Islamic Accounting Research Articles

Review Laporan Keuangan Baznas Kabupaten Magelang dengan PSAK 109

The National Amil Zakat Agency (BAZNAS) is the official and only body formed by the government based on Presidential Decree No. 8 of 2001 which has the duties and functions of collecting and distributing zakat, infaq, and alms (ZIS) at the national level. BAZNAS is declared as a non-structural government institution that is independent and is responsible to the President through the Minister of Religion. Thus, BAZNAS together with the Government is responsible for overseeing the management of zakat which is based on: Islamic law, trust, expediency, justice, legal certainty, integrated and accountability. PSAK 109 is one of the financial standards set for the amil zakat body which is expected to realize reporting uniformity and simplicity of recording. So that the public can read the zakat manager's accounting reports and oversee their management so that muzzaki believes in channeling zakat through the amil zakat body. This condition occurs in BAZNAS Magelang Regency which has presented the report well. PSAK 109 consists of five components, namely the cash flow statement report, balance sheet (statement of financial position), report on changes in funds, statement of assets under management and notes to financial statements. This research uses applied research with a qualitative approach. This research was conducted in four stages, namely data collection conducted by interviews and documentation, data reduction, data presentation, and drawing conclusions. The results of this study indicate that the financial recording system at BAZNAS Magelang Regency is in accordance with PSAK 109.

A Mapping of Islamization of Accounting

Objective - Most scholars agree that Islamic accounting should incorporate Al-Quran and Hadith, but they have different perspectives relating to how far accounting to be Islamized. Therefore, this study aims to map the Islamization of accounting based on different approaches and describe the gaps and opportunities of developing Islamic accounting theory.
 Methods - This study uses meta-aggregation consisting of scoping the focus, selecting previous studies, identifying the data, synthesizing the findings, and producing a synthesized discovery.
 Results - Findings discovered three main syntheses. First, constructive approach proposes a pure Islamic accounting. Second, contrary to constructive, pragmatic approach adjusts contemporary accounting with sharia. Third, hybrid approach mediates between constructive and pragmatic, which considers Islamic values and social benefits.
 Conclusion - Each approach has its opportunities to be developed so that they can go through together to complement each other. This study limits only mapping by literature review. The results implicate to provide ideas to develop Islamic accounting through three approaches identified.
 Keywords: Islamization, Islamic accounting, constructive approach, pragmatic approach, hybrid approach.

The effect of Islamophobia on Business Profits

Islam is the religion of rahmatan lil’alamin that brings prosperity on earth. The majority of the Indonesian population are Muslims. However, the reality is that Islam has been hit by a number of negative issues due to a series of terrorism events in various countries in the world including Indonesia. The media also contributed to the rise in islamophobia. As a human society who need income for their survival, Muslim communities seen islamophobia causing issues for their businesses. The rising number of cases of discrimination against Muslim women is causing a disruption in their socio-economic life. In Indonesia, there is also discrimination against veiled women, as the veil is viewed as a social stigma, associated with religious fanaticism and even terrorism. This study used qualitative approach in the form of transcendental phenomenology research to ascertain the effect of islamophobia on profits for businesses owned by Muslims especially the veiled woman in several region in Indonesia, that is in Tulungagung, Pasuruan and Malang. The results of this study demonstrate that there was a community change, with less tolerance extended towards Muslims. However, this rising Islamophobia did not affect the profits as long as the seller provided quality products and quality services that are able to satisfy customers.
 Keywords: Islamophobia, Business Profit, Islamic Accounting

PERBANDINGAN AKUNTANSI KONVENSIONAL DAN AKUNTANSI SYARIAH MENURUT PEMIKIRAN SOFYAN SYAFRI HARAHAP

The purpose of this study is to analyze the comparison of conventional accounting and Islamic accounting derived from the thoughts of Sofyan Syafri Harahap. Currently, the implementation of Islamic accounting is not widely practiced even neglected by companies due to the lack of introduction and concentration of Islamic accounting knowledge. This is because there are still few researchers who study and formulate the practice of Islamic accounting. The form of this research is qualitative through a descriptive approach. The method of the data collection is carried out through various sources including literature review of several related books, articles and related dissertations. Based on the analysis results, it is found that in comparison Sofyan Syafri Harahap argues that conventional accounting has many drawbacks. This is evident from the content of the verses in the Al-Qur'an and also the opinion of several previous Islamic scholars such as Lucas Pacioli. Islamic accounting must be able to guarantee that the information compiled or presented must be correct and free from elements of fraud or injustice, free from partiality to certain interests. The information provided must be transparent, tested, and can be accounted for in the afterlife. Knowledge of Islam is absolutely necessary to view accounting from an Islamic perspective.

ANALYSIS OF SYARI'AH ACCOUNTING IN MURABAHAH FINANCING AT THE SYARI'AH MANDIRI BANK IN JAMBI BRANCH

This study intends to find out the murabahah financing procedure and analyze the murabahah financing accounting system implemented at the Jambi SyariahMandiri Bank Branch. In this study analyzing data with a qualitative descriptive approach, and collected by doing documentary studies, observations and interviews. This study concludes that the general procedure for submitting murabahah financing to Bank SyariahMandiri in four ways, the first is to propose a letter of intent to use murabahah financing products, the second is to analyze the ability to pay installments, goodwill and collateral, the third is approving proposals and fourth is to execute a murabahah contract. Meanwhile, the Islamic accounting system applied in Bank SyariahMandiri uses a sigma system which is useful for recording murabahah financing. An accounting system is a system that includes several forms, both in the form of journals, procedures, and tools used to process financial accounts. This analysis supports the murabahah accounting system in Islamic banking. Then, compare the records of financial transactions with PSAK 59

Studi Literatur Riset Ekonomi dan Keuangan Islam dalam Jurnal Terindeks Scopus Q1

This study tries to review the research around Islamic economics and finance on reputable journal. It uses descriptive statistical analysis based on selected 177 article publications or paper related to Islamic economics and finance, with international journal indexed by scopus Q1. The entire sample journal publications have published for five years from 2014 to 2018. The results show that Islamic economics and finance research is still dominated by Islamic banks issues (42%), followed by Islamic capital market issues (31%), then Islamic accounting (9%), Islamic business and marketing (7%), Islamic monetary (4%), and other Islamic economics and finance issues (7%), like takaful, microfinance, halal industry, waqf and economic of hajj. In addition, the average time of journal publication is between 9 and 10 months. There are at least 20 Q1 scopus journals that publish Islamic economics and finance articles and the most research with Pacific-Basin Finance Journal, Journal of Economic Behavior & Organization, Journal of International Financial Market, Institution & Money, and Journal of Business Ethics. Furthermore, the comparison of quantitative research (84%) is still more than the qualitative approach (16%).

ANALISIS PENERAPAN AKUNTANSI SYARIAH SISTEM BAGI HASIL DALAM PROGRAM TABUNGAN BANK SYARIAH MANDIRI CABANG MEDAN

This study aims to determine how the calculation of the profit sharing system mudharabah savings program in an independent Islamic bank and whether the application of Islamic accounting in the profit sharing system mudharabah savings program in an independent Islamic bank is in accordance with the principles of Islamic accounting (PSAK 105). The approach used in this research is descriptive approach. The results showed that Bank Syariah Mandiri Cabang Medan uses the profit sharing method in the profit sharing principle of mudharabah financing, where operating income is reduced by operating expenses to obtain the operating income. Penalties imposed on customers are recognized by Bank Syariah Mandiri Cabang Medan as non-operational income and is used for social funds. Revenue sharing is seen as meeting the definition of income. The reason is that revenue-sharing income is income that gives the addition of assets in the form of cash which is the inflow that comes from profit sharing mudharabah financing can increase the profit / profit of Bank Syariah Mandiri Cabang Medan. The accounting treatment of revenue (profit sharing) mudharabah financing implemented by Bank Syariah Mandiri Cabang Medan, in accordance with PSAK No. 105 concerning Mudharabah Accounting.

Sharia Maqashid Index and Its Effect on The Value of The Firm of Islamic Commercial Bank in Indonesia

This research aimed to measure the performance of Islamic banks using the Sharia Maqashid Index approach and examine its effect on firm value. This current research used the Islamic Commercial Banks in Indonesia as its object, with an observation period of 2012-2018. The sampling method used was purposive sampling. It was done by setting certain criteria according to the purpose of the research and produced a total of 9 Islamic Commercial Banks (ICB) as the research sample. Sharia Maqashid Index measurement results showed the ICB performance ranked from the highest to the lowest were as follows: 1) Mandiri Syariah; 2) Panin Syariah; 3) BCA Syariah 4) Bank Muammalat Indonesia; 5) BRI Syariah; 6) Bukopin Syariah; 7) BNI Syariah; 8) Mega Syariah; 9) Maybank Syariah. The results of hypothesis testing indicated that the sharia maqashid index has an impact on increasing the value of Islamic Commercial Banks. The results of this research provided a significant contribution to the management of Islamic banks, Bank Indonesia, and the Islamic Financial Accounting Standards Development Board. For managers of Islamic banks, the results of this research can be used as performance evaluations so that the goals of establishing Islamic banks, one of which is the public interest, can be achieved. For Bank Indonesia, the results of this research can be used to design policies that can encourage Islamic banks to improve sharia-based performance. As for the Islamic Accounting Standards Board, it can be used to develop sharia compliance audit standards that can guarantee the application of sharia principles in Islamic bank operations.

Development of Mosque Accounting Information Systems Based on Non-profit Entity Reporting Standards and Sharia Compliance: A Case Study at the X Great Mosque

The mosque, a place of worship for Muslims, is a non-profit entity that receives public funds. The mosque should manage, record, and report the receipt and use of mosque funds in an Islamic and accountable manner. This study aims to identify and develop a mosque accounting information system that is per the reporting standards of non-profit organizations and meets sharia compliance. The observed object of this study (hereinafter referred to the X Great Mosque) is one of the great mosques in Central Java Province. This study employs qualitative methods, a case study approach, with data sources of seven participants, including treasurer, secretary, accounting and financial staff, the heads of ketakmiran, education, and social, assets and maintenance, and business affairs programs. This study found that the X Great Mosque carries out accounting information systems properly according to the reporting standards of the non-profit organization. However, the accounting information system at the X Great Mosque, as part of Islamic accounting, has not fully met Sharia compliance because it has not separated in recording and reporting the restricted and unrestricted funds.

Application of Islamic Accounting Principles in Shirkahmudarabah and Musharakah to Realize Justice

Application of Islamic Accounting Principles in Shirkahmudarabah and Musharakah to Realize Justice

Measuring ‘Islamic accountability’ in Islamic social enterprise (ISE)

PurposeThis study aims to present an effort to construct a measurement instrument to capture Islamic accountability from “accountability for what” aspect. These measurement instruments are developed by considering both social and economic natures in Islamic organisations.Design/methodology/approachThis study defined the concept of Islamic accountability from the perspective of “accountability for what”. It is decomposed into specific items that suit an Islamic social enterprise (ISE). Next, these items are operationalised into scale items and re-composed empirically through factor analysis on data obtained from ISE stakeholders in Malaysia.FindingsThis study successfully developed an Islamic accountability measurement instruments from the “accountability for what” perspective for ISE. A total of 25 items are recognised and validated under four accountability dimensions, namely, accountability for input, accountability for output, accountability for procedural and accountability for Islamic principles and values.Research limitations/implicationsNot all measurement instruments are fit for every Islamic organisation type because of the different characteristics of Islamic organisations.Practical implicationsDeveloped items can be used as part of Islamic accountability index, especially by ISE and other similar organisations to measure their accountability practices. Besides, these developed items can also be adopted for reporting purposes. In the case of Malaysia, respective government agencies, such as the Companies Commission of Malaysia , the Registry of Society, the Ministry of Entrepreneur Development as well as the Malaysia Institute of Accountant, should have a look at the developed items to be considered into their respective guidelines or standards.Originality/valueThis study is believed to be a pioneering study in developing measurement instruments of Islamic accountability specific for ISE. It proposes measurement instruments of Islamic accountability that can be re-used for future research and is among the few studies of ISE.

Factors that influenced the adoption of IFRS by Islamic banks in the UAE

PurposeThis paper aims to investigate the factors that influenced the current adoption of the international financial reporting standards (IFRS) by Islamic banks in the UAE. This paper examined the relationship between the theoretical aspects and practical components of the research investigation regarding the factors that influence the adoption of IFRS. This paper will contribute to the existing knowledge and practices in not only Islamic countries but also Western countries in terms of a deeper understanding of the adoption of IFRS by the Islamic banks and how the factors could influence the Islamic banking adoption, process, activities and financial reporting.Design/methodology/approachSeveral theories of regulation were considered in this paper to explain the existence of Islamic accounting regulations and understand why some of the Islamic accounting prescriptions became formal regulations, while others did not. Data was collected for this purpose by conducting a survey with professionals and managers of four Islamic banks in the UAE.FindingsThis paper revealed that factors, such as religion, culture and local investors, may have limited influence on the current adoption of accounting standards in the Islamic banks. Furthermore, this paper uncovered a concern among respondents of issues that developed when Islamic banks commenced the adoption of IFRS. This paper also indicated that respondents’ opinion does not reflect a perception that all IFRS are suitable for the application of Shariah transactions.Originality/valueThis study is unique as no study has yet explored the factors that influenced the adoption of the IFRS by Islamic banks in the UAE.

Kontribusi Para Ilmuwan Muslim Dalam Bidang Ilmu Akuntansi

The blurring of history in the field of science often occurs. In the 18th century AD Adam Smith wrote an economic theory in the book "An Inquiry Into The Nature and Cause Of The Wealth of Nations" later known that economic theory was adopted from the work of phenomenal cleric Ibn Khaldun, written in his book 'al-Muqaddimah'. The same thing happened in Accounting which has obscured its history by the West. This study aims to explore the historical roots of the contribution of Muslim scientists in the field of Accounting. By using a qualitative descriptive method and historical approach, the results of the study show that Islamic Accounting was developed earlier by Muslims than conventional accounting. Islamic accounting emerged and developed since the time of the Prophet Muhammad around the year 610 AD. Whereas Conventional Accounting was introduced to Lucas Pacioli in 1494 AD. Basics of Sharia Accounting in general have been hinted at in the Koran surah al-Baqarah verse 282 and the sunnahs of the Prophet. The paragraph explains the function and importance of recording transactions, the basics, and their benefits, which are the essence of Accounting. Since the time of the Prophet Muhammad until the time of Khulafaur Rashidin, accounting laws have been applied either on an individual scale, syariah or company, waqf accounting, rights prohibiting the use of assets (hijr) and the state budget. In addition, in that era, the accounting profession was also known as "hafazhatul amwal" (financial supervisor).

The determinants of AAOIFI governance disclosure in Islamic banks

Purpose The purpose of this study is to investigate the influence of corporate governance mechanisms on Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) governance disclosure in Islamic Banks. Design/methodology/approach To test the research hypotheses, the authors created a comprehensive AAOIFI governance disclosure index and used regression analysis for a sample of Islamic banks for the financial years within the period 2013-2015. Findings The authors found that audit committee size is the main determinant of the AAOIFI governance disclosure. Research limitations/implications This study has a number of limitations that could be taken as avenues for a future study such as, the study used the six variables of CG and the four variables of firm characteristics, based on available data. This research is limited to just Islamic banks. Originality/value The research contributes to Islamic accounting literature by identifying the driver for the AAOIFI governance disclosure for Islamic banks that mandatorily adopt AAOIFI standards.

The Relationship Between Islamic Cultural Values and Corporate Social Accountability: Malaysian Muslim Accountants

This study investigates the relationship between Islamic cultural values and corporate social accountability among Muslim accountants in Malaysia. Two independent variables are proposed namely collectivism and power distance. Multivariate analysis was employed to examine the relationship between the variables in the framework and 124 respondents participated in this study. It is found that there is no relationship between collectivism and corporate social accountability. On the other hand, there is a significant positive relationship between power distance and corporate social accountability. In conclusion this study recommends that the understanding on zakat and equality should be given utmost priority in order to increase the level of social accountability among Muslim accountants in Malaysia. Such learning activities should be given continuous professional development (CPD) point by the Malaysian Institute of Accountants (MIA) as a motivation.

Islamic Banking: A Comparative Survey with Christianity and Conventional Banking

Nigeria as a secular state is dominated by Christianity and Islam hence the name Islamic Banking raises curiosity. This study is purely a theoretically based discussion on Islamic accounting, banking and finance in Nigeria. Nigeria is generally recognized and widely referred to as the ‘giant of Africa’. Again, she is being recognized and looked upon to be the hub of economic development of the whole of Africa. To maintain this great name, Nigeria has to improve her economy in all ramifications, hence, the issue of Islamic accounting, banking and finance among scholars provided evidence of economic benefits and development in Nigeria and among countries that have Islamic financial institutions (IFIs). The primary characteristics of Islamic Banking are; prohibition of interest, low consumer lending, sharing of risks, sharing of profit or loss and high real sector investing, which seem to be in divergence with the conventional banking concept and practice. The Study adopted a literary review of Islamic and Christian literature on economic matters in relation to their faith/ belief system. The principal information apart from commentaries of scholars are derived from the Holy Bible and the Quran. The concept can also refer to the investments that are permissible under Shariah. This study recommends that both the government and promoters of Islamic accounting, banking and finance should make sincere effort through collaboration that will bring about a more detailed guideline for full operationalization of Islamic accounting, banking and finance in Nigeria.

The factors affecting the adherence of Islamic accounting standards AAOIFI in Jordan

The aim of this paper is to knowledge the problems faced by Islamic banks in Jordan towards the adherence to AAOIFI accounting standards. And to study the problems faced with adherence to AAOIFI accounting standards, a meticulous market survey was conducted from banking (employees of the financial department) in Islamic banks in Jordan – their number 4 – banks. A structured questionnaire was designed and distributed in person among respondents – their number 80 – employees in the financial departments. We are found towards adherence to AAOIFI accounting standards. Internal and external problems are found to adherence Islamic banks to AAOIFI accounting standards. The sample is limited to Islamic banks in Jordan. This is necessitated by the lack of adaptation elsewhere. Also, there is little research in Jordan on adherence to AAOIFI accounting standards developed by this body. This paper, along with the previous study, helps to address this gap.

Exploring the Knowledge of Islamic Banking Among Libyan Bankers

Although it has been five years since the beginning of the conversion to the Islamic banking system (IBS) in Libya., the level of knowledge of Islamic banking (IB) products and services among bankers is yet to be investigated. The study uses a quantitative research design to address the issue. A total of 207 complete and valid questionnaires were collected from bankers in several Libyan commercial banks. Statistical Package for Social Sciences SPSS version 23.0 was employed to analyze the data. Findings showed that bankers have a basic to moderate level of knowledge of IB services and products. They were unaware of some important Islamic services and products such as Musharakah, Murabahah to the purchase ordered (MPO), current Islamic account and investment banking account. The findings also concluded that the bankers were only knowledgeable about concepts of Islamic principles such as the permissibility of selling and prohibition of riba. However, they were unaware of how riba is applied in the banking system. This study urges relevant Libyan stakeholders such as government and top bank management to develop intensive Islamic banking training programs. In order to increase the level of knowledge and awareness of bankers towards IB. This would help to facilitate the conversion to (IBS) in the country.

Analisis Penerapan Akuntansi Syariah Pada Skema Jual Beli KPR Syariah

This study aims to analyze the application of Islamic accounting in the Islamic credit buying and selling scheme in housing sales at PT MIB and to find out the Islamic law review related to the difference in cash prices and credit prices that have been included in the sales brochure whether there is an element of usury or not. This type of research uses a qualitative study with a descriptive approach. The data sources used are primary data sources and secondary data sources. Data collection techniques using observation, interviews, and documentation. This study uses the triangulation of sources. Data analysis techniques are data collection, data reduction, data presentation, and data verification. The results of PT MIB's research use alternative economic and inflation methods. Based on PSAK 102 Accounting for murabahah and ISAK 101 regarding the recognition of tough murabahah income without any significant risks related to inventory ownership, the use of both methods is permitted. Based on this method, it is time that has economic value so that when there is a deferral of payments, a certain amount of compensation is needed because basically money is the medium of exchange for the public. The faster the rotation, the better. Credit buying and selling mechanism is also allowed in the Qur'an, Hadith, and Ijma.

İslami Muhasebe Standartlarının Türkiye deki Katılım Bankalarında Uygulanabilirliği: Bir Alan Araştırması1 (The Applicability of the Islamic Accounting Standards in the Participation Banks in Turkey: A Field Study)

Purpose – This study aims to reveal the applicability of the Islamic accounting standards for interest-free finance institutions by issued Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in the participation banks in Turkey. Design/methodology/approach – For the purpose of the study, a questionnaire study is applied for the employees in the accounting and financial reporting units of the interest-free banks in Turkey. While in the first part of the questionnaire consisting of two main parts in general demographic characteristics and Islamic accounting awareness levels of the participants, undesirable situations before application and desired conditions after the application for the implementation of Islamic accounting standards in Turkey are included in the second part. SPSS statistic program was used to make difference analysis based on by considering the awareness situation of participants. Findings – According to the questionnaire results, it was found that approximately 58% of the participants did not have knowledge about AAOIFI and Islamic accounting. There is no meaningful difference between awareness situation of participants. Discussion – According to these findings, it is necessary to organize training activities on accounting standards in compliance with AAOIFI and Islamic principles for employees working in accounting and financial reporting units of participation banks. On the other hand, according to their level of awareness of the participants it is the lack of any significant difference between the answers they gave to questions, It show that the application of AAOIFI and/or Islamic accounting standards In Turkey is not depending on the level of knowledge of participants.