Practical Sukuk Accounting: IFRS vs. AAOIFI Standards(Part 3)

Welcome back to our series on Islamic accounting! In today's session, we transition from theory to practice by exploring the accounting treatment for Sukuk. This video provides a step-by-step walkthrough of a practical scenario involving Aleph Enterprise, an entity seeking to raise 100 million to finance its activities through a special purpose vehicle (SPV).What You’ll Learn:Scenario Overview: We analyze a financial position featuring a 100 million office building sold to an SPV and leased back to the originator.

IFRS Accounting Treatment: Learn how the originator recognizes Sukuk transactions as finance costs using the Internal Rate of Return (IRR), which is 6.7477% in this case.
Finance Cost Scheduling: We demonstrate how to prepare a 5-year finance cost schedule, detailing opening balances, interest expenses, cash payments, and closing liabilities. Journal Entries: Understand how to record these transactions in the books of the originator under International Financial Reporting Standards (IFRS).AAOIFI Standards: A look at how the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) differs in its requirements for the originator.

Case Study Highlights: Principal: 100 Million Buy-back Agreement: 110 Million Annual Lease Payment: 5 Million Internal Rate of Return (IRR): 6.7477% This tutorial is essential for students and professionals looking to master the complexities of Islamic finance and comparative accounting standards.

Timestamps:
00:00 - Introduction to Sukuk Accounting
00:31 - Practical Problem: Aleph Enterprise Scenario
02:36 - IFRS Accounting Treatment & Finance Costs
03:50 - Building the 5-Year Finance Schedule
12:09 - Preparing Journal Entries

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Видео Practical Sukuk Accounting: IFRS vs. AAOIFI Standards(Part 3) канала Duahbed Consult