ISLAMIC FINANCIAL REPORTING: EVIDENCE FROM MALAYSIA

Abstract

Abstract

The purpose of this study is to examine whether Islamic financial institutions (IFIs) in Malaysia are presenting their financial statements according to AAOIFI requirements. Annual financial statements of seventeen Islamic financial institutions are selected and examined. The results of examination show that IFIs presentation of  statement of financial position is 70.3% conform, statement of profit or loss is 45.6% conform, statement of changes in equity is 95% conform and statement of cash flow is 100% conform with the format suggested by AAOIFI requirements. However, statement of sources and uses of charity fund and statement for resticted investment are only disclosed in notes to the financial statement. The results added to existing literature in the area of Islamic financial reporting.

Keywords: Islamic financial reporting; IFI, AAOIFI, MFRS, Malaysia