Accounting and Auditing Organization for Islamic Financial Institutions

Last updated
Accounting and Auditing Organization for Islamic Financial Institutions
AbbreviationAAOIFI
FormationFebruary 26, 1990;32 years ago (1990-02-26) [1] in Algeria.
Founders Islamic Development Bank, Dallah Al-Baraka, Faysal Group (Dar Al Maal Al Islami), Al Rajhi Banking & Investment Corporation, Kuwait Finance House and Al-Bukhary Foundation
TypeIndependent international not-for-profit organization
PurposeStandardization [2] [3] and harmonization of international Islamic finance practices and financial reporting in accordance to Sharia [4] [5] [6]
HeadquartersManama, Flag of Bahrain.svg  Bahrain
Location
  • Yateem Center, Block: 304, Al-Muthana road
Coordinates 26°14′2″N50°34′38″E / 26.23389°N 50.57722°E / 26.23389; 50.57722
Region served
Worldwide
Official language
English, Arabic
Main organ
General Assembly
Website www.aaoifi.com

Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) [7] is a Bahrain-based not-for-profit organization that was established to maintain and promote Shariah standards for Islamic financial institutions, participants and the overall industry. [8] The commission also organizes a number of professional development programs (especially the Islamic legal accountant program, observer program and forensic auditing program) in their effort to improve the industry. [9]

Contents

History

AAOIFI was established in accordance with the Agreement of Association which was signed by Islamic financial institutions on 26 February 1990 in Algiers. Then, it was registered on 27 March 1991 in Bahrain. It has members from more than 45 countries, [10] including central banks and Islamic financial institutions and other parties working in the financial industry and banking, Islamic International.

The commission has obtained support for the application of the standards issued by it, where these standards have been applied in the Kingdom of Bahrain and the Dubai International Financial Centre, Jordan, Lebanon, Qatar, Sudan and Syria. The competent authorities in Australia, Indonesia, Malaysia, Pakistan, Saudi Arabia and South Africa issued guidelines derived from the standards and publications. [11]

Organizational structure

The organizational structure of AAOIFI includes a general assembly. AAOIFI also has a board of trustees and an accounting and auditing standards board each consisting of fifteen part-time members, a Shari'ah committee consisting of four part-time members, an executive committee, and a secretary-general who is a full-time executive and heads the general secretariat. [12]

Objectives

The objectives of AAOIFI are:

AAOIFI carries out these objectives in accordance with the precepts of Islamic Shari'a which represents a comprehensive system for all aspects of life, in conformity with the environment in which Islamic financial institutions have developed. This activity is intended both to enhance the confidence of users of the financial statements of Islamic financial institutions in the information that is produced about these institutions, and to encourage these users to invest or deposit their funds in Islamic financial institutions and to use their services.

Related Research Articles

Islamic banking, Islamic finance, or Sharia-compliant finance is banking or financing activity that complies with Sharia and its practical application through the development of Islamic economics. Some of the modes of Islamic banking/finance include Mudarabah, Wadiah (safekeeping), Musharaka, Murabahah (cost-plus), and Ijara (leasing).

Jamia Millia Islamia Central university in New Delhi, India

Jamia Millia Islamia is a central university located in New Delhi, India. Originally established at Aligarh, United Provinces during the British Raj in 1920, it moved to its current location in Okhla in 1935. It was given the deemed status by University Grants Commission in 1962. On 26 December 1988, it became a central university.

<span class="mw-page-title-main">Darul Uloom Nadwatul Ulama</span> Madrasah in India

Darul Uloom Nadwatul Ulama is an Islamic seminary in Lucknow, India. It was established by the Nadwatul Ulama, a council of Muslim scholars, on 26 September 1898.

The Dow Jones Islamic Market Index (DJIM), launched in 1999 in Bahrain, was the first index created for investors seeking investments in compliance with Muslim Sharia law.

<span class="mw-page-title-main">Syed Zahoor Qasim</span> Indian marine biologist (1925-2015)

Sayed Zahoor Qasim was an Indian marine biologist. Qasim helped lead India's exploration to Antarctica and guided the other seven expeditions from 1981 to 1988. He was a Member of the Planning Commission of India from 1991 to 1996. He was the Vice Chancellor of Jamia Milia Islamia from 1989 to 1991 and an Honorary Professor of universities including Aligarh Muslim University, Madurai Kamaraj University, Anna Malai University, Indian Institute of Technology Madras, and Jamia Millia Islamia. He was awarded the highest civilian awards Padma Shri and Padma Bhushan by the Government of India.

Madrasatul Islah is a traditional Islamic institution of learning and a renowned center of oriental and Islamic studies at Sarai Mir in the Azamgarh district of Uttar Pradesh. It was started by Mawlana Muhammad Shafi in 1908 along with participation of prominent scholars and religious seminaries of the area. The madrassa was established with a different syllabus and ideology than that of Darul Uloom Deoband and Darul Uloom Nadwatul Ulama. Shibli Nomani and Hamiduddin Farahi are regarded as chief architects of this madrasa.

<span class="mw-page-title-main">H Abdul Raqeeb</span> Social activist

H Abdur Raqeeb is a member of Central Advisory Council of Jamaat-e-Islami Hind. He is the General Secretary of Indian Center for Islamic Finance and has been promoting the concept of interest-free banking throughout India. Raqeeb is also the Editor of Tamil fortnightly Samarasam.

<span class="mw-page-title-main">Shaikh Muhammad Karakunnu</span> Kerala Jamaat-e-Islami

Shaikh Muhammad Karakunnu is an Indian author, Islamic Scholar and State Secretary of Jamaat-e-Islami Hind Kerala chapter. He has authored more than Ninety books and has delivered numerous speeches on Islam, Muslim and Jamat-e-islami. He served as the Director of the Kerala-based Islamic Publishing House.

A Sharia Board certifies Islamic financial products as being Sharia-compliant. Because compliance with Sharia law is the underlying reason for the existence of Islamic finance, Islamic banks should establish a Sharia Supervisory Board (SSB) to advise them on whether their products comply, and to ensure that their operations and activities comply with Sharia principles. There are also national Sharia boards in many Muslim majority countries that regulate Islamic financial institutions nationwide.

<span class="mw-page-title-main">Shamsul Haque Faridpuri</span>

Shams al-Ḥaqq ibn Muḥammad ʿAbd Allāh ibn Chirāgh ʿAlī al-Farīdfūrī, or simply known as Shamsul Haque Faridpuri was an Islamic scholar, educationist, and social reformer. He was the founder-principal of Jamia Qurania Arabia Lalbagh. He also founded many other madrasas and mosques. Organisations which he initiated include; Khademul Islam Jamat and Anjuman-e-Tabligh-al-Quran.

The Aligarh Movement was the push to establish a modern system of Western–style scientific education for the Muslim population of British India, during the later decades of the 19th century. The movement's name derives from the fact that its core and origins lay in the city of Aligarh in Northern India and, in particular, with the foundation of the Muhammadan Anglo-Oriental College in 1875. The founder of the oriental college, and the other educational institutions that developed from it, was Sir Syed Ahmed Khan. He became the leading light of the wider Aligarh Movement.

Furqan Qamar is a former vice-chancellor of University of Rajasthan and first vice-chancellor of Central University of Himachal Pradesh. Earlier he was associated with Association of Indian Universities. Professor Furqan Qamar, was the Secretary General of the Association of Indian Universities, i.e. the principal executive officer of the largest and one of the oldest network of universities. He has also served as Advisor (Education) in the Planning Commission of India.

Zafar Ahmad Nizami was an Indian author, poet and writer. He served the Jamia Millia Islamia as Professor of Political Science for about 30 years and authored books like Memarān-e-Jamia, Hindustān ke chand Siyasi Rahnuma, Maulana Azad Ki Kahani and Tarīkh-e-Hind: Ahd-e-Jadeed.

<span class="mw-page-title-main">Majlis-e Dawatul Haq Bangladesh</span> A non-political Dawah organisation in Bangladesh

Majlis-e Dawatul Haq Bangladesh is one of the largest non-political dawah organisations in Bangladesh. It is headquartered in Jamia Islamia Darul Uloom Madania, Dhaka. The head of this organization is called Amirul Umara. Its current Amirul Umara is Mahmudul Hasan. The practice of this organization started through Abrarul Haq Haqqi. Muhammadullah Hafezzi and Hakeem Muhammad Akhtar played an important role in its establishment. It is one of the significant religious movements organized in Indian subcontinent in 20th century.

<i>Al-Dai</i> Monthly Arabic Islamic journal published by Darul Uloom Deoband

Al-Da'i is an Arabic monthly Islamic journal issued from Darul Uloom Deoband, under the editorship of Shaikh Waheed-Zaman Kiranwai in 1976. The main focus of the journal are dignitaries of Darul Uloom Deoband and its graduates only. Due to its uniqueness, it has attracted the attention of scholars from India and the Arab world. The journal is curated by Abul Qasim Nomani and Muhammad Arif Jamil Qasmi is the Editor-in-Chief. Noor Alam Khalil Amini was a notable editor of this journal.

<span class="mw-page-title-main">Bibliography of Shibli Nomani</span>

This bibliography of Shibli Nomani is a selected list of generally available scholarly resources related to Shibli Nomani, a poet, philosopher, historian, educational thinker, author, orator, reformer, critic of orientalists and Islamic scholar from Indian subcontinent during the British Raj, regarded as the father of Urdu historiography. He didn't write an autobiography during his lifetime. However, he bequeathed it to his disciple Sulaiman Nadvi. Accordingly Sulaiman Nadvi composed Hayat-e-Shibli in 1943. This list will include his biographies, theses written on him and articles published about him in various journals, newspapers, encyclopedias, seminars, websites etc. in APA style.

<span class="mw-page-title-main">Bibliography of Deobandi Movement</span>

This bibliography of Deobandi Movement is a selected list of generally available scholarly resources related to Deobandi Movement, a revivalist movement within Sunni Islam, adhering to the Hanafi school of law, formed in the late 19th century around the Darul Uloom Deoband in British India, from which the name derives, by Muhammad Qasim Nanautavi, Rashid Ahmad Gangohi and several others, after the Indian Rebellion of 1857–58. It is one of the most influential reform movements in modern Islam. Islamic Revival in British India: Deoband, 1860-1900 by Barbara D. Metcalf was the first major monograph specifically devoted to the institutional and intellectual history of this movement. Muhammad Tayyib Qasmi wrote a book named The Tradition of the Scholars of Deoband: Maslak Ulama-i-Deoband, a primary source on the contours of Deobandi ideology. In this work, he tried to project Deoband as an ideology of moderation that is a composite of various knowledge traditions in Islam. This list will include Books and theses written on Deobandi Movement and articles published about this movement in various journals, newspapers, encyclopedias, seminars, websites etc. in APA style. Only bibliography related to Deobandi Movement will be included here, for Darul Uloom Deoband, see Bibliography of Darul Uloom Deoband.

<span class="mw-page-title-main">Bibliography of Darul Uloom Deoband</span>

This bibliography of Darul Uloom Deoband is a selected list of generally available scholarly resources related to Darul Uloom Deoband, a leading Islamic seminary and Muslim theological centre in India at which the Deobandi movement began, founded in 1866. It is one of the most influential reform movements in modern Islam. It created a largest network of satellite madrasas all over the world especially India, Bangladesh, Pakistan, Afghanistan neighboring countries in Asia and beyond, and as far afield as the Caribbean, South Africa, United Kingdom and the United States. Islamic Revival in British India: Deoband, 1860-1900 by Barbara D. Metcalf was the first major monograph specifically devoted to the institutional and intellectual history of Deoband. Syed Mehboob Rizwi wrote History of Darul Uloom Deoband in 1977 in 2 volumes. This list will include Books and theses written on Darul Uloom Deoband and articles published about Deoband in various journals, newspapers, encyclopedias, seminars, websites etc. in APA style. Only bibliography related to Darul Uloom Deoband will be included here, for Deobandi movement, see Bibliography of Deobandi Movement.

The Islamic International Ratings Agency (IIRA) is a financial rating agency that evaluates capital markets and the banking sectors of predominantly Muslim countries around the world. Its methods involve a rating spectrum that includes a full array of capital instruments and specialty financial products.

References

  1. Sajid P.P. "Islamic Banking in the Gulf". Role of Islamic Microfinance in Bahrain Since 2000 (PhD thesis). Jamia Milia Islamia University. p. 66. hdl: 10603/195473 via Shodhganga.
  2. Shusak Aroonpoolsup. "Bibliography". Islamic financial markets: performance and prospects (PhD thesis). Aligarh Muslim University. p. 291. hdl: 10603/11410 via Shodhganga.
  3. Waheed, Khalid. "Concept of Murabahah". Critical study of murabahah as an Islamic mode of financing (PhD thesis). Aligarh Muslim University. p. 146. hdl: 10603/241907 via Shodhganga.
  4. Sajid P.P. "Islamic Banking in the Gulf". Role of Islamic Microfinance in Bahrain Since 2000 (PhD thesis). Jamia Milia Islamia University. p. 67. hdl: 10603/195473 via Shodhganga.
  5. Smeet Esore. "The Concept and Functioning of Islamic Banking System". Experiments in Islamic Banking: a case study of Saudi Arabia and Thailand (PhD thesis). Aligarh Muslim University. p. 48. hdl: 10603/182917 via Shodhganga.
  6. Yaqoob, P K (2009). "Theoretical Frame Work". Case for interest free financial institutions in Kerala (PhD thesis). Mahatma Gandhi University. p. 96. hdl: 10603/27094 via Shodhganga.
  7. Sajid P.P. "Abbreviations". Role of Islamic Microfinance in Bahrain Since 2000 (PhD thesis). Jamia Milia Islamia University. p. 8. hdl: 10603/195473 via Shodhganga.
  8. Sajid P.P. "Islamic Economics, Banking and Microfinance: Theoretical Perspectives". Role of Islamic Microfinance in Bahrain Since 2000 (PhD thesis). Jamia Milia Islamia University. p. 59. hdl: 10603/195473 via Shodhganga.
  9. Adam Hayes. "Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)". Investopedia. Retrieved 30 October 2013.
  10. Sajid P.P. "Islamic Banking in the Gulf". Role of Islamic Microfinance in Bahrain Since 2000 (PhD thesis). Jamia Milia Islamia University. pp. 68–69. hdl: 10603/195473 via Shodhganga.
  11. "Our History". Accounting and Auditing Organization for Islamic Financial Institutions. Archived from the original on 1 November 2013. Retrieved 30 October 2013.
  12. Rifaat Ahmed Abdel Karim. "Accounting and Auditing Standards for Islamic Financial Institutions". Proceedings of the Second Harvard University Forum on Islamic Finance: Islamic Finance into the 21st Century. p. 2. Archived from the original on 30 May 2014. Retrieved 15 November 2013.