scholarly journals Effectiveness of Hedging Accounting Methods:A Case of Islamic Profit Rate Swap Contract

2021 ◽  
Vol 6 (6) ◽  
pp. 27
Author(s):  
Ravindran Ramasamy ◽  
Bavani Chandra Kumar ◽  
Zulkifflee Mohamed
Keyword(s):  
Profit Rate ◽  
Rate Swap

Analysis of Tawarruq contract in the Islamic profit rate swap (IPRS) implementation in Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Azlin Alisa Ahmad ◽  
Mohd Hafiz Mohd Dasar ◽  
Nik Abdul Rahim Nik Abdul Ghani
Keyword(s):  
Structured Interview ◽  
Profit Rate ◽  
Consultation Service ◽  
Content Type ◽  
Dual Agency ◽  
Banking Institution ◽  
Shared Risk ◽  
Practical Implications ◽  
Rate Swap ◽  
Risk Concept

Purpose This study aims to analyse the Shariah issues in the implementation of tawarruq contract in the Islamic profit rate swap (IPRS) instrument in Malaysia. Design/methodology/approach This is a qualitative study in applying data analysis and semi-structured interview approaches. Data was collected from various documents including journals, articles and past studies conducted by scholars. To achieve the purpose of this study, the data is analysed based on thematic analysis. Findings The study found several Shariah issues regarding the implementation of tawarruq contract in the IPRS instruments, which have remained a dispute amongst the Islamic financial scholars such as its profit-making purpose, encouragement of debt, impediment of shared risk concept, disputed underlying assets, a deception towards allowing riba and dual agency. Research limitations/implications This study recommends several improvements such as the establishment of a neutral agency that does not represent any banking institution to manage the tawarruq contract commodity purchase from Bursa Suq al-Sila’ (BSAS). In addition, a neutral agency can provide aid in terms of transaction facility or at least consultation service for clients to enable them to conduct the commodity transactions independently. Practical implications Moreover, guidelines should be established on the separation of the deadline to sign the agreement of appointment of a bank as the commodity purchase agent and the agreement of appointment of the bank as the commodity sale agent on behalf of clients. All transactions related to tawarruq contract commodity must be done through BSAS. The regulators and industry experts may create a guideline for the IPRS based on the issues and recommendations that have been discussed in this study. Originality/value On the basis of the analysis of the criticisms and issues in the implementation of tawarruq contract in the IPRS instrument, the current study found that an intermediating institution is allowed to gain profits from transactions conducted so long as they are based on Shariah principles of contract in Islam. As there is no parameter specifically for IPRS, thus the suggested parameter can be used by policymakers such as the Central Bank of Malaysia to ensure the industry complies with Shariah principles.

Profitability of dairy farming in relation to the type of feeding system

2011 ◽  
Vol 28 (1) ◽  
pp. 55-59 ◽  
Author(s):  
Jan Frelich ◽  
Martin Šlachta ◽  
František Střeleček ◽  
Jana Lososová
Keyword(s):  
Arable Land ◽  
Principal Component ◽  
Dairy Farming ◽  
Plant Production ◽  
Feeding Strategies ◽  
Feeding System ◽  
Financial Health ◽  
Profit Rate ◽  
Permanent Housing ◽  
Cow Performance

Profitability of dairy farming in relation to the type of feeding systemWe investigated the profitability of dairy farms in relation to the type of feeding system (seasonal pasture vs. permanent housing). An economic analysis was carried out of data on the structure and financial health of 50 farms in 2007 using questionnaires filled in by the farmers. The Principal Component Analysis (PCA) was applied to reveal causal relationships between a number of characteristics of the farms. The two axis of PCA explained 40.48% and 16.13% of the variability among the selected farm characteristics. Profitability related more to the number of subsidies, the area of arable land, the number of livestock and to the milk and plant production than to the area of meadows and pastures. Although a better cow performance was achieved on farms with confined herds, the profit per agricultural area and profit rate did not differ significantly between the two feeding strategies (P>0.05). The profit was 3,259 and 3,655 CZK/ha on average and the profit rate 7.9% and 5.6% on average on farms with pastured herds and on farms with confined herds, respectively. A lowering of input costs and a more effective utilisation of grasslands may further enhance profitability.

scholarly journals Inventory decision in a periodic review inventory model with two complementary products

2021 ◽  
Author(s):  
Saeed Poormoaied
Keyword(s):  
Approximation Algorithm ◽  
Explicit Expression ◽  
Interaction Effect ◽  
Expected Profit ◽  
Base Stock ◽  
Optimal Solutions ◽  
Periodic Review ◽  
Profit Rate ◽  
Complementary Products ◽  
Demand Processes

AbstractInteraction effect across complementary products plays an important role in characterizing the optimal inventory policy. The inventory levels of complementary products are interrelated due to interaction between demand streams. In this paper, we consider a periodic review base-stock policy in the presence of two complementary products with interrelated demands and joint replenishment. Demands are modeled by a Poisson process and any unmet demand is lost. Demands can be in sets of one unit of each or jointly. If an arrival demand requests two products jointly and one of the products is not in stock, then the whole demand is lost. We aim to investigate how this interrelated demand phenomenon influences the optimal base-stock levels and the period length of a periodic review policy. We utilize the renewal reward theorem to derive the explicit expression of the expected profit rate in the system. The goal is to determine the optimal period length and the base-stock levels such that the expected profit rate is maximized. Enumeration and approximation algorithms are employed to find the optimal and near-optimal solutions, respectively. The approximation algorithm is based on a scenario with independent demand processes which results in an explicit expression for the long-run profit per time unit and leads to analytical solutions for optimal policies. Our numerical results reveal that the solutions obtained by the approximation algorithm are close to optimal solutions. Numerical experiences show that the maximum profit in the system is achieved if the proportion of customers with jointly demand increases. Moreover, the interaction effect between demand processes has a significant impact on the control policy performance when the units lost sales and unit holding costs are high, and the demand rare is low.

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