Sukuk as a financial instrument and its accounting treatment

While the world order changes, so do the economic and financial systems. Components of the current financial system are evolving and harmonizing with the needs of new institutions, markets, and market instruments. As an important finance instrument in Islamic Finance, Sukuk (investment certificates) is analyzed regarding to its structure, mechanism, and types and its position is addressed in Turkey and the world. Besides, based upon the Islamic era contracts and integrated to current financial system, a comparative analysis between Islamic Sukuk types and current financial instruments is conducted. In this study, comprehensive examples on Sukuk, securitized as an asset, are observed according to Turkish Accounting Standards and its accounting treatment.