• IFR 4. IFR 4. ACCOUNTING AND AUDITING

    • IFR 4.1 IFR 4.1 Application

      • IFR 4.1.1 IFR 4.1.1

        This IFR 4 applies to every Authorised Person carrying on Islamic Financial Business.

        • Guidance

          GEN 6 contains the general accounting and audit requirements applying to Authorised Persons.

    • IFR 4.2 IFR 4.2 Financial statements — specific disclosures

      • IFR 4.2.1

        An Authorised Person carrying on Islamic Financial Business must ensure that the financial statements required to be produced by it under GEN 6 contain the following additional disclosures:

        (a) the role and authority of the Shari'a Supervisory Board in overseeing the Authorised Person's Islamic Financial Business;
        (b) the method used in the calculation of the Zakat base;
        (c) whether Zakat has been paid by the Authorised Person;
        (d) where Zakat has been paid by the Authorised Person, the amount which has been paid; and
        (e) where Zakat has not been paid by the Authorised Person, sufficient information to allow a shareholder or other investor to compute the amount of his own liability to Zakat.

      • IFR 4.2.2

        An Authorised Person who operates an Islamic Window must ensure that the financial statements required to be produced by it under GEN 6 and IFR 4.2.1 contain the following additional disclosures:

        (a) a detailed statement of the funds mobilised according to Shari'a rules and principles and the assets financed by those funds;
        (b) a detailed statement of the income and expenditure attributable to its Islamic Financial Business; and
        (c) whether funds attributable to its Islamic Financial Business are commingled with funds attributable to its conventional business.

      • IFR 4.2.3

        An Authorised Person which is a Takaful Operator must ensure that the financial statements required to be produced by it under GEN 6 for each Takaful Fund contains the following disclosures:

        (a) income from contributions to the Takaful Fund;
        (b) revenues and gains from the Takaful Fund's investments;
        (c) amounts paid to the Takaful Operator;
        (d) amounts paid for Retakaful cover, net of any commissions;
        (e) amounts paid to Takaful contributors as a distribution of surplus;
        (f) amounts of any financing received from, or repaid to the Takaful operator;
        (g) changes in the actuarial reserves of the Takaful Fund; and
        (h) the position of the Takaful Fund at the end of the period, including actuarial reserves, policyholders' surplus and any loans outstanding.

      • IFR 4.2.4

        An Authorised Person which Manages a PSIA must ensure that the financial statements required to be produced by it under GEN 6 contain the following additional disclosures:

        (a) an analysis of income according to types of investments and their financing by customers;
        (b) the basis for the allocation of profits between Owners' Equity and PSIA holders;
        (c) the equity of PSIA holders at the end of the reporting period;
        (d) the bases used to determine any Profit Equalisation Reserve or Investment Risk Reserve;
        (e) the changes which have occurred in the Profit Equalisation Reserve and the Investment Risk Reserve during the reporting period;
        (f) any deductions made by the Authorised Person from its share of income, and any expenses borne by the Authorised Person on behalf of PSIA holders, as a contribution to increase the income of PSIA holders, if such contribution was material; and
        (g) the identity of any person to whom any remaining balances of any Profit Equalisation Reserve or Investment Risk Reserve is attributable in the event of liquidation.