Maqasid Al-Shari’ah in Ijarah (Leasing) Contract of Islamic Banking System

This study aims to discuss the effects of the AAIOFI accounting standards of financial leased assets on the accounting treatment of the lessee in the case of using the Islamic finance lease. The importance of this study became evident when AAIOFI announced Islamic accounting standards with a significant difference between the IFRSs about the recognition of leased financial assets. Islamic financial institutions recognize the financial leased assets following AAIOFI accounting under long-term assets in the statement of financial position. This study used the interviews as a qualitative research method with financial managers of Jordanian companies using Islamic financial leasing. This study reached the conclusion that both Islamic financial leasing parties recognize the assets in the long-term asset side. The recommendations to avoid the inflation of the Islamic financial leased assets will be by applying a reasonable accountancy treatment by the lessee and consider it as operational leasing with proper justification for the non-compliance with the IFRS.

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Maqasid Al-Shari’ah in Ijarah (Leasing) Contract of Islamic Banking System

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The Impact of the Islamic Banking Industry on Economic Growth and Poverty Reduction in Pakistan

The Impact of the Islamic Banking Industry on Economic Growth and Poverty Reduction in Pakistan

Ijarah

Explore the Lessee Accounting Treatment When Utilizing the Islamic Financial Leasing

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