The role of (AAIOFI) in standardizing accounting references for banks and islamic financial institutions

Abstract

Accounting is an important media and communication tool in the activity of Islamic financial and banking institutions as an emerging industry, and this requires the provision of quality services based on Sharia controls. In this regard, this study aims to highlight the role of the Accounting and Auditing Organization for Islamic Banks and Financial Institutions (AAOIFI) as a supportive body in unifying the accounting reference. For Islamic financial institutions through the accounting standards they issue that address various emerging issues in the Islamic financial industry, cover their shortcomings, and find solutions to the challenges they face.

      The study concluded in the application side that there is a direct relationship between the application of AAOIFI accounting standards and accounting standardization, and that their application affects the accounting standardization gradual.