scholarly journals Business succession from an Islamic accounting perspective

2019 ◽  
Vol 11 (2) ◽  
pp. 267-281 ◽  
Author(s):  
Umar Habibu Umar ◽  
Junaidu Muhammad Kurawa
Keyword(s):  
Family Business ◽  
Design Methodology ◽  
Islamic Law ◽  
Accounting Standards ◽  
Accounting Standard ◽  
Content Type ◽  
Going Concern ◽  
Business Succession ◽  
Full Consideration ◽  
Practical Implications

Purpose The purpose of this paper is to discuss the inheritance of a business from the Islamic accounting perspective. Design/methodology/approach The paper adapts the relevant provisions of conventional accounting standards and practices that conform to Sharīʿah (Islamic law). In addition, the provisions of the Islamic accounting standard for musharakah (AAOIFI’s FAS No. 4) found to be relevant are also adapted. Findings The study shows that the assets of an inherited business should be measured at their fair values and that liabilities and legacies must be deducted therefrom with the view to arriving at the equity (or residue). The equity is then distributed among the heirs based on the sharing ratio established according to the Noble Qurʾān, the Sunnah (the Prophet’s way) and Muslim jurists’ views. Therefore, the inherited business becomes a family business as each heir is admitted into it. By extension, Islam emphasizes that the business should remain a going concern to generate income to sustain the welfare of the heirs. Research limitations/implications The discussion of the paper is limited to the inheritance of a business and its going concern in line with the Sharīʿah. Practical implications Special attention should be paid to the inherited business to ensure not only its continuity to generate income for the heirs but also that each heir gets a correct share of the equity of the business as regulated by the Sharīʿah. Originality/value This study links Islamic inheritance to the going concern of the business, which from all indications has not been given full consideration by previous studies.

Measuring goodwill and noncontrolling interest under the new consolidation accounting standards

2017 ◽  
Vol 15 (2) ◽  
pp. 198-207
Author(s):  
James G.S. Yang ◽  
Frank J. Aquilino
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Accounting Standards ◽  
Financial Statements ◽  
Consolidated Financial Statements ◽  
Accounting Standard ◽  
Content Type ◽  
Net Assets ◽  
Practical Implications

Purpose The accounting standards for consolidated financial statements have been updated recently. The change involves the measurement of goodwill and noncontrolling interest. Under the new accounting standards, goodwill consists of not only the parent company’s portion but also the noncontrolling interest’s share. The noncontrolling interest comprises both the subsidiary’s identifiable net assets and goodwill. In addition, it further changes the treatment of noncontrolling interest from liability to equity. The change indeed has far-reaching consequences on financial statements. This paper formulates an equation to measure goodwill and noncontrolling interest. It also provides some examples for illustrative purposes. The purpose of this paper is to update the financial reporting to the current standards. Design/methodology/approach New accounting standards under FASB #141R and 160. Findings New accounting standards in measuring goodwill and noncontrolling interest in financial reporting. Research limitations/implications The knowledge is useful for accountants and financial analysts. Practical implications Improve the quality of financial statements. Social implications Investors will be better informed. Originality/value This new accounting standard was not explored before.

The IPSASB's recent strategies: opportunities for academics and standard-setters

2020 ◽  
Vol 32 (3) ◽  
pp. 315-319 ◽  
Author(s):  
Gwenda Jensen
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Design Methodology ◽  
Accounting Standards ◽  
Fitness For Purpose ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Public Sector Accounting ◽  
Ongoing Dialogue ◽  
Practical Implications

PurposeThe purpose of this article is to contribute to an ongoing dialogue between practitioners and academics. This article describes the International Public Sector Accounting Standards Board (IPSASB) recent strategies and highlights the IPSASB's increasing outreach to academics.Design/methodology/approachThis is a practitioner's viewpoint which reflects the IPSASB's publicly available documents, and the opinions of a practitioner directly involved in the IPSASB's work and International Public Sector Accounting Standards (IPSAS) development.FindingsThe findings are that the IPSASB has increased its outreach to academics and now academics have more opportunities to engage with the IPSASB and IPSAS developments. The IPSASB's strategy has remained relatively constant over time, focusing on IPSAS to address public sector-specific issues, alignment with the International Financial Reporting Standards (IFRS) and reduction of differences between IPSAS and Government Finance Statistics (GFS) reporting guidelines.Research limitations/implicationsThe limitations of this article (which are also its strength in terms of fitness for purpose) are that as a practitioner's viewpoint it provides a brief overview and personal judgments, rather than an empirical analysis of developments applying a theoretical framework.Practical implicationsThe practical implications were IPSASB's increased outreach to the research community providing opportunities for academics to have increased input into IPSAS development, with likely benefits to researchers and the IPSASB.Social implicationsPractitioners’ engagement with academics supports increased understanding of the respective views leading to better outcomes for practitioners and academics working in the area of public sector financial reporting and its regulation.Originality/valueThis article is the first to (a) describe the IPSASB's increasing outreach to academics during 2019–2020 and (b) compare the IPSASB's strategies for the period of 2019–2023, with its strategies since the beginning of IPSAS developments in 1996–1997.

A family-enterprise collective certification trademark: consumer insight

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anna Maria Nikodemska-Wolowik ◽  
Piotr Zientara ◽  
Anna Zamojska
Keyword(s):  
Family Business ◽  
Design Methodology ◽  
Family Firms ◽  
Research Work ◽  
Strong Relationship ◽  
Content Type ◽  
Family Enterprise ◽  
Negative Perceptions ◽  
Consumer Insight ◽  
Practical Implications

PurposeThe purpose of this study is to find out how consumers respond to a proposed family-enterprise collective certification trademark and how they perceive family firms in general.Design/methodology/approachThe paper employs a quantitative approach. It draws on a questionnaire survey conducted among 1,091 Polish consumers in January 2018. Statistical methods, such as exploratory factor analysis, were applied.FindingsPolish consumers responded positively to the proposed trademark. It also turned out that those who pay attention to the producer or the brand owner in a given sector also pay attention to the symbols placed on products or services from these sectors. There was a strong relationship between consumers' positive perceptions of family firms and their assessments of the proposed trademark. This did not extend to negative perceptions. The findings from this study may be generalisable to other post-communist societies.Practical implicationsFamily firms should redouble their efforts to introduce a family-enterprise collective certification trademark (not only in Poland, but also in those countries where such a trademark is non-existent). This should be handled by umbrella bodies for family business.Originality/valueLittle research work, based on a large and representative sample, has so far focussed on the issue of how consumers respond to a family-enterprise identity. The value of this study lies in deepening understanding of the processes and mechanisms that underlie the organisation–consumer relationship within the context of family-enterprise operation.

scholarly journals The concept and application of ḍamān al-milkiyyah (ownership risk)

2017 ◽  
Vol 9 (2) ◽  
pp. 148-163 ◽  
Author(s):  
Lutfi Abdul Razak ◽  
Muhammad Nabil Saupi
Keyword(s):  
Design Methodology ◽  
Islamic Law ◽  
Content Type ◽  
Practical Applications ◽  
For Profit ◽  
Descriptive Research ◽  
Financial Products ◽  
Financial Transactions ◽  
Practical Implications

Purpose The purpose of this paper is to elucidate the concept of ḍamān al-milkiyyah (ownership risk) and to assess its application in contemporary Islamic financial products and services. Design/methodology/approach The methodology adopted is that of descriptive research. Findings From an Islamic law of contract perspective, the concept of ḍamān al-milkiyyah is central to legitimate profit-making transactions and hence must be adhered to in practical applications of Islamic finance. Research limitations/implications This study should help motivate further investigation into the position of ḍamān al-milkiyyah among different parties in existing Islamic financial products and services. Practical implications Policymakers and regulators should ensure that Islamic financial products and services are structured in a way that does not allow parties to profit without adequately bearing the liability for potential loss. Social implications The condition of ḍamān al-milkiyyah as a source of legitimate profit reflects the idea that the role of finance in Islam is to promote and ensure social benefits. Originality/value This paper emphasizes the importance of ḍamān al-milkiyyah as a fundamental condition for profit in Islamic financial transactions.

Cultural values and their implications to family business succession

2019 ◽  
Vol 10 (4) ◽  
pp. 281-292 ◽  
Author(s):  
Grisna Anggadwita ◽  
Werda Bagus Profityo ◽  
Dini Turipanam Alamanda ◽  
Anggraeni Permatasari
Keyword(s):  
Cultural Values ◽  
Family Business ◽  
Family Businesses ◽  
Chinese Family ◽  
Content Type ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Family Business Succession ◽  
Practical Implications

Purpose The family business is one of the business entities that contribute to the economy of a country. Succession in the family business occupies a strategic position, especially in maintaining the company’s sustainability. The Chinese family business has unique characteristics in maintaining and growing its business with the cultural values that underlie how their business. The purpose of this paper is to discuss the cultural values of Chinese ethnic and their implications in the succession process in small family businesses in Bandung, Indonesia. Design/methodology/approach This research uses a qualitative method with the in-depth interview method as a data collection technique. The sampling technique uses purposive sampling, while to test the validity of research data using a triangulation technique. A total of four small Chinese-owned family businesses participated as informants in this study. The study will identify the stage of succession process in the Chinese family business. Findings There are several stages identified in the succession planning of small Chinese-owned family business in Bandung which include succession antecedents, succession activities and desired outcomes. The results showed that small Chinese-owned family business in Bandung has not applied the rules and procedures in the succession process. Most of the Chinese family business in this research still holds Confucianism culture; they prioritize boys as business successors, who have a greater responsibility rather than successor with other gender. Practical implications Several implications are discussed. One of them is the Chinese family business holding cultural values in the process of family business succession. Originality/value This research is expected to provide theoretical and practical implications for academics and family companies with similar cases.

Neopatrimonialism, good governance, corruption and accounting in Africa

2017 ◽  
Vol 7 (2) ◽  
pp. 225-248 ◽  
Author(s):  
Trevor Hopper
Keyword(s):  
Design Methodology ◽  
Best Practice ◽  
Good Governance ◽  
Accounting Standards ◽  
Developmental State ◽  
Political Will ◽  
Content Type ◽  
Need To Evaluate ◽  
Political Governance ◽  
Practical Implications

Purpose The purpose of this paper is to reflect on how best to design, implement and assess accounting reforms in Africa. Design/methodology/approach A cross-disciplinary literature review. Findings Whilst neopatrimonialism inhibits optimal development, some forms do not block it. Such governance often permeates African politics and reforms directed at its elimination may fail due to a lack of political will. Thus accounting reforms should recognize their political feasibility and be directed at areas congruent with strengthening attributes of a developmental state. Research limitations/implications There is a need to evaluate accounting reforms with respect to the level of a country’s development, relate them to its political governance, and evaluate them with respect to incremental rather than absolute achievement of their aims. Practical implications Rather than relying on imported “best practice” accounting standards and systems, there is a need for greater indigenous involvement to create systems that meet local needs and circumstances to increase indigenous accounting capacity and will to reform. Social implications Whilst the push to good governance is a desirable ideal, reforms need to be pragmatic with respect to feasibility. Originality/value The paper relates recent work on development to accounting reform in Africa which has been neglected by accounting scholars and practitioners.

scholarly journals A family business perspective on emergence and potential of mass retail industry in India

2016 ◽  
Vol 32 (4) ◽  
pp. 1-4
Author(s):  
Guru Prakash Prabhakar ◽  
Pankaj Saran
Keyword(s):  
Family Business ◽  
Design Methodology ◽  
Reading Time ◽  
Leadership Qualities ◽  
Content Type ◽  
Business Perspective ◽  
Pertinent Information ◽  
Mind Set ◽  
The Mind ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This article helps to understand the mind-set and leadership qualities of leaders hailing from family-run businesses in India. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Reflection of Maqāṣid al-Sharī'ah in the classical Fiqh al-Awqāf

2020 ◽  
Vol 27 (2) ◽  
pp. 79-90
Author(s):  
Mohammad Abdullah
Keyword(s):  
Special Reference ◽  
Design Methodology ◽  
Analogical Reasoning ◽  
Islamic Law ◽  
Distillation Process ◽  
Analysis Method ◽  
Content Type ◽  
Modern Context ◽  
Historical Contribution ◽  
Practical Implications

PurposeThis paper aims to analyse the Sharī'ah premises of classical waqf doctrines followed by critically analysing the framework of waqf jurisprudence (fiqh al-awqāf) from a Maqāṣid al-Sharī'ah (the higher objectives of Islamic law) perspective. The objective of examining the jurisprudential framework of waqf from a maqāṣid perspective is to contextualise the scope of dynamism and innovation in the modern waqf structure.Design/methodology/approachFor examining the jurisprudential aspects of classical fiqh al-awqāf with a special reference to Maqāṣid al-Sharī'ah, the paper analyses the classical waqf books and treatises from the four Sunni schools of jurisprudence by employing a textual analysis method.FindingsThe paper finds that the key constituents of maqāṣid are interwoven in the classical discourse of waqf rulings. It finds that in deriving the principles of waqf, the jurists ensured that the essentialities of Maqāṣid al-Sharī'ah are subtly intermingled with the necessary components of fiqhī principles. Deconstructing the applied analogical reasoning of the classical jurists in deriving the waqf rulings, this paper provides recommendations for maqāṣid-oriented application of waqf in the modern context.Research limitations/implicationsThis study does not cover either the historical contribution of waqf among the Muslim societies nor does it touch on the empirical aspects of modern waqf. Rather, the focus of the study is limited to analysing the classical jurisprudential rulings of waqf and their distillation process from a Maqāṣid al-Sharī'ah perspective. The study has good implication for modern awqāf, which need to be created, managed and directed in the spirit of Maqāṣid al-Sharī'ah.Practical implicationsThe key objective of adopting the maqāṣid framework for the analysis of fiqh al-awqāf in its classical permutations is to learn how to utilise the maqāṣid approach as a baseline for the deduction of new waqf rulings in a contextualised term.Originality/valueThe novelty of the paper lies in its examination of the classical waqf rulings distillation process, and the cogent intersection of Maqāṣid al-Sharī'ah with the principles of fiqh. By delving into the Sharī'ah premises of classical waqf jurisprudence through the lens of maqāṣid, the paper adds an original value and fills an existing gap in the available literature.

scholarly journals Survey on Sharīʿah non-compliant events in Islamic banks in the practice of tawarruq financing in Malaysia

2020 ◽  
Vol 12 (2) ◽  
pp. 151-169
Author(s):  
Mohammad Mahbubi Ali ◽  
Rusni Hassan
Keyword(s):  
Design Methodology ◽  
Islamic Law ◽  
Islamic Banks ◽  
Content Type ◽  
Management Framework ◽  
Board Of Director ◽  
Risk Management Framework ◽  
Qualitative Research Methodology ◽  
Self Administered Questionnaire ◽  
Practical Implications

Purpose Tawarruq (Islamic commodity financing) has evolved as the most ubiquitous concept in Malaysia’s Islamic banking industry. Nevertheless, the extensive use of tawarruq has invoked a number of Sharīʿah (Islamic law) concerns in its practice. This study aims to investigate the Sharīʿah non-compliant (SNC) phenomena in the practice of tawarruq financing in Malaysia. Design/methodology/approach This study adopts qualitative research methodology, combining both descriptive and content analysis. A self-administered questionnaire was distributed to 16 Malaysian Islamic commercial banks to unveil the Sharīʿah non-compliance issues in the application of tawarruq in Islamic banks (IBs) in Malaysia. Findings The study found that some practices of tawarruq in Malaysia might not comply with the Sharīʿah, mainly due to the improper sequencing of contracts. The study also discovered that IBs adopt different approaches in dealing with SNC events and the income derived therefrom. Finally, the study noted the influence of board of director/management on certain Sharīʿah decisions particularly on the treatment of non-ḥalāl (impermissible) income. Practical implications The findings of the study serve as a reference to industry players and regulators in formulating a Sharīʿah non-compliance risk management framework for tawarruq practices. Originality/value The survey on SNC issues in tawarruq practice constitutes the first of its kind in the existing literature.

scholarly journals Resource configurations for new family venture growth

2018 ◽  
Vol 24 (2) ◽  
pp. 521-537 ◽  
Author(s):  
Mark R. Mallon ◽  
Stephen E. Lanivich ◽  
Ryan L. Klinger
Keyword(s):  
Human Capital ◽  
Comparative Analysis ◽  
Family Business ◽  
Design Methodology ◽  
Qualitative Comparative Analysis ◽  
Financial Capital ◽  
Content Type ◽  
New Family ◽  
Practical Implications ◽  
Shed Light

Purpose Sustainable Family Business Theory states that human, social, and financial capital are important for new family venture growth, yet there may be multiple combinations that could be beneficial. The purpose of this paper is to examine whether all three types of resources are always needed for growth. Design/methodology/approach Fuzzy-set Qualitative Comparative Analysis, a configurational method, is used to investigate which combinations of human, social, and financial capital consistently lead to new family venture growth. Findings Multiple distinct combinations of resources – usually containing some form of human capital along with either social or financial capital – were sufficient for new family ventures to grow. Research limitations/implications The findings contribute to a more accurate Sustainable Family Business Theory in terms of the resource bundles needed to achieve growth. Not all three primary resources are needed at founding for the venture to grow. Results suggest a need for renewed focus on human capital in family venture research, as well as further investigations of the resource configurations uncovered here and their effects on family firm outcomes. Practical implications Given the costs associated with acquiring resources, the findings can inform family entrepreneurs and other stakeholders purposed with assisting new family ventures regarding optimal avenues of achieving growth. Originality/value This study advances theory by demonstrating which combinations of primary resources lead to new family venture growth. The findings shed light on how human, social, and financial capital may substitute for each other, as well as how the value of each depends on the presence or absence of the others.

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