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Islamic finance deserves wider syllabus coverage

Article · September 2015

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Mezbah Uddin Ahmed

International Shari'ah Research Academy for Islamic Finance
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PQ opinion

Islamic finance deserves

wider syllabus coverage
Mezbah Uddin Ahmed argues
that ACCA should include
more on Islamic finance
within the qualification

I
t’s been a number of years since
ACCA introduced Islamic finance in
its F9 Financial Management and
P4 Advanced Financial Management
syllabuses. F9 includes a discussion on
major differences between Islamic
finance and the other forms of business
finance, the concept of Riba (interest),
and key Islamic financial instruments.
The P4 syllabus includes assessment of
Islamic finance as a source of finance,
the rationale for its use, and identifying its
benefits and deficiencies. ACCA’s
initiative to include Islamic finance as
part of its mainstream syllabuses clearly
demonstrates the inclusiveness of the
ACCA qualification. Arabia, Kuwait, Brunei, Yemen, Qatar, related to financial reporting of Islamic
Islamic finance is already established Malaysia, United Arab Emirates (UAE) financial institutions in F7 Financial
in at least 70 countries, and has the and Bangladesh. Reporting and in P2 Corporate Reporting;
potential of significant growth. According While Islamic banking and insurance and the concept of Shari’ah audit of
to the Islamic Financial Services Industry tend to be concentrated in Muslim Islamic financial institutions in F8 Audit
Stability Report 2015, from the Islamic majority countries, increasing number of and Assurance and in P7 Advanced
Financial Services Board (IFSB), the non-Muslim countries are getting Audit and Assurance.
global Islamic finance industry has been interested in Sukuk (Islamic bonds). The association can do this by
on an upward trajectory, evidenced by its Recent sovereign Sukuk issues include including the topics in its core syllabuses,
assets’ compound annual growth rate £200m by the UK, $200m by or by offering Islamic finance variants.
(CAGR) of 17% between 2009 and 2013. Luxembourg, $1bn by Hong Kong, and ACCA could also consider introducing an
As of 2014, the assets of the global $500m by South Africa. Goldman Sachs, optional paper in its Professional level
Islamic finance industry are estimated to the US-based bank, has also issued that will solely focus on different
be £1.2 trillion. In many countries Islamic $500m of corporate Sukuk. branches of Islamic finance (i.e. Islamic
banking represents a significant market Now is the right time for ACCA to banking, Takaful (Islamic insurance) and
share of the country’s total banking consider expanding the Islamic finance Islamic capital market. PQ
assets. For example, Islamic banking content in its syllabuses; ACCA could • Mezbah Uddin Ahmed is an ACCA
assets represent more than 20% of total include more on Islamic finance in F9 member and independent researcher of
banking assets in Iran, Sudan, Saudi and in P4. ACCA can introduce issues Islamic finance

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• Cath Hall is an AIA Achieve e-tutor. More
articles can be found on the AIA website:
www.aiaworldwide.com/a-quick-look-at

20 PQ Magazine September 2015

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