MASB approved accounting standards apply to Islamic transactions undertaken by entities under the purview of the Financial Reporting Act 1997. However, the International Financial Reporting Standards (IFRS) adopted as MASB approved accounting standards may not have specifically considered Islamic financial transactions in arriving at its conclusions. In view of this, the Standing Committee has been given the responsibility of advising the Board as to whether an existing or proposed approved accounting standard can be made applicable to Islamic finance transactions.
The Standing Committee comprises representatives from the accountancy profession, regulators, the banking and takaful professions and academia. The following persons were appointed to the Standing Committee in recognition of their roles in their respective professions:
Members of the Standing Committee:
- Dato’ Mohammad Faiz Azmi - Executive Chairman, PricewaterhouseCoopers
- Dato’ Abdul Rauf Rashid - Country Managing Partner, Ernst & Young
- Encik Ahmad Nasri Abdul Wahab - Partner, KPMG
- Encik Nik Shahrizal Sulaiman - Executive Director, PricewaterhouseCoopers
- Encik Mohamed Rafe Mohamed Haneef - CEO of CIMB Islamic Bank Berhad and CEO of CIMB Group Islamic Banking Division
- Dato' Badlisyah Abdul Ghani - Deputy Chief Executive Officer, Lembaga Tabung Haji
- Encik Mohd Raizal bin Mohd Rais - Head of Finance, AIA Public Takaful Berhad
- Dr Md Nurdin Ngadimon - Deputy General Manager & Head Shariah Islamic Capital Market, Securities Commission Malaysia
- Encik Mohd Radzuan Ahmad Tajuddin - Deputy General Manager & Head Development Islamic Capital Market, Securities Commission Malaysia
- Encik Mohd Zabidi Md Nor - Director of Islamic Banking and Takaful Department, Bank Negara Malaysia
- Dr. Marjan Muhammad - Head of Research Affairs,International Shari'ah Research Academy for Islamic Finance (ISRA)
Observers of the Standing Committee:
- Encik Addellan Jusop - Senior Manager, Operations, Association of Islamic Banking institutions Malaysia
- Dato’ Mohd Effendi Abdullah - Representative, Malaysian Investment Banking Association
- Encik Azli Munani - CEO / Executive Secretary, Malaysian Takaful Association
- Dato’ Syed Mohd Ghazali Wafa Syed Adwam Wafa - CEO,Koperasi Pembiayaan Syariah Angkasa Berhad
- Cik Zulfa Abdul Rahman - Manager, Malaysian Institute of Accountants (MIA)
Responsibilities of the Standing Committee:
i) The Standing Committee shall identify technical issues related to Islamic finance for consideration and deliberation.
ii) The Standing Committee shall conduct research and benchmarking to identify the alternative approaches to address the issues.
iii) The Standing Committee shall assist the Board in:
- Preparing documents relating to Islamic financial reporting for issuance by the Board.
- Forwarding Islamic financial reporting issues along with their suggested solution(s) either directly to the IASB or indirectly through the Asian-Oceanian Standard-setters Group (AOSSG) or any other body.
- Preparing submissions on implementation issues to the Financial Reporting Standards Implementation Committee (FRSIC) of the Malaysian Institute of Accountants (MIA).
- Preparing documents on Islamic finance accounting issues and recommendations for the Shariah Advisory Council of Bank Negara Malaysia or Securities Commission Malaysia, when necessary.
||The Standing Committee shall provide explicit recommendations to the Board on the applicability of approved accounting standards to an Islamic finance transaction and indicate whether or not there are Shariah concerns.