From islamic-finance
Activate for: sukuk investment, sukuk holding, sukuk portfolio, sukuk classification IFRS 9, SPPI sukuk, sukuk amortised cost, sukuk FVOCI, sukuk FVTPL, FAS 25, sukuk income accrual, sukuk mark-to-market, Government Investment Issue, GII, Government of Pakistan Ijarah Sukuk, GIS, sukuk ECL.
npx claudepluginhub panaversity/agentfactory-business-plugins --plugin islamic-financeThis skill uses the workspace's default tool permissions.
For sukuk held by investors, apply the IFRS 9 two-step classification:
Activate for: sukuk issuance, sukuk structuring, sukuk SPV, trust deed, sukuk al-ijarah, sukuk al-musharakah, sukuk al-mudarabah, sukuk al-wakala, sukuk originator, sukuk proceeds, purchase undertaking, sukuk liability, sukuk equity, FAS 33, IAS 32 sukuk, sukuk derecognition, green sukuk, sustainable sukuk, sale and leaseback sukuk.
Routes banking regulatory queries to the correct product skill and jurisdiction overlay. Activate for any query involving IFRS 9, ECL, expected credit loss, Stage 1, Stage 2, Stage 3, SICR, PD, LGD, EAD, Basel III, Basel IV, CET1, RWA, capital ratio, LCR, NSFR, HQLA, ICAAP, stress test, AML, KYC, CDD, EDD, SAR, STR, sanctions, OFAC, HMT, PEP, FATF, reconciliation, nostro, suspense, FRTB, market risk RWA. Covers 7 jurisdictions across multiple regulatory regimes (PRA, ECB/EBA, Fed/OCC, APRA, MAS, CBUAE, SBP).
Analyzes structured fixed income products including MBS, ABS, CLOs, prepayment risks, tranching, waterfalls, and negative convexity.
Share bugs, ideas, or general feedback.
For sukuk held by investors, apply the IFRS 9 two-step classification:
Held-to-collect (HTC): Investor holds sukuk to collect contractual cash flows. → If SPPI test also passed: Amortised Cost
Held-to-collect-and-sell (HTCS): Investor collects cash flows but also sells. → If SPPI test also passed: Fair Value through OCI (FVOCI, debt instrument)
Other: Trading, short-term, managed on fair value basis. → FVTPL regardless of SPPI test
The sukuk cash flows must represent SOLELY:
SPPI PASS (typically leads to Amortised Cost or FVOCI):
SPPI FAIL (requires FVTPL):
PURCHASE UNDERTAKING EFFECT ON SPPI: If the sukuk has a purchase undertaking at face value (common in ijarah sukuk): The maturity payment = face value regardless of asset value. This is economically similar to principal repayment on a loan. Most practitioners conclude: this does NOT cause SPPI failure. The undertaking ensures the investor receives what was contracted → consistent with lending.
Amortised Cost (ijarah sukuk, HTC, SPPI pass): Dr: Investment in Sukuk — Amortised Cost [Fair value at acquisition = usually face value +/- premium/discount] Cr: Cash [Purchase price]
If acquired at premium or discount: carry the difference as unamortised premium/discount, amortise using effective profit rate over remaining life to bring to face value at maturity.
FVOCI (ijarah sukuk, HTCS, SPPI pass): Dr: Investment in Sukuk — FVOCI [Fair value at acquisition] Cr: Cash [Purchase price]
FVTPL (musharakah / mudarabah sukuk, or other): Dr: Investment in Sukuk — FVTPL [Fair value at acquisition] Cr: Cash [Purchase price]
Amortised Cost: Dr: Accrued Sukuk Income Receivable [Carrying value x effective profit rate / periods] Cr: Income from Sukuk — Amortised Cost [Same]
FVOCI: Same income accrual as amortised cost (effective profit rate on amortised cost). Plus period-end fair value remeasurement: Dr/Cr: Investment in Sukuk — FVOCI [Fair value change] Cr/Dr: OCI — Sukuk Fair Value Reserve [Same]
FVTPL: Dr/Cr: Investment in Sukuk — FVTPL [Fair value change] Cr/Dr: Gain/Loss on Sukuk — FVTPL (P&L) [Same] Plus any distributions received → income.
AAOIFI FAS 25 classifies sukuk investments into:
Measurement: held-to-maturity at amortised cost; trading at fair value (P&L); AFS at fair value with changes in OCI.
Income labels under AAOIFI FAS 25: "Income from Sukuk Investments" or "Return on Sukuk" — NEVER "Interest Income."
Amortised Cost and FVOCI: Apply IFRS 9 ECL model. Sukuk ECL staging:
ECL for sukuk is typically modelled using: PD (probability of default) x LGD (loss given default) x EAD (exposure at default)
Note: For GIS (Pakistan) and GII (Malaysia) — sovereign sukuk rated at sovereign level. Use sovereign rating as PD input.
AAOIFI FAS 25:
IFRS 7 / IFRS 9: