Arabic for yield (ghallah) of an Islamic endowment (waqf); it represents the the net surplus from the waqf’s financial activities in addition to (or adjusted with) other gains/ losses from other operations/ programs that are attributable to the set beneficiaries (and after adjustment for non-cash items such as depreciation, amortization, etc.)

In general, ghallat al-waqf takes many forms including monetary ghallah, usufruct and benefits, utilization of assets (e.g., functional assets), and so on.

In Islamic accounting, ghallat al-waqf is calculated as follows (as derived from the so-called statement of ghallah):

Ghallah = surplus/ deficit (for an accounting period, as shown in the statement of financial activities), minus fair value gains, impairment-adjusted accrued income, increases in assets or decreases in liabilities (not available for distribution as ghallah) plus fair value losses, plus any amounts realized in cash and cash equivalents while previously these amounts were recognized as fair value gains, impairment-adjusted accrued income, increases in assets, and decreases in liabilities, minus any amounts realized in cash and cash equivalents while previously these amounts were recognized as fair value losses, minus ghallah attributed to waqf equity in the form of a reserve, plus any amounts transferred from reserves, plus/ minus adjustments for foreign currency translations, among others.

The resulting amount (total ghallah available for distribution) shall be adjusted with period-related balances and appropriations, as follows:

Total ghallah available for distribution for the period plus opening balance of unappropriated ghallah minus benefits distributed or allocated and direct distributions to set beneficiaries.

The set beneficiaries may consist of:

• own programs
• transfers to statement of financial activities
• procurement of assets (capital reserves)
• incidental adjustments
• benefits payable (opening balance minus closing balance)

The closing balance of ghallat al-waqf is

Opening balance minus total ghallah available for distribution.