The Disclosure Evaluation of Islamic Banking Reports : Evidences from Middle East and Other Regions in Asia

Abstract

Islamic banking is the most attractive sector in Islamic financial system. The institution encourages not only economic aspects but also social aspects in accordance with Shariah principles in operation. Thus, the managements are required to be accountable to their stakeholders at large and not limited only to the shareholders. One of the accountability's forms is the presentation and disclosure in their annual reports. It is the way to disclose financial and non-financial performance of Islamic banks. This paper aims to elaborate the sources of development of Islamic banking reporting based on the AAOIFI standards, the harmonization of Islamic accounting standards with IFRS, the alternative components of Islamic banking reports, and the accounting policies for Islamic banks in some countries. Secondly, this paper attempts to evaluate the existing Islamic banking reporting components in order to scrutinize its development. This paper selects and evaluates 5 Islamic banks in Middle East region and 4 Islamic banks in other regions in Asia, which have significant contribution in the development of Islamic banking and finance. This study found that Islamic banks did not have similarity in the disclosure components. However, these diversities could be complementary to each other toward the ideal Islamic banking reporting.

Tingkat Relevansi Dan Faithful Representation Laporan Keuangan Perbankan Syariah Di Indonesia

“…1 (2018): 13, https://doi.org/10.9744/jak.20.1. 13-19. Jurnal Al Qardh, Volume 4, Desember 2019 keuangan syariah 7 . PSAK-IFRS diterapkan selama tidak melanggar syariat Islam.…”

Apakah Leverage, Ukuran Perusahaan dan Masa Jabatan Direksi Mempengaruhi Kualitas Laporan Keuangan Bank Umum Syariah?

“…Transaksi syariah diatur dengan menggunakan PSAK Syariah yaitu PSAK 101 sampai dengan PSAK 111. Untuk PSAK Syariah sendiri, Indonesia mengadopsi dari Accounting and Auditing Organization for Islamic Finance Institution (AAOIFI) dengan beberapa penyesuaian (Muhammad, 2016).…”

Gauging Profitability and Liquidity of Islamic Banks: Evidence from Malaysia and Pakistan

“…This responsibility is fulfilled to some extent by disclosure of monetary and non-monetary information. Disclosing such useful information is not in the similar way all-around and such diversities in procedure is directed towards the improvement in Islamic banking reports (Muhammad, 2013).…”