Defining Islamic accounting: current issues, past roots

Napier, Christopher J.

doi:10.1177/1032373208098555

Cited by 92 publications

(76 citation statements)

References 51 publications

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“…One of the main challenges is the fact that these institutions are competing with other banks operating within a global financial market dominated by the Western banking industry. This has led many transactions using Islamic contract to echo traditional Western banking transactions (Napier, 2009;Khan, 2010). This occurrence has also influenced the reporting environment in IFIs.…”

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confidence: 99%

“…In developing Islamic accounting standards, Islamic accounting scholars reveal that the main principle of Islamic accounting is accountability to God (Napier, 2009). According to Napier, with accountability to God, two essential characteristics of Islamic accounting are full disclosure and social accountability, which are antithetical to the ideas of creative accounting, window dressing and reporting legalities over substance.…”

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confidence: 99%

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Accounting Standards and Islamic Financial Institutions: the Malaysian Experience

Mohammed¹,

Ahmad²,

Fahmi³

2016

JIBF

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More than three decades after the establishment of first Islamic bank in Malaysia, there is still debate on the need for Islamic accounting standards. Early studies on this subject demanded a separate set of standards for Islamic Financial Institutions (IFIs) due to notable differences in transactions from their conventional Western counterparts. However, as time passed, one cannot imagine how IFIs have mushroomed and become a very large industry, with Western banks also venturing into the market. Nowadays, many products and services offered by IFIs echo the ones provided by the conventional banks. Along the line, the stance on the need for a set of accounting standards specificities to IFIs has also changed. Many parties including the Malaysian Accounting Standards Board (MASB) agree that International Financial Reporting Standards (IFRS) can be applied to transactions in IFIs. While there are many similarities to conventional banking transactions, a few areas of divergence remain in IFIs. In that case, the likely option to resolve this dilemma is to have guidelines or options for IFIs within the framework of IFRSs. If these guidelines are to be enforced globally, one possible option is for Islamic organisations to work closely with the International Accounting Standards Board (IASB). This paper reviews the subject with respect to accounting standards for IFIs and finds a few areas of research that should be pursued.

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confidence: 99%

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confidence: 99%

Accounting Standards and Islamic Financial Institutions: the Malaysian Experience

Mohammed¹,

Ahmad²,

Fahmi³

2016

JIBF

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“…The same would seem to be the case in Asia and the Far East where systems of financial recordkeeping follow a parallel, if at times earlier, trajectory to those in the west (Napier 2009). Hosking also considers money plays an important part in the trust equation, 'enabling us in normal times to obtain goods and services from people we do not know, have no other grounds for trusting, and are never likely to meet again' (Hosking 2008).…”

Section: Accountability and Auditmentioning

confidence: 79%

Is it a question of trust or why are we afraid to go to Nineveh?

Moss

2011

Arch Sci

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Trust is an overused concept in our contemporary world. This paper explores the complex relationship of trust, efficiency, accountability, transparency and responsibility and their relationship to recordkeeping in our globalizing culture. It focuses on the profound changes that have taken place in the meaning and practice of audit within neo-liberal societies and how the 'rituals of verification' and the 'managerialism' may pervert the resulting record. It challenges the unthinking use of much of the rhetoric surrounding these concepts by archivists to justify their existence. It reflects on why the archival voice often remains silent or at best goes unheard in much of the discussion about these questions that have profound consequences for democratic societies. It is easy to lay the blame at the door of a perceived breakdown of trust rather than to consider whether the root of the problem lies with archivists and records managers themselves. This paper draws on my experience in directing the Information Management and Preservation MSC programme at the University of Glasgow and wide and serendipitous reading, which has sometimes been brought to my notice by students.Keywords Trust Á Transparency Á Accountability Á Audit culture Á Governance Á Freedom of information Á Risk management Trust slips easily off the tongue and enjoys a common currency in many different contexts. It is easy to contend in the wake of the wars in Iraq and Afghanistan, the financial crisis, the growth of the surveillance society and the audit culture that there has been an erosion of trust and even that we live in a post-trust society (O'Neill

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“…… that is more just with Allah; more solid as evidence, and more convenient to prevent doubt among yourselves...". This longest single verse in the Quran revealed how to records a transaction of financial debt for a fixed period of time (Napier, 2009). Napier goes further to argue that the verse does not indicate the subsequent steps when the transactions are mature.…”

Section: History Of Islamic Accountingmentioning

confidence: 99%

“…Some other scholars have indulged into studying estate accounting records belong to some dead people (Napier, 2009) records were also important for trader in order to help them measuring the profit and capital growth for the purpose of proper measuring for Zakat (Zaid, 2000b). …”

Section: History Of Islamic Accountingmentioning

confidence: 99%

A Critique On Consolidation Accounting For Islamic Financial Institutions

Abdulbari¹

2018

The European Proceedings of Social and Behavioural Sciences

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Since the establishment of the AAOIFI in 1990, 94 standards in areas of Shariah, accounting, auditing, ethics and governance have been issued, accompanied with a wide acceptance by many countries in which the AAOIFI standards became voluntary or obligatory adopted. Hence, as a newly established Shariah-based accounting standard setting organization, a study that investigates the compatibility of AAOIFI accounting principles with the issued standards, along with examining the usefulness extents of these standards to the different stakeholders is a necessity. To this end, this paper investigates the compatibility of the principle of "form-over-substance" with the AAOIFI FAS 23(Consolidation) as applied by parent IFIs, along with examining the usefulness extent of consolidated reports for IFIs to the different stakeholders. The paper is based on documentary and textual analysis of Islamic accounting theory. The study concluded that consolidation accounting is considered as one of the very first expression of the substance over form principle because it gives priority to the reality of economic relationships over legal form. Meaning that, a large discrepancy between consolidation accounting principles and the framework of principles as set forth by the AAOIFI is existed. Furthermore, the study concluded that stand-alone financial statements for a parent IFI are crucial for stakeholders to evaluate financial performance of the parent IFI accurately.

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Defining Islamic accounting: current issues, past roots

Cited by 92 publications

References 51 publications

Accounting Standards and Islamic Financial Institutions: the Malaysian Experience

Accounting Standards and Islamic Financial Institutions: the Malaysian Experience

Is it a question of trust or why are we afraid to go to Nineveh?

A Critique On Consolidation Accounting For Islamic Financial Institutions

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