SOCPA Participates in the First IFCG Meeting for 2022

SOCPA Participated in the first Islamic Finance Consultative Group (IFCG) Meeting for 2022 which was held on the 10th of May 2022. SOCPA was represented by Mr.Ahmed bin Muhammad Al-Shanibir, a member of the accounting council at SOCPA. The IFCG is a group established by the International Financial Reporting Standards (IFRS) Foundation.

The meeting focused on a number of subjects related to Islamic finance and the work of the IFRS and the International Sustainability Standards Board (ISSB). One of the most important topics of discussion was the subject of financial instruments with characteristics of equity, where members discussed the characteristics of some Islamic financing instruments that include the characteristics of equity. The members urged IASB to take such characteristics into account when preparing a draft standard regulating accounting and reporting on such instruments.

The meeting also discussed two projects of sustainability standards issued by ISSB, which aims to provide entities with information that serves the main beneficiaries of financial statements on sustainability in general, and on climate in particular. The members also discussed some of the existing initiatives, including the initiative of the General Council for Islamic Banks and Financial Institutions (CIBAFI) on disclosures regarding sustainability in the reports of Islamic financial institutions, reviewed the stages of their development, and discussed the feasibility of establishing a group independent of this group concerned with disclosing the sustainability of Islamic financial institutions.