOIFI accounting standards (Sarea, 2012; Atmeh and Hadi Ramadan, 2012; Vinnicombe, 2012; Mohamed Naim et al , 2013; Sarea and Mohd Hanefah, 2013a, 2013b; Gupta, 2015; Ahmad and Daw, 2015; Sarea, 2016; Ahmed et al , 2016; Hanif, 2016; Ben Abd El Afou, 2017; Mnif Sellami and Tahari, 2017; Suandi, 2017; Atmeh and Maali, 2017; Ullah et al , 2018; Al-Sulaiti et al , 2018; Nor Farizal et al , 2019; Umar and Kurawa, 2019; Ahmed et al , 2019; Ehsan et al , 2019; Saidani et al , 2020); AAOIFI Sharia standards (Che Azmi and Hanifa, 2015); AAOIFI governance standards (El-Halaby and Hussainey, 2016; Marie et al , 2018; Albarrak and El-Halaby, 2019; Nugraheni and Khasanah, 2019; Brahim and Arab, 2020; Elgattani and Hussainey, 2020; Harun et al , 2020); AAOIFI auditing standards (Fakhfakh, 2017); and finally AAOIFI ethics standards (El-Halaby and Hussainey, 2015) as presented in Table 1. To provide a wide view regarding the investigation and measuring AAOIFI standards, this section discusses these studies in the following section.…”

Section: Resultsmentioning

confidence: 99%

“…There are, however, 19 papers that provide a theoretical explanation for AAOIFI and why we need Islamic standards for IFIs and to what extent this standard differs from the conventional ones such as IFRS and examine the accounting treatment for AAOIFI for several Islamic products such as Sukuk and its implications without providing any empirical evidence (Alexakis and Tsikouras, 2009; Maurer, 2010; Salah, 2010; Atmeh and Hadi Ramadan, 2012; Mohamed Naim et al , 2013; Sarea and Mohd Hanefah, 2013b; Velayutham, 2014; Gupta, 2015; Che Azmi and Hanifa, 2015; Ahmed et al , 2016; Di Bella and Al-Fayoumi, 2016; Hanif, 2016; Fakhfakh, 2017; Mukhlisin, 2017; Atmeh and Maali, 2017; Umar and Kurawa, 2019; Ahmed et al , 2019; Kamla and Haque, 2019). Table 10 presents a summary of these papers.…”

Section: Resultsmentioning

confidence: 99%

“…Mohamed Naim et al (2013) analyze the standards of Sukuk that were issued by AAOIFI. This paper revised the samples of Sukuk before and after AAOIFI declaration through centering on controversial areas such as pricing, ownership transfer and assurance component by using content analysis method.…”

Section: Resultsmentioning

confidence: 99%

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A systematic literature review on AAOIFI standards

El-Halaby

Aboul-Dahab

Qoud

2021

JFRA

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Purpose This paper aims to systematically review the existing studies for Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards which include different tracks of researches and then identify the gaps to propose opportunities for future research. Design/methodology/approach By adopting a systematic literature review approach, 46 papers that were published between 2000 and 2020 from 23 journals concerned with AAOIFI were selected for review and analysis. Findings The authors combine electronic searches to identify relevant studies using keywords such as “AAOIFI” or and “Islamic standards.” In light of the existing studies’ limitations, this paper derives and summarizes five leading future research tracks: identifies the research gaps in AAOIFI and then suggests that AAOIFI still requires more empirical analyses; identifies the alternative analytical methods as meta-analysis; identifies additional measurements for macro and microeconomics factors; identifies recent tracks as corresponding to Covid-19 pandemic; and future studies should consider the role of central banks and positive criticism for AAOIFI. Practical implications This analysis address the literature gaps on measuring compliance, determinants and consequences of AAOIFI adoption as this study serves as a guide for the researchers, regulators and Islamic financial institutions in research associated with this area. The findings would support AAOIFI, regulators and related authorities across jurisdictions with suggestions on improving the current AAOIFI practices. Originality/value This literature review is a historical record and guidance for researchers who seek to examine and explore several questions about AAOIFI. To the best of the authors’ knowledge, this is the first paper that applies systematic literature review over AAOIFI research field.

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Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

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A systematic literature review on AAOIFI standards

El-Halaby

Aboul-Dahab

Qoud

2021

JFRA

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“…In other words, when the contract is invalid, SNCR may arise to the extent of which the contract contravenes the Shariah principles (Mohd Noor et al, 2019). However, unlike the study by Naim (2013) andTariq (2004), other studies have approached SNCR as risk within a wider scope of Islamic finance and not restricted to sukuk. As a result, SNCR may be perceived quite differently.…”

Section: Shariah Non-compliance Risks (Sncrs) In Sukukmentioning

confidence: 98%

Shariah non-compliance risk and its management techniques: empirical evidences in selected wakalah sukuk documents issued in Malaysia jurisdiction

Mohd Noor

2024

QRFM

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Purpose This study aims to investigate the extent of Shariah compliance in wakalah sukuk and Shariah non-compliant risk disclosure in the sukuk documents and to analyse the risk management techniques associated with the disclosed risks. Design/methodology/approach This study uses qualitative document analysis as both data collection and analysis methods. The document analysis acts as a data collection method for 23 wakalah sukuk documents selected from 32 issuances of wakalah sukuk from 2017 to 2021. These sukuk documents were selected based on their availability from relevant websites. Document analysis, both content analysis and thematic analysis, were used to analyse the data. Codes were grounded from that data through keywords search of Shariah noncompliant risk and its risk management. Besides these, interviews were also conducted with four active industry players, i.e. two legal advisors of wakalah sukuk, a wakalah sukuk trustee and a sukuk institutional issuer. These interview data were analysed based on categorical themes, on the aspects of the extent of Shariah compliance in sukuk, and the participant’s views on the risk management techniques associated with the risks or used in the sukuk documents. Findings Overall, the findings reveal three types of Shariah non-compliant risks disclosed in the sukuk documents and seven risk management techniques associated with them. However, the disclosure and the risk management techniques can be considered minimal in contrast to the extent of Shariah compliance in a sukuk, i.e. Shariah compliance at the pre-issuance stage, ongoing stage and post-issuance stage. On top of these, it was also found from the interviews that not all risk management techniques are workable to manage Shariah non-compliant risk in sukuk. As a result, these findings suggest rigorous reviews of the existing Shariah non-compliance risk (SNCR) disclosures and risk management techniques by the relevant parties. Research limitations/implications Sukuk documents used in the study are limited to corporate wakalah sukuk issued in Malaysia. Out of 32 issuances from 2015 to 2021, only 23 documents are available in relevant website. Thus, Shariah non-compliant risk disclosure and its risk management techniques analysed in this study are only limited in those documents. Practical implications The findings of this study suggest rigorous reviews on the existing Shariah non-compliance disclosures and risk management techniques. Other than these, future research in relation to uncommon risk management clauses, i.e. assurance, Shariah waiver and transfer of risk, are needed. Originality/value The insights presented in the analysis are of importance to sukuk issuers and the sukuk due diligence working group in enhancing the sukuk Shariah compliance and Shariah non-compliant risks disclosure and towards sukuk investors, in capturing and assessing Shariah non-compliant risks in a sukuk and to assist them to make informed investment decisions. More importantly, this study has found few areas of future study in relation to SNCR disclosures and SNCR risk management techniques.

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“…In 2020, total 26 articles were published, and 33% of those articles are based on the topic of AAOIFI. This includes various issues related to AAOIFI and Sharia governance such as determinants of compliance of AAOFI standards, impact of AAOIFI governance standards on the financial performance of IFIs, compliance issues with AAOIF (El-Halaby and Hussainey, 2016; Elgattani and Hussainey, 2020b; Vinnicombe, 2012), Sharia standards for various financial contracts and measuring compliance of the Sharia standards (Habib and Ahmad, 2017; Mohamed Naim et al , 2013; Thea Vinnicombe, 2010) (Table 1).…”

Section: Thematic Analysis Of the Selected Studiesmentioning

confidence: 99%

Sharia governance standards and the role of AAOIFI: a comprehensive literature review and future research agenda

Hassan

Rabbani²

2022

JIABR

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Purpose The purpose of this study is to investigate the role of Auditing and Accounting Organization for Islamic Financial Institution (AOIFI) governance disclosure on the performance of Islamic financial institutions (IFIs) through systematic literature review approach. Design/methodology/approach This study is based on the review of literature related to the AAOIFI accounting standards downloaded from Scopus database. This study includes review of 126 research articles, 10 review papers, 9 book chapters and 5 conference papers related to different roles played by AAOIFI in providing standards for accounting, auditing, governance and ethics for global IFIs. Findings The findings of this study suggest that AAOIFI has played a critical role in developing the accounting standards for the IFIs and contributed positively to the overall growth of the Islamic finance industry. Practical implications AAOIFI has played a critical role in issuing and development of accounting and auditing standards and has contributed positively to the financial performance of IFIs. Research gaps are identified, and there is a need to work on these gaps. Originality/value This study will contribute to the understanding the role of AAOIFI in issuing and development of accounting and governance standards and future research agenda based on a thorough review of literature.

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The effects of new AAOIFI standards on Sukuk in choosing the most authentic Islamic principles

Cited by 11 publications

References 1 publication

A systematic literature review on AAOIFI standards

A systematic literature review on AAOIFI standards

Shariah non-compliance risk and its management techniques: empirical evidences in selected wakalah sukuk documents issued in Malaysia jurisdiction

Sharia governance standards and the role of AAOIFI: a comprehensive literature review and future research agenda

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