AAOIFI issues Accounting Technical Release (ATR) “Illustrative Condensed Interim Financial Statements for Islamic Banks and Similar Institutions” in line with the Financial[...]

PR/13/2025

29 December 2025

The Technical Advisory and Interpretations Committee (TAIC), constituted by the AAOIFI Accounting Board (AAB / the board) of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has officially issued Accounting Technical Release (ATR) "Illustrative Condensed Interim Financial Statements for Islamic Banks and Similar Institutions" with an aim to provide guidance to the market in respect of implementation of AAOIFI Financial Accounting Standard (FAS) 41 "Interim Financial Reporting".

During public consultation phase of FAS 41 "Interim Financial Reporting", the board had identified a need for further clarification and practical guidance. Specifically, certain stakeholders had highlighted the need for illustrating presentation and disclosure requirements outlined in the said standard, aligning them with other AAOIFI Financial Accounting Standards (FASs), and incorporating additional disclosure elements from generally accepted accounting principles for the purpose of preparing condensed interim financial statements.

The TAIC, has guided and steered the project of developing the model condensed interim financial statements giving comprehensive illustrative disclosures for products, services and transactions provided by and pertaining to Islamic banks and similar institutions.

Following the due process, a roundtable was conducted to take input from stakeholders and subject matter experts.

Mr. Firas Hamdan, the chairman of TAIC, stated that "We are hopeful that these illustrative financial statements shall facilitate Islamic financial institutions in implementation of AAOIFI FASs and in having consistency in reporting across the industry". He further stated, "We extend our sincere appreciation to the TAIC members and AAOIFI's secretariat for their contribution and commitment in improving the financial reporting of Islamic finance institutions."

These illustrative financial statements are expected to be updated, in due course, as and when new AAOIFI FASs are issued or revised.

The AAOIFI Accounting Technical Release (ATR) "Illustrative Condensed Interim Financial Statements for Islamic Banks and Similar Institutions" can be accessed: LINK