Comparison of IFRS, Indonesian Sharia SFAS and AAOIFI Shariah Standards Against the Application of Sharia Banking

       Islamic finance has experienced rapid growth in the last four decades. Assets managed by Islamic financial institutions are expected to reach $ 1 trillion in 2011 (Yaacob, 2012) and $ 1.6 trillion this year (Global Islamic Finance, 2012, p.1 in Yaacob, 2012). In addition, there are more than six hundred (600) of Islamic financial institutions in more than seventy-five (75) countries. This is quite surprising, with the amount of approximately $ 150 billion in the mid-1990s, rising to $ 1 trillion in 2011 (Global Islamic Finance, 2012, p.2 in Yaacob, 2012). The annual growth of the Islamic finance industry to easily reach the range of 15 to 20% per year over the past decade, surpassed the economic growth rate of the world (Rammal 2010 in Yaacob, 2012). 

       In 2013, the Indonesian Bank statistics showed that of Shariah banking assets reached Rp 179 trillion or 4.4% of national banking assets. Meanwhile, DPK (Third Party Fund) reached Rp 137 trillion. A remarkable thing is, the total financing provided Shari'ah banking Rp 139 trillion exceeds the amount of deposits. This means FDR (Financing to Deposit Ratio) Shariah banking above 100%. These data indicate that the Shari'ah banking intermediation function to move the economy is very large (Shariah Economic Communication Center, 2013).

       So, what to do with the title papers discussed were "Comparative IFRS, IAS to the AAOIFI Shariah Standards and Its Application in Shariah Banking" is? Next it will be removed one by one, but first we must understand these three points(click link)