scholarly journals Harmonization of Accounting Standards for Islamic Financial Institutions: Evidence of the Adoption of FAS No. 17 in Indonesia

2019 ◽  
Vol 6 (1) ◽  
pp. 51-70 ◽  
Author(s):  
Dian Andari
Keyword(s):  
Financial Institutions ◽  
Annual Report ◽  
Banking System ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Rank Test ◽  
Accounting Standard ◽  
Signed Rank ◽  
Islamic Financial Institutions ◽  
Signed Rank Test

ABSTRACTIndonesia as a country with dual-banking system applies local accounting standards for conventional and Islamic financial institutions named SAK (Standar Akuntansi Keuangan or Generally Accepted Accounting Standard) which may raise the question of accounting harmonization with Financial Accounting Standards (FAS) issued by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). This study aims to analyze the harmony level of Islamic accounting in Indonesia to FAS issued by the AAOIFI. The analysis covers de jure (formal or regulatory) harmonization and de facto (practical) harmonization. It involves content analysis utilizing FAS no. 27 of investment accounts to Indonesian PSAK at de jure analysis, and to thirteen of Indonesian Islamic banks annual report in 2016 for de facto analysis. Wilcoxon signed rank test is conducted to measure the significance of harmony to AAOIFI standards. The result shows that there is no harmony in de jure and de facto level. ABSTRAKIndonesia sebagai negara dengan dual-banking system memiliki standar akuntansi keuangan (SAK) yang digunakan oleh lembaga keuangan konvensional dan syariah. Hal ini dapat menimbulkan pertanyaan tentang harmonisasi SAK dengan Financial Accounting Standards (FAS) yang dikeluarkan oleh Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Penelitian ini bertujuan untuk menganalisis tingkat keharmonisan akuntansi syariah di Indonesia terhadap FAS yang dikeluarkan oleh  AAOIFI. Analisis ini mencakup harmonisasi de jure (formal atau secara regulasi) dan harmonisasi de facto (praktis). Penelitian ini melibatkan analisis konten menggunakan FAS no. 27 akun investasi ke PSAK Indonesia pada analisis de jure, dan tiga belas laporan tahunan bank syariah Indonesia pada tahun 2016 untuk analisis de facto. Tes peringkat uji Wilcoxon dilakukan untuk mengukur signifikansi keselarasan dengan standar AAOIFI. Hasilnya menunjukkan bahwa tidak ada harmonisasi antara FAS dan SAK dalam tingkat de jure dan de facto.

scholarly journals The Differences Of Ijarah Financing and Conventional Lease On Islamic Law and Accounting Perspectives

IQTISHADUNA ◽  
2018 ◽  
Vol 8 (2) ◽  
pp. 139-148
Author(s):  
Fitriani .
Keyword(s):  
Financial Institutions ◽  
Islamic Law ◽  
Accounting Standards ◽  
Financial Accounting ◽  
International Accounting ◽  
Accounting Standard ◽  
Accounting Principles ◽  
Islamic Financial Institutions ◽  
International Accounting Standard

The main objective of this study is to explore the nature of accounting for Ijarahfinancing and its differences with conventional lease financing from the Islamic law and accounting perspectives.The study makes a comparison between the International Accounting Standard on leasing (IAS 17); the accounting standard for Ijarah (FAS 8) as developed by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI); and Statement of Financial Accounting Standards (Pernyataan Standar Akuntansi Keuangan/PSAK 107). The study found that there are major differences as to the nature of leasing and Ijarah, and as a result accounting principles that have driven all the three standards as well as accounting techniques developed for leasing and Ijarah are significantly different.

scholarly journals Formation of Financial Statements at Islamic Financial Institutions

2018 ◽  
pp. 128-132
Keyword(s):  
Financial Institutions ◽  
Financial Reporting ◽  
Financial Institution ◽  
Financial Statements ◽  
Financial Accounting ◽  
Accounting Standard ◽  
Charitable Foundations ◽  
Islamic Financial Institutions ◽  
Further Development ◽  
Traditional Economy

Conceptually, the key approaches to the formation of financial reporting for an Islamic financial institution (IFI) have much in common with approaches developed for economic entities in the traditional economy. At the same time, the AAOIFI Concept and the Financial Accounting Standard No. (1) provide for Islamic financial institution-specific provisions and reporting forms that reflect the requirements of the Sharia. Disclosure of methods in published accounts is intended to help its users distinguish between changes in the financial position of an Islamic financial institution, the results of its operations, cash flow, limited investment managed by it, the sources and use of Zakat (poor-due) and Kard funds and charitable foundations. Further development of the regulation of the issues on the formation of financial statements seems to us in the making common approaches to its formation closer for companies operating in the traditional economy and Islamic financial institutions.

Financial Reporting of Islamic Financial Institutions

2020 ◽  
pp. 854-873
Author(s):  
Mezbah Uddin Ahmed
Keyword(s):  
Financial Institutions ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Accounting ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Differential Approach ◽  
Islamic Financial Institutions ◽  
Similarities And Differences

This chapter elucidates the arguments for and against differential approach pertaining to financial reporting amongst Islamic Financial Institutions (IFIs). The chapter has identified additional objectives which the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) aims to achieve in comparison to International Financial Reporting Standards (IFRS). The chapter has also identified the global adoption status for both AAOIFI Financial Accounting Standards (FAS) and IFRS Standards, as well as the difficulties faced in adopting AAOIFI's FAS. This chapter offers illustrative examples of AAOIFI's FAS and IFRS applications to help in providing a much better understanding in terms of similarities and differences in the application of these two sets of standards.

scholarly journals Diverse accounting standards on disclosures of Islamic financial transactions

2019 ◽  
Vol 32 (3) ◽  
pp. 866-896 ◽  
Author(s):  
Habib Ahmed ◽  
Faruq Arif Tajul Ariffin ◽  
Yusuf Karbhari ◽  
Zurina Shafii
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Islamic Banks ◽  
Accounting Standard ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Islamic Financial Institutions ◽  
Financial Transactions

Purpose Since International Financial Reporting Standards (IFRS) are not primarily meant for the accounting needs of Islamic banks, the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) was established to develop specific accounting standards for Shari’ah compliance. The purpose of this paper is to assess the de jure harmonisation between the disclosure requirements of the IFRS-based Malaysian Accounting Standards (MAS) and those of the AAOIFI. Design/methodology/approach Using Malaysia as a case study, the paper examines the extent of the de jure congruence between the IFRS-based MAS and AAOIFI’s Financial Accounting Standard No 1 (FAS1), which is considered to be one of the key disclosure standards for Islamic banks. We employ leximetrics and content analysis to analyse these accounting standards and the additional guidelines introduced by the Malaysian Accounting Standards Board (MASB) and the Central Bank of Malaysia (Bank Negara Malaysia, BNM) to identify the gaps between different tiers of MAS and FAS1. Findings The study finds that de jure congruence between the IFRS-based MAS and AAOIFI standards has improved through the introduction of additional accounting guidelines by both the MASB and the banking regulator, BNM. However, some gaps remain between the two standards. These gaps may be difficult to completely eliminate due to differences in the fundamental principles underlying the development of both standards. Originality/value While some studies have explored the de facto congruence between AAOIFI accounting standards and others, this paper is the first, to the best of the authors’ knowledge, to examine the de jure congruence between those standards with the IFRS-based MAS.

scholarly journals Studi Efisiensi Perbankan Syariah di Kota Lhokseumawe dan Aceh Utara

2012 ◽  
Vol 12 (1) ◽  
pp. 63
Author(s):  
Iskandar Iskandar
Keyword(s):  
Financial Institutions ◽  
Annual Report ◽  
Low Cost ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Main Difficulty ◽  
Islamic Financial Institutions ◽  
Banking Institutions ◽  
National Banking System

<p><em>The development of Islamic banking in Aceh should have </em><em>get more attention because its existence is not only as complement of the</em></p><em>national banking system, but also as an attempt to fill the Islamic Shari ’a with the Islamic financial institutions. The issue becomes important to investigate since the efficiency of banking institutions urgently need to this performance. Thus, in this study, the efficiency of Islamic banking will be viewed from two aspects: Firstly, the ability of the bank in generating output, in this case the low cost of financing. Secondly, efficiency can also be observed by looking at the bank’s performance in minimizing the risk of financing. This study concluded that the main difficulty of Aceh Islamic banks is not the lack of cheap enough money so that the efficiency becomes less when it is compared with the required cost. However, the annual report shows that the assets of Islamic banks have developed positively and good. Likewise, the ratio of Non Performing Ratio (NPF) of Islamic banks is efficient. The study recommends enhancing the cheap fundraising (al-wadi </em><sup>&lt;</sup><em>’ah) to increase the economic growth in the northern coastal area of Aceh.</em>

The compliance of disclosure with AAOIFI financial accounting standards

2018 ◽  
Vol 9 (4) ◽  
pp. 549-566 ◽  
Author(s):  
Jabir Al-Sulaiti ◽  
A.A. Ousama ◽  
Helmi Hamammi
Keyword(s):  
Financial Institutions ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Annual Reports ◽  
Future Research ◽  
Islamic Banks ◽  
Content Type ◽  
Quality Disclosure ◽  
Islamic Financial Institutions

Purpose This paper aims to examine the compliance of disclosure with the financial accounting standards of the Accounting and Auditing Organisation for Islamic Financial Institutions’ (AAOIFI) related to Islamic financing products by Islamic banks in Bahrain and Qatar. Design/methodology/approach The study measures compliance using disclosure indexes. The disclosure indexes include the three financial accounting standards of Murabaha, Mudaraba and Musharaka. The data are collected from the annual reports of 24 Islamic banks in Bahrain and Qatar over a period of 2012-2015. Findings The paper found that Islamic banks in Bahrain and Qatar comply with AAOIFI financial accounting standards related to Murabaha, Mudaraba and Musharaka. However, there was a level of non-compliance in both countries. In addition, it found that the extent of compliance had increased over the 2012-2015 period. Also, the Murabaha standard had the highest mean of compliance. Moreover, the results showed that the Islamic banks in Qatar tend to have more compliance of overall Murabaha and Mudaraba disclosures compared to the Islamic banks in Bahrain. Research limitations/implications The findings are preliminary and highlight that the issue is of high interest to Islamic banks and AAOIFI. Hence, it requires a detailed follow-up to form a complete picture that would assist AAOIFI and regulators gear their policies toward better quality disclosure by Islamic financial institutions. Even though the findings are encouraging, future research is recommended to enforce compliance with the AAOIFI financial accounting standards. Originality/value This is a pioneer empirical study that focuses on the level and trend of compliance with AAOIFI financial accounting standards related to the Islamic financing products of Murabaha, Mudaraba and Musharaka standards, especially in Qatar. Additionally, it is the first study comparing between the only two Gulf Cooperation Council (GCC) countries, i.e. Bahrain and Qatar, that mandatory apply the AAOIFI standards.

The need for Islamic accounting standards: the Malaysian Islamic financial institutions experience

2019 ◽  
Vol 10 (1) ◽  
pp. 115-133 ◽  
Author(s):  
Nor Farizal Mohammed ◽  
Fadzlina Mohd Fahmi ◽  
Asyaari Elmiza Ahmad
Keyword(s):  
Financial Institutions ◽  
Accounting Standards ◽  
Financial Statements ◽  
Advisory Council ◽  
Main Concern ◽  
Structured Interviews ◽  
Accounting Standard ◽  
Content Type ◽  
Body Of Knowledge ◽  
Islamic Financial Institutions

Purpose The purpose of this paper is to examine views of financial statements preparers with regard to the practices in reporting Islamic Financial Institutions (IFIs), thereby contributing to answer whether there is indeed a need for a separate set of Islamic accounting standards for IFIs. Design/methodology/approach Drawing upon seven in-depth semi-structured interviews conducted with IFIs’ leading officers who are highly involved in preparing financial statements in Malaysia, the paper offers evidence on the current stance of reporting the operation of IFIs, the influence of AAOIFI accounting standards and the feasible application of IFRSs in reporting IFIs. Findings While it is shown that most of the interviewees admit the feasibility of IFRSs in reporting IFIs, many interviewees placed greater emphasis on the spirit of Islam based on Islamic contract. In that case, the findings show that to convince the public that they offer Shariah compliance products approved by Shariah Advisory Council, there is a need for specificity guidelines or standards for IFIs within the IFRS framework. The main concern raised in the paper is that separate Islamic accounting standard is not needed, instead the option needs to be within the IFRS framework with the collaboration work of Accounting and Auditing for Islamic Financial Institutions (AAOIFI) and the International Accounting Standard Board (IASB). Originality/value With the recent rapid growth of IFIs, this paper contributes regarding the inconclusive stance on the need for specificity accounting standards for IFIs such as the ones issued by AAOIFI. It adds to the current body of knowledge by highlighting the collaboration of the AAOIFI and the IASB for the intended specific guidelines for IFIs to be accepted globally.

scholarly journals Accounting Standards for Islamic Financial Institutions in United Kingdom and Indonesia

2018 ◽  
Vol 21 (2) ◽  
pp. 7
Author(s):  
Ahmed Sameer El Khatib
Keyword(s):  
United Kingdom ◽  
Financial Institutions ◽  
Accounting Standards ◽  
Institutional Setting ◽  
Islamic Finance ◽  
Accounting Standard ◽  
Ibn Khaldun ◽  
Finance Industry ◽  
The United Kingdom ◽  
Islamic Financial Institutions

The objective of this paper is to analyse determinants that influence implementation of accounting standards for Islamic Financial Institutions (IFIs) by examining the history of accounting standards and two different contexts as applied to IFIs in the United Kingdom and Indonesia. The paper explores available texts and literature mainly from international journals and textbooks. Employing the Ibn Khaldun perspective, this study analyses two determinants i.e. institutional setting that may be suitable in the context of the United Kingdom, and accounting needs in the case of Indonesia. The research shows the determinants are well fitted with interdisciplinary characters of Ibn Khaldun model of civilization i.e. G = f(S, N, W, j and g). This explains the political authority (G) which is influenced concurrently by factors such as the direction of Shari’ah (S), the role of people (N), the use of wealth (W), the development of a country (g), and the promotion of justice (j) leads a civilized society. This paper has practical significance for accounting standard setters in the Islamic finance industry and policy makers, for understanding the environmental determinant perspective of the country and using this perspective for positioning important aspect in accounting standard setting, developing policies; and articulating procedures to maximize development of Islamic finance.

PENGARUH TIRAH BARING TERHADAP PENURUNAN RASA MUAL PADA KLIEN GASTRITIS DI PELAYANAN KESEHATAN

2019 ◽  
Vol 3 (1) ◽  
pp. 25
Author(s):  
Dewi Nurhanifah ◽  
Desy Noor Latifah Sari ◽  
Rahmawati Rahmawati
Keyword(s):  
Rank Test ◽  
Purposive Sampling ◽  
Signed Rank ◽  
Wilcoxon Signed Rank Test ◽  
Signed Rank Test

Salah satu masalah kesehatan yang sering dialami adalah penyakit gastritis. Gejala yang sering dikeluhkan oleh penderita gastritis adalah mual. Salah satu penatalaksanaan keperawatan yang dapat mengurangi rasa mual adalah tirah baring. Penelitian ini bertujuan untuk mengetahui pengaruh tirah baring terhadap penurunan rasa mual pada klien gastritis di Pelayanan Kesehatan. Metode penelitian menggunakan eksperimental dengan bentuk penelitian one group pretest-posttest design. Populasi dan sampel adalah klien yang mengalami mual di Wilayah Kerja Puskesmas  yang berjumlah 15 orang. Sampel diambil dengan teknik purposive sampling. Alat pengumpul data menggunakan observasi. Analisa data melalui uji Wilcoxon Signed Rank Test. Hasil penelitian menujukkan klien gastritis sebelum tirah baring mengalami mual ringan sebanyak 7 orang (46,7%), sesudah tirah baring mengalami tidak mual sebanyak 7 orang (46,7%). Ada pengaruh tirah baring terhadap penurunan rasa mual pada klien gastritis di Pelayanan Kesehatan (ρ value = 0,001).

Efektifitas Kompres Jahe Merah Hangat Dan Kompres Serai Terhadap Penurunan Intensitas Nyeri Arthritis Remathoid Pada Lanjut Usia Di Desa Mojoranu Kecamatan Dander Kabupaten Bojonegoro

2017 ◽  
Vol 5 (1) ◽  
Author(s):  
Ferawato Ferawati
Keyword(s):  
Pain Intensity ◽  
Therapy Group ◽  
The Elderly ◽  
Rank Test ◽  
Test Design ◽  
Signed Rank ◽  
Wilcoxon Signed Rank Test ◽  
Post Test ◽  
Signed Rank Test ◽  
Red Ginger

ABSTRAKReumatoid Artritis (RA) merupakan penyakit muscoloskelektal yang sering terjadi pada usia lanjut. Gangguan pada system muscoloskelektal yang ditandai dengan munculnya nyeri sendi dan kekakuan yang mengakibatkan penurunan kemampuan fisiologis atau kualitas hidup lansia. Dampak dari Reumatoid Artritis dapat menimbulkan beberapa keluhan dan dapat menyebabkan kelumpuhan. Untuk menganalisis efektifitas kompres jahe merah hangat dan kompres serai hangat terhadap penurunan intensitas nyeri artitris remauthoid pada lanjut usia.Metode Penelitian: Jenis penelitian adalah quasy experimental dengan two group pre – post test design. Subjek adalah sebagian lansia yang penderita Arthritis Remathoid di Desa Sumberagung Kecamatan Dander Kabupaten Bojonegoro. Subjek dibagi menjadi dua kelompok yaitu kelompok I (n=15) diberi perlakuan kompres jahe hangat dan II (n=15) diberi perlakuan kompres serai hangat. Analisis yang digunakan uji Mann Whitney U Test dan Wilcoxon Signed Ranks Test dengan ingkat kemaknaan α = 0,05.Hasil uji Wilcoxon Signed Rank Test, didapat keduanya mempunyai nilai kemaknaan yaitu ρ value = 0,000. Nilai ρ = 0,031 pada kelompok kompres serai hangat dan kelompok kompres jahe merah ρ value = 0,165. Hasil uji Mann Withney U Test pada Post perlakuan kedua terapi diperoleh selisih nilai nyeri pada kompres jahe ρ= 0,003 dan selisih nilai nyeri kompres serai ρ value = 0,001.Penggunaan kompres jahe merah lebih efektif dibandingkan dengan kompres serai terhadap penurunan intensitas nyeri arthritis remathoid. Kata Kunci: usia lanjut, Reumatoid Artritis (RA), jahe merah, serai, perbedaan efektifitas.    ABSTRACTReumatoid Artritis (RA) is a musculoskeletal which frequently occurs in the elderly. The disorders in the musculoskeletal system are noted by the occurrence of pain in the joints and stiffness which reduces the physiological abilities or life quality of the elderly. The disease causes many such complaints and  consequences of the disease rheumatoid arthritis may experience paralysis. The aims of this study is to analyze the effect of warm red ginger compress therapy and warm lemongrass compress therapy against of  Decreased pain intensity in  the elderly  with  artitris remauthoid. The study was Queasy experimental with two group pre – post test design. Subjects were some elderly people with Arthritis Remathoid in Sumberagung Village, Dander Sub District, Bojonegoro District. Subjects were divided into two groups: group I (n-15) with warm ginger compress therapy, and II (n=15) with warm lemongrass compress therapy. The analyses used in this study were the Mann Whitney U Test and Wilcoxon Signed Ranks Test with α of 0.05. Results of Wilcoxon Signed Rank Test obtained Both have meaning p value of  0.000. ρ value = 0,031 in a warm lemongrass compress therapy group and obtained of warm ginger compress therapy group ρ value = 0,165. The results of Mann Withney U Test on Post treatment second therapy, obtained difference of warm ginger compress therapy with ρ value= 0,003 and difference of warm lemongrass compress therapy with ρ value = 0,001.The use of warm ginger compresses therapy are more effective than a warm lemongrass compress therapy against decreased pain intensity in  the elderly  with  artitris remauthoid.  Keywords: elderly, artitris remauthoid, red ginger, lemongrass, differences in effectiveness

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