Faculty of Business and Economics

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This unit entry is for students who completed this unit in 2016 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

Monash University

6 points, SCA Band 3, 0.125 EFTSL

Undergraduate - Unit

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.


Business and Economics

Organisational Unit

Department of Accounting


Not offered in 2016


This unit provides an introduction to the accounting framework, practices and standards of Islamic banks and Islamic financial institutions. The accounting treatment, measurement and disclosures of various financing transactions are explained. Related areas such as Zakat for Islamic banks will also be discussed. The unit will make references to Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI) standards and to Malaysian Accounting Standards Board (MASB) standards for Islamic financial institutions.


The learning objectives associated with this unit are to:

  1. demonstrate an understanding of, and analyse and interpret the annual reports of Islamic banks and differentiate that from conventional banks' annual reports
  2. understand the functions and roles of standard setters such as AAOIFI, the Central Bank (BNM) and MASB
  3. demonstrate an understanding of the need for and rationale of Islamic accounting and accounting for Islamic banks
  4. compare and contrast differences between Islamic accounting and conventional accounting
  5. identify the objectives, reports and disclosure requirements in accounting for Islamic financial institutions
  6. demonstrate the application of accounting principles in the recording, classification, analysis and reporting of various Islamic financial transactions based on the relevant standards
  7. critically appraise accounting and reporting practices of local and international Islamic banks.


Within semester assessment: 30%
Examination: 70%

Workload requirements

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

See also Unit timetable information


Either ACW1000 or AFW1000; and BFW1310 or AFW1310