AAOIF is a nonprofit organization that was created in order to maintain, promote and establish Islamic accounting and auditing standards for Islamic financial institutions and Islamic business entities. The major objective of this organization is to promote and establish Islamic Shariah Laws regarding the business and monetary transactions. The objective of this organization is that to implement Islamic way of financing accounting throughout the industry.
This organization was formed in year 1990 with an objective of setting out Islamic laws of accounting and finance within the participants. There are a number of founding and associate members of that act as supervisory and regulatory authorities of AAIOF. The major responsibility of these authorities is to define the acceptable standards and acceptable functions of various accounting practices that are favorable with Islamic Shriah and Islamic school of thought. The areas in which organization of AAOIF presents Islamic rules involve accounting, financial governance, ethics and investment transactions.
Islamic Financing involves a number of different rules regarding the business, finance and accounting standards. There are several restrictions that must be implemented in order to conduct fair Islamic dealing within accounting. In order to these accounting principles governing in harmony with the Islamic shariah the business must implement all these restrictions implied by Islam and defined by AAOIF.
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