Current debates in the accounting world, which emphasis on the issues of International Financial Reporting Standards (IFRS) as a common global financial reporting language, are compelling international accounting organizations to consider Islamic accounting. Despite the existence of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) to provide accounting standards for Islamic Financial Institutions (IFIs), there is still no standardized accounting for Islamic financial transactions. The main concern today is that the accounting policies adopted by Islamic banks in preparation of their financial statements are largely unregulated. This is why almost every Islamic financial institution has developed its own accounting policy for the various contacts governing their work resulting in significant variations. These differences unfortunately make it difficult to compare the financial statements of Islamic financial institutions, as well as make them look less credible in the eyes of international market players.
Islamic Accounting and Business Research is intended to cover current theoretical and empirical research and practice in Islamic accounting, auditing and corporate governance, management of Islamic organizations, accounting regulation and policy for Islamic institutions, Shari’ah auditing and corporate governance, financial and non-financial performance measurement and disclosure in Islamic institutions and organizations. The book is aimed to discuss the history of Islamic accounting from its emersion to its subsequent development and expected growth in the future. In doing so, the book will analyze the historic influence of Islamic accounting over its conventional counterpart which dominates the industry today. Moreover, it will provide an analysis of the similarities and differences between Islamic and conventional accounting today from both a theoretical and real-world perspective.
This book provides state of the art information for the advancement of accounting and business knowledge based on Shari’ah and Islamic activities that have an impact on the welfare of society.