One of the Steps to Follow to Develop an Investment

question 15

Multiple Choice

One of the steps to follow to develop an investment fund which has been structured to adhere to Shari'ah principles whilst at the same time making use of forfaiting assets was

• A)the fund sponsors had to be careful in ensuring that the pool of non-Islamic forfaiting assets was not used to directly satisfy the Islamic compliant obligations under the commodity and trade financing arrangements.
• B)screening is required to ensure that the products underlying the LCs do not run counter to Shari'ah principles.
• C)there had to be a sign off by Islamic scholars to verify that Shari'ah strictures had been met with.
• D)all of the options

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Definitions:

Purchases

The total amount spent on goods and services for the purpose of resale or use in production within a given accounting period.

Ending Inventory

The final amount of goods available for sale at the end of an accounting period, calculated by adding new purchases to beginning inventory and subtracting the goods sold.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serves as a global framework for financial reporting.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards used for financial reporting and accounting in the U.S.