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Maslaha-Based Value-Added Statement

Author

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  • M. Nur A. Birton

    (Universitas Muhammadiyah Jakarta, Indonesia Author-2-Name: Mahfud Sholihin Author-2-Workplace-Name: Universitas Gadjah Mada, Yogyakarta, Indonesia Author-3-Name: Muhammad Muttaqin Author-3-Workplace-Name: Universitas Muhammadiyah Jakarta, Jakarta, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

"Objective - This article aims to (1) examine three concepts of practical ethics originating from fiqh muamalah studies, namely al kharaj bi al dhaman, maslaha, and nafaqa, as substitutes for the more philosophical basis of Baydoun and Willett's (2000) Islamic ethics; and (2), apply the three concepts to improve the structure and content of Baydoun and Willett's (2000) value-added statement. Methodology/Technique - Maslaha-based VAS can improve VAS weaknesses in Baydoun and Willett's (2000) ICRs and be an alternative to the 1993 and 2010 AAOFI income statements. Findings - The use of the kharaj bi al dhaman, maslaha, and nafaqa concepts could direct the content and structure of financial reports from the ""secular"" one into sharia and humanistic. Novelty - The application of the concept of kharaj bi al dhaman substitutes for the matching concept; the idea of nafaqa substitutes for expenses; and the notion of maslaha makes the maslaha-based VAS more powerful, philosophical, conceptual, and practical than the VAS of Baydoun and Willett and the AAOIFI income statement Type of Paper - Review"

Suggested Citation

  • M. Nur A. Birton, 2022. "Maslaha-Based Value-Added Statement," GATR Journals afr217, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:afr217
    DOI: https://doi.org/10.35609/afr.2022.7.2(4)
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    References listed on IDEAS

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    1. Walker, Martin, 2010. "Accounting for varieties of capitalism: The case against a single set of global accounting standards," The British Accounting Review, Elsevier, vol. 42(3), pages 137-152.
    2. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Al kharaj bi al dhaman; Islamic corporate reports; maslaha; nafaqa; value-added statement.;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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