Mohd. Shariff, Ros Aniza and Abdul Rahman, Abdul Rahim (2005) An exploratory study of Ijarah accounting practices in Malaysian financial institutions. The International Journal o f Accounting and Business Society, 13 (1/2). pp. 45-68.
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Abstract
Prior studies on Ijarah were mainly focusing on the economics, legal and financial aspects, there was, however, so far no in- depth study on accounting for Ijarah. The main objective of this study is to explore the nature of accounting practices as practiced by Malaysian financial institutions. First, the study makes comparison between the Intemational Accounting Standard on leasing (IAS 17); the accounting standard for Ijarah (FAS 8) as developed by the Accounting and Auditing Organization for lslamic Financial Institutions (AAOIFI); and the Malaysian Accounting Standard Board (MASB 10). The study found that there are major differences as to the nature of leasing and Ijarah, and as a result accounting principles that have driven all the three standards as well as accounting techniques developed for leasing and Ijarah are significantly different. Secondly, the study examines the level of acceptability of the AAOlFI's FAS 8 among the Malaysian financial institutions. The result of the questionnaire survey shows a low level of acceptability of FAS 8 and the result from the interviewsurvey further confirms this finding. This study indicates, subject to further studies on other lslamic financial instruments and other lslamic countries, that the effort to harmonise the accounting practices on lslamic financing practices by financial institutions Internationally may be a difficult task. Secondly, until and unless the AAOIFI standard is adopted by the regulatory agency as in the case of Malaysia, Bank Negara Malaysia, AAOIFI standards will remain only as a reference but do not have the legal authority. Consequently, the quality and comparability of accounting information of lslamic financing such as Ijarah will be seriously at a stake.
| Item Type: | Article (Journal) |
|---|---|
| Additional Information: | 3323/24989 |
| Uncontrolled Keywords: | An exploratory study of Ijarah accounting practices in Malaysian financial institutions |
| Subjects: | H Social Sciences > HB Economic Theory > HB126.4 Islamic Economics H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5601 Accounting. Bookkeeping H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance |
| Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): | Kulliyyah of Economics and Management Sciences > Department of Accounting |
| Depositing User: | Professor Abdul Rahim Abdul Rahman |
| Date Deposited: | 08 Jul 2013 10:25 |
| Last Modified: | 08 Aug 2019 12:20 |
| URI: | http://irep.iium.edu.my/id/eprint/24989 |
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