Professional Documents
Culture Documents
IN ISLAM
Prepared by:
JURIAH BINTI LATIF
SHARMA BINTI JABIR
AZIZAH BINTI YAHPAR
Q1: Historical development-5th to 12
century
4)
Accounting 2)
Warehouse Construction
accounting System accounting
3)
Agricultural
accounting
5)
Currency
accounting
Accounting
system
7) 6) Sheep
Treasury Grazing
accounting accounting
Accounting Record
Jaridah Al- Jaridah
Jaridah
Kharaj Annafakat
Daftar Al-
Tawjihat
Types of
accounting
reports
Al-Khitmah
Al-Khitmah
Al-Jame’ah
The development of accounting records &
reports in the islamic state have most
likely contributed to the development and
practice of accounting in Itally as
documented by Pacioli in 1494
Q2: Factors behind the development
islamic accounting records & reports in
Muslim civilization
Zakat
Baitulmal,
Religously
motivated Development Waqf ,
Diwan2
Geographical
expansion
Q3:The features of accounting practice
Based on syariah/islamic
ethics & islamic eco.
-Accountibility to society
-Full disclosure
Support socio-justice
Q4:The world view behind the theory and
practice of conventional accounting.
Theory
Based on ethical value concept
Secularism
Emphasis on reasoning as well as
illumination of rationality
Continued…
Practice
Western world view and form the basis
of accounting system
Relies on ethical value concepts and
rational economic foundation
Focus on rational economic decision
model
Accountability to primary users
Limited disclosure
Support / enhance capitalism
Q5: Difference characteristics of Islamic
accounting information and conventional
accounting
Islamic Conventional
System •Syariah regulations •Conventional regulations
Relevance •Truth, fair and accurate •Influence economic decision
disclosure of all facts •Timeliness
Undestandability •Information not to deceive user •Information in understandable
form
Materilaity •Disclosure of all necessary •Information that would have
information impact on economic decision
Decision usefulness
Stewardship
Islamic Accountability
Decision usefulness
-provide information that is useful in making
business and economic decision.
-information about islamic bank’s compliance
with the islamic syariah
-information about financial position and
performance
-cash flow information
-information to assist the concerned party in
determination of zakat
-social and environmental information
Stewardship
-contribute to the safeguarding of the assets,
and to the enhancement of the managerial
and productive capabilities of islamic bank,
encouraging compliance with its established
goal and policies
Islamic Accountability
-premised on both the accouter & the
accountee having dual accountabilities
-arise from concept khilafa; accountable to
Allah on the day of judgment for all resources
under their control, how it is used
-contract between an owner & a manager,
social contract between firm & society.
Conventional
-accountable and provide useful information
mainly to shareholders, lenders & creditors.
2. Measurement
Zakat as a cornerstone of determining
measurements tools
-concept in Islam deals with specifically
with measurement of assets,
-one of the 5 pillars of Islam,
-development of accounting in early
Muslim government
Based on the selling price prevailing at the
time zakat fall due
Apply current cost not HC
3. Disclosure & Presentation of
Information
Economic performance / financial
statements
Social responsibilities information
Zakat information
Any prohibited transaction
Non-fulfillment of contract
Value added statement
Q8. Shortcoming of conventional historical
cost accounting from Islamic perspective.
Historical cost has no syariah basis to
applied in an islamic perspective,
The contract fulfillment principle cannot
be used,