AAOIFI Standards Update for Islamic Banks
Investment accounts were never quite equity and never quite debt. FAS 45, 46 and 47 now set how they are reported, what sits off the balance sheet and what moves between pools — and every one of those answers is read by investors, auditors and the Sharia board.
Format
Classroom · Virtual
Upcoming sessions
Pick a session to applyADMISSIONS OPENCity cohorts run once six delegates are nominated. Tell us your preferred month and we’ll confirm dates at least four weeks ahead — please hold travel bookings until then — or offer the nearest confirmed session, live virtual, or in-house. No payment until confirmation.
The programme
AAOIFI Standards Update for Islamic Banks is a two-day programme for finance, Sharia compliance, audit, product and regulatory reporting teams who need to interpret the newest AAOIFI financial accounting standards and weigh what they change. FAS 45, 46 and 47, issued by AAOIFI in December 2023, apply to financial periods beginning on or after 1 January 2026: quasi-equity and investment accounts, off-balance-sheet assets under management, and transfers between investment pools. Read with FAS 44 on control, they put one question at the centre of the accounts — what belongs on the balance sheet. Participants compare the new requirements with current practice, trace their effect on profit distribution and disclosure, and weigh the consequences for products and Sharia governance through case studies and peer benchmarks. FAS 48 on promotional gifts and prizes and FAS 49 on hyperinflationary economies complete the update. Delivered in English and French in Dubai, London and across the Middle East, Africa, Asia and Europe — and live online.
What you will do
Who attends
- Heads of finance, financial controllers and financial reporting managers in Islamic banks and Islamic windows
- Sharia compliance officers, internal Sharia audit and review teams, and Sharia supervisory board secretariats
- Internal auditors, and external auditors and advisers serving Islamic financial institutions
- Product development, treasury and investment-account managers
- Regulatory reporting teams, and supervisors who oversee Islamic banks
- Participants should know the main Islamic finance contracts and their institution’s financial statements — this is an update, not an introduction
Programme agenda
Built around one question — what belongs on the balance sheet — day one the standards, day two products, disclosure and sign-off
I.Where the AAOIFI standards stand now
- Financial accounting, Shari’ah and governance standards: how they fit together, and how they sit alongside IFRS where regulators require both
- The standards issued since December 2023 in one view: FAS 44 to FAS 49, what each replaces or improves on, and their effective dates where AAOIFI has set them
- Reading a standard: the conceptual framework, the Shari’ah basis, scope and transition
II.Control: what belongs on the balance sheet (FAS 44)
- Control of assets and of businesses: the indicators, and the judgement when they point in different directions
- Assets underlying participatory structures, on and off balance sheet
- Consolidation of subsidiaries and the evidence an auditor expects to see
III.Quasi-equity and investment accounts (FAS 45)
- Which participatory instruments qualify as quasi-equity, and why most investment accounts do
- Presentation between liabilities and owners’ equity, measurement and the allocation of profit
- What changes from FAS 27, and the disclosures investment account holders now receive
IV.Off-balance-sheet assets under management (FAS 46)
- Recognition and derecognition of managed assets, and the choice of accounting policies
- Measurement, impairment and onerous commitments when assets sit outside the balance sheet
- Restricted investment accounts and similar arrangements, compared through case studies
V.Transfers between investment pools (FAS 47)
- Pools for owners’ equity, quasi-equity and off-balance-sheet assets: when a transfer happens and what must be disclosed
- Consistent accounting policies across pools, in line with Shari’ah principles
- The disclosures that replace FAS 21, and how peers present them
VI.Products and customers: promotional gifts, prizes and hyperinflation (FAS 48 and FAS 49)
- Gifts and prizes offered to depositors and investment account holders: recognition, measurement and disclosure
- What product and marketing teams need to know before the next campaign
- Reporting for institutions operating in hyperinflationary economies, with their Shari’ah considerations
VII.Sharia governance, audit and the sign-off chain
- Who decides which judgement: finance, the Sharia supervisory board, internal Sharia audit, the audit committee
- The evidence trail for classification, control and pool-transfer judgements
- Engaging the external auditor and the supervisor early, and benchmarking against peer disclosures
VIII.Integrated case study
- An Islamic bank with unrestricted and restricted investment accounts, and a conventional group with an Islamic window
- Weighing the control and classification judgements, and tracing a year of pool transfers
- Comparing the resulting disclosures with peers and arguing the position before a mock audit committee and Sharia board
Frequently asked
What do AAOIFI FAS 45, 46 and 47 change?
FAS 45 sets the reporting for quasi-equity — participatory instruments such as investment accounts — and, together with FAS 46, supersedes the earlier FAS 27. FAS 46 covers assets an institution manages off its balance sheet: recognition, derecognition, measurement, impairment and onerous commitments. FAS 47 sets the reporting and disclosure for transfers of assets between investment pools and supersedes FAS 21. Together with FAS 44 on control, they decide what sits on the balance sheet and what investors are told about it.
When do FAS 45, 46 and 47 take effect?
AAOIFI issued the English versions in December 2023, and they apply to financial periods beginning on or after 1 January 2026. For an institution with a calendar year end, 2026 is the first year of application, so the 2026 and 2027 accounts are the first that investors, auditors and supervisors read under the new requirements.
Is it relevant to Islamic banks that report under IFRS?
Yes, in part. Institutions whose regulator requires AAOIFI financial accounting standards apply FAS 44 to 49 in full. Institutions that report under IFRS follow IFRS for their accounts, but many apply AAOIFI Shari’ah and governance standards, and their investors and supervisors compare them with AAOIFI reporters. The programme marks where the two frameworks differ; for the IFRS side, BIZENIUS also runs an IFRS 18 programme for banks.
What level is the programme?
It is an update for practitioners, not an introduction. Participants should know the main Islamic finance contracts — murabaha, ijarah, mudarabah, musharakah and wakalah — and their institution’s financial statements. Newer staff are better served by the Islamic Banking Masterclass first.
Can it run live virtual or in-house?
Yes. Public cohorts run in the classroom and live virtual. For one institution, the programme can run in-house as a custom programme, scoped on request, in English or French.
Is there a group rate, and do delegates receive a certificate?
Institutions sending several delegates, in one cohort or across the year, receive group terms; fees are provided on enquiry. Each participant receives a BIZENIUS Banking Academy certificate of completion. The programme is practice-led rather than exam-led and is not preparation for a third-party qualification.
Who teaches this
Practitioners, not presenters.
Led by practitioners who hold, or have held, the seats this programme prepares you for: group treasurers and heads of asset–liability management, chief risk officers, heads of credit and capital management, and former central-bank supervisors who examined the very frameworks they now teach. Between cohorts the same people advise banks on those frameworks, so what you learn is what is being defended in front of boards and regulators today.
What the bench brings
- Risk management for Islamic banks
- Asset–liability management and funds transfer pricing
- Liquidity ratios and capital planning
- Financial product development and modelling
- IFRS 9 impairment and expected credit loss models
- Financial-instrument accounting and hedge accounting
Where they have practised
Current and former practitioners — people who hold the seat today alongside those who have held it.
Sectors: Banking & financial services · Professional services · Technology & fintech · Insurance
Regions: Africa · the Middle East · Europe · Asia · the Americas
How they teach
- Live case studies from real institutions
- Worked exercises on realistic bank data
- Regulator-style challenge sessions
- Group problem-solving on realistic institutional cases
- Knowledge checks and a personal action plan
Cohorts are kept small so every exercise is worked on the participants’ own situations — in person or live virtual.
The faculty profile for your cohort is sent with the full agenda and the next dates when you enquire.Request brochure →
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In their words
Knowledge transfer, emphasised throughout
“We worked with BIZENIUS for our Fresh Graduates Programme — they are simply amazing. Knowledge transfer and practical learning were emphasised throughout.”
Kuwait Investment Authority
From the Mandate Record
Mandate № 01 · Africa
The training programme that became national regulation
What the team mastered, the regulator wrote into the rulebook.
Open the dossier →
The Capability Arc™
Fix it · Advisory
Islamic Finance & AAOIFI Advisory
When the institution wants the work done with it — the gap assessment against FAS 44 to 49, the classification and pool judgements, and the disclosures the Sharia board and auditor will sign.
Automate it · Smart IT
Reporting Automation & Dashboards
When pool balances, profit allocation and the new disclosures need to come out of the system, not out of re-keyed workbooks.
Learning is one point on the Capability Arc. Many institutions pair this programme with the advisory engagement — and automate what the framework demands.
Teams from these institutions train with BIZENIUS
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View programmeBackground reading on this subject
Written by the practitioners who lead the programme — read before you enquire.
Banking & Finance
Take the brochure with you.
One request — the full agenda, the faculty and the next cohort dates, sent personally by the admissions team.