Naser Abdullah Hammad Alazemi; Engku Rabiah Adawiah, Ashurov Sharofiddin
Abstract: This study aims to evaluate the impact of adopting whether fair value model or cost model on the profitability of the Islamic banks’ sector in Kuwait. The quantitative approach is used to construct the adopted methodology. The population of the study is the Islamic banks that are listed in the Kuwait security market. The sample of this study composites 6 Islamic banks operating in Kuwait. The data source of this study was retrieved from the audited annual report listed in the Kuwait security market. The data used is over the period 2014 and 2020. The finding of this study revealed a significant relationship between both models on the Islamic banks’ sector profitability. Also, no significant difference is found in profitability among the natural Islamic banks that follow either the fair value model or the cost model. It recommends this study to the Islamic banks to report their investment at fair value, agreeing with IAS40.
[ FULL TEXT PDF 1-6 ] DOI: 10.30566/ijo-bs/2022.03.84