COMPARATIVE STUDY ON AAOIFI FAS 1 AND IAS 1 AND EXPLORING THE COMPLIANCE OF AAOIFI FAS 1 FOR ISLAMIC FINANCIAL INSTITUTIONS (IFIS) IN BRUNEI AND UNITED ARAB EMIRATES (UAE)

Autor: NORIZATUL AQILAH BINTI SAMRA, MOHD HAIRUL AZRIN BIN HAJI BESAR
Jazyk: angličtina
Rok vydání: 2023
Předmět:
Zdroj: Journal of Business & Economic Analysis, Vol 06, Iss 03, Pp 299-339 (2023)
Druh dokumentu: article
ISSN: 27375668
2618-0324
2737-5668
DOI: 10.1142/S2737566824500038
Popis: This paper has two main objectives. First, it aims to compare the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Financial Accounting Standard 1 (FAS 1) with International Accounting Standard 1 (IAS 1). Second, it seeks to assess the level of compliance of Islamic Financial Institutions (IFIs) in the United Arab Emirates (UAE) and Brunei with the AAOIFI standard on General Presentation and Disclosures (FAS 1). To achieve these goals, the author conducted a content assessment of annual reports from selected financial institutions, using checklists designed for the AAOIFI standard on General Presentation and Disclosures. The study found that UAE IFIs displayed greater compliance with AAOIFI FAS 1 compared to their counterparts in Brunei. In 2021, Emirates National Bank of Dubai (Emirates NBD) achieved a compliance rate of 74.3%, while BIBD recorded a lower compliance rate of 70.8%. In summary, this paper sheds light on the differences between AAOIFI FAS 1 and IAS 1, offering valuable insights into compliance levels among IFIs in the UAE and Brunei. However, it acknowledges certain limitations, such as limited generalizability, reliance on secondary data, subjective content analysis, absence of primary research, evolving regulatory frameworks, and resource constraints. Overall, this research contributes to the field of Islamic accounting by employing content analysis techniques to compare AAOIFI FAS 1 and IAS 1 and assess compliance in IFIs in Brunei and the UAE. It aligns with previous studies on International Financial Reporting Standards for IFIs and aims to advance the understanding of Islamic accounting and financial reporting practices.
Databáze: Directory of Open Access Journals
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