A comparison of MASB and AAOFI accounting conceptual frameworks

This chapter provides new findings to accounting and finance literature, where, it compares the conceptual framework of both of the MASB- and the AAOIFI- in the context of financial reporting of Islamic financial institutions (IFls). The conceptual framework or some authors referred as “accounting constitution” set the tone for a consistent accounting standards and become a reference point for developing future standards for financial accounting and reporting (Barker et al., 2014; Abela et al., 2014; Holzmann & Munter, 2014 (Sutton et al., 2015; Gebhardt et aI., 2014; Norby, 1977; Gore & Zimmerman, 2007). In this context, more than 120 countries (including major players in Islamic finance like Saudi Arabia, Malaysia and many others) are adopting IASB’ financial reporting regime in financial reporting of IFIs, and only six countries like Bahrain, Jordan, Lebanon, Oman, Qatar and Sudan are employing the AAOIFI accounting standards …