New Sharia standards adopted

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has adopted three new Sharia standards.

This includes a ruling on standards for the disposal of rights, bankruptcy and the management of liquidity, collection and use.

"The adoption of these three standards, together with those adopted in previous years, are an important addition to our standards, both in terms of kind and number," said AAOIFI secretary general Mohamad Nedal Alchaar.

"The number of new standards adopted since the beginning of last year is 14 so far, bringing the total number of existing standards to more than 84. This is a significant achievement for AAOIFI," he said.

"There is a need for formulating such standards because of the increased complexity seen by the Islamic financial services industry in its different products and transactions, as well as the steadily increasing growth of the Islamic finance industry.

"The aftermath of the global financial crisis affirmed the need for AAOIFI to keep pace with the changes arising from such crisis."

-TradeArabia News Service