AAOIFI CPFAS study guide
AAOIFI CPFAS · Work through your exam, one topic at a time.
The AAOIFI Certified Professional in Financial Accounting Standards (CPFAS) - rendered in Arabic as شهادة المحاسب الإسلامي المعتمد, "the Certified Islamic Accountant" - is one of the professional certifications listed on the AAOIFI website alongside the Certified Shari'ah Reviewer and Auditor certificate, the Fast Track Fellowship and the Honorary Fellowship. AAOIFI itself (the Accounting and Auditing Organization for Islamic Financial Institutions) is a non-profit international body founded by founding agreement signed on 1 Safar 1410H / 26 February 1990 in Algeria and registered in the Kingdom of Bahrain on 11 Ramadan 1411H / 27 March 1991, with its principal headquarters in Bahrain. The AAOIFI CPFAS study guide has 4 sections and about 1,663 words.
01Financial Accounting Standards (FAS): Core Measurement and Disclosure Logic
AAOIFI's Financial Accounting Standards are built around the idea that Islamic financial transactions must be reported in a way that reflects their economic substance without contradicting their Shari'ah form. Candidates must know the standards by number and by concept: FAS 2 (murabaha and deferred payment sales), FAS 4 (salam and istisna'), FAS 7 (musharakah and mudarabah capital), FAS 10 (istisna' and salam accounting), FAS 17 (investment property), FAS 23 (consolidation), FAS 28 (murabaha - revised), and FAS 32 (zakat).
455 words, about 2 min02Governance Standards for Islamic Financial Institutions: Structure, Shari'ah Supervision and Disclosure
AAOIFI's Governance Standards (GS) define how an Islamic financial institution (IFI) must be governed - who decides, who oversees, and what must be disclosed. The core standards are GS 1 (Shari'ah supervisory board - appointment, composition, terms of reference), GS 2 (Shari'ah review), GS 3 (internal Shari'ah review), GS 4 (audit and governance committee), GS 5 (independence of the Shari'ah supervisory board), GS 6 (conversion of a conventional bank to Islamic), GS 7 (corporate social responsibility), GS 8 (governance for Islamic windows), and GS 10 (Shari'ah compliance and the role of the Shari'ah auditor).
405 words, about 2 min03Ethics Standards: The Code of Ethics for IFIs and Accountants
AAOIFI's Ethics Standards (ES) set out the conduct expected of IFIs and of the accountants and auditors who serve them. The central standard is ES 1 (Code of Ethics for Islamic Financial Institutions), supported by standards on the independence of the external auditor and on ethical behaviour in reporting.
392 words, about 2 min04Shari'ah Standards Relevant to Financial Reporting: Contract Form and Accounting Consequence
AAOIFI's Shari'ah Standards define the permissible form of Islamic contracts. For a financial-reporting candidate, the point is not to issue fatwas but to understand how contract form drives recognition, measurement and disclosure under the FAS.
411 words, about 2 min