Accounting and the practice in Islamic Countries

This is the matter of the application in syari’a accounting, when many company applied the conventional accounting, many people forget to make a special analysis regarding to the syari’a company’s practice for the financial tools that they use. In Islamic, the use of the measurement for any transaction must be in line with the Islamic roles, and prohibited riba. Since the appearance of the Islamic economic reformation, there are many changes in the application in financial measurement.

Syari’a accounting is the system that must apply in any of Islamic institution. This action defines that must be give the standard of the financial application in any circumstances. Syari’a accounting is the basic to find the best approach in having the financial report. Experts say in doing the yearly financial report practice, let say in Malaysian and Indonesia. The result compare to the product in banking sector and the operational report is in line with the syari’a accounting. Regarding the financial report, financial statement and the balance shit is not in line with the syari’a accounting standard, this happen in both Indonesia and Malaysia country.

There are five possibilities why this syari’a accounting is not work well. There are, the western influence, as the nature of the historical background, there are not fully and same understanding in syari’a accounting, and the monitoring qualification in having the syari’a accounting practice.

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This entry was posted on Tuesday, May 11th, 2010 at 5:56 am and is filed under Syariah finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.