Abstract:

The article presents some characteristic features of Islamic accounting and points to their sources (like business ethics rooting in the religion), thus explaining and justifying the existence of the Accounting and Auditing Organization for Islamic Financial Institutions as an institution essential to Islamic finances. It only does this from an accounting perspective, as relatively much has been written about Islamic finances until now. Basing on Qur’an and literature on the subject presenting principles influencing social, but also economic rules in Muslim society, the paper shortly discusses how these principles shape accounting in Islamic world, especially in context of accounting standards and integrated reporting, as well as the role of the AAOIFI in preparing, setting and interpreting Islamic accounting and auditing standards.