The major differences between the international financial reporting standards and Islamic finance standards (those issued by AAOIFI) can be summarized in the following:

• Key elements of financial statements.
• Treatment, classification, and disclosures of investment accounts (restricted investment accounts and unrestricted investment accounts).
• Form and substance of transactions.
• Off-balance sheet and fiduciary items.
• Treatment and classification of zakah and similar items.
• Treatment of late payment penalties and insolvency.