GLOBAL: AAOIFI has approved in principle the issuance of exposure draft of Financial Accounting Standard (FAS) on ‘Istisna Based Development Contracts’ which is the second output of the revision project of FAS 7 ‘Salam and Parallel Salam’ and FAS 10 ‘Istisna and Parallel Istisna’.
The objective of the draft is to prescribe the appropriate accounting and financial reporting principles for recognition, measurement, presentation and disclosures to apply in relation to Istisna-based development contracts for the developers and customers in such transactions.
