AAOIFI Accounting Board approves the 2026 work plan and FAS 53 “Istisna-Based Development Contracts” in its 45th meeting

PR/01/2026

2 February 2026

The Accounting Board (AAB / the board) of Accounting and Auditing Organization for Islamic Financial Institutions' (AAOIFI's) held its 45^th meeting on 13 January 2026, at AAOIFI's head office, in the Kingdom of Bahrain (and through video conferencing). The board reviewed and approved its plan for the current year and evaluated the progress made in the development of current standards and projects, during the year 2025.

The board noted, and appreciated, that under another AAOIFI project, work has been initiated on developing standard implementation / impact assessment reports. The board expected that the outcome of such project will facilitate in assessing the level of adoption of the AAOIFI standards and their impact in improving financial reporting in different jurisdictions.

The board also deliberated on the amendments and the simplified accounting approach for Istisna development contracts and approved for issuance AAOIFI Financial Accounting Standard (FAS) 53 "Istisna-Based Development Contracts" which, along with FAS 52 "Deferred Delivery Sale: Salam and Istisna", will replace FAS 11 "Istisna and Parallel Istisna".

Mr. Hamad Al Oqab, Chairman of the AAB, at this occasion stated: "The board in line with its strategy initiated its review and revision exercise in 2018 and since then has issued 26 standards and has also revised the conceptual framework for financial reporting." He added "The board's endeavour has been to align financial reporting with the global best practices and to address the need of the developing market of Islamic finance."