Off-balance-sheet assets under management
Assets an institution manages for others, such as restricted investment accounts, that are reported outside its own balance sheet.
Off-balance-sheet assets under management are funds and assets that an Islamic institution manages on behalf of others, typically as mudarib or agent, without controlling them in a way that brings them onto its own balance sheet. Restricted investment accounts are a common example. AAOIFI's accounting standard on these assets sets out when they stay off the balance sheet and what the institution must disclose about them.
Sources
This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.
Related terms
Restricted investment accountAn investment account whose holder limits where, how or for what purpose the bank may invest the funds.Investment poolA group of assets funded by identified sources, such as shareholders or investment account holders, whose income is allocated to them.Quasi-equityAAOIFI's category for investment accounts and similar risk-sharing funds, presented between liabilities and owners' equity.