Islamic Accounting : Their Position In International Standard Harmonization

3471 words - 14 pages

“Islamic Accounting :
Their Position in International Standard Harmonization”
Rendy Anggita Putra

“Islamic Accounting : Their Position in International Standard Harmonization”

1. Abstract
According to (Susela, 1999) said the development of accounting theories is are affected by several factors including political and economic interests of certain people or group in community. Therefore, it can be also called if the accounting is a significant tool to illustrate the interests and perspectives of the various stakeholders. Islamic industry of finance has obtained tremendous growth in last few years, both in number of assets that manage by industry and in the diversity of financial ...view middle of the document...

The optimum performance of accounting is basically an accumulation of experience by a society, community, or organization that obtained from the study, implementation and development of accounting in accordance with the social condition, cultural and economic aspects that encountered. Therefore, many experts (Hove, 1986; Briston, 1990; Wallace, 1990), which argued that the application of accounting developed countries to developing countries, would be unsuitable and irrelevant. In this case for a certain society which bound by religious principles such as the Muslim community.
Moreover, along with the increasing sense of religiosity of Muslim society in running the sharia Islam in social-economic life, many business institutions in Muslim communities has run their business operations with based on Islamic principles. In order to manage these Islamic institutions, it is become necessary for recording all transactions and financial reporting with certain characteristics in accordance with Shari’a. This recording transactions and financial reporting applied to Islamic business institutions is then developed into shari’a accounting or Islamic Accounting.
Islamic industry of finance has obtain tremendous growth in last few years, both in number of assets that manage by industry and in the diversity of financial products. This trend has exceeded the prediction and requires a separate accounting framework to accommodate some of unique factors in Islamic transactions. A global system that can rule the industry will become significantlly important for the Islamic finance sector in order to meet the needs of continued growth (Vinnicombe, 2012).
Currently the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) roomates established March 27, 1991 in the State of Bahrain is a regulation governing body of accounting standards in the world. Harmonization of Shari’a accounting standards has continue to be made by the AAOIFI as it is also done by the International Accounting Standards Board (IASB) for conventional accounting harmonization. According to (Vinnicombe, 2012), AAOIFI’s goals is not different with IASB in order to achieving synergy of accounting implementation to facilitate consistent reporting of Islamic financial statements. In its implementation, AAOIFI is also working with the IASB and other international organizations to ensure the development of Islamic finance is not lagging behind the pace of conventional accounting standards improvement. According to (AAOIFI, 2011) the membership of AAOIFI is not restricted only for Muslim nations, but also welcome from non Muslim countries from, for example, the United Kingdom and Australia.
In its development, financial reporting in Islamic accounting adds some different additional reports than conventional accounting to accommodate the unique transactions of Islamic economics. In that regard, paper have objective to explore the main important values of Shari’a accounting...

Other Papers Like Islamic Accounting : Their Position in International Standard Harmonization

Move and Position Individuals in Accordance to Their Care Plan

1159 words - 5 pages voluntarily, must be appropriately informed of what the intervention entails 5 Be able to move and position an individual Follow and communicate care plan: move and position according to care plan eg use correct technique, maximise individual's independence, self-respect and dignity, explain and communicate with others, agree on the techniques to be employed and who will do what, decide who will be in charge of the manoeuvre and coordinate the actions

Islamic Banking Instituitions Essay

2040 words - 9 pages , promulgate, interpret and review, the accounting and auditing standards for Islamic financial institutions. Its notable efforts are to inform and encourage banking supervisors around the world to adopt its standard as the benchmark for Islamic financial institutions in their countries. These attempts to improve the transparency and comparability of the financial reporting of Islamic financial institutions are bearing fruit. The AAOIFI’s standard has

Australian Aounting

3011 words - 13 pages governance they are thought to be subject matter experts. For their members they provide services such as training, education, technical support and even advocacy. Members work in conjunction with local groups to further the goals of the organization as a whole, to the public at large, stakeholders, the global profession, and academics the world over. The actual Harmonization of international accounting standards in Australia, this has been

Comparative International Accounting

4756 words - 20 pages . Resource-seeking is the search of resources in other country. While companies with market-seeking, they tend to establish subsidiaries. Those subsidiaries play a role as producer of goods to supply the market in the country of parent’s location. As for efficiency-seeking, subsidiary will have their own specialization in producing certain part. With regards to the different arguments for studying international accounting, there are several reasons for

Islamic Accounting

3954 words - 16 pages to harmonisation efforts and Karim called for the adoption of AAOIFI’s standards by Islamic banks operating across various countries. Gambling, Jones and Karim (1993) question the relevance of accounting solutions based on agency theory and the need for external standard-setting for ethically-funded organisations (including Islamic banks) to enhance their credibility. They conclude that internal procedures may be better in constraining

History & Development

4310 words - 18 pages establishment, Bahrain Monetary Agency (the successor of Bahrain Currency Board), has been promoting the country as an International Financial Centre and encouraging major international financial institutions as their regional base. 1979 Bahrain Islamic Bank was established to provide commercial banking services. Dar- Almal, a holding company ,was established in Switzerland and owning a group of banks in some Muslim countries which they then

Accounting and Standards Board Paper

1245 words - 5 pages . International Accounting Standards Board The IASB, which was once the International Accounting Standards Committee (IASC), is the first international standard-setting body (International Convergence of Accounting Standards—A Brief History) organization based in the United Kingdom that formed in 2001 to advocate harmonization. They strove to make the standards uniformed for national and international companies and have

Islamic Financing : Leasing (Ijarah)

4872 words - 20 pages . * When the asset is transferred to the lessee, the lessor may recognise a gain or loss on disposal. | * Lessors shall recognize assets held under a finance lease in their statements of financial position and present them as a receivable at an amount equal to the net investment in the lease. | Findings and Discussion According to our findings, there are 16 Islamic Bank and 4 International Islamic Bank operates in Malaysia. Majority of the

Lesson Plan Far600

1837 words - 8 pages practices. The importance of history is introduced through a brief discussion on accounting history from both experiences of both western and Muslim Civilization. In understanding the theoretical framework of accounting, the various perspectives on financial accounting theory are examined with particular emphasis on their rationale and implications on accounting practice. General concepts of theory formulation are discussed and types of accounting

How International Differences in the Ownership and Financing of Companies Could Lead to Differences in Financial Reporting

1888 words - 8 pages to further inform the discussion, vivid examples will be incorporated into the discussion. Indeed even the operations of similar companies do differ and it is also possible that their reporting procedures will not be the same when it comes to financial statements. A general belief by the international community has always been that the accounting practices that give vital information regarding businesses should be in a position to transcend

Boeing and Aircraft Management

912 words - 4 pages | ACC 6630 | Accounting Theory And Policy | ACC 6640 | Islamic Worldview And Accounting Ethics | ACC 6810 | Islamic Accounting And Finance | ACC 6820 | Accounting Research Methods | ACC 6650  | Introduction to Library Search & Academic Writing | ACC 6660 | Literature Review |   |   | Elective Courses Course Code | Course Name | ACC 6830 | Accounting For Islamic Institutions | ACC 6840 | Issues In Auditing | ACC 6850

Related Essays

Position Of Kazakhstan In International Trade And Business

5555 words - 23 pages (Ibrayev, Badjanov & Li, 2014). This kind of investment has seen many companies expand their operations in the country very fast since they only get their profits back to expand their activities. 1 Forms of international trade and capital flows In 2008 FDI inflows in Kazakhstan were at $19.8 billion. In the period between 2004 and 2008, FDI outflow has been $8.9 billion (Datkhayev, 2013). Netherlands is the main FDI investor accounting for

Move And Position Individuals In Accordance With Their Plan Of Care

2109 words - 9 pages Move and Position Individuals in Accordance with their Plan of Care 1 Understand anatomy and physiology in relation to moving a positioning individuals 1. Outline the anatomy and physiology of the human body in relation to the importance of correct moving and positioning of individuals Joints in the human body are what allow the body to move. They are the place where two bones meet. There are several different types of joints, ball and

The Influences Of Students’ Learning Habits On Their Academic Achievements In The Hanze International Business School

1221 words - 5 pages 1. Topic: Learning Styles in Different Cultures. 2. Research Question: 1. Do learning styles differ from various cultures? 2. In which aspects could Asian students learn from western in learning styles? 3. Reference: Andrea, D., & Wintergerst, A. C. (2005). Assessing and Validating a Learning Styles Instrument. System: An International Journal of Educational Technology and Applied Linguistics, 33(1), 1-16. Bodycott

It’s Easier To Stick Together: International Students In Us Colleges And Their Lack Of Adaptation To The American Culture

3141 words - 13 pages It’s easier to stick together: International students in US colleges and their lack of adaptation to the American culture. INTRODUCTION The number of international students enrolling in Americans colleges is greatly increasing every year. According to the IIE (Institute of International Education), 819,644 students were enrolled in the USA in 2012/2013 and their number increases by about seven percent every year. Chinese, Indians and South