KOLEJ PROFESIONAL MARA BANDAR MELAKA
DIPLOMA IN ISLAMIC BANKING AND FINANCE
COURSE NAME : ACCOUNTING FOR ISLAMIC FINANCE
COURSE CODE : ACC3603
ACADEMIC SESSION : 1 2024/2025
TYPE OF ASSESSMENT : ASSIGNMENT
DURATION : WEEK 5 – WEEK 10
CLO 2: DISCUSS THE OPERATIONAL FRAMEWORK FOR ISLAMIC BANK AND
FINANCIAL INSTITUTIONS (A2, PLO5)
INSTRUCTIONS:
1. Form groups of five (5) members.
2. Prepare a report writing and a video presentation with a duration of
not exceeding 15 minutes.
3. The assignment contributes to 20% of the final grade.
4. Report writing requirements
The report writing must be presented as follows:
A maximum of 20 pages (excluded appendices)
Font “Tahoma” size 11 at 1.25 spacing
The arrangement of the report writing should
include :Acknowledgement; Table of contents; Introduction;
Content; Conclusion; References, and Appendices
5. Video presentation requirements
a. All members must take part in the presentation video as the marks will be
allocated individually.
c. The video presentation must be presented according to the arrangement of
the report writing above.
d. You are free to use any applications of presentation. (e.g.: Power Point,
Loom, Graphic, Pow toon etc.)
e. Upload the video on YouTube and share the video URL with your lecturer.
6. Plagiarism will not be tolerated and will be punished severely.
7. The deadline for the assignment will be on 7 June 2024 before 5.00 p.m.
Case Study
Implementation of financial reporting differs between banks and countries due to
the differences in how the banks are organized and operated since different bodies
will have unique sets of performances. Therefore it is natural to expect that Islamic
banks would have distinguished accounting systems compared to their conventional
counterpart based on different product development and bounded by the principles
of Shariah. The International Accounting Standard Board (IASB) plays an important
role in the conventional accounting system when the International Financial
Reporting Standards (IFRS) was introduced in 2008. With the increasing awareness
of Muslims throughout the world to move towards a more Islamic economy, the
Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI) had
developed the Financial Accounting Standard (FAS) in 1991.
Based on what you studied in Chapter 1 and Chapter 2, the objective of this
assignment is to analyze the operational framework of an Islamic bank by
examining its annual report, focusing on key aspects such as Shariah Compliance,
financial statements, financial performance, and strategic initiatives.
Your task is to conduct an analysis of the operational framework of an Islamic bank
based on its latest annual report. Choose an Islamic bank of your choice and
carefully review its annual report, paying close attention to the following aspects:
1. Describe the background of the chosen banks based on the table below:
Company Profile:
a. Corporate data
b. Main activities
c. Board of directors
2. Examine the Shariah compliance of Islamic banks.
3. Review the Statement of Financial Position based on:
a. Islamic Financing Facilities (Murabahah, Musharakah, Mudarabah)
b. Investments Assets Compliant with Shariah Principles
c. Cash Balances
d. Customer Deposits (Current Accounts, Saving Accounts)
e. Islamic Bonds (Sukuk)
f. Other Liabilities (Trade payables, Accrued Expenses, Provision of Contigencies)
4. Review the Statement of Profit or Loss based on:
a. Income from Islamic Financing
b. Investment Income from Shariah-Compliant Investments
c. Fee- Based Income from Islamic Banking Services
d. Expenses
e. Overall Profitablity (Net profit Margin)
5. Examine key financial ratios such as return on equity (ROE) and return on assets
(ROA). Compare the financial ratios calculated for the Islamic bank with industry
benchmarks to assess its financial performance.
6. Identify the strategic initiatives and business strategies outlined in the annual
report, including expansion plans, digital transformation initiatives, and market
positioning strategies.
* All annual reports are available online on the respective companies’ websites.
ASSIGNMENT FOR ACC3603
ACADEMIC SESSION: Session 1 2024/2025
PROOF OF SUBMISSION
NO. NAME I/D NO. SIGNATURE
1.
2.
3.
4.
5.
We/I hereby admit that we/I have submitted a report of ACC3603 assignment for Session 1 2024 /2025
to ___________________________________ (lecturer’s name) on _______________________ (date).
Acknowledged by
……………………………………………………………… Date / Time: …………………………………………………
( )
RUBRICS:
WRITTEN COMMUNICATION:
SUB- ATRRIBUTES MARKS
NO ITEM
ALLOCATED OBTAINED
i. Group Name:
Name
1
Identification Card No.
ii. Acknowledgement
1
State acknowledgement
iii. Table of Content 1
1.0 Background of the chosen bank
1.1 Corporate data
6
1.2 Main activities
1.3 Board of Directors
2.0 Shariah Compliance of Islamic banks
2.1 Review Shariah Supervisory Board
Reports
2.2 Disclosure of Shariah Compliance 10
2.3 Sources of Income
CLEARLY WRITTEN ACADEMIC 2.4 Financing Structures
DISCOURSE 2.5 Shariah Governance Framework
3.0 Review of Statement of Financial
Position
3.1 Islamic Financing Facilities
3.2 Investments Assets Compliant with
Shariah principles 12
3.3 Cash Balances
3.4 Customers Deposits
3.5 Islamic Bonds
3.6 Other Liabilities
4.0 Review of Statement of Profit or Loss
4.1 Income from Islamic financing
4.2 Investments income from Shariah-
compliant investments
10
4.3 Fee-based income from Islamic
banking services
4.4 Expenses
4.5 Overall profitability
5.0 Key financial ratios
5.1 ROE
6
5.2 ROA
5.3 Compare the financial ratios
calculated with industry benchmarks
6.0 Strategic initiatives and business 6
strategies
6.1 Expansion plans
6.2 Digital transformation initiatives
6.3 Market positioning strategies
8.0 Conclusion 1
9.0 Appendix 1
TOTAL 55
ORAL COMMUNICATION:
MARKS
NO ITEM
ALLOCATED OBTAINED
1.0 Confident Delivery of Ideas
1.1 Engaging and Confident Delivery
4
1.2 Eye Contact and Body Language
1.3 Pace and Articulation
2.0 Clear Delivery of Ideas
2.1 Clear and Concise Explanation
2.2 Logical Flow of Ideas 6
2.3 Effective Use of Visual Aids
TOTAL 10
Total Score:
Total
NO ITEMS ASSESSED Marks Gained
Written Communication
1 55
2 Oral Communication 10
TOTAL MARKS 65
WEIGHTAGE 20%
-END OF THE ASSIGNMENT-