Sukuk: Definition, Structure and Accounting Issues

Ahmed, Khalil (2011): Sukuk: Definition, Structure and Accounting Issues.

Abstract

Recent innovations in Islamic finance have changed the dynamics of the Islamic finance industry especially, in the area of sukuk or Islamic securities. Sukuk have become increasingly popular in the last few years, both as a means of raising government finance through sovereign issues, and as a way for companies to obtain funding through offering corporate sukuk. In this paper an attempt is made is to define sukuk and show the structure of sukuk. Furthermore, the paper shades some light on some accounting risk issues of sukuk. Finally, the paper presents benefits of sukuk for shareholders. However, this paper is a humble attempt to explain certain issues of sukuk. Certainly, for further information about sukuk, there are many publications that may assist the reader to derive the knowledge about sukuk.

• Item Type: MPRA Paper
• Language: English
• Keywords: Sukuk, structure, recognition, measurement and risk
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance

References

Accounting and Auditing Organization for Islamic Financial Institutions Accounting, Auditing & Governance Standards (for Islamic Financial Institutions), (2008), Shari’ah Standards. Manamah.

Farmida Bi. AAOIFI Statement on Sukuk and its implications. Available online http://www.nortonrose.com/knowledge/publications/2008/pub16852.aspx?lang=en- gb&page=all accessed on 26/12/2010.

Heffernan, Shelagh (2003). Modern Banking in Theory and Practice. Chichester: John Wiley and Sons.

Saiful Azhar Rosly (2005). Critical issues on Islamic banking and financial markets. KL: Dinamas publishing.

Tariq, Ali Arsalan. Managing Financial Risks of Sukuk Structures (2004). UK: Loughborough University.