Waqf in Partnership Financing: Key Features of Using the Tool

The purpose of the research. The article reveals the content of standard No. 60 «Waqf» (AAOIFI) on corporate governance of Islamic financial institutions, which was developed and published by the «Accounting and Auditing Organization for Islamic Financial Institutions»—(AAOIFI), registered in Bahrain. For the development of partner (Islamic) financing activities in Russia, it is very important to scrupulously study the significant experience in developing standards for the functioning of Islamic financial institutions accumulated by AAOIFI, including management standards. In Russia, this is the first translation into Russian of the professional language of AAOIFI standards for managing the activities of Islamic financial organizations. Interest in partner (Islamic) financing is especially growing in regions with a prevailing concentration of residents professing Islam, who are not able to use a number of traditional services, including banking, due to their religious values. Interest in partner (Islamic) financing is especially growing in regions with a prevailing concentration of residents professing Islam, who are not able to use a number of traditional services, including banking, due to their religious values. Over the past decade, a number of constituent entities of the Russian Federation have accumulated some experience in implementing individual operations based on the principles of partnership (Islamic) financing. The presence of potential domestic demand for partner financial instruments is the basis for expanding their supply. In this regard, the question arises of forming a system of internal Sharia control exclusively for Islamic financial institutions as part of an experiment in partner (Islamic) financing. The purpose of this study is to uncover some of the accounting issues in Wakf institutions, analyzing the nature of Wakf institutions with a view to establishing whether their respective financial accounting and reporting practices should be commercial, non-profit or mixed.