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The current Islamic Accounting Standards gives little prominence to changes in prices, instead\udof developing a full blunt standard to address the menace of changes in prices fair value accounting was used.Changes in prices otherwise referred to Inflation may affect and substantially injures sustainability of Islamic financial institutions. An economy that is characterized also as Inflationary may have its financial statements produced under AAOIFI derailing in quality. From transactionary angle, creditors are going to be shortchanged and Debtors benefits; debtor- creditor Hypotheses. In this paper effort was made\udto explore the fundamental reasons for non- recognition of inflation in Islamic Accounting Standards and fundamental Islamic framework that may permit that

Accounting for inflation: arguments of recognition in Islamic accounting standards