Page 140 - ICD-AR22-English

Notes to the Separate Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2022
35 STANDARDS ISSUED BUT NOTYET EFFECTIVE
The following new FASs have been issued. The Corporation intends to adopt these financial reporting standards when they become effective and is currently assessing the impact of these new FASs on its financial statements and systems.
Financial Accounting Standard – 39 “Financial Reporting for Zakah”
This standard aims at setting out accounting treatment of Zakah in the books of an Islamic financial institution, including the presentation and disclosure in its financial statements. The objective of this standard is to establish the principles of financial reporting related to Zakah attributable to different stakeholders of an Islamic financial institution. This standard shall be effective for the financial periods beginning on or after 1 January 2023 with early adoption permitted. This standard is not applicable to the Corporation as it is not a zakah payer.
Financial Accounting Standard – 40 “Financial Reporting for Islamic Finance Windows”
The objective of this standard is to establish financial reporting requirements for Islamic financial services offered by conventional financial institutions (in the form of Islamic finance windows). This standard shall be effective on the financial statements of the Islamic finance window of conventional financial institutions for the periods beginning on or after 1 January 2024 with early adoption permitted. This standard is not applicable to the Corporation as it is not a conventional financial institution.
Financial Accounting Standard – 1 (Revised 2021) “General Presentation and Disclosures in the Financial Statements”
The revised FAS 1 describes and improves the overall presentation and disclosure requirements prescribed in line with the global best practices and supersedes the earlier FAS 1. It is applicable on all the Islamic financial institutions and other institutions following AAOIFI FASs. This standard sets out the overall requirements for presentation of financial statements, the minimum requirements for the contents of the financial statements and a recommended structure of financial statements that facilitate faithful presentation in line with Shari’ah principles and rules and comparability with the institution’s financial statements of previous periods, and the financial statements of other institutions. This standard shall be effective on the financial statements of the institutions beginning on or after 1 January 2023 with early adoption permitted. The Corporation is currently evaluating the impact of this standard.
AAOIFI Financial Accounting Standard 42 – “Presentation and Disclosures in the Financial Statements
of Takaful Institutions”
This standard sets out the principles for the presentation and disclosure for the financial statements of Takaful institutions. It aims to ensure that the Takaful institutions faithfully present the information related to these arrangements to the relevant stakeholders as per the contractual relationship between the parties and the business model of the Takaful business in line with the Shari’ah principles and rules. This standard shall be effective on the financial statements of the institutions beginning on or after 1 January 2025 with early adoption permitted. FAS 42 shall not impact the financial statements as the Corporation is not a takaful entity.
138 ICD ANNUAL REPORT 2022