Accounting and accountability of waqf, zakat and Baitul Mal (WZB) in Malaysia: A review of literature

Sulaiman, Maliah and Mohamad, Muslim Har Sani and Abdul Rashid, Hafiz Majdi and Osman@Hussin, Ahmad Zamri and Siraj, Siti Alawiah and Nuhu, Ibrahim (2016) Accounting and accountability of waqf, zakat and Baitul Mal (WZB) in Malaysia: A review of literature. IPN Journal of Research and Practice in Public Sector Accounting and Management, 6. pp. 1-14. ISSN 2180-4508

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Abstract

This article reviews literature on accounting and reporting for waqf, zakat and baitul mal (WZB). Given that WZB are under the purview of the State Islamic Religious Councils (SIRCs), the structure of the administrative machinery of Islamic affairs is discussed and how this gives rise to the unique demarcation in powers and authority on policies pertaining to Islam between the Federal and state governments is clarified. The notion of accountability as is generally understood in the West is elaborated and subsequently compared with the concept of accountability from Islam’s perspective. Prior studies on waqf and zakat examining the accounting and reporting aspects were reviewed. Issues such as poor documentation and record keeping, absence of sound accounting system, limited disclosure on the level and types of information, absence of separate financial statements are some of the pertinent findings of such studies. The paper also raises important questions about the validity of the current accounting practices of WZB and put forth various suggestions for future research. Finally, the initiative by the Accountant General's Department (AGD) to develop a financial accounting and reporting framework and standards for WZB is indeed laudable, timely and significant for the proper development of annual performance reporting of SIRCs. However, such an initiative should involve regulatory bodies such as the Jabatan Kemajuan Islam Malaysia (JAKIM), SIRCs as well as academics. Expertise from both accounting and Sharia should also be involved in this endeavour.

Item Type:	Article (Journal)
Additional Information:	7709/61497
Uncontrolled Keywords:	Accounting and accountability of waqaf; Zakat and Baitul Mal (WZB) in Malaysia : A review of literature
Subjects:	H Social Sciences > HJ Public Finance > HJ1438 Public Finance In Islam H Social Sciences > HJ Public Finance > HJ9701 Public accounting
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User:	Dr Muslim Har Sani Mohamad
Date Deposited:	29 Jan 2018 15:23
Last Modified:	29 Jan 2018 15:23
URI:	http://irep.iium.edu.my/id/eprint/61497

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