Islamic Accounting Finance and Governance

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

• A1. The institutional framework, governing principles, governance system, business model, and products of Islamic banking, insurance, and social financial instruments. A2. The process of product development and asset liability management in Islamic banking, insurance, and micro/philanthropic financial institutions A3. The issues within the evolvement of product structures, services, control and governance system, and the social impact of Islamic banking, insurance, and social financial institutions A4. The core principles/theories and objectives of Islamic accounting, the conceptual framework of Islamic financial reporting, accounting regulatory standards for Islamic banking, insurance, and social financial institutions

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• B1. To apply Shari’ah and accounting standards for sales-based transactions (murabahah, salam, isthisna), investment-based transactions (mudharabah, musyarakah), accounting for Islamic deposit and investment account, accounting for treasury transactions, lease based transactions (ijarah), and socio-objective transactions (qardh hassan, zakah). B2. To apply accounting standards for takaful transactions including financial reporting, surplus and deficit allocation, and provision and reserve in Islamic insurance companies.

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• C1. apply analysis skills, Islamic financial reporting interpretation analysis skills. C2.apply critical analytical skills to the governance practices. C3.plan and control effectively for successful completion of workload; C4.communicate effectively in writing, using and justifying arguments within reports.

The topics covered in this module will include:

• The underlying ethical principles, theories and tenets of Islamic financial and social transactions
• The institutional framework in Islamic banking, insurance, and social financial institutions
• The AAOIFI framework of financial reporting for Islamic financial institutions
• Governance, accounting and reporting of sales-based transactions (murabahah, salam, isthisna)
• Governance, accounting and reporting of investment-based transactions (mudharabah, musyarakah),
• Governance, accounting and lease-based transactions (ijarah), and socio-objective transactions (qardh hassan, zakah).
• Governance, accounting and reporting standards for Islamic Insurance companies
• Governance, accounting and reporting practices of Islamic social finance, including zakāh and awqaf
• Accounting standards governing investments and Islamic mutual funds and Islamic banking windows

Businesses

• Assessing the social and financial performance of Islamic banking, insurance and social financial institutions

Teaching methods include:

• Lectures
• Face to face seminars
• Statistics workshops
• Directed reading
• Private/guided study
• Students on Erasmus exchange will have access to recorded Lectures and online course

Learning activities include:

• Introductory online lectures
• Individual assignment
• Case study / problem solving activities
• In class debate and discussion
• Private study
• Use of online materials

Summative

This is how we’ll formally assess what you have learned in this module.