This complimentary textbook seeks to bridge the current lack of reference materials on accounting for IF transactions. By making it available for free downloads worldwide, MIA is facilitating access to this textbook to instil the knowledge of applying MFRS on Islamic finance transactions among the students of universities and institutes of higher learning as well as provide useful reference materials in teaching the application of MFRS on IF transactions. In addition, this book could be a point of reference that explains and clarifies the rationale behind current applications of MFRS for Islamic finance either for Islamic financial institutions or other industries. The textbook project was led by MIA’s Islamic Finance Committee and the Malaysian Accountancy Research and Education Foundation, in collaboration with multi- stakeholders from Bank Negara Malaysia, IFIs and academicians.