A critical analysis of the use of fair value by Islamic Financial Institutions

• Published in: Journal of Islamic accounting and business research Vol. 7; no. 2; pp. 170 - 183
• Main Author: Gharbi, Leila
• Format: Journal Article
• Language: English
• Published: Bingley Emerald Group Publishing Limited 01.01.2016
• Subjects: Accounting standards; Approximation; Cash flow forecasting; Commodities; Compliance; Discount rates; Discounted cash flow; Expenditures; Fair value; Financial accounting standards; Financial institutions; Interest rates; International Financial Reporting Standards; Islamic financing; Islamic law; Muslims; Present value; Profits; Provisions; Valuation; Impairment testing; IFRS and AAOIFI standards; Discount rate; Islamic pricing benchmark

Purpose This paper aims to address a specific question over the compatibility of International Financial Reporting Standards with Islamic finance regarding the use of interest rate as discounting rate in impairment testing and valuation techniques. Design/methodology/approach Inductive methodology a...