Technical Note
ISLAMIC ACCOUNTING: AN ATTEMPT TO CONFORM TO RELIGIOUS GUIDELINES OR COVENTIONAL ACCOUNTING PRACTICE
INDUSTRY :-
AREA :ACCOUNTING & CONTROL
ORGANIZATION :-
LENGTH :7
LUMS No :01-005-2018-2
PUBLICATION YEAR : 2018
ABSTRACT:
This note attempts to critically analyse the suitability of the approach adopted towards the development of a financial reporting framework by the AAOIFI. The accounting treatment for transactions involving Islamic financial products postulated by the AAOIFI appears to have originated from the need for Islamic Financial Institutions (IFIs) to operate in largely westernised financial markets. The Islamic financial reporting principles, as practiced in the modern world, seem to be an innovation on traditional accounting, rather than following the ideas of accounting consistent with the Shariah, despite being extensively prescribed in recent literature on the subject.