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Saudi Banks Level of Compliance with Accounting Standards of Accounting and Auditing Organization for Islamic Financial Institutions |
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PP: 1041-1052 |
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doi:10.18576/isl/120240
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Author(s) |
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S. A. Al-Bogami,
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Abstract |
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| This paper aims to reveal the level of compliance with the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standard on General Presentation and Disclosures by Saudi Banks that are more compliant with Islamic banking principles. The researcher conducted a content analysis of four Saudi banks annual reports based on the questionnaire prepared for the AAOIFI standard on General Presentation and Disclosure in the financial statements. Based on the methodology adopted, the overall compliance of Saudi Banks with the AAOIFI standard on General Presentation and Disclosure is high (85%) relative to the findings in other countries. However, the categories in which the banks are required to disclose exclusive materials different from mainstream accounting principles, and compliance is low. On the other hand, the banks adherence to items is very high. This paper reveals essential information regarding the various dimensions of compliance. The results will help the banks and SAMA undertake a more intensive assessment. Islamic banking is a growing industry, and the stakeholders are interested in knowing the Sharia compliance of the banks
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