Analytical Capabilities of Annual Reports of Islamic Financial Institutions

The object of the study of the article is the Annual Reports of Islamic financial institutions prepared taking into account the provisions of the AAOIFI standards (Accounting and Auditing Organization for Islamic Financial Institutions — an organization that develops standards on Sharia, management, ethics, accounting and reporting, as well as auditing according to the principles and rules of Sharia — Islamic law). The subject of the study is the analytical capabilities of the Annual Reports of Islamic financial institutions. The purpose of the study is to identify additional analytical capabilities of the Annual Reports of Islamic financial institutions generated taking into account the AAOIFI standards, in comparison with the traditionally compiled annual reports of such companies containing financial statements in accordance with IFRS. Using such methods as comparison, contrast, analysis and synthesis, as well as logical and systematic approaches, the authors studied the Annual Reports of a number of Islamic financial institutions and identified their main analytical capabilities, which are of crucial importance for investors. The scientific novelty of the study lies in identifying additional analytical capabilities of the Annual Reports of Islamic financial organizations formed according to AAOIFI standards (in comparison with the Annual Reports of Islamic companies that do not draw them up according to such standards) to provide information critical for analysis and decision-making by users focused on Islamic economic principles, and taking this experience into account in the future by Russian participants in partnership financing. In addition, the study proposes approaches to the model for assessing the compliance of the Annual Reports of Islamic financial organizations with the AAOIFI standards for Russian participants in partnership financing.

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