scholarly journals Accounting for Waqf Institutions: Business, Not-for-Profit or Hybrid Entities?

2021 ◽  
Vol 4 (2) ◽  
Author(s):  
Umar Habibu Umar ◽  
Md Harashid Haron
Keyword(s):  
Annual Reports ◽  
Charitable Organizations ◽  
Accounting Standard ◽  
Systematic Analysis ◽  
Reporting Practices ◽  
For Profit ◽  
Commercial Activities ◽  
Not For Profit ◽  
Islamic Financial Institutions ◽  
Muslim Communities

Despite the tremendous religious and socio-economic contributions of waqf institutions to Muslim communities across the globe, there was no universal accounting standard to adopt by such institutions until 15 Rabi’II (equivalent to 30th November 2020) when the Accounting Standard for waqf institutions (FAS No. 37) was approved by the Board of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) for adoption with effect from 01 January, 2022. Hence, the objective of this study is to analyze the nature of waqf institutions with a view to establishing whether their appropriate financial accounting and reporting practices should be for business, not-for-profit or both. The documentary research method was applied to achieve the aim of this study through a systematic analysis of relevant accounting and Shariáh standards. Findings and views of earlier studies were also used. The study reveals that though waqf institutions operate like charitable organizations, they are mandated to undertake or attach to commercial activities in order to generate income for the sustainability of their activities. This signified that they are hybrid and as such, they are supposed to report both waqf and commercial activities in their annual reports and accounts. Hence, the study calls on Islamic countries to provide regulations, guidelines and more importantly accounting standards that will compel or motivate waqf institutions to prepare annual reports and accounts showing both their charitable and commercial activities. 

scholarly journals REPORTING DISCLOSURE LEVELS AND COMPLIANCE WITH BB, AAOIFI, B/IFRS AND SEC OF ISLAMIC FINANCIAL INSTITUTIONS IN BANGLADESH

2020 ◽  
Vol 4 (02) ◽  
Author(s):  
Md Robiul Islam ◽  
Mohammad Shamsus Sadekin
Keyword(s):  
Financial Institutions ◽  
Financial Reporting ◽  
Compliance Rate ◽  
Annual Reports ◽  
Islamic Banks ◽  
Accounting Standard ◽  
Financial Reports ◽  
Reporting Practices ◽  
Islamic Financial Institutions ◽  
Regulatory Bodies

Compliance with financial reporting guidelines/standards promulgated by Regulatory Bodies has become a crucial issue of the day after a series of corporate debacles over a few years. Regulators, professional bodies and researchers throughout the world have expressed their concern about the need for improved accounting pronouncements and compliance for providing better information than previously required for the preparation and presentation of corporate financial reporting. The present study primarily focuses on the reporting disclosure levels and compliance with Bangladesh Bank (BB) Guidelines, Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Accounting Standard, Bangladesh/International Financial Reporting Standard (B/IFRS) and Securities and Exchange Commission (SEC) Rules of Islamic Financial Institutions in Bangladesh. Annual reports of (08) eight Islamic banks in Bangladesh have been examined for the year ending 2015. The results showed that the Islamic banks significantly followed the selected accounting guidelines/standards under review and did bring remarkable changes in the financial reporting practices made by the Islamic banks in Bangladesh. The study attempted to examine empirically the levels of disclosure in corporate annual reports of Islamic banks in Bangladesh. The study recommended increasing the level of compliance to make their financial reports more informative. The study also tries to ascertain the regulatory necessary requirements in preparing the financial statements of banks under Islamic shariah and tries to display the compliance status of these banks with legislations. The average compliance rate is 93.28% for BB guidelines, 46.54% for AAOIFI Accounting Standard, 48.50% for B/IFRS and 51.99% for SEC rules considering all required aspects of financial reports. Compiling all of the requirements regarding financial reports of regulatory bodies will be helpful for banks to make financial reports convenient.

Not-for-Profit Annual Reports: What do Museum Managers Communicate?

2003 ◽  
Vol 19 (2) ◽  
pp. 139-158 ◽  
Author(s):  
Anne L. Christensen ◽  
Rosanne M. Mohr
Keyword(s):  
Annual Reports ◽  
For Profit ◽  
Not For Profit

On the Association between Donor-Imposed Financial Inflexibility and Future Donations to Charitable Organizations

2014 ◽  
Vol 27 (1) ◽  
pp. 63-79 ◽  
Author(s):  
Krishnamurthy Surysekar ◽  
Elizabeth H. Turner ◽  
Clark M. Wheatley
Keyword(s):  
Organizational Performance ◽  
Managerial Discretion ◽  
Costs And Benefits ◽  
Charitable Organizations ◽  
Financial Flexibility ◽  
Negative Relation ◽  
For Profit ◽  
Not For Profit ◽  
The Impact

ABSTRACT We address the impact of financial flexibility on organizational performance in a not-for-profit (NFP) setting. Specifically, we examine the link between donor-imposed financial inflexibility and subsequent donations. Donors sometimes impose restrictions on NFP use of the donated resources. These restrictions arise because of donors' preferences regarding how the assets are used, or as a mechanism for donors to monitor the actions of NFP management. Restricted donations cause financial inflexibility and limit managerial discretion. We examine the costs and benefits of restricting managerial discretion and find a negative relation between future donations and high levels of donor restriction. Specifically, we empirically demonstrate that when restricted assets comprise a high percentage of total assets, additional increases in restricted assets are associated with an overall reduction in future donations.

Non-financial KPIs in annual report narratives: Australian practice

2019 ◽  
Vol 32 (1) ◽  
pp. 7-19 ◽  
Author(s):  
Lyndie Bayne ◽  
Marvin Wee
Keyword(s):  
Voluntary Disclosure ◽  
Annual Report ◽  
Performance Indicator ◽  
Preliminary Evidence ◽  
Annual Reports ◽  
Accounting Standard ◽  
Content Type ◽  
Financial Measures ◽  
Reporting Practices ◽  
Common Category

Purpose The purpose of this paper is to provide preliminary evidence on current practices in non-financial key performance indicator (KPI) reporting in annual reports by listed Australian companies to inform Australian legislators and accounting standard setters contemplating regulations and guidance for non-financial performance disclosure, including input into the revision of IFRS Practice Statement 1: Management Commentary (2010). Design/methodology/approach Non-financial KPIs were hand-collected from the annual report narratives of 40 listed Australian companies from five sectors in 2016. Trends in the type, quantity, comparability and range of non-financial KPIs were analysed, and the association between company characteristics and non-financial disclosure was explored. Findings In total, 78 per cent of the sampled companies disclose non-financial KPIs in their annual reports, reporting 11 non-financial KPIs per company on average. The most common category is Employee, followed by Environment, accounting for 68 per cent of non-financial KPIs. Provision of comparators is low, with only 28 per cent of non-financial KPIs disclosed with prior year results and 24 per cent disclosed with a target. Companies disclose across a median of two out of seven categories. Company size is shown to be associated with non-financial measures. Originality/value The study contributes initial detailed empirical Australian evidence of non-financial KPI reporting practices. A framework is established for assessing non-financial KPI disclosure, adding to voluntary disclosure studies. A data collection method is developed for collecting KPIs from annual report narratives, contributing to the methodology used in voluntary reporting content analysis.

scholarly journals FASB's Not-for-Profit Financial Reporting Project: Analysis of Letters to ASU 2016-14 Exposure Draft

2020 ◽  
Vol 9 (1) ◽  
pp. 45-75
Author(s):  
Donald R. Deis ◽  
Arpita Shroff
Keyword(s):  
Financial Reporting ◽  
Phase 1 ◽  
Accounting Standards ◽  
Data Availability ◽  
Financial Accounting ◽  
Financial Accounting Standards Board ◽  
Accounting Standard ◽  
The Public ◽  
For Profit ◽  
Not For Profit

ABSTRACT In 2015, the Financial Accounting Standards Board (FASB) issued an Exposure Draft (ED) as part of its first significant project in over 20 years on financial reporting by Not-for-Profit organizations (NFP). In this study, we categorize the 264 letters received on the ED by the type of respondent and analyze the responses using ANOVA, multiple comparisons tests, and multidimensional scaling. Ultimately, as Phase 1 of its NFP project, FASB issued accounting standards update (ASU) 2016-14 containing proposed changes supported by a majority of the respondents to the ED. The Board deferred recommended changes with less support from respondents to Phase 2 of the project. Although constituents often accuse accounting standard setters of standards-overload and for being unresponsive to their comments (Herz 2003), our findings indicate otherwise. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: G00; L31; M40.

A Waqf-Integrated Reporting (WAQIR) Model

2020 ◽  
pp. 281-300
Author(s):  
Rosnia Masruki ◽  
Mustafa Mohd Hanefah ◽  
Muhammad Iqmal Hisham Kamaruddin
Keyword(s):  
Economic Impact ◽  
Information Disclosure ◽  
Management Practices ◽  
Integrated Reporting ◽  
Reporting Practices ◽  
For Profit ◽  
Faith Based ◽  
Not For Profit ◽  
Reporting Tool ◽  
Socio Economic Impact

This chapter proposes the best reporting practices for waqf institutions, concerning information disclosure on performance, governance, and socio-economic impact using the waqf integrated reporting (WAQIR) model. The WAQIR model is viewed as a comprehensive reporting tool for waqf institutions. This study reviewed previous literature and reporting guidelines for waqf and similar organisations, such as not-for-profit and faith-based organisations, to identify the appropriate measurements for disclosure, limited not only to the input and output of the waqf project, but also its governance and socio-economic impact. Based on the review, the WAQIR model is explicated with four pillars of disclosure: (i) waqf financial and non-financial; (ii) waqf governance; (iii) waqf performance; and (iv) waqf socio-economic impact. The proposed WAQIR model would be useful for waqf institutions in implementing best waqf reporting practices. This could help them to enhance their accountability and to promote transparency, enabling the sustainability of the entire waqf management practices.

Accounting for certified emission reductions (CERs) in India

2019 ◽  
Vol 28 (2) ◽  
pp. 365-389
Author(s):  
Praveen Kumar ◽  
Mohammad Firoz
Keyword(s):  
Secondary Data ◽  
Financial Statements ◽  
Annual Reports ◽  
Accounting Standard ◽  
Content Type ◽  
Reporting Practices ◽  
Know How ◽  
Certified Emission Reduction ◽  
Disclosure Rate ◽  
Very High

Purpose The purpose of this paper is to analyse the certified emission reduction (CERs) disclosure and reporting practices followed by Indian firms. Design/methodology/approach The study is based on all 131 Indian firms who received the CERs under the CDM of UNFCCC. The content analysis is being used to examine the recognition, measurement, presentation and disclosure of CERs within the financial statements. Findings The study found that there is generally no uniformity of accounting for CERs. The firms adopted a diversity of accounting practices. More specifically, majority of companies (40.46 per cent) recognised CERs as the other income; a very high non-disclosure rate (91.60 per cent) for valuation of CERs inventories was found as only four companies (3.05 per cent) provided accounting treatment for CERs inventories at lower of cost or net realisable value followed by three companies (2.29 per cent) accounted for these inventories at Net realisable value at the end of the reporting period; similarly, a very high non-disclosure rate (92.36 per cent) for how companies account for expenses incurred in earning these credits was found. Research limitations/implications The study will be useful for a wide array of audiences ranging from accounting standard setter to the auditors. The present analysis is based on secondary data, as we examined only annual reports of the sample companies to know how they recognise their earned CERs within the financial statements. So, we did not cover the opinions of various key persons of companies like an accountant, auditors etc. which could be a limitation of this study in validating CERs disclosure practices followed by the Indian firms. Originality/value To the best of the author's knowledge, the present study is a first of its kind to analyse the carbon credit disclosure practices in the context of a developing country.

scholarly journals HARMONIZATION IS THE ONLY “GAME” IN TOWN; ACTUALIZING THE FUNCTIONALITY OF VITAL ISLAMIC FINANCIAL INSTITUTIONS: A CASE OF WAQFS IN NIGERIA

2021 ◽  
Vol 29 (2) ◽  
pp. 175-194
Author(s):  
Oluwaseun Sulaiman Saidu ◽  
Murat Cizakca ◽  
Rodney Wilson
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Islamic Law ◽  
Equal Treatment ◽  
For Profit ◽  
Not For Profit ◽  
The World ◽  
Islamic Financial Institutions ◽  
Legal Infrastructure

While it is true that more often than not, constitutional democracies might enshrine freedom of religion and thus provide for equal treatment of all religions within a given state, the Islamic characterization of the waqf institution transcends the subsisting limits allowed for in the not-for profit legal infrastructure including their taxation exemption provisions in the Nigerian state. According to modest statistics, Nigeria is home to about 100 million Muslims but her governing laws are at best described as secular. The objective of this research is therefore to harmonize the Islamic law of waqf institution and the extant not-for-profit laws in Nigeria such that the institution can function within the Nigerian state without infringing on the Islamic Shariah whilst at the same time complying with the constitutional dictates of the country. The merits of such an exercise are numerous. It could readily be replicated in other non-Muslim jurisdiction across the world. Nigeria being the largest economy in Africa, the dividends of such an exercise would cascade across the continent consisting mainly so called developing countries.

scholarly journals Accountability and narrative disclosure by Muslim charity organisations in the UK

2017 ◽  
Vol 8 (1) ◽  
pp. 70-86 ◽  
Author(s):  
Sofia Yasmin ◽  
Roszaini Haniffa
Keyword(s):  
Mandatory Reporting ◽  
Annual Reports ◽  
Systematic Analysis ◽  
Content Type ◽  
Reporting Practices ◽  
Narrative Disclosure ◽  
The Status ◽  
Narrative Reporting ◽  
The Uk ◽  
Comprehensive Framework

Purpose This paper aims to explore a narrative disclosure by Muslim charity organisations (MCOs) in the UK. Design/methodology/approach Using content analysis, this study assesses disclosure in MCOs’ trustee annual reports against the Statement of Recommended Reporting Practices (SORP) for charities using perspectives from accountability including the Islamic concept of accountability. Findings The findings suggest disclosure to be limited in showing how transactions and activities comply with the mandatory reporting requirements. Hence, MCOs need to increase their awareness of regulatory and sector challenges, as well as self-scrutiny of their current narrative reporting practices, especially in showing their mandatory reporting and hence religious accountability. Originality/value The paper provides important empirical data on the status quo of reporting practice by this important sub-sector. The paper provides a systematic analysis of the way trustee annual reports (TARs) are presented by MCOs and also provides a comprehensive framework for a better understanding of the minimum accountability requirements incumbent upon all charity organisations.

scholarly journals COVD-11. THE BRAIN TUMOR AND NOT FOR PROFIT AND CHARITY EXPERIENCE OF COVID 19: REACTING AND ADJUSTING TO AN UNPRECEDENTED GLOBAL PANDEMIC IN THE 21ST CENTURY

2020 ◽  
Vol 22 (Supplement_2) ◽  
pp. ii23-ii23
Author(s):  
Mary Ellen Maher ◽  
Christina Amidei ◽  
Jean Arzbaecher ◽  
Kathy Oliver ◽  
Christine Mungoshi ◽  
...  
Keyword(s):  
Brain Tumor ◽  
Organizational Characteristics ◽  
Charitable Organizations ◽  
For Profit ◽  
Not For Profit ◽  
Global Pandemic ◽  
The World ◽  
Healthcare Crisis ◽  
The Impact ◽  
Question Survey

Abstract The COVID-19 pandemic has not only affected individuals, but also disease specific not-for-profits and charities. Brain tumor not-for-profit and charitable organizations around the world exist in all shapes and sizes, and address unmet needs of the patients and caregivers they serve. The International Brain Tumor Alliance(IBTA) carried out an international survey to identify organization changes brought about by the virus and the approaches adopted to address operational challenges created by COVID-19. A 37-question survey was sent across the world. In total, 77 organizations from 22 countries responded. Descriptive statistics and content analysis were used to present RESULTS: Responses fell into three categories: 1) organizational characteristics, 2) the impact of COVID-19 on services, and 3) how COVID-19 has affected the financial and human resources in these organizations. Although organizational characteristics vary widely, common concerns reported across organizations were primarily: a) the disruption of activities which impacted organizations’ abilities to offer their usual services and b) challenges to sustaining funding. Although brain tumor organizations have been impacted by the COVID-19 pandemic, organizations quickly adjusted to this unprecedented global healthcare crisis.

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