scholarly journals SHARIA ACCOUNTING LITERATION AND FRAUDS PREVENTIVE ON FINANCIAL REPORTING IN SHARIA FINANCIAL INSTITUTIONS

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Asri Noer Rahmi
Keyword(s):  
Financial Institutions ◽  
Financial Reporting ◽  
Fraud Detection ◽  
Profit Sharing ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Financial Reports ◽  
Fraud Prevention ◽  
Islamic Financial Institutions ◽  
Islamic Values

The purpose of this study to know literacy and Islamic accounting applications against fraud prevention in financial reporting in Islamic Financial Institutions and to apply Islamic values to accountants or auditors in order to prevent fraud in financial reports that often occur. Fraud detection is essential to increasing the value of auditing, but there are many problems that can hinder the implementation of proper detection. Based on a review of various studies that have been carried out, the Sharia accounting application is good, which implements a profit sharing system (avoids usury), there is also a separation of financial reporting for each contract, separation of reporting zakat, infaq and shadaqah reporting. In detecting fraud prevention, there are four factors that can prevent fraud in financial reporting identified through this study. First, the auditing standards are insufficient to support proper detection. Second, the characteristics of the occurrence of fraud make it difficult to detect fraud. Third, there is a lack of knowledge of Islamic values in the Sharia accounting application so that fraud does not occur, and the fourth is that there must be awareness that financial statement analysis is not only responsibility for the company, interested parties and decision-holders, but also accountability. who will be accountable in the hereafter, if fraud occurs, then they must be prepared to bear their sins in the hereafter.

Financial Statement Analysis Under IFRS

2018 ◽  
pp. 696-712
Author(s):  
Yasemin Zengin Karaibrahimoglu ◽  
Gökçe Tunç
Keyword(s):  
New York ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Financial Reports ◽  
York Stock Exchange ◽  
Key Points ◽  
Recent Developments

This chapter provides a clear conceptual discussion on the recent developments in the Financial Statement Analysis (FSA). It presents how IFRSs changed the outlook of the financial reporting and the analysis and explains the key points that should be considered in FSA. Using a case study on the financial reports of Turkcell, a communication and technology company listed both on the New York Stock Exchange (NYSE) and the Borsa Istanbul (BIST), the differences between IFRSs and U.S. GAAP accounting standards in the measurement of overall financial performance and position are documented. Overall findings show that IFRSs change the appearance of financial statements significantly. While IFRS reporting extenuates “the bottom line” it accentuates total assets with higher shareholder equity compared to U.S. GAAP. This chapter might be a practical guide for users, preparers, and regulators to understand the cosmetic impact of IFRSs on financial statements.

scholarly journals PENERAPAN SISTEM INFORMASI DALAM PRAKTEK LAPORAN KEUANGAN SEDERHANA

Teknologi ◽  
2012 ◽  
Vol 1 (1) ◽  
Author(s):  
Sugiantina Sugiantina
Keyword(s):  
Information Technology ◽  
Financial Reporting ◽  
Financial Statement ◽  
Software System ◽  
Financial Statement Analysis ◽  
Financial Reports

ABSTRAK Tolak ukur bagi kemajuan pelaporan keuangan adalah metode analisis laporan keuangan dan penerapan teknologi informasi dalam berbagai analisis keuangan. Setiap institusi bisnis berupaya untuk menyeimbangkan perkembangan teknologi Informasi dengan perkembangan analisis pelaporan keuangan. Adanya perkembangan tersebut, institusi bisnis dituntut untuk bisa lebih cepat dan kreatif dalam bekerja khususnya dalam pelaporan keuangan. Hal ini dikarenakan adanya software system informasi yang sudah menjadi trend, dalam dunia bisnis dapat membuat laporan keuangan berbasis webyang  memberikan kemudahan dalam hal financial controlling bagi semua lapisan level manajemen intitusi bisnis Kata Kunci: sistem informasi, laporan keuangan, institusi bisnis   ABSTRACT Benchmarks for the progress of financial reporting is a method of financial statement analysis and application of information technology in a variety of financial analysis. Every business institution seeks to balance the development of information technology with the development of financial reporting analysis. The existence of these developments, business institutions are required to be more quickly and creatively in the work, especially in financial reporting. This is because the software information system that has become a trend, in the business world to create financial reports based web that  provide convenience in terms of financial controlling for all levels of management level business institution Keywords: information systems, financial reporting, business institutions

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.

An accounting perspective on the use of combined contracts and donations in Islamic financial transactions

2017 ◽  
Vol 8 (1) ◽  
pp. 54-69 ◽  
Author(s):  
Muhannad Ahmed Atmeh ◽  
Bassam Maali
Keyword(s):  
Financial Institutions ◽  
Financial Reporting ◽  
International Accounting Standards ◽  
Legal Form ◽  
Financial Reports ◽  
Content Type ◽  
Reporting Framework ◽  
Islamic Financial Institutions ◽  
Economic Transaction ◽  
Financial Transactions

Purpose The purpose of this paper is to investigate the techniques used by Islamic financial institutions (IFIs) to shift conventional instruments to Shariah-compliant instruments. The paper additionally aims to explore the effect of these techniques on financial reporting. Design/methodology/approach The study recognized two techniques used by the IFI: the combination of contracts which compartmentalizes the economic transaction into a series of linked sub-transactions, and the inclusion of donation (Tabarru) in commercial contracts. The paper also reviews the accounting treatment according to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and compares it to the concepts adopted by the traditional financial reporting framework concepts (especially substance over form concept). Findings With regard to the combination of contracts technique, the major accounting challenge is whether the substance over form concept is considered. Mixed results are found: in some products, the economic substance is presented in the financial reports, while in other cases, the legal form of the contract is reported. This ambiguity may hinder the faithful representation of financial statements. The Tabarru contract is used to justify the risk-shifting practices by Islamic banks. The accounting effects of such contracts may result in failure to recognize assets or liabilities in the financial reports, earnings management and incomplete financial information for the users of the financial reports. Originality/value This study is a response to the call raised by the consultative group established by the International Accounting Standards Board. It provides an additional insight into the accounting treatments for a combination of contracts and Tabarru contracts. It also contrasts the accounting treatments, as stipulated by the AAOIFI, with the conventional accounting frameworks.

scholarly journals Financial Reporting Differences of Profit and Loss Sharing Investment Deposits in Islamic banks: A Cross-Country Study

2020 ◽  
Author(s):  
Faleel Jamaldeen
Keyword(s):  
Data Analysis ◽  
Financial Institutions ◽  
Financial Reporting ◽  
Financial Statements ◽  
Financial Statement ◽  
Islamic Banks ◽  
Country Study ◽  
Islamic Financial Institutions ◽  
Cross Country ◽  
The Cross

The aim of this cross-country research is to examine how the profit and loss sharing mudarabah investment deposits are classified and disclosed in the financial statement of Islamic banks. The cross-country study examined the financial statements of fifty-one fully-fledged Islamic banks. The results of the data analysis show that Islamic banks disclose the mudarabah investment account in different ways. The absence of standardized disclosure for mudarabah investment deposit confuses the stakeholders. This research suggests to the regulators to fully or partially adopt the AAOIFI standards specifically for Islamic financial institutions.

Financial Statement Analysis under IFRS

2014 ◽  
pp. 238-255
Author(s):  
Yasemin Zengin Karaibrahimoglu ◽  
Gökçe Tunç
Keyword(s):  
New York ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Financial Reports ◽  
York Stock Exchange ◽  
Key Points ◽  
Recent Developments

This chapter provides a clear conceptual discussion on the recent developments in the Financial Statement Analysis (FSA). It presents how IFRSs changed the outlook of the financial reporting and the analysis and explains the key points that should be considered in FSA. Using a case study on the financial reports of Turkcell, a communication and technology company listed both on the New York Stock Exchange (NYSE) and the Borsa Istanbul (BIST), the differences between IFRSs and U.S. GAAP accounting standards in the measurement of overall financial performance and position are documented. Overall findings show that IFRSs change the appearance of financial statements significantly. While IFRS reporting extenuates “the bottom line” it accentuates total assets with higher shareholder equity compared to U.S. GAAP. This chapter might be a practical guide for users, preparers, and regulators to understand the cosmetic impact of IFRSs on financial statements.

Analisis Kontrak Ijarah

2018 ◽  
Vol 4 (2) ◽  
pp. 201-213
Author(s):  
Puji Kurniawan
Keyword(s):  
Financial Institutions ◽  
Profit Sharing ◽  
Fundamental Difference ◽  
Human Needs ◽  
The People ◽  
Islamic Financial Institutions

Humans are social creatures who need each other to socialize or to fulfill their needs, such as primary, secondary and tertiary needs. In this life there are 2 (two) groups of people, namely groups of people who are overfunded and those who are underfunded. Therefore, banks and non-bank financial institutions have emerged as intermediaries between the 2 (two) groups of the people so that the balance can occur in meeting the needs of each life. In Indonesia, there are many conventional and sharia bank and non-bank financial institutions that provide financing services to meet human needs. The fundamental difference between conventional and Islamic financial institutions is the use of the interest system which is usury in conventional financial institutions and the use of profit sharing systems in Islamic financial institutions.

Effect Technology Information On Quality Financial Statement With Internal Control As Moderating Variable

2021 ◽  
Vol 2 (1) ◽  
pp. 9-13
Author(s):  
Aris Eddy Sarwono ◽  
Asih Handayani
Keyword(s):  
Information Technology ◽  
Control System ◽  
Financial Reporting ◽  
Internal Control ◽  
Local Governments ◽  
Sampling Technique ◽  
Financial Statement ◽  
Financial Reports ◽  
Internal Control System

The problem with the low quality of financial reports in local governments is the reason this research was conducted. This research was conducted with the aim of analyzing the use of information technology on the quality of financial reports by considering the internal control system (SPI) factor. The location of this research is in the Karisidenan Surakarta area which includes 6 districts and 1 city. The population of this research is all state civil servants (ASN) in local governments who work in accounting. The sampling technique was using purposive sampling method. The results showed that the use of information technology had a positive effect on the quality of financial reporting in local governments, while the internal control system moderated the effect of the use of information technology on the quality of financial reporting in local governments.

Financial Reporting, Auditing, Analyst Scrutiny, and Investment Efficiency

2021 ◽  
Author(s):  
Derek Chan ◽  
Nanqin Liu
Keyword(s):  
Financial Reporting ◽  
Audit Quality ◽  
Financial Statement ◽  
Investment Efficiency ◽  
Strategic Interactions ◽  
Financial Reports ◽  
Audit Failure ◽  
Economic Framework ◽  
Ex Post ◽  
Ex Ante

This paper presents an economic framework to study strategic interactions along the analyst-auditor-owner disciplinary chain, in which the auditor examines the financial reports prepared by the owner, and the analyst uncovers financial misreporting as well as audit failure. We find that although analyst scrutiny ex post detects misreporting, it ex ante aggravates the owner's misreporting behavior and further impairs financial statement reliability if the legal penalties for the auditor and the owner are small. We also show how the effects of a regulation depend on its target's disciplinarian(s). Specifically, (i) although enhancing the auditor's legal liability always increases audit quality and financial statement reliability, it decreases investment efficiency if and only if the analyst is highly independent; and (ii) increasing the owner's misreporting penalty decreases investment efficiency if and only if either of (but not both) the regulations on the auditor and the analyst is strict.

Issues and challenges of IFRS 9 in Malaysian Islamic financial institutions: recognition criteria perspective

2021 ◽  
Vol 12 (2) ◽  
pp. 239-257
Author(s):  
Marziana Madah Marzuki ◽  
Abdul Rahim Abdul Rahman ◽  
Ainulashikin Marzuki ◽  
Nathasa Mazna Ramli ◽  
Wan Amalina Wan Abdullah
Keyword(s):  
Financial Institutions ◽  
Financial Reporting ◽  
Business Models ◽  
Fair Value ◽  
Financial Instruments ◽  
Structured Interviews ◽  
Content Type ◽  
Reporting Framework ◽  
Islamic Financial Institutions ◽  
Ifrs 9

Purpose The purpose of this paper is to investigate the effects and challenges of the new amendment of International Financial Reporting Standards (IFRS) 9 in Malaysia from the perspectives of regulators, auditors, accountants and academicians in Malaysian Islamic financial institutions. For the purpose of this study, this paper focuses on the recognition criteria perspective of the standard, which provides a basic understanding of the financial reporting framework. Design/methodology/approach Using 10 series of semi-structured interviews undertaken with key individuals in regulatory bodies, audit companies, full-fledged Malaysian Islamic Banks and Malaysian higher learning institutions. Findings The findings revealed that IFRS 9 strengthens International Accounting Standards 39 in terms of relevance and reliability, recognition of financial instruments and identification of business models. Nevertheless, Islamic financial institutions face challenges in terms of a faithful representation of fair value, substance over form, identification of financial instruments before recognition criteria and the extent of the role of risk management in reducing manipulation in identifying business models. Research limitations/implications This study provides implications to regulators and standard setters in Malaysia to enhance the quality of financial reporting framework and practices in Islamic financial institutions in this country using IFRS 9. Practical implications Practically, the findings of this study can be used by the regulators to resolve the issues that arise in adopting IFRS 9 among Islamic financial institutions to further enhance financial reporting quality. Originality/value The findings of this study are very important to ensure that the adoption of IFRS among Islamic financial institutions are in line with Sharīʿah principles. To date, no studies have been done on the challenges of adopting IFRS 9 among Islamic financial institutions in Malaysia.

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