Shari’ah Audit Disclosure in annual reports: A comparison study between Bahrain and Malaysian Islamic Financial Institutions

2016 ◽  
Vol 4 (2) ◽  
pp. 202-218
Author(s):  
ڕێبوار محمد احمد ◽  
◽  
هێمن محمد عزیز ◽  
بصيرة ماجيد نجم ◽  
◽  
...  
Keyword(s):  
Financial Institutions ◽  
Annual Reports ◽  
Comparison Study ◽  
Islamic Financial Institutions

Corporate governance and compliance with AAOIFI governance standards by Islamic banks

2020 ◽  
Vol 13 (5) ◽  
pp. 891-918
Author(s):  
Yosra Mnif ◽  
Marwa Tahari
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Audit Committee ◽  
Annual Reports ◽  
Islamic Banks ◽  
Content Type ◽  
Disclosure Requirements ◽  
Financial Expertise ◽  
Islamic Financial Institutions ◽  
Research Stage

Purpose This study aims to examine the effect of the main corporate governance characteristics on compliance with accounting and auditing organisation for Islamic financial institutions’ (AAOIFI) governance standards’ (GSs) disclosure requirements by Islamic banks (IB) that adopt AAOIFIs’ standards in Bahrain, Qatar, Jordan, Oman, Syria, Sudan, Palestine and Yemen. Design/methodology/approach The sample consists of 486 bank-year observations from 2009 to 2017. Findings The findings reveal that compliance with AAOIFIs’ GSs’ disclosure requirements is positively influenced by the audit committee (AC) independence, AC’s accounting and financial expertise and industry expertise, auditor industry specialisation, IB’s size and IB’s listing status. On the other hand, it is negatively influenced by the ownership concentration. Research limitations/implications This study has only examined compliance with AAOIFI’s GSs’ disclosure requirements and has focussed on one major sector of the Islamic financial institutions (which is IB). Practical implications The findings are useful for various groups of preparers and users of IBs’ annual reports such as academics and researchers, accountants, management of IBs and some organisations. Originality/value While the study of the AAOIFIs’ standards has grown contemporary with considerable contributions from scholars, however, the majority of these studies are descriptive in nature. Indeed, the existing literature that has explored the determinants of compliance with AAOIFI’s standards is in the early research stage. To the best of the knowledge, there is a paucity of empirical research testing this issue.

scholarly journals THE INVESTMENT ACCOUNT HOLDERS DISCLOSURE LEVEL IN THE ANNUAL REPORTS OF ISLAMIC BANKS: CONSTRUCTION OF IAHS DISCLOSURE INDEX

2020 ◽  
pp. 1-25
Author(s):  
RAOUDHA SAIDANI ◽  
NEILA BOULILA TAKTAK ◽  
KHALED HUSSAINEY
Keyword(s):  
Content Analysis ◽  
Financial Institutions ◽  
Accounting Standards ◽  
Annual Reports ◽  
Islamic Banks ◽  
Disclosure Requirements ◽  
Islamic Financial Institutions

This paper aims to measure the IAHs disclosure level in the annual reports of Islamic banks. To do this, we develop a specific IAHs disclosure index based on Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards. We use manual content analysis of 49 full-fledged Islamic banks’ annual reports over the period 2011–2015 across 10 countries. The findings of this study show that the overall level of IAHs disclosure is 28%. Indeed, the sampled Islamic banks provide fewer disclosures related to IAHs. This study contributes to enrich the knowledge of Islamic accounting literature by exploring directly the IAHs disclosure level in the annual reports of Islamic banks via self-constructed IAHs disclosure index based on AAOIFI accounting standards. It can help regulators in different countries to understand and strengthen the IAHs disclosure practices in Islamic banks by imposing AAOIFI disclosure requirements in terms of IAHs reporting.

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.

Shariah, presentation and content dimensions of Web 2.0 applications and the firm value of Islamic financial institutions in the GCC countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdalmuttaleb Musleh Alsartawi ◽  
Sameh Reyad ◽  
Araby Madbouly
Keyword(s):  
Web 2.0 ◽  
Financial Institutions ◽  
Firm Value ◽  
Positive Impact ◽  
Three Dimensions ◽  
Annual Reports ◽  
Stock Exchanges ◽  
Content Type ◽  
Gcc Countries ◽  
Islamic Financial Institutions

Purpose This study aims to examine the relationship between the three dimensions of Web 2.0 disclosure (Shariah, content and presentation) and the firm value of listed Islamic financial institutions (IFIs) in the Gulf Cooperation Council (GCC) stock exchanges. Design/methodology/approach A checklist of 118 items was used to measure the level of Web 2.0 disclosure for the IFIs that are listed on the GCC stock exchanges. Data were gathered from the websites of the IFI samples, where researchers looked for annual reports, RSS, widgets, web-casting and the layout and design of the websites. Findings Based on the results, the level of the Shariah dimension by GCC IFIs was 74.93%, the level of the content dimension was 76.33%, the level of the presentation dimension was 78.03% and the level of the overall Web 2.0 disclosure was 75.73%, and a positive and significant relationship between the content dimension and Tobin’s Q. Practical implications In addition to other reforms, this study recommends IFIs to improve their regulations, risk management and standardization. Originality/value This study offers a new contribution as it adds a new perspective to the online financial disclosure literature, which is the Shariah dimension. Furthermore, this study provides empirical evidence for interested parties in the Islamic banking industry such as users and regulators in the GCC countries concerning the importance and usage of Web 2.0 applications for disclosure and its positive impact on adding a premium to IFIs.

scholarly journals Shariah Disclosure Practices in Malaysian Islamic Banks using the Shariah Disclosure Index

2021 ◽  
Vol 4 (SI) ◽  
Author(s):  
Noraini Mohd Ariffin ◽  
Fatima Abdul Hamid ◽  
Nur Afiqah Md Amin
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Financial Institution ◽  
Advisory Council ◽  
Annual Reports ◽  
Islamic Banks ◽  
High Compliance ◽  
Financial Products ◽  
Full Compliance ◽  
Islamic Financial Institutions

Islamic banks are required to ensure their operations and activities comply with the Shariah principles. According to Islamic Financial Services Act (2013) in Malaysia, all operations and activities of Islamic financial institutions including Islamic banks have to comply with decisions made by the Shariah Advisory Council (SAC) of Bank Negara Malaysia (BNM) and the Shariah Committee (SC) of the Islamic financial institution to ensure Shariah compliance. In practice, Shariah compliance is considered a crucial factor by bank stakeholders, especially Muslim customers in their decision to use Islamic financial products. Thus, one of the ways for Islamic banks to convey their Shariah-compliance to their stakeholders is through annual reports. This study examines the level of compliance on Shariah disclosure in the annual reports of Malaysian Islamic banks. A Shariah disclosure index, comprising mandatory and voluntary items, was developed from Bank Negara Malaysia (BNM) guidelines and Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards. Shariah disclosure data were collected from the annual reports for the year 2016 of the 16 Islamic banks in Malaysia. Based on Institutional Theory, this study hypothesised high compliance, however the results revealed that none of the banks had full compliance to the mandatory items. Nevertheless, some of these banks disclosed voluntary items. The findings provide useful insights to the regulators and stakeholders on Islamic banks’ compliance on Shariah disclosure. The study also reveals the importance of disclosing additional items in the annual reports of Islamic banks.

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.

scholarly journals Do sharia compliance affect Islamic Banks performance? Evidence from Islamic Banks in Indonesia

2019 ◽  
Vol 7 (3) ◽  
pp. 12
Author(s):  
Inten Meutia ◽  
Mohammad Adam ◽  
Rulyanti Susi Wardhani
Keyword(s):  
Content Analysis ◽  
Financial Institutions ◽  
Best Practice ◽  
Annual Report ◽  
Statistical Tests ◽  
Annual Reports ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Islamic Financial Institutions ◽  
Governance Instruments

Sharia compliance is very important for Islamic financial institutions. This study has two objectives, namely to determine the level of sharia compliance in Islamic banks in Indonesia, as well as to prove whether the sharia compliance affects the performance of Islamic banks in Indonesia. To prove this, the researcher observed the annual report of 11 Islamic banks in Indonesia for the period 2012 to 2016. Sharia compliance is measured through the level of sharia governance in Islamic banks. Sharia governance instruments used refer to Hasan (2011). While the performance of Islamic banks is measured by ROA and ROE. Content analysis is used to identify sharia governance disclosures in annual reports. The study revealed that, on average the level of sharia compliance of Islamic bank in Indonesia is at the level of best practice. While the results of statistical tests prove that there is no significant effect sharia compliance on the performance of Islamic banks both measured by ROA and ROE.

Sign in / Sign up

Export Citation Format

Share Document