A Mapping of Islamization of Accounting

Nurika Restuningdiah, Vega Wafaretta, Rizka Furqorina

Abstract


Objective - Most scholars agreed that Islamic accounting should incorporate Al-Quran and Hadith, but they have different perspectives relating to how far accounting to be Islamized. Therefore, this study aims to map the Islamization of accounting based on different approaches; and describe the gaps and opportunities of developing Islamic accounting theory among the approaches.

Methods - This study uses meta-aggregation consisting of scoping the focus, selecting previous studies, identifying the data, synthesizing the findings, and producing a synthesized discovery.

Results - Findings discovered three main syntheses. First, constructive approach proposes a pure Islamic accounting. Second, contrary to constructive, pragmatic approach adjusts contemporary accounting with sharia. Third, hybrid approach mediates between constructive and pragmatic, which considers Islamic values and social benefits.

Conclusion - Each approach has its opportunities to be developed so that they can go through together to complement each other. This study limits only mapping by literature review. The results implicate to provide ideas to develop Islamic accounting through three approaches identified.

Keywords


Islamization, Islamic accounting, constructive approach, pragmatic approach, hybrid approach

Full Text:

PDF

References


Abdul-Baki, Z., Uthman, A. B., Olanrewaju, A. A., & Ibrahim, S. A. (2013). Islamic Perspective of Management Accounting Decision Making Techniques. Journal of Islamic Accounting and Business Research, 4 (2), 203–219.

Abdullah, S. (2018). Conventional and Islamic Perspective in Accounting: Potential for Alternative Reporting Framework. International Journal of Economics and Management Engineering, 12 (2), 202–205.

Adebayo, R. I. (2015). From Islamicizing the Sciences to Strategizing for Muslims’ Scientific Breakthrough. International Journal of Islamic Thought, 7, 25–38.

Ahmed, E. A. (1994). Accounting Postulates and Principles from an Islamic Perspective. Review of Islamic Economics, 3 (2), 1–18.

Al Faruqi, I. R. (1988). Islamization of Knowledge: Problems, Principles and Perspective in Islam. Herndon Virgina: International Institute of Islamic Tought.

Alahrash, O. M. A. (2015). Accounting from the Perspective of Islamic Sharia. South East Asia Journal of Contemporary Business, Economics and Law, 7 (1), 1–8.

Atmeh, M. A., & Ramadan, A. H. (2012). A Critique on Accounting for the Mudarabah Contract. Journal of Islamic Accounting and Business Research, 3 (1), 7–19.

Badshah, I., Mellemvik, F., & Timoshenko, K. (2013). Accounting from a Religious Perspective: A Case of the Central Government Accounting in Islamic Republic of Pakistan. Asian Economic and Financial Review, 3 (2), 243–258.

Baydoun, N., & Willet, R. (2000). Islamic Corporate Report. Abacus, 36 (1), 71–90.

Bayou, M. S. M. S. (2017). The Nature of Islamic Accounting and Methodology Used in Muslim Countries: Practical Application in UAE. In: 18th Asian Academic Accounting Association (FourA) Annual Conference, pp. 192–199. Bali.

Bello, A. (2017). Accounting for Inflation: Arguments of Recognition in Islamic Accounting Standards. In: SHS Web of Cenference 34, Vol. 09004.

Birton, M. N. A., Triyuwono, I., Mulawarman, A. D., & Rahman, A. F. (2015). Theory of Shariahization on Conceptual Accounting Framework: A Substantive Theory. Procedia Social and Behavioral Sciences, 211, 723–730.

Centorrino, G. (2014). Harmonization and More International Consistency of Islamic Financial Reporting. Zeszyty Naukowe Uniwersytetu Szczecińskiego Nr 802, „Finanse, Rynki Finansowe, Ubezpieczenia” Nr 65, Wydawnictwo Naukowe Uniwersytetu Szczecińskiego, Szczecin, S., 65 (802), 275–288.

Gambling, T. E., & Karim, R. A. A. (1986). Islam and “Social Accounting.” Journal of Business Finance & Accounting, 13 (1), 39–50.

Gambling, T., & Karim, R. A. A. (1991). Business and Accounting Ethics in Islam. London: Mansell.

Haghighat, M. (2013). Component of Islamic Accounting. International Journal of Advanced Studies in Humanities and Social Science, 1 (4), 305–312.

Hameed, S. (2000). The Need for Islamic Accounting: Perceptions of Its Objectives and Characteristics by Malaysian Muslim Accountants and Accounting Academics. Scotland: University of Dundee.

Haniffa, R., Hudaib, M., & Mirza, A. M. (2008). Accounting Policy Choice within the Shari’ah Islami’iah Framework. In M. D. Bakar, & E. R. A. Engku Ali (Eds.), Essential Readings in Islamic Finance CERT.

Hudaib, M. (2016). Reflection on Islamic Accounting Research and Methodologies. Journal of Turkish Social Sciences Research, 1 (2), 40–46.

Ibrahim, A. A. (2015). Historical Evaluation on Islamic Accountancy. International Journal of Business, Economics and Law, 7 (1), 11–19.

Ikatan Akuntan Indonesia (IAI). (2007). Kerangka Dasar Penyusunan dan Penyajian Laporan Keuangan Syariah.

Kamla, R. (2009). Critical Insights into Contemporary Islamic Accounting. Critical Perspective on Accounting, 20, 921–932.

Khoramin, M. (2012). The Conceptual Framework of Islamic Accounting. Academic Journal of Accounting and Economic Researches, 1 (1), 21–30.

Lewis, M. (2001). Islam and Accounting. Accounting Forum, 25 (2), 103–127.

Majid, J., & Haliding, S. (2014). The Need for the Islamization of Knowledge in Accounting. Al-Iqtishad, VI (1), 11–21.

Mirza, M., & Baydoun, N. (1999a). Accounting Policy Choice in an Interest-Free Environment, Working Paper No. 1999-014.

Mirza, M., & Baydoun, N. (1999b). Do Islamic Societies Need Their Own Accounting and Reporting Standards? Journal of the Academy of Business Administration, 4 (2), 39–45.

Moten, A. R. (2004). Islamization of Knowledge in Theory and Practice: The Contribution of Sayyid Abul A’lā Mawdudi. Islamic Studies, 43 (2), 247–272.

Mukhlisin, M., Hudaib, M., & Azid, T. (2015). The Need for Shariah Harmonization in Financial Reporting Standardization The Case of Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 8 (4), 455–471.

Namaghi, D. M., Azarberahman, J., & Azarberahman, A. (2012). Theoretical Bases of Islamic Accounting and Challenges Ahead. International Journal of Commerce, Business and Management, 1 (3), 136–139.

Napier, C. (2007). Other Cultures, Other Accountings? Islamic Accounting from Past to Present. In: 5th Accounting History International Conference. Banff.

Napier, C. (2009). Defining Islamic Accounting: Current Issues, Past Roots. Accounting History, 14 (1–2), 121–144.

Pramuka, B. A. (1998). Accounting in Indonesia - A Study of the Ideological Influences on Western and Islamic Accounting Thought and Practices. Hull: University of Hull.

Rickinson, M., & May, H. (2009). A Comparative Study of Methodological Approaches to Reviewing Literature. York: The Higher Education Academy.

Rustiana, S. H. (2016). The Development of Syariah Accounting in Indonesia. International Journal of Business, Economics and Law, 9 (5), 117–123.

Saidat, Z. M. F. Al, Al-Ghazzawi, A. M., & Sulihat, N. A. (2014). Accounting Measurements: Islamic Perspective versus Financial Accounting Perspective. Interdisciplinary Journal of Contemporary Research in Business, 6 (2), 362–377.

Sarea, A. M., & Hanefah, M. M. (2013). The Need of Accounting Standards for Islamic Financial Institutions. International Management Review, 9 (2), 50–59.

Sartini. (2005). Islamization of Accounting. Jurnal Analisis Bisnis & Ekonomi, 3 (2), 197–203.

Scott, W. R. (2009). Financial Accounting Theory. Sixth edition. Toronto: Pearson Prentice Hall.

Suandi, A. B. (2013). Islamic Accounting in Indonesia: A Review from Current Global Situation. eb-islam.wg.ugm.ac.id/images/pdf/ShogakuKenkyukaKiyo_77_Suandi.pdf.

Sulaiman, M. (2000). Corporate Reporting from an Islamic Perspective. Akuntan Nasional, Oktober, p. 18–22.

Suryanto, T., & Ridwansyah, R. (2016). The Shariah Financial Accounting Standards: How They Prevent Fraud in Islamic Banking. European Research Studies, XIX (4), 140–157.

Tessema, A. M., Garas, S., & Tee, K. (2017). The Impact of Islamic Accounting Standards on Information Asymmetry. International Journal of Islamic and Middle Eastern Finance and Management, 10 (2), 170–185.

Tufanaru, C. (2015). Theoretical Foundations of Meta-Aggregation: Insights from Husserlian Phenomenology and American Pragmatism. Adelaide: The University of Adelaide.

Ul-Hassan, M. (2007). The Islamization of the Economy and the Development of Islamic Banking in Pakistan. Kyoto Bulletin of Islamic Area Studies, 1–2, 92–109.

Velayutham, S. (2014). “Conventional” Accounting vs “Islamic” Accounting: The Debate Revisited. Journal of Islamic Accounting and Business Research, 5 (2), 126–141.

Yaya, R. (2004). Would the Objectives and Characteristics of Islamic Accounting for Islamic Business Organizations Meet the Islamic Socio-Economic Objectives? Jurnal Akuntansi dan Auditing Indonesia (JAAI), 8 (2), 141–163.

Zhao, S. (1991). Metatheory, Metamethod, Meta-data-analysis: What, Why, and How? Sociological Perspectives, 34 (3), 377–390.




DOI: http://dx.doi.org/10.30993/tifbr.v13i2.189

Refbacks

  • There are currently no refbacks.


 
       
 
View My Stats