Question 1

**Section A**

Crescent Real Estate is seeking to raise funds for a new commercial development in a manner compliant with Islamic finance principles. They wish to issue financial instruments that represent an ownership interest in the underlying real estate asset, rather than a debt obligation.

Which Islamic finance instrument is Crescent Real Estate most likely to issue?

Accepted Answer

Identify the Islamic equivalent of a bond that complies with Sharia law by representing ownership in an asset rather than an interest-bearing debt.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Confusing Sukuk with Murabaha (trade credit) or Mudaraba (equity partnership).

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FM — Financial Management Practice Exam 1

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