Accounting and Financial Reporting for Islamic Financial Structures under IFRS

Accounting and Financial Reporting for Islamic Financial Structures under IFRS
A Two-Day Advanced Training Program

Date: 27^th & 28^th July 2026
Venue: DoubleTree by Hilton Kuala Lumpur

Classroom Training

TRAINING PURPOSE & INTRODUCTION

This two-day advanced training program is designed to provide participants with a rigorous, practical understanding of how International Financial Reporting Standards (IFRS) apply to Shariah-compliant financial structures. It addresses the critical challenge faced by Islamic financial institutions: aligning the economic substance of Islamic contracts with IFRS recognition, measurement, and presentation requirements.

The program bridges the gap between technical accounting standards and the unique features of Islamic finance, enabling participants to confidently interpret, apply, and report Islamic financial transactions in line with IFRS and international best practices. Emphasis is placed on judgment areas where Islamic structures interact most intensively with IFRS, including classification, revenue recognition, expected credit losses, consolidation, and disclosure.

Highly practical and application-driven, the workshop uses real-world examples, case studies, and hands-on analysis. Participants will gain deep insights into IFRS 9 Financial Instruments, IFRS 15 Revenue from Contracts with Customers, and IFRS 16 Leases, with focused coverage on Murabaha, Ijarah, Mudarabah, Musharakah, Salam, Istisna’, Wakalah, and Sukuk structures. By the end of the program, participants will be better equipped to address regulator expectations, audit scrutiny, and complex reporting decisions in an Islamic finance environment.

Learning Objectives & Key Takeaways

By the end of this program, participants will be able to:
- Apply IFRS principles to Islamic financial contracts, aligning Shariah-based structures with recognition, measurement, and presentation requirements under IFRS.
- Classify and measure Islamic financial instruments under IFRS 9, including SPPI assessments, business model evaluation, and Expected Credit Loss application.
- Apply IFRS 15 and IFRS 16 to Islamic transactions, addressing revenue recognition for Islamic contracts and lease accounting for Ijarah arrangements.
- Assess accounting and reporting implications of Sukuk structures, including consolidation, fair value measurement, and disclosure requirements.
- Exercise informed professional judgment in areas of substance-over-form, regulatory expectations, audit scrutiny, and complex Islamic finance structures.
- Translate technical IFRS requirements into practical reporting decisions through real-world case studies and integrated applications.

AGENDA

Day 1 Agenda

Session 1: IFRS Conceptual Framework & Relevance to Islamic Finance

Overview of the IFRS Conceptual Framework
Measurement, recognition and presentation principles
Shariah principles and their interaction with IFRS
Substance-over-form vs. contractual form in Islamic Finance
Challenges faced by Islamic institutions under IFRS

Session 2: Core Islamic Contracts & Impact of IFRS

Murabahah: Effective Yield Method vs Markup Revenue Recognition vs Amortized cost
Ijarah: Operating vs Finance lease under IFRS 16
Mudarabah: Equity vs liability classification under IFRS 10 and IAS 32
Musharakah: Joint arrangements vs Partnership vs Financing under IFRS 11 and IFRS 9
Salam & Istisna’: Contract assets under IFRS 15
Wakalah: Fee recognition under IFRS 15

Session 3: IFRS 9 – Classification, Measurement & Expected Credit Losses (ECL)

Solely Payments of Principal and Interest (SPPI) test for Islamic contracts
Business model assessment for Islamic banks
Applying ECL models to Islamic products
ECL model inputs considerations for non-interest-bearing instruments

Session 4: IFRS 15 – Revenue Recognition

Applying the 5-step model to Islamic instruments
Revenue timing differences (cashflow vs IFRS)

Day 2 Agenda

Session 5: Sukuk Structures & IFRS Implications

Types of Sukuk: Ijarah, Murabahah, Wakalah, Musharakah, Hybrid
IFRS 9 classification and measurement of Sukuk investments
Special Purpose Vehicle (SPV) consolidation under IFRS 10
Disclosure requirements under IFRS 12

Session 6: Other Standards - IFRS 16, IFRS 13 & IFRS 7

Lease accounting and Ijarah structures
Fair value measurement for Islamic financial instruments
Key disclosure requirements for Islamic banks

Session 7: Sustainability, Risk Management & Financial Reporting

Shariah governance expectations on reporting
Risk exposures in Islamic finance
IFRS Sustainability Reporting standards and alignment with Islamic Finance
Financial statement presentation for Islamic institutions

Session 8: Integrated Case Study

Assessment of Murabahah, Ijarah, Mudarabah, Musharakah, Sukuk
IFRS classifications and revenue treatment
Group presentation and review

Final Discussion and Wrap-up

EXPERT COURSE DIRECTOR

Pheng Leong Tan has over 20 years of experience in financial reporting, IFRS implementation, and Islamic finance. He has advised banks, regulators, and corporates in the UK and Southeast Asia on technical accounting matters, financial instruments, and regulatory reporting. He previously served as Chief Financial Officer of the largest Islamic bank in Brunei and was a Partner at a big four accounting firm, where he led IFRS advisory and audit engagements for financial institutions, including Islamic banks. Pheng Leong has delivered technical IFRS and financial reporting training to CFOs, financial controllers, auditors, and compliance professionals. He is a regular speaker at finance and accounting conferences and has been involved in IFRS implementation projects across both conventional and Islamic financial institutions. His experience spans IFRS 9, IFRS 15, IFRS 16, financial instruments, consolidation, and Islamic finance contracts, with a focus on practical application and regulatory-aligned reporting.

WHO WILL BENEFIT

This program is intended for professionals with prior IFRS knowledge who are involved in Islamic finance and financial reporting, including:
- Finance managers, financial controllers, and CFOs in Islamic financial institutions.
- Financial reporting, technical accounting, and IFRS implementation teams.
- Internal and external auditors covering Islamic financial institutions.
- Risk management and credit professionals involved in IFRS 9 and ECL.
- Shariah governance and compliance professionals seeking deeper accounting insight.
- Regulators and supervisory staff overseeing Islamic financial institutions.
- Treasury, investment, and Sukuk structuring professionals.
Prerequisite: To benefit from this program, participants should have a working knowledge of IFRS.

REGISTRATION

*Please note there is a fee for attending this program. Please contact us for more details.

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Before completing this registration form please read and understand our booking and cancellation policy. Thank you.

Booking, Payment and Cancellation Policy – important, please read carefully

By completing, signing and revised, sent separately us this registration form you are conﬁrming participants on the program. You are also conﬁrming your understanding of our Booking, Payment and Cancellation Policy.

Cancellation Policy: If participants cannot attend the program, replacement participants are always welcome. Otherwise, participants must notify us any of cancellations or requests to transfer to a diﬀerent program at least 14 days before the program date to be eligible for a refund, less a 5% administration on fee. Participants who cancel within 14 days of the program start date are liable to pay the full program fee and no refunds will be given. Instead fees will be converted to a REDmoney Seminars voucher equivalent to the original fee, less a 10% administration charge. This voucher is transferable within your organization and must be redeemed within one year of issue or become void. If a program is postponed for whatever reason registrations and fees will be automatically transferred to the new program date. Participants who wish to transfer to a diﬀerent program will be subject to the same terms as above and charged any diﬀerence in fees. No refunds or program vouchers will be issued for a no-show.
Payment Terms: All program fees are payable upon invoice. REDmoney shall receive the full program fee with no deductions of any description. All telegraphic transfer fees, taxes and levies (domestic or otherwise) shall be borne by the sponsoring organization.

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FEE

Fee per participant: RM6,500/US$1,750

Please note that the Ringgit price is applicable to Malaysia-domiciled participants only. Discounts are available for group bookings. Please contact us for more details.

IN-HOUSE/GROUP TRAINING

If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
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