Sunday, August 27, 2017

4.17 KUWAIT FINANCE HOUSE

Kuwait Finance House (Malaysia) Berhad (KFH Malaysia) was established on 8 May 2005. It is the first foreign Islamic bank that was granted a licence under the Islamic Banking Act (Malaysia) 1983. As of 2015 its paid up capital stood at RM1,425,272,000. It offers a complete range of Shariah-based financial products and services under Corporate and Investment, Commercial, and Retail and Consumer Banking as well as Treasury and International Business.

Table 4.17: Level of compliance to MFRS and AAOIFI standards
No.
Financial statement
Conformity
1.
Statement on adoption of AAOIFI
Nil
2.
Statement on adoption of MFRS
100%
3.
Statement of financial position
70.0%
4.
Statement of profit or loss
66.7%
5.
Statement of changes in equity
95%
6.
Statement of cash flow
100%
7.
Statement of sources and uses of charity fund
Yes (notes)
8.
Statement of restricted investment
No

In term of financial reporting, it adopts fully the requirements made by Malaysian Financial Reporting Standards (MFRS) and adheres the AAOIFI at the above levels. The bank complies with MFRS and also conforms to AAOIFI in presentation of SOFP (70%), SOPL (66.7%), SOCIE (95%) and SCF (100%). It does not either present SSUCF and SORI as financial statement but show SSUCF in notes to financial statement.

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