Financial Reporting of Islamic Financial Institutions: Comparative Analysis of AAOIFI and IFRS

This chapter elucidates the arguments for and against differential approach pertaining to financial reporting amongst Islamic Financial Institutions (IFIs). The chapter has identified additional objectives which the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) aims to achieve in…

Zakat Calculation Methodologies of Islamic Financial Institutions in Malaysia: A Critical Review

INTRODUCTION The ways in which people manage their wealth and financial affairs have developed rapidly in the 20th and 21st centuries. New types of assets have emerged, and various forms of companies with independent legal entity have been created. Accounting…

Financial Reporting of Intangible Assets in Islamic Finance

  Prior studies on financial reporting of intangible assets have shown significant developments in financial reporting standards, which represent efforts to address the unique features of intangible assets, particularly relating to goodwill, research and development and business combinations. With advances…

Actual Loss: Its Implications in Early Settlements and Defaults on Islamic Bank Financings

Islamic banks as financial intermediaries face asset liability mismatches when their customers breach the terms and conditions of their agreements, and these events affect banks’ profitability. While conventional banks are free to impose various charges on their customers in such…

Metodologi Pengiraan Zakat di Institusi Kewangan Islam di Malaysia

Preference shares: analysis of Shari'ah issues

Abstract Purpose – The purpose of this paper is to analyze the different features of preference shares from accounting and Sharīʿah perspectives. It also aims to study Sharīʿah issues arising from preference shares and to subsequently propose solutions for identified…

Preference Shares: An Analysis of Shari'ah Issues

From their original feature of preference in dividend distributions, preference shares have evolved significantly to the present time with a range of other rights granted to their holders. The classification of preference shares in financial reporting based on International Financial…

External Shari’ah Audit Report

A Critique on Accounting for Murabaha Contract: A Comparative Analysis of IFRS and AAOIFI Accounting Standards

Purpose The purpose of this paper is to examine the accounting treatment and reporting of a murabaha contract and its implication to the financial statements of Islamic banks. In addition, the paper also explains the implication of time value of…