The Role And Impact Of Accounting Standards On The Practices Of Islamic Banking System In Sudan

This study focuses on one of the prominent problems encountered in our financial field that is, how to apply the accounting standards for Islamic Financial Institutions in the standardization of accounting practice in order to improve the banks performance. Our study aims to find an appropriate compatibility between application of Islamic law standards on Islamic financial institutions, with a reasonable degree of consistency and uniformity for measuring accounting in application and practice, to add financial statements that are similar in design to help users making the right investment decision.The study uses a deductive approach, historical, descriptive and analytical method of inductive analysis of the data received from the questionnaire form that was distributed to the Islamic banks of Sudan (included in our sample), to test hypotheses of the study:1. Hypothesis I: the application and commitment of Islamic accounting standards lead to output more consistent financial statements.2. Hypothesis II: the elaboration of the accounting standards for Islamic financial institutions leads to increase the cost of financial statements preparation.3. Hypothesis III: accounting standards for Islamic financial institutions contribute to increase the profits of the entity through improving the efficiency of financial performance.The result of these studies demonstrated that the standards of Islamic financial institutions help out financial statements that are consistent and fit with the requirements for users. Also, the reports prepared in accordance with these reports are not expensive compared with the efficiency of the financial performance achieved which in turn leads to increase profits.