ijarah-imb
Installation
SKILL.md
THE FUNDAMENTAL SHARIAH DISTINCTION
In ijarah, the lessor retains OWNERSHIP of the asset throughout the lease term. The lessee pays for USUFRUCT (the right to use) — not for the asset itself. The lessor bears the risks and rewards of ownership at all times.
This Shariah requirement is the source of the AAOIFI/IFRS divergence:
- AAOIFI: lessor keeps asset on balance sheet because Shariah says lessor owns it.
- IFRS 16: may require lessor to derecognise (finance lease) because substance may indicate risks/rewards have transferred to lessee.