PD-1.3.1

This version of Module PD was replaced in April 2008. Click here for the current Module PD.

The audited financial statements should be prepared in accordance with the Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

PD-1.3.2

This version of Module PD was replaced in April 2008. Click here for the current Module PD.

For products and activities not covered by the standards listed in Paragraph PD 1.3.1, banks should follow the requirements of the International Accounting Standards (IAS) for preparation of audited financial statements.

PD-1.3.3

This version of Module PD was replaced in April 2008. Click here for the current Module PD.

The accounts should be approved by the bank's Board of Directors, signed (normally by the Chairman and the Chief Executive Officer) and annotated as follows:

'These accounts were approved by the Board of Directors on [date] and signed on their behalf by [name/title] and [name/title]'.

PD-1.3.4

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Restricted investment accounts are to be reported off-balance sheet in the financial statements. Banks must provide disclosures as per the requirements of FAS 1: Presentation and Disclosure in the Financial Statements of Islamic Banks and Financial Institutions issued by AAOIFI.

PD-1.3.5

This version of Module PD was replaced in April 2008. Click here for the current Module PD.

Unrestricted investment accounts are to be reported on-balance sheet in the financial statements. The assets financed by the unrestricted investment accounts are to be included under the Assets Section on the balance sheet (net of provisions). The equity of the unrestricted investment accounts should be shown between the liabilities and owners' equity Sections. Disclosures and presentations must be in accordance with FAS 1 issued by AAOIFI.

PD-1.3.6

This version of Module PD was replaced in April 2008. Click here for the current Module PD.

Where a parent or a group company operating in Bahrain receives funds on an unrestricted basis and these funds are invested with another group company on a restricted basis, these should be eliminated on consolidation. In the consolidated financial statements, investment of the PSIA outside the group should be reported as Unrestricted Investment Accounts. Disclosures and presentation should be in accordance with FAS 1 issued by AAOIFI.

PD-1.3.7

This version of Module PD was replaced in April 2008. Click here for the current Module PD.

The Annual Report should include a declaration by the external auditors that no violations have taken place of:

In so far as the violations have any material impact on the financial statements of the bank.

PD-1.3.8

This version of Module PD was replaced in April 2008. Click here for the current Module PD.

The Annual Report must disclose the amount of any penalties paid to the Central Bank during the period of the report together with a factual description of the reason(s) given by the Central Bank for the penalty (see Section EN-1.3). Failure to comply with this requirement will mean that the concerned bank will be required to make the disclosure in the subsequent quarterly financial statement and in the subsequent annual financial statement. A financial penalty for non-disclosure will also be levied upon the concerned bank.