ABSTRACT
This research investigate the challenges and difficulties of applying International Financial Reporting standards (IFRS) to Islamic Financial Institution (IFIs) in Saudi Arabia by examining three main principles in accounting: substance over form, time value of money and recognition based on probability. These three principals have many applications in accounting standards such as leases, insurance contracts and financial instruments and financial disclosures in financial reporting systems. In addition, it also highlights the other options for Islamic financial institutions when dealing with their financial transactions such as the Saudi Organization for Certified Public Accountants (SOCPA) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). In addition, whether it is possible to adopt a multiple standards system as an accounting framework for financial reporting and whether it could affect the main characteristics of Accounting, which are reliability, relevance, understandability and comparability. Moreover, this research focuses on the main difference between IFRS and AAOIFI in terms of performance or the financial position of Islamic financial institutions. Finally, the role of external auditors with regard to compliance with Sharia teaching for financial transactions discussed. A questionnaire survey and a series of interviews conducted among those who prepare and use financial reports. The findings suggest that applying IFRS in Islamic Financial Institutions will be associated with number challenges and difficulties especially with specific standards that do not conflict with Islamic teaching. On, the other hand, the findings suggest that applying IFRS could improve the quality of financial reporting and disclosures. The results also stress the importance of Sharia auditing standards and the need to ensure these Sharia standards are mandatory for Islamic Financial institutions.
Keywords; Saudi Arabia, IFRS, Islamic Financial Institutions, AAOIFI and SOCPA,
Title. The challenges and difficulties of using the IFRS in financial institutions in Saudi Arabia
The dissertation is divided into six chapters as follows:
1. Introduction
1.1. Background
1.2. Research Objectives
1.3. Research Questions
1.4. Significance of the Study
1.5. The Methodology and Model
1.6. Scope and Limitations of the Study
1.7. Structure of the Dissertation
2. Literature Review
2.1. Introduction
2.2. Islamic Finance and Banking
2.3. 2.2.3. Structure of the Saudi banking sector
2.4. Benefits of applying IFRS
2.5. IFRS Principles that Impact on Islamic Financial Transactions
2.5.1. Time Value of Money
2.5.2. Substance over Form
2.5.3. Recognition Based on Probability
2.6. Other issues not Covered by IFRS
2.7. Role of External Audit in Compliance with Sharia
3. Research Methods and Methodology
3.1. Introduction
3.2. Research question and objectives
3.3. Population and Sample selection
3.4. Research Instruments
3.5. Data Collection
3.5.1. Questioners
3.5.2. Interviews
3.5.3. Questioners design and analysis
3.6. Data Analysis
3.7. Validity, Reliability and Ethics
3.8. Conclusion
4. Result
4.1. Introduction
4.2. Lack of standardised accounting
4.3. Accounting Standards Analysis
4.3.1. Financial Instruments: Recognition and Measurement
4.3.2. Impairment of Assets
4.3.3. Leases
5. Discussion And Analysis
5.1. Role of Sharia External Auditors in Islamic Financial Institution
6. Conclusion
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]