Global alignment: bringing consistency to reporting of Islamic finance through IFRS

ACCA and KPMG, November 2012. Islamic finance (IF) is growing rapidly, worldwide. Many IF institutions prefer to report in the principal global accounting regime, International Financial Reporting Standards (IFRS) – but because of the particular characteristics and nuances within IF, many jurisdictions require these institutions to apply accounting practices that take into account those differences, rather than purely applying IFRS. So how can the financial reporting of Islamic Finance be harmonised and made more consistent internationally? ACCA and KPMG held three high-level roundtables in Malaysia, Dubai and London to address the key issues and produce a package of recommendations. This report summarises the discussions.