IDEAS home Printed from https://ideas.repec.org/a/arp/tjssrr/2018p348-352.html
   My bibliography  Save this article

The Delineation of the Islamic Accounting Concepts through the Narrative Reviews Intrepretation

Author

Listed:
  • Norazita Marina Abdul Aziz*

    (School of Languages, Civilisation and Philosophy, Universiti Utara Malaysia, 06010 Sintok, Kedah)

  • Dr. Fadzila Azni Ahmad

    (Centre for Islamic Development Management Studies (ISDEV), Universiti Sains Malaysia, Malaysia)

Abstract

Islamic accounting records the Islamic business transactions through the adoption of International Accounting Standards (IAS). To harmonise the Islamic accounting principles and rules with IAS, some of the paragraphs in the IAS, which deviates the Islamic fundamental law, will be deleted, omitted or disregarded based on the relevancy of its usage. Similarly, the application of the conventional conceptual framework is fully adopted based on the acceptance of the universal law of the peoples’ in outlining the elements consists in qualitative characteristics. However, Islamic accounting is founded within the foundation of Shariah Law.In line with this, questions arise pertaining to the Islamic accounting fundamental principles within the Islamic philosophical stances consisting tasawur, ontology, epistemology and axiology. Thus, this paper aims to evaluate the appropriateness of Islamic accounting concepts in adopting-modifying strategies from the conventional accounting framework. The narrative reviews approach was employed in undertaking the literature search for selected articles based on the inclusion and exclusion criteria. The goal of narrative reviews is to identify common themes across research regarding a particular subject that then can be used to identify commonalities and critical differences among included documents. The paper utilises interpretive inquiry of the texts mainly from the al-Quran, Hadiths and other related literatures in the research area. The findings reveal the Islamic accounting concepts, which includes characteristics, principles and elements, has to be aligned with the Islamic Shariah Law. From the narrative review, the Islamic accounting concepts emphasise on the relationship to Allah, relationship to human through social welfare, social justice, loyalty, trustworthiness, accurate weightage, full disclosures, timeliness, monetary values and clarity. The important elements prohibited in Islamic transactions includes activities related to deprived interest (riba), gambling (maisir), uncertainty (gharar), and haram commodities such as pork and alcohol. In summary, the Islamic accounting concepts has to be developed within the Islamic epistemological stances with reference to the exegesis stipulated in the al-Quran, and Hadith through the derivation from the narrative review approach.

Suggested Citation

  • Norazita Marina Abdul Aziz* & Dr. Fadzila Azni Ahmad, 2018. "The Delineation of the Islamic Accounting Concepts through the Narrative Reviews Intrepretation," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 348-352:6.
    • Handle: RePEc:arp:tjssrr:2018:p:348-352
    as

    Download full text from publisher

    File URL: https://www.arpgweb.com/pdf-files/spi6.54.348.352.pdf
    Download Restriction: no
    File URL: https://www.arpgweb.com/journal/7/special_issue/12-2018/6/4
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rania Kamla & Sonja Gallhofer & Jim Haslam, 2006. "Islam, nature and accounting: Islamic principles and the notion of accounting for the environment," Accounting Forum, Taylor & Francis Journals, vol. 30(3), pages 245-265, September.
    2. Rizal Yaya, 2004. "Would The Objectives And Characteristics Of Islamic Accounting For Islamic Business Organizations Meet The Islamic Socio-Economic Objectives?," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 8(2), pages 141-163, Desember.
    3. Haas, Peter M., 1992. "Introduction: epistemic communities and international policy coordination," International Organization, Cambridge University Press, vol. 46(1), pages 1-35, January.
    4. Morgan, Gareth, 1988. "Accounting as reality construction: Towards a new epistemology for accounting practice," Accounting, Organizations and Society, Elsevier, vol. 13(5), pages 477-485, August.
    5. Kamla, Rania, 2009. "Critical insights into contemporary Islamic accounting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 20(8), pages 921-932.
    6. Bassam Maali & Peter Casson & Christopher Napier, 2006. "Social reporting by islamic banks," Abacus, Accounting Foundation, University of Sydney, vol. 42(2), pages 266-289, June.
    7. Mervyn K. Lewis, 2001. "Islam and accounting," Accounting Forum, Taylor & Francis Journals, vol. 25(2), pages 103-127, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Riaz, Umair & Burton, Bruce & Monk, Lissa, 2017. "Perceptions on Islamic banking in the UK—Potentialities for empowerment, challenges and the role of scholars," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 47(C), pages 39-60.
    2. Riaz, Umair & Burton, Bruce & Fearfull, Anne, 2023. "Emotional propensities and the contemporary Islamic banking industry," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 94(C).
    3. Osman, Mohamed & Gallhofer, Sonja & Haslam, Jim, 2021. "Contextualising and critically theorising corporate social responsibility reporting: Dynamics of the late Mubarak Era in Egypt," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 74(C).
    4. Kamla, Rania, 2009. "Critical insights into contemporary Islamic accounting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 20(8), pages 921-932.
    5. Kamla, Rania & Haque, Faizul, 2019. "Islamic accounting, neo-imperialism and identity staging: The Accounting and Auditing Organization for Islamic Financial Institutions," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 63(C).
    6. Gallhofer, Sonja & Haslam, Jim, 2019. "Some reflections on the construct of emancipatory accounting: Shifting meaning and the possibilities of a new pragmatism," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 63(C).
    7. Chengli Shu & Hammad Bin Azam Hashmi & Zhenxin Xiao & Syed Waqar Haider & Mishal Nasir, 2022. "How Do Islamic Values Influence CSR? A Systematic Literature Review of Studies from 1995–2020," Journal of Business Ethics, Springer, vol. 181(2), pages 471-494, November.
    8. Yasmin, Sofia & Ghafran, Chaudhry & Haslam, Jim, 2021. "Centre-staging beneficiaries in charity accountability: Insights from an Islamic post-secular perspective," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 75(C).
    9. Zakaria Ali Aribi & Thankom Arun, 2015. "Corporate Social Responsibility and Islamic Financial Institutions (IFIs): Management Perceptions from IFIs in Bahrain," Journal of Business Ethics, Springer, vol. 129(4), pages 785-794, July.
    10. Khaled O. Alotaibi & Mohammad M. Hariri, 2021. "Content Analysis of Shariah-Compliant Investment Equity Funds in KSA: Does Social Justice Matter?," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(6), pages 1-1, July.
    11. Zainuldin, Mohd Haniff & Lui, Tze Kiat, 2020. "Earnings management in financial institutions: A comparative study of Islamic banks and conventional banks in emerging markets," Pacific-Basin Finance Journal, Elsevier, vol. 62(C).
    12. Shahid, Ahmad Usman & Patel, Chris & Pan, Peipei, 2022. "Corporate social responsibility, intrinsic religiosity, and investment decisions," Journal of Behavioral and Experimental Finance, Elsevier, vol. 34(C).
    13. Kamla, Rania, 2015. "Critical Muslim intellectuals’ thought: Possible contributions to the development of emancipatory accounting thought," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 31(C), pages 64-74.
    14. Gallhofer, Sonja & Haslam, Jim & Yonekura, Akira, 2013. "Further critical reflections on a contribution to the methodological issues debate in accounting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 24(3), pages 191-206.
    15. Akrum Helfaya & Amr Kotb & Rasha Hanafi, 2018. "Qur’anic Ethics for Environmental Responsibility: Implications for Business Practice," Journal of Business Ethics, Springer, vol. 150(4), pages 1105-1128, July.
    16. Ataur Belal & Omneya Abdelsalam & Sardar Nizamee, 2015. "Ethical Reporting in Islami Bank Bangladesh Limited (1983–2010)," Journal of Business Ethics, Springer, vol. 129(4), pages 769-784, July.
    17. Dina M. Abdelzaher & Amr Kotb & Akrum Helfaya, 2019. "Eco-Islam: Beyond the Principles of Why and What, and Into the Principles of How," Journal of Business Ethics, Springer, vol. 155(3), pages 623-643, March.
    18. Claude Paraponaris, 2017. "Plateformes numériques, conception ouverte et emploi," Post-Print halshs-01614430, HAL.
    19. Andrew B. Whitford & Derrick Anderson, 2021. "Governance landscapes for emerging technologies: The case of cryptocurrencies," Regulation & Governance, John Wiley & Sons, vol. 15(4), pages 1053-1070, October.
    20. Barry Eichengreen and Fabio Ghironi., 1997. "European Monetary Unification and International Monetary Cooperation," Center for International and Development Economics Research (CIDER) Working Papers C97-091, University of California at Berkeley.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arp:tjssrr:2018:p:348-352. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Managing Editor (email available below). General contact details of provider: http://arpgweb.com/?ic=journal&journal=7&info=aims .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.