Table AIII.

Disclosure index of Musharaka financing

StandardParagraphBrief descriptionScoring possibilities
FAS42/1Recognition of Islamic bank’s share in the Musharaka capitalYes, No, NA
FAS42/2/1Measurement of the bank’s capital share when paid in cashYes, No, NA
FAS42/2/2Measurement of the bank’s capital share when paid in kindYes, No, NA
FAS42/2/3Expenses generally not to be recognised as part of capitalYes, No, NA
FAS42/3/1Historical to measure the banks share in constant capitalYes, No, NA
FAS42/3/2Historical cost to measure the banks share in diminishing capitalYes, No, NA
FAS42/3/3Treatment where liquidation occurs before complete transferYes, No, NA
FAS42/3/4Treatment where liquidation occurs and the banks share is unpaidYes, No, NA
FAS42/4/1Recognition: short-term contracts profits or losses at liquidationYes, No, NA
FAS42/4/2Recognition: long-term diminishing contracts profits and lossesYes, No, NA
FAS42/4/3Recognition: long-term constant contracts profits and lossesYes, No, NA
FAS42/4/5Recognition of losses due to partner’s negligence or misconductYes, No, NA
FAS42/4/6Provision should be made for doubtful receivablesYes, No, NA
FAS4 and FAS42/5/1 and 1/18Musharaka Finance contracts should be recorded in the balance sheetYes, No, NA

Note:

Number of items in this category: 14

Source: Adopted from Vinnicombe (2012) with modifications

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