Islamic Accounting Research Articles

Knowledge of Islamic accounting among professionals: evidence from the Tunisian context

PurposeThe paper is intended as an extension of the literature dealing with the Islamic accounting standards issued by the Accounting Auditing Organization for Islamic Financial Institutions (AAOIFI) and still not adopted in Tunisia. Its major aim is to investigate the Tunisian accountants’ basic knowledge and perceptions of Islamic accounting. The study has been designed for the sake of the Tunisian accountants’ predisposition to adhere to the AAOIFI standards, as a population directly concerned by an eventual adoption of such standards.Design/methodology/approachThe paper opted for an exploratory study using a questionnaire survey based on the relevant literature. The questionnaire has included items pertaining to demographic areas, information sources, basic knowledge, key differences, valuation concepts, obstacles and advantages, educational and training needs regarding Islamic accounting. The conducted study has involved data collected from the part of 200 practitioners across a number of organizations and audit firms, sited at different regions and locations of the country, employing accounting graduates.FindingsThe reached findings suggest that even though Tunisian practitioners are not well aware of most of the AAOIFI standards’ pertaining topics, proponents of stand-alone AAOIFI standards, apart from IFRS, appear to outnumber its opponents. In this context, lack of training programs arranged by professional bodies is considered as the most serious impediment facing the implementation of the standards.Research limitations/implicationsIn addition to the usual limitations associated with any survey research (particularly non-response bias and desirability bias), there, also, lies a sample related limitation, as the sample turns out to involve, essentially the private/corporate sector. Pertinent organizations, as the IFI’s, appear to be not well represented in the sample.Practical implicationsThe results reached through this study would have some implications on the regulatory bodies, academicians and professionals. Thus, for the AAOIFI standards to be successfully implemented in Tunisia, entirety of concerned parties should take part in improving and consolidating the situation.Social implicationsUltimately, studying differences in the views of jurisdictions, either those who have adopted the AAOIFI standards or those who have not, might provide certain guidelines to standard setters for potential revisions.Originality/valueFew short articles have previously exanimate the perceptions and knowledge of accounting professionals on Islamic accounting issues, there is a scarcity of research regarding the subject. To the author’s knowledge, this paper is one of the rare studies of Islamic accounting in Tunisia.

A Review of Empirical Islamic Finance Literature

This paper reviews empirical studies with particular interest in the Islamic finance literature and highlights future research directions. The earlier literature of Islamic finance was built on the Islamic economic foundation of social justice and fairness, which was formed theoretically from the primary sources of Sharia coupled with some analytical frameworks. Subsequent studies emphasized on the empirical investigations without far-reaching analytical and theoretical postulations in the area. Although empirical studies on Islamic banking are plenty, there is a new emerging empirical literature on Islamic finance focusing on mutual funds, corporate finance, real estate finance, Takaful, and the finance-growth nexus, whereas Islamic accounting studies are mostly qualitative in nature. The literature provides a mixed picture of Islamic financial markets and instruments showing that the Islamic ones perform better most of the time but also performs worse at times compared to their conventional counterparts. This paper discusses relevant issues to Islamic finance and identifies avenues for future research and policy implications.

Critical Success Factors, Benefit, and Auditing of Waqf Accounting

The aim of this study is to identify the critical success factors, benefits, and challenges of waqf accounting in corporate Malaysia and to test the propose model of waqf accounting. This paper is to identify five dimensions of CSFs of waqf accounting (accounting procedures and standards, accountability, fund waqf, cash waqf, and financial report disclosures). This paper is also to identify five benefits of waqf accounting (financial growth, efficiency of waqf management, customer satisfaction, quality improvement, and trustworthiness). Meanwhile, three challenges of waqf accounting (waqf administration, unqualified mutawalli, and lack of Islamic accounting). Therefore, this study is focused on the critical success factors, benefits, and challenges of waqf accounting in corporate Malaysia and to propose the model of waqf accounting.

Pengembangan Kurikulum Ekonomi dan Akuntansi Syariah di Sekolah (Studi atas Persepsi Guru dan Siswa di SMA Kota Gorontalo)

This research aims to describe the perception of teachers and students to the curriculum development of Islamic economics and Islamic accounting at secondary school (high school) in the city of Gorontalo and forms of curriculum development. The method involves a survey of teachers and high school students in the city of Gorontalo by using random sampling with certain criteria. Criteria Teachers are teaching on the subjects of economics and accounting, amount of 17 people, while the student is enrolled as a student majoring in social studies subjects who have obtained economic and accounting totalling 200 students. Data were analysed using descriptive frequency test results. The results showed that 74.1% of teachers and 70.18% of students stated strongly agree and agree curriculum sharia economics and accounting is applied or taught at secondary school level (high school) in the city of Gorontalo. The poll results of the teacher find a form of curriculum implementation of economic and accounting sharia entered as a local content of 47%, incorporated into the lessons of Social Sciences (IPS) by 35%, and incorporated into the Standard competency or Basic competence in the subject of economics and accounting as much as 6%.

MENGHITUNG ZAKAT PERUSAHAAN (Studi Kasus pada PT. Asuransi Takaful, BSM, BPRS, Dompet Dhuafa, BMT dan Pos Keadilan Peduli Umat)

Zakat is a part of a personal muslim responsibility, it is the third of uarkanul Islam". The development of business entity affects the map, types, and characteristics of business, then affects also the map of zakat dues. During the period of the Prophet Muhammad, the type of business was different from the type of business today. There is no a specific Quranic ayah or hadist determines the company zakat rate. Mostly the rate of zakat based on economic activities rather than on an entity. In that case we have a problem how to calculate a company zakat. This study will discuss how some companies which daim as a syariah companies calculate their entity zakat. This issue becomes more important after the government implement the Zakat Act (UU) No 38/ 1998.Keywords: Islamic Fiqih, Zakat, Islamic accounting, Islamic organaization.

BEBERAPA DIMENSI AKUNTANSI : MENURUT ALQUR'AN, MAHWAH, SEJARAH ISLAM DAN KINI

Islamic Accounting is a new phenomenon. The emerging educated people from Islamic society produces a new machhe to revisit Islamic heredty in social, political, economics and business knowledge. The domination of capitalist accounting has influenced our social, political, economics as well as our accounting system. The discussion of Islamic Accounting has been started either by Non-Muslim scholar or Muslim Scholar At least there are three Ihews evlaining the form of Islamic Accounting: Islamic accounting based on Alguran, based on Islamic history applied by ''daulah Islamiyatf (Muslim govemment) and based on reconstruction from capitalist accounting system. Those three views will be discussed in this paper.Hai orang orang yang beriman masuklah kamu ke dalam Islam keseluruhan dan jangan kamu turut langkah Iangkah syaitan. Sesungguhnya syetan itu musuh nyata bagimu (Albaqarah 208)We are like a big fish that has been pulled from the water and is flopping wildly to find its way back in (Lester Thurow, 1996 The Future ofCapitalism)

KRITIK TERHADAP PSAK PERBANKAN SYARIAH IAI DAN AAOIFI

The Conceptual framework for presentation of financial statement of Islamic bank and Accounting standards for Islamic banking have been formulated by Indonesian Asso-ciation of Accountants (cooperated with Bank Indonesia, Indonesia central bank.. The standards are called PSAK (Pemyataan Standard Akuntansi Keuangan). The frame-work and the standards, mainly, has refered to the MOIFI standard for Islamic bank-ing. This paper discusses the the content of the those two promulgations (MOIFI and PSAK) and also criticizes the lack of lawhid" concept in those two. The author argues that those two standards still based on the conventional accounting philosophy in which the capitalist interest is mainly the focus of the information disclosure.Keywords: Islamic accounting, accounting standard, Islamic banking, Indonesian accounting standard (PSAK)

SHOULD ISLAMIC ACCOUNTING STANDARD FOLLOW TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)? A LESSON FROM MALAYSIA

It has been clearly shown that financing based Islamic teaching has inherentcharacteristics as well as its accounting. For that reason, it may not be so easy to convert Islamic accounting standard into International Financial Reporting Standard (IFRS) as it may violate some basic principles of Islamic teaching.Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) still commits to have different accounting standard as it is based on the fiqh (maxims). Furthermore, some countries adopt directly or indirectly the concept in IFRS, for example, in Malaysia. This paper tries to show some evidences on accounting standard which does not have a strong foundation of Islamic teaching would like probably to change by its milieu, especially in the IFRS convergence trend. This is because Islamic accounting standard itself merely based on “the convention” of the so called Islamic scholars.

Unveiling IASB standardization projects and its influence on the position of Takaful Industry in Indonesia

PurposeThis paper aims to explore the alignments of the Takaful industry between the Islamic and the International Financial Reporting Standards (IFRS) requirement and the subsequent social and political consequences.Design/methodology/approachMeta-analysis of thorough examination of 1* to 4* relevant peer-reviewed journals in the academic journal guide 2015 of the Association of Business School from the period when first IFRS was issued in 2005 to 2012 and where Indonesia declared to fully adopt IFRS. The examination also includes some other appropriate Indonesian and Islamic accounting publications. The paper employs comparative analysis between IFRS, Auditing Organization for Islamic Financial Institution and the financial reporting standards practiced by Takaful industry to examine the hindrance towards the standardization process.FindingsIt is shown that the literature emphasis not only on the technical matters related to financial reporting standardization but also on the complex arrangement in different country settings. Learning from Indonesian experience, the literature suggests that neo-liberalism is piercing through different parts of economic and political setting of the country’s infrastructural powers leading up to the influence of financial reporting standardization process.Originality/valueThe paper contributes to the existing ontological arguments whether the Takaful industry is a mere business entity that has no specific requirements for financial reporting standards.

Toward Developing a Model of Stakeholder Trust in Waqf Institutions

Sustainability of Waqf institutions for poverty alleviation depends directly or indirectly on the donations received from the donors and the awareness of the society. This conceptual paper is an attempt to construct a model of stakeholder trust that could provide valuable insight on the issues that should be focused by the regulators, the mutawallis and the waqifs for ensuring a sustainability of waqf Institutions. The Modified Key Mediating Variable (MKMV) Model proposed in the paper includes a total number of eight variables. Commitment-trust theory is combined with Islamic Accountability and Stewardship theory toward shaping three conceptual models of trust into a much-needed unified model for exploring trust in the context of waqf institutions. Stakeholder trust is positioned as a mediator between independent (board benevolence, board ability, board integrity, board opportunism, communication and accountability) and the dependent variable (stakeholder commitment). Empirical results to support the model could not be provided due to the conceptual nature of the paper. The model can provide direction for reform towards sustainability of waqf institutions. The model is general enough that it can also be used for other conventional and non-profit religious organisations.

Islamisasi Prinsip Counter Accounting

The purpose of this study is to explore the idea of Islamization of counter accounting principles. Such an Islamization is necessary because counter accounting princip-les are formulated by using the philosophy of punk from the western society which has different beliefs. In addition, the idea of Islamization in this study shows that Islamic knowledge can indeed be developed continuously. Therefore, the claim that there is no development inside this knowledge, and that it cannot be categorized as science, willl no longer exist. This study reveals the findings that the wisdom from argumentation which constructs the principles of counter accounting is parallel with the wisdom from Islamic values as interpreted by experts of Islamic accounting. The Islamiza-tion of counter accounting principles confirms the truth of belief in the existence of Allah and His revelation.

Transcendental and Social Accountability in Productive Waqf Assets

Objective - The objective of the study is to formulate a concept of transcendental and social accountability in the management of waqf assets as a trust worthiness from God (Triyuwono, 2004). The concept is expected to be an Islamic accountability which is religious and social in nature (Hameed, 2000) Methodology/Technique - The study uses tawhidic post-phenomenology, a modified post-phenomenology based on the basic tenet of Islam, as an instrument to analyze data. The method is actually the development and combination of philosophy of technology (Ihde, 1993) and Ibn Arabi's philosophy of being (Dobie, 2007). Financial statements of waqf institutions, in this study, are regarded as a technology and additional are collected by interviewing four informants in the Regional Board of Muhammadiyah in Gresik. Findings - The study finds a da'i (preacher) metaphor as a form of accountability. This metaphor indicates that waqf assets functioned, firstly, as an instrument for doing Islamic missionary efforts with good practices (dakwah bi al-hikmah) such as helping orphans, the poor and the needy, and overcoming natural disaster; secondly, as a spot for Islamic missionary efforts with good advices (dakwah bi al-mau'ihatul hasanah) for patients, employees, and people at large; and thirdly as an instrument for taking care of environmental health. Novelty - The study suggests transcendental and social accountability in the management of waqf assets as a trust worthiness from God. Type of Paper Empirical Keywords: Transcendental; Social; Accountability; Post-Phenomenology; Tawhid. JEL Classification: A13, M14, M41.

Evaluation of effective dimensions in Islamic accounting using DEMATEL Techniques

Evaluation of effective dimensions in Islamic accounting using DEMATEL Techniques

Transitional Justice in the Middle East and North Africa – Taking Account of Islam

AbstractThe core of the argument of this article is that the integration of Islamic notions of justice into transitional justice mechanisms in the MENA makes for a more viable and sustainable transitional justice process in the region. This would mean a critical cultural value in the MENA is given a place in dealing with the past and mapping out a sustainable future in the region. The argument here is premised on the logic that a social transformation-focused enterprise like transitional justice ought to engage with Islam for sustainable outcomes in societies in the MENA where Islam is very influential. Given the significant role and influence of Islam on cultural, socio-political and legal institutions in the MENA, a process of transitional justice that takes account of Islamic values and practices is important for negotiating justice and institutionalising reforms in societies in the region.

Accounting for inflation: arguments of recognition in Islamic accounting standards

The current Islamic Accounting Standards gives little prominence to changes in prices, instead of 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 to explore the fundamental reasons for non- recognition of inflation in Islamic Accounting Standards and fundamental Islamic framework that may permit that.

Islamic accounting reporting and economic development: Nigerian perspective

Islamic accounting reporting and economic development: Nigerian perspective

Academic performance and moral competence: A match made in heaven?

This study aims to empirically assess the relationship between accounting students' academic performances and moral competencies by focusing on final-year accounting students enrolled at the International Islamic University Malaysia (IIUM). The students' moral competencies were measured using a scenario-based instrument developed through a collaboration with Islamic accounting scholars, called the Muslim Accountant Moral Competency Test (MAMOC), whilst students' academic performances were measured using their Cumulative Grade Point Averages (CGPAs). Contrary to the expected positive relationship between these two variables, the study found a negative, and insignificant, relationship. The implication of this result is that IIUM's Accounting Department needs to conduct a comprehensive review of the ethical content of its courses and use a more effective strategy of how to more effectively integrate Islamic values into the curriculum. Additionally, institutionalizing a measure of students' moral competencies would enable the department to objectively determine how well it is doing in developing the moral competencies of its students.

Kerangka Konseptual Perakaunan: Islam Atau Konvensional?

The conventional conceptual framework has always been the referred accounting framework for Malaysia and other countries. However, there is limitation of the con- ventional conceptual framework , it is merely profit oriented. Contrastingly, guided by the Tawheed perspective, Islamic conceptual framework takes into account the social and economy objectives. Due to the differences, this paper intents to put forth the understanding of the Islamic conceptual framework based on the A-Quran, Sunnah also scholars view related to the principles and practices of the Islamic accounting standard. The Islamic conceptual framework is a start up hence it is hope that this initial initiative will be improved in future in order to develop comprehensive conceptual framework that reflect the subservient to Allah. Keywords: Islamic Accounting, Conceptual Framework, Accounting, Conventional, Accounting Standard.

Cadangan Item Pendedahan Bagi Pelaporan Institusi Wakaf, Zakat dan Baitulmal

Based on the Islamic conceptual framework of accountability and the maqasid syariah, this paper proposes a list of disclosure items for the reporting of the institution of waqf, zakat and baitulmal. The process of identifying the disclosure items takes into account the findings of previous studies, the views of the institutions of waqf, zakat and baitulmal as well as the views of experts in accounting and finance and experts in waqf management. In the process of finalising the disclosure items, each item of disclosure has been mapped with the elements of maqasid syariah to ensure every item meets the requirements of syariah. Moreover, a legislative review was conducted, inparticular related to the enactment of the relevant state governments to ensure that each item does conform to what is stipulated in the state legislation. Furthermore, pertaining to the proposed disclosure items, verification of experts in the field of Islamic Accounting and Finance as well as experts in the field of Maqasid Syariah was obtained. As a result of this process, 156 disclosure items were proposed for the reporting of waqf, zakat and baitulmal institutions.

MASA DEPAN PENERAPAN AKUNTANSI ISLAM DI INDONESIA

This article is presented to know the di[ferences between conventional accounting and Islamic accounting, how far the usefulness for human being life. The conventional account which from western accounting to function for decision making by whom need, knowing as stakeholder . Now days in fact that accounting in.formation, is evaluated for economic decision making dominately, but the business or economy situation worsty, as corruption, fraudness, crash depression etc. It is mean that accounting in.formations as decisioun making basically, do not get the good decision from it resources, eventhough make depression, crash, weak economy etc. Amongs the weakness has been told, the e/emen of conventional accounting etics so wide, it is happen because accounting information is opinion of free value, so that the accounting are brought by persons concern taking their interest, which make society damage.Islamic accounting which has lied main source from Al-Qur 'an, its main fuction is to accountability besides its .fuction as information sources for decision making. Islamic accounting notes that recording for justice and honest, the recording for decision making not a must. Recording Islamic accounting is been obliged because, as an evidence do the transaction, for finishing the more over problems and it does not created transaction for manipulation and deceit. Islamic accounting and the reality accounting have the parallel equality, which is an evidence that the accounting .function idea is needed to built the religious education, which has the big share for creating justice and honesti and help human being tofill their life.