View source for Islamic Financial Accounting Standards to Ijarah by Ahmed Al




== Top 20 FREQUENT WORDS ==
ijarah 57
asset 20
lease 15
accounting 10
rental 10
depreciation 9
income 9
provision 9
assets 8
customer 8
disclosure 8
recording 8
xxx 8
ifas 7
requirements 7
accumulated 6
impairment 6
lessee 6
procedures 6
receivable 6
title 6



== DOCUMENT KEY POINTS ==
*ijarah is a contract whereby the owner of an asset other than consumable transfers its usufruct to another person for an agreed period at an agreed consideration
*definition and salient feature of ijarah a c ijarah is an islamic alternative of leasing

*salient feature of ijarah i contrary to finance lease in ijarah the ownership of the assets remains with lessor the bank and only its right of usage is transferred to the lessee

*operating ijarah operating ijarah is a lease that does not include a promise that the legal title in the leased asset will pass to the lessee at the end of the lease
*types classification of ijarah

*ijarah muntahia bittamleek includes i ijarah through gift i ijarah transfer of legal title at the end of the lease for a token consideration or other amount as specified in the lease i ijarah through transfer of title prior to the end of lease at a price pre decided
*ijarah muntahia bittamleek ijarah wa iqtina it is a lease that concludes with the legal title in the asset passing to the lessee after ijarah

*ijarah tul musha or joint ownership ijarah it is a lease where bank customer jointly owned the leased asset
*after the term of ijarah the treatment is similar to ijarah muntahia bittamleek

*if the bank purchases the item required for leasing and receives title of ownership from the vendor if the bank makes payment to the vendor
*process of ijarah vendor islamic bank agreement customer if the customer approaches the bank with the request for ijarah financing and enters into a promise to lease agreement

*if at the end of the tenure customer can purchase the asset from the bank with the help of separate sale agreement
*process of ijarah vendor islamic bank agreement customer if the bank leases the asset to the customer after execution of lease agreement

*application of standard the islamic financial accounting standard ifas ijarah was issued by the institute of chartered accountants of pakistan and was adopted by the securities and exchange commission of pakistan vide its notification s
*effective date ifas becomes operative for financial statements covering periods beginning on or after july

*accounting policy for ijarah ijarah asset recognition a c all ijarah transactions are to be recorded as asset acquired for ijarah at sum of all cost incurred by the bank in acquiring the asset a c assets are to be stated at their cost less accumulated depreciation and impairment if any
*a c in respect of addition and disposal of assets depreciation will be charged from the month of acquisition till the month of disposal

*ijarah rentals are to be recognized as income on accrual basis in a systematic manner over the lease period expense recognition carrying costs including depreciation incurred in earning the ijarah income are recognized as an expense in the income statement
*accounting policy for ijarah revenue recognition

*case study for ijarah below is the case study for the understanding of suggested ijarah accounting example amount in rs
*asset price monthly rentals tenure years security deposit delivery time month

*common questions raised i where asset acquired for ijarah will be reported in the balance sheet under the classification of financing i does ijarah will be consider for a doctor i what will be the guidelines for provision for doubtful debt and income suspense in case ijarah is consider as financing under prudential regulations for banks
*i in case ijarah does not fall under the definition of financing what will be the guidelines for general provisions for consumer finance


 ''Please note, This is an auto generated summary based on sentances position in the document and other factors''
== DOCUMENT WORD ANALYSIS ==
=== Main Category ===
: AlHuda Material\islamic banking


=== KeyWords ===
contract price sale asset financing lease client purchase ijarah payment profit musharakah lessee amount commodity housing agreement contracts ownership project



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== DOCUMENT REFERENCES ==


=== Number of Pages ===
23


=== Published Date ===
2016-09-17 00:26:59


== Full Document ==


[https://www.hodhood.com/en/HodHoodDocuments/IslamicFinance/IslamicBanking/Islamic%20Financial%20Accounting%20Standards%20to%20Ijarah%20by%20Ahmed%20Al.pdf Read the Full Document]


[[Category:Islamic Finance]]

[[Category: Islamic Banking]]