The Islamic Development Bank Institute (IsDBI) and the Capacity Building and Training Institute of the Arab Monetary Fund (AMF) organized a virtual training program on “The Operational Aspects of Accounting Standards of Islamic Financial Institutions”.

The program is part of a series to be delivered under an ongoing collaboration between the two institutions to support common member countries of the Islamic Development Bank and AMF.

Aiming to cover all accounting standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), the series will seek to build the capacity of professionals engaged in financial and accounting transactions in Arab countries with different levels of knowledge and skills of operational and theoretical aspects of these standards. Two virtual programs will be delivered in 2023 while the third one will take place in 2024.

The first program was held from 25-28 September 2023, with 45 participants from various Arab countries. Twelve training sessions were conducted, starting with introducing financial accounting in Islam and defining and clarifying the method for releasing AAOIFI’s accounting standards.

The training covered various subjects of accounting standards with a variety of practical illustrative examples. These included accounting standards of investment accounts, al-murabahah sale, deferred payment sale, al-mudharabah financing, al-musharakah financing, lease ending with asset ownership, al-istisna’ and parallel of al-istisna’ sale, distribution of profits, and financial statements in Islamic banks.

Dr. Hussein Samhan, a Professor of Accounting and a former member of AAOIFI’s Accounting Board, delivered the training sessions and led the discussions with the participants.