5.0 CONCLUSIONS

Current study examines the conformity of Malaysian IFIs with regards to AAOIFI disclosure requirements. The overal results are SOFP 70.3% compliance, SOPL 45.6% compliance, SOCIE 95% compliance, SOCF 100% compliance. It can be concluded Malaysian IFIs are complying the requirements of AAOIFI even though they are only using AAOIFI standards as one of guidelines in preparation and presentation of their financial statements.

There are two recommendations to see the harmonisation between AAOIFI financial statements and MFRS financial statements. First, Malaysian Accounting Standards Board can consider to amend the disclosure requirement of (1) changes in restricted investment and (2) sources and uses of charity fund, from notes to the financial statement to a financial statement status like SOFP and SOPL. Alternatively, Malaysian Accounting Standards Board allows the IFIs to voluntarily disclose changes in restricted investment and sources and uses of charity funds as financial statements.

Second, Malaysian representative in AAOIFI could suggest the inclusion of items currently disclosed in MFRS format but not required by AAOIFI format to be included in AAOIFI format.

Last but not least, future study should look at a more detailed requirements of AAOIFI and MFRS to find way for harmonisation of AAOIFI and MFRS in future.