Autonomous Muslim Region’s Level of Readiness on the Implementation of Islamic Accounting

Abstract

Islamic Accounting is an alternative system designed to satisfy user’s need for information in accordance with Shari’ah or Islamic law. The study focused on determining the level of readiness on the implementation of Islamic Accounting in the Autonomous Region of Muslim Mindanao (ARMM), Philippines and its relationship to the extent of manifestation on the dimensions of Islamic Worldview. The researchers used the descriptive design with the questionnaire as tool for data gathering. The statistical techniques used were weighted mean and Pearson Correlation Coefficient. Dimensions of Islamic worldview in terms of unity, vicegerency, perfect state, justice, growth and purification, accountability, responsibility, equilibrium/balance and mutual consultation were all manifested to a high extent. On the other hand, the respondents’ readiness on the implementation of Islamic Accounting in terms of accounting objectives, socio-economic justice, truth and fairness, full disclosure, social responsibility, environmental reporting, value balance sheet, and increased Zakat responsibility was assessed to be at moderate level. And it was further revealed that a significant relationship exists between the extent of manifestation of Islamic worldview and the level of readiness particularly on the aspects of vicegerency, perfect state, responsibility, equilibrium and justice. Keywords - Islamic Accounting, Islamic Worldview, Level of Readiness, Implementation, Autonomous region in Muslim Mindanao.