{"id":765,"date":"2026-03-07T22:14:34","date_gmt":"2026-03-07T22:14:34","guid":{"rendered":"https:\/\/cis.aaoifi.com\/?page_id=765"},"modified":"2026-05-22T14:18:57","modified_gmt":"2026-05-22T14:18:57","slug":"due-process","status":"publish","type":"page","link":"https:\/\/cis.aaoifi.com\/ar\/due-process\/","title":{"rendered":"Due process"},"content":{"rendered":"<h1 class=\"wp-block-heading\">How AAOIFI develops financial accounting standards<\/h1>\n\n\n\n<h2 class=\"wp-block-heading\"><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">AAOIFI\u2019s standard-setting process is designed to be structured, consultative and technically rigorous. It brings together internal expertise, specialised working groups, governance bodies and market feedback to ensure that each financial accounting standard is relevant, practical and aligned with AAOIFI\u2019s mandate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The process is not limited to drafting a text. It begins with identifying a market need, moves through technical study and public consultation, and ends with formal approval and post-issuance review. This helps ensure that standards are developed with clarity, credibility and responsiveness to industry developments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">why the due process matters<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A clear due process helps ensure that standards are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>grounded in genuine market needs and emerging issues<\/li>\n\n\n\n<li>developed through technical research and expert input<\/li>\n\n\n\n<li>reviewed from both professional and Shari\u2019ah perspectives where relevant<\/li>\n\n\n\n<li>exposed to industry feedback before finalisation<\/li>\n\n\n\n<li>subject to governance oversight before issuance<\/li>\n\n\n\n<li>assessed periodically after release to support continuous improvement<\/li>\n<\/ul>\n\n\n\n\n\n\n\n<h2 class=\"wp-block-heading\">overview of the process<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">AAOIFI\u2019s simplified due process for financial accounting standards follows these stages:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. identification of projects<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The process starts with the identification of potential projects by the secretariat and\/or the technical board. At this stage, topics are considered based on market developments, implementation needs, emerging issues, stakeholder requests and the broader public interest.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. working group formation and allocation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once a project is taken forward, a working group may be formed, or the matter may be allocated to a relevant sub-committee. This step ensures that the project is assigned to the appropriate technical forum with the expertise needed to examine the issue in depth.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. executive team formation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">An executive team is then formed to support the project\u2019s development. This team helps coordinate research, drafting, consultation and engagement throughout the process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. preliminary study and consultation notes<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A preliminary study is prepared, together with consultation notes where needed. This stage may take place in one or two steps, depending on the nature and complexity of the issue. The purpose is to define the technical problem clearly, assess possible approaches and build an informed basis for further discussion.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. presentation before the technical board for principle setting<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The issue is then presented before the technical board for principle setting, also in one or two steps where appropriate. At this point, the board considers the direction of the project, the main technical principles and the basis on which drafting should proceed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. workshops and surveys, where needed<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Where additional market input is useful, workshops and\/or surveys may be conducted. These help gather practical insight from industry participants, practitioners and other stakeholders, particularly in areas where implementation challenges or differing practices exist.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. review of the draft standard by the working group and technical board<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A draft standard is prepared and reviewed by the working group and the technical board. This is a core technical review stage, in which the draft is refined for consistency, clarity, technical soundness and practical applicability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8. issuance of the exposure draft<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Following internal review, an exposure draft is issued. This is a key public consultation document through which AAOIFI invites feedback from stakeholders and market participants.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">9. review of the exposure draft by the Shari\u2019ah committee<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The exposure draft is reviewed by the Shari\u2019ah committee to ensure that relevant aspects remain aligned with AAOIFI\u2019s Shari\u2019ah framework and objectives.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">10. public hearings<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Public hearing(s) may be held to support open discussion of the exposure draft. These sessions give stakeholders an opportunity to present views, raise implementation concerns and contribute to the quality of the final standard.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">11. review of the exposure draft by PIMCC<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The exposure draft is also reviewed by PIMCC as part of the governance and oversight process. This stage supports broader accountability and strengthens the integrity of the standard-setting framework.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">12. review of the standard with industry comments<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The working group reviews all comments received from stakeholders and industry participants. Feedback is assessed carefully, and the draft is revised where appropriate to address technical issues, practical concerns and market realities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">13. re-issue of the exposure draft, if major changes are made<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Where major changes are introduced after consultation, the exposure draft may be re-issued. A further public hearing may also be held where needed. This ensures that significant revisions are subject to appropriate transparency and stakeholder review before finalisation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">14. review of the final standard by the board<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once the drafting and consultation process is complete, the final standard is submitted to the board for review. This is the formal governance stage before issuance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">15. final standard<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">After approval, the final standard is issued. It then becomes part of AAOIFI\u2019s published body of standards and guidance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">16. periodic impact assessment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">After issuance, a periodic impact assessment study is conducted. This helps AAOIFI evaluate implementation experience, market relevance, practical challenges and areas where future enhancement may be needed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">key features of the due process<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">consultative<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The process includes exposure drafts, workshops, surveys and public hearings where needed, allowing stakeholders to contribute meaningfully before a standard is finalised.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">technically rigorous<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Each project passes through multiple layers of study, drafting and review by specialised teams, working groups and the technical board.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">governance-based<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The process includes formal review by oversight and decision-making bodies before a standard is issued.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">responsive and iterative<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Where consultation reveals the need for major revisions, the draft may be re-issued to ensure further review and transparency.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">focused on impact<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">AAOIFI does not treat issuance as the end of the process. Periodic impact assessment supports continuous learning and future refinement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">principles underpinning the process<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">AAOIFI\u2019s due process is guided by a number of core principles:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>relevance to market needs and public interest<\/li>\n\n\n\n<li>clarity of technical reasoning<\/li>\n\n\n\n<li>transparency in development and consultation<\/li>\n\n\n\n<li>appropriate governance and oversight<\/li>\n\n\n\n<li>engagement with industry and practitioners<\/li>\n\n\n\n<li>commitment to quality, consistency and implementation effectiveness<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">simplified process at a glance<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In simplified form, the process can be understood as:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>identify the issue \u2192 study and define the principles \u2192 draft and review \u2192 consult publicly \u2192 refine and re-expose if necessary \u2192 obtain final approval \u2192 issue the standard \u2192 assess impact periodically<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>How AAOIFI develops financial accounting standards AAOIFI\u2019s standard-setting process is designed to be structured, consultative and technically rigorous. It brings together internal expertise, specialised working groups, governance bodies and market feedback to ensure that each financial accounting standard is relevant, practical and aligned with AAOIFI\u2019s mandate. The process is not limited to drafting a text. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"page-templates\/template-due-process.php","meta":{"footnotes":""},"class_list":["post-765","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/cis.aaoifi.com\/ar\/wp-json\/wp\/v2\/pages\/765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cis.aaoifi.com\/ar\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/cis.aaoifi.com\/ar\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/cis.aaoifi.com\/ar\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cis.aaoifi.com\/ar\/wp-json\/wp\/v2\/comments?post=765"}],"version-history":[{"count":4,"href":"https:\/\/cis.aaoifi.com\/ar\/wp-json\/wp\/v2\/pages\/765\/revisions"}],"predecessor-version":[{"id":2383,"href":"https:\/\/cis.aaoifi.com\/ar\/wp-json\/wp\/v2\/pages\/765\/revisions\/2383"}],"wp:attachment":[{"href":"https:\/\/cis.aaoifi.com\/ar\/wp-json\/wp\/v2\/media?parent=765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}