ISLAMIC FINANCIAL REPORTING MODEL IN MALAYSIA

Based on the research findings, the following model was developed:

IFR = 70.3SOFP + 45.6SOPL + 95SOCIE + 100 SOCF

SSUCF (47.1%) and SORI (17.6%) were not being included in the model because they were only disclosed in notes to the financial statement.

Note:

SOFP - Statement of financial position

SOPL - Statement of profit or loss

SOCIE - Statement of changes in equity

SOCF - Statement of cash flow

SSUCF - Statement of sources and uses of charity fund

SORI - Statement of restricted investment

Format of statement of restricted investment - AAOIFI

Format statement of sources and uses of charity fund AAOIFI

Format statement of cash flow AAOIFI

Format statement of changes in equity AAOIFI

Format of Statement of Profit or Loss

Statement of Profit or Loss

4.6 RHB ISLAMIC MALAYSIA BERHAD

RHB Islamic Bank (website) was incorporated on 1 May 2005 with a paid up ordinary share capital of RM1,173,424,000. It has 14 branches throughout Malaysia. Its level of compliance to MFRS and AAOIFI accounting standards are tabled below:

Table 4.6: 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	44.4%
5.	Statement of changes in equity	95%
6.	Statement of cash flow	100%
7.	Statement of sources and uses of charity fund	No
8.	Statement of restricted investment	Yes (notes)

In term of financial reporting, it adopts fully the requirements made by Malaysian Financial Reporting Standards (MFRS) and adheres the requirements of AAOIFI at levels. Its SOFP complies 70% whereas SOPL 44.4% to AAOIFI. SOCIE is at 95% whereas SCF is at 100%. SSUCF and SORI are not presented as financial statement but Sori is shown in the notes to financial statements (here).

4.5 MAYBANK ISLAMIC MALAYSIA BERHAD

Maybank Islamic (website) was incorporated in 2008 with a current paid up ordinary share capital of RM246,362,000 as of 2015. Its services are located in 16 branches throughout Malaysia and also co-located in 399 Maybank branches. Its level of compliance to MFRS and AAOIFI accounting standards are tabled below:

Table 4.5: 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	65.0%
4.	Statement of profit or loss	33.3%
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

The bank complies with MFRS and also conforms to AAOIFI in presentation of SOFP (65%), SOPL (33.3%), SOCIE (95%) and SCF (100%). It does not present SSUCF and SORI as financial statement. However, it shows the SSUF in the notes to financial statement (Financial statement).

4.4 CIMB ISLAMIC BANK MALAYSIA BERHAD

CIMB Islamic was founded in 2003 (website). It has a paid up ordinary share capital of RM1,000,000,000 as of 2015. provides Islamic banking and financial products and services for commercial, corporate, and institutional customers in Malaysia, Indonesia, Singapore, the United States, the United Kingdom, and internationally.  The company offers various personal banking products and services, including savings and current accounts, and term deposit accounts; credit cards; properties financing, personal financing, and car financing; investment products; and retirement and takaful services.

It complies with MFRS and also conforms to AAOIFI in presentation of SOFP (70%), SOPL (55.6%), SOCIE (95%) and SCF (100%). It does not present SSUCF and SORI as financial statement. However, it shows them in the notes to financial statement. (Financial statement 2005).

Table 4.4: 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	55.6%
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	Yes (notes)

4.3 BANK MUAMALAT MALAYSIA BERHAD

Bank Muamalat was incorporated in 1999 (website). It has a paid up capital of RM1,195,000,000 as of 2015.  Its services range from business banking, corporate banking, investment banking, treasury and capital market, commercial banking and trade finance. It has 62 branches throughout Malaysia.

It complies with MFRS and also conforms to AAOIFI in presentation of SOFP (70%), SOPL (38.9%), SOCIE (95%) and SCF (100%). It does not present SSUCF and SORI as either financial statement or notes to financial statement (Financial statement).

Table 4.3: 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	38.9%
5.	Statement of changes in equity	95%
6.	Statement of cash flow	100%
7.	Statement of sources and uses of charity fund	No
8.	Statement of restricted investment	No

4.2 AFFIN ISLAMIC BANK MALAYSIA BERHAD

AFFIN Islamic is a wholly-owned subsidiary of AFFIN Bank Berhad, was incorporated on 13 September 2005 and commenced operations on 1 April 2006 (website). The Bank is principally engaged in all aspects of Islamic banking and finance business and in the provision of related financial services in accordance with the Shariah principles. As of 2015, it has a paid up capital of RM460,000,000 and 263 employees.

In term of financial reporting, it adopts fully the requirements made by Malaysian Financial Reporting Standards (MFRS) and adheres the requirements of AAOIFI at certain levels. SOFP and SOPL are at 70% and 55.6% levels. Whereas SOCIE and SCF are at 95% and 100% respectively. SSUCF is written on the notes whereas SORI is not shown anywhere in the annual report (Financial statement).

Table 4.2: 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	55.6%
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