The last thirty years have witnessed the appearance and rapid expansion of Islamic banking both inside and outside the Islamic world. Islamic banks provide financial products that do not violate Sharia , the Islamic law of human conduct. The Islamic principles upon which the banks claim to operate give an important role to social issues. Applying these principles, we develop a benchmark set of social disclosures appropriate to Islamic banks. These are then compared, using a disclosure index approach, the actual social disclosures contained in the annual reports of twenty-nine Islamic banks (located in sixteen countries) to this benchmark. In addition, content analysis is undertaken to measure the volume of social disclosures. Our analysis suggests that social reporting by Islamic banks falls significantly short of our expectations. The results of the analysis also suggest that banks required to pay the Islamic religious tax Zakah provide more social disclosures than banks not subject to Zakah .

The paper examines the cultural factors that shaped the creation of one of the earliest Islamic banks, discussing the tensions that arise between religious and economic aims. Design/methodology/approach: The research is a case study of a historically significant institution. The information on which the paper is based was obtained through interviews with participants in the process being analysed, review of archived documents, and observation. Edgar Schein's theory of organisational culture and leadership is employed to provide theoretical structure for the analysis. Findings: The paper shows that creating a new type of organisationan Islamic bankin Jordan required special legislation. A study of the development of this legislation reveals that the bank's founder needed to convince both the religious and political authorities and potential investors that the bank would comply with Shari'a principles while at the same time generating profitable business. The outcome was to validate transactions that were Shari'a-compliant in form but similar in substance to those of conventional banks. Research limitations: The study examined one bank, and the findings are not necessarily representative of the experience of other Islamic financial institutions. Practical and social implications: The research highlights the problems faced in establishing businesses that seek to follow the moral and economic teachings of Islam. The paper contributes to the ongoing debate about whether it is possible to establish genuinely Islamic businesses within a conventional economy. Originality/value: This is the first detailed academic study of the creation of an Islamic financial institution to make use of a wide range of documentary and oral evidence, including interviews with insiders.

Purpose The purpose of this paper is to investigate the techniques used by Islamic financial institutions (IFIs) to shift conventional instruments to Shariah-compliant instruments. The paper additionally aims to explore the effect of these techniques on financial reporting. Design/methodology/approach The study recognized two techniques used by the IFI: the combination of contracts which compartmentalizes the economic transaction into a series of linked sub-transactions, and the inclusion of donation (Tabarru) in commercial contracts. The paper also reviews the accounting treatment according to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and compares it to the concepts adopted by the traditional financial reporting framework concepts (especially substance over form concept). Findings With regard to the combination of contracts technique, the major accounting challenge is whether the substance over form concept is considered. Mixed results are found: in some products, the economic substance is presented in the financial reports, while in other cases, the legal form of the contract is reported. This ambiguity may hinder the faithful representation of financial statements. The Tabarru contract is used to justify the risk-shifting practices by Islamic banks. The accounting effects of such contracts may result in failure to recognize assets or liabilities in the financial reports, earnings management and incomplete financial information for the users of the financial reports. Originality/value This study is a response to the call raised by the consultative group established by the International Accounting Standards Board. It provides an additional insight into the accounting treatments for a combination of contracts and Tabarru contracts. It also contrasts the accounting treatments, as stipulated by the AAOIFI, with the conventional accounting frameworks.

The objectives of this study are to examine whether the current accounting curricula of Jordanian universities fit the Jordanian market demand, in addition to determining the skills and competences that Jordanian businesses require from accounting graduates. To achieve these objectives, an analysis of current accounting curricula of Jordanian universities took place, interviews with professionals and academics were conducted, and a questionnaire survey was administrated to a large sample of academics and professionals. The study found the presence of a significant gap between the courses covered in the accounting curricula of Jordanian universities and the skills acquired by the students versus the market’s requirements and needs. This is mainly due to the fact that the accounting curricula of Jordanian universities are structured based on specific requirements set by the Accreditation and Quality Assurance Commission for Higher Education Institutions (AQACHEI), leaving no freedom for universities to develop curriculums that meet the market’s need. It is also argued that that current exam-based assessment methodology adopted by Jordanian universities largely contributes to expanding the gap. The study recommends giving Jordanian universities more freedom in setting the curriculum for accounting programs, and that they should start revising their accounting curriculums to take into account current market needs.

This study aims to examine the relationship between Board of Director's characteristics and tax aggressiveness. Taxes are considered an additional cost to the firm and its shareholders because these taxes reduce the available cash flow. Firms tend to employ different tax aggressiveness techniques. Aggressive tax planning or strategic tax behaviors are activities generally designed to reduce tax liability that includes Tax evasion, Tax evasion and legitimate saving of taxes. This study is the first in Jordan which tests the relationship between Board of Director's characteristics (Board Duality, Board Composition and Board Independence) on tax aggressiveness. Based on a sample of 140 Jordanian firms during the period 2013-2017, this study used regression analysis to examine the effect of board composition, board independence, CEO duality, return on assets (ROA) and firm size on the tax aggressiveness. The study found that there is a negative relationship between board composition and board independence from one side, and the tax aggressiveness from the other side. Furthermore, the study found that there is a positive relationship between board duality and tax aggressiveness. Finally, both the return on assets (ROA) and the firm size variables, which were included as control variables, were found to be positively related to the tax aggressiveness.