Disclosure of sukuk transactions in islamic financial institutions reporting

The subject of the article is sukuk, that is securities issued according to the principles and rules of Islamic finance (principles and rules of Sharia), by Islamic financial institutions. The object of the article is approaches to disclosing information on transactions with sukuk in the reporting of Islamic financial organizations. The purpose of the study is to identify the main directions for improving the disclosure of information on transactions with sukuk in the reporting of Islamic financial institutions, which will increase investor confidence and promote the development of the sukuk market. Using general economic methods such as comparison, contrast, analysis and synthesis, as well as logical and systemic approaches, the authors studied the requirements of AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions – an international organization that publishes standards of governance, ethics, accounting, reporting and auditing according to the principles and rules of Sharia) standards for disclosing information on sukuk transactions in comparison with IFRS (International Financial Reporting Standards), as well as a practical example of reflecting information on sukuk in the financial statements of the Islamic Development Bank, presented in accordance with AAOIFI standards, for 2020–2022. Based on the results of the study, the authors concluded that the areas of improving the disclosure of information on sukuk transactions in the reporting of Islamic financial institutions will be the following: improving the transparency of the sukuk structure; increasing the detail of information on financial flows; expanded risk disclosure; integration with international financial reporting standards and the development of digital platforms for disclosure of information.

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