Home  Journals  Finance and Credit  6(858) - 2025 June

Transformation of financial reporting from IFRS to AAOIFI Standards (The Sukuk operations case)

Received: 17 January 2025

Accepted: 10 April 2025

Available online: 26 June 2025

Subject Heading: FISCAL SYSTEM

JEL Classification: F21, F36, G3

Pages: 191-207

https://doi.org/10.24891/nkolzk

Subject. The article investigates financial statements of Russian counterpart funding organizations, prepared according to International Financial Reporting Standards (IFRS).
Objectives. The purpose of the study is to propose a possible methodology for transforming the financial statements of Russian counterpart funding organizations from IFRS to AAOIFI Standards so that the said organizations could attract investments from Eastern countries of the Persian Gulf.
Methods. Using the analysis and synthesis, logical justification, comparison and contrast, analogy, the article examines the requirements of IFRS and AAOIFI Standards for preparation of financial statements, as well as financial statements of a number of Russian counterpart financing organizations and international Islamic financial institutions prepared according to AAOIFI Standards.
Results. Based on the results of the study, the article proposes a methodology for transforming financial statements from IFRS to AAOIFI Standards for Russian counterpart financing organizations or their Islamic windows. In addition, the article tests this methodology on sukuk transactions.
Conclusions. The findings of the study can be used by counterpart financing organizations when transforming reporting from IFRS Standards to AAOIFI Standards to enter the Eastern international capital markets.

Keywords: sukuk, financial statement, IFRS, AAOIFI, counterpart funding

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