MAEF640 ACCOUNTING FOR ISLAMIC INSTITUTIONS

Course Description:

This course is intended to introduce students to accounting concepts for Islamic financial transaction and responsibility from the Qur’an and Sunnah. The course would show the need for Islamic accounting and the limitations of conventional accounting. The course will enhance students’ opportunity to learn about accounting standards developed by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and understand the relevant international accounting and reporting standards and their implications for IFIs.

Course Code: MAEF640

Credit hours: 3

Pre-Requisites: None

Learning Objectives:

The objectives of the course are to develop an understanding of:

• The meaning of Islamic accounting and its differences with conventional accounting.
• The need for Islamic accounting and the limitations of conventional accounting.
• Accounting standards developed by the Accounting and Auditing Organization for Islamic Financial Institutions the applicability of GAAPs and accounting standards in IFIs.
• Accounting for various types of Islamic financial transactions.

Course Outlines:

The outline of the course is to develop an accounting understanding of:

• Accounting Objectives & Islamic Worldview
• Accounting Concepts: An Islamic Perspective
• Islamic Ethics and Accounting
• Financial Reporting for Islamic Financial Institutions
• Accounting for Islamic Deposit and Investment Account
• Accounting for Mudarabah Financing
• Accounting for Musharakah Financing
• Accounting for Murabahah Financing
• Accounting for Ijarah Financing
• Accounting for Investment in Islamic Securities
• Principles of Zakat & Zakat Accounting for Business Wealth