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 - Director, PricewaterhouseCoopers
- Encik Ahmad Shahriman Mohd Shariff - CEO, CIMB Islamic Bank Berhad and CEO, Group Islamic Banking, CIMB Group
- Dato' Badlisyah Abdul Ghani
- Encik Zafri Ab. Halim, CEO, Etiqa Family Takaful Berhad (representing Malaysian Takaful Association)
- Dr. Md Nurdin Ngadimon - Deputy Director, Shariah, Islamic Capital Markets Development, Securities Commission Malaysia
- Encik Noraizat Shik Ahmad - General Manager, Product Evaluation, Islamic Capital Markets Development, Securities Commission Malaysia
- Puan Madelena Mohamed - Director, 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 Nor Shahrizan Sulaiman - Chairman, Islamic Capital Markets Committee, MIBA and Deputy CEO, Maybank Islamic Berhad
- Puan Ratna Shae'rah Kamaludin - Acting CEO, AIBIM
- 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 documents on Islamic finance accounting issues and recommendations for the Shariah Advisory Council of Bank Negara Malaysia or Securities Commission Malaysia, when necessary.
(iv) 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.