To survive and thrive in today s dynamic, rapidly evolving Islamic insurance market, you need access to the most up–to–date, expert information and guidance on Takaful principles and practices. Written by experts from the International Islamic University Malaysia, the leading Islamic finance research organization, this book supplies you with that, and much more. It covers all the essentials, including:
Takaful terms, concepts and foundational principles
Takaful and retakaful accounting principles and practices
Takaful and retakaful cash reserve requirements
Revenue and expenditure management
Segregation of assets, liabilities, income, and expenditures between operators and participants
Bases for recognition of revenue and expenditure (cash vs. accrual)
Accounting for qard hasan
Accounting for ratakaful
Accounting for investment
Takaful financial statements analysis
Packed with real–world case studies, practical examples and crystal–clear explanations,Accounting, Auditing and Governance for Takaful Operations is an indispensable working resource for accountants, auditors, and business leaders.
1 Introduction to Takaful and Retakaful 1
2 Takaful Companies and Their Accounting Environment 33
3 Prevailing Accounting Standards and Accounting Entries for Takaful Operators 53
4 Financial Statement Analysis 103
5 Zakat Computation and Distribution for Takaful and Retakaful Companies 115
6 Auditing and Governance for Takaful Operators 125
Appendix 1: Sample Audit Proposal 155
Appendix 2: Audit Plan Timeline 167
Appendix 3: Audit Program 169
Appendix 4: Report on Shariah Compliance Audit for Takaful X Shd. As of 31 March 2011 171
About the Authors 197
Dr. Sheila Nu Nu Htay, PhD is PhD Programme Coordinator at the Institute of Islamic Banking and Finance, International Islamic University Malaysia (IIUM).
Mohamed Arif was CEO of Takaful Indonesia from 2001 to 2004. From 1985 to 2000, he was General Manager Finance and Administration/Company Secretary of Takaful Malaysia
Assoc. Prof. Dr. Younes Soualhi, PhD, is an Associate Professor at the International Islamic University Malaysia (IIUM), Chairman of the Shariah Board of HSBC Amanah Malaysia and Chairman of the Shariah board of Munich Re Takaful. He is also a founding member of the French Council of Islamic Finance (COFFIS), Paris.
Hanna Rabittah Zaharin is an audit assistant with AFTAAS Corporate Advisory
Ibrahim Shaugee is a consultant in Islamic finance, accounting systems and taxation, based in the Republic of Maldives.