Sukuk: Global Issues And Challenges
The purpose of this paper is to describe the differences between Sukuk and conventional bonds and discuss issues concerning accounting, recognition, measurement and disclosures in the financial statements. Currently most of the Sukuk issuers are Islamic financial institutions, but others includin...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Allied Academies
2016
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| Online Access: | http://ddms.usim.edu.my:80/jspui/handle/123456789/12102 |
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| Institution: | Universiti Sains Islam Malaysia |
| Language: | English |
| Summary: | The purpose of this paper is to describe the differences between Sukuk and conventional
bonds and discuss issues concerning accounting, recognition, measurement and disclosures in
the financial statements. Currently most of the Sukuk issuers are Islamic financial institutions,
but others including Singapore and the European countries are also joining the band-wagon to
capture the capital-flows from the Middle Eastern countries. A number of issues are discussed in
this paper; among them include recognition, measurement and disclosure of Sukuk according to
two different international accounting standards. The possibility of harmonization of between
IFRS for financial instruments and AAOIFI standard on investment is also discussed. The
comparative analysis shows that there are not major differences between IFRS and AAOIFI
standards as per recognition, measurement and disclosures of Sukuk, and therefore IFRS can be
adopted by issuers worldwide for international comparability of financial statements. Global
challenges and opportunities facing Sukuk are also discussed in this paper along with some
recommendations on how to overcome them. |
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