Financial Accounting at Islamic Boarding Schools in Riau Province

This study aims to analyze how the application of financial accounting in Islamic boarding schools in Riau Province. The research method is descriptive qualitative that is comparing theory and practice carried out by Islamic boarding schools. Sources and research data obtained from primary and secondary data The number of informants obtained amounted to 9 boarding school administrators. The object of the research is a boarding school in the province of Riau. The result of the research is that all Islamic boarding schools in terms of their accounting application have not followed or applied the accounting standards that have been set by the Generally Accepted Accounting Principles. The accounting applied is still very simple, that is, it still uses a general cash book and there is no journalizing. The financial statements made are only limited to general financial accountability. For this reason, it is necessary to socialize Accounting Standards for Islamic Boarding Schools, because according to the management they have never received accounting training in their Islamic boarding schools.

Accounting for crypto-assets: stakeholders’ perceptions

Purpose The purpose of this paper is to analyse stakeholders’ perceptions on the accounting of crypto-assets. They also look at the need to amend/clarify existing accounting standards or develop new accounting standards. Design/methodology/approach The authors use a qualitative approach featuring interviews with four stakeholder groups including academics, professional bodies, standard setters and accounting practitioners. Interview recordings are transcribed and then analysed through NVivo. Findings The interviewees identify various issues in the application of current accounting standards to crypto-assets. The interviewees perceive that the rapid development of crypto-assets and fluidity hinder the development of accounting guidance. Hence, continuous monitoring by standard-setters is required. The general consensus is that unless there are crypto-assets with economic characteristics and functionality that are pervasive enough to warrant a new accounting standard, principles of current accounting standards are robust to address gaps in accounting requirements for crypto-assets. Originality/value This study adds to the discussion on harmonising the current practices in accounting of crypto-assets. By examining perceptions of multiple stakeholder groups, this study provides insights into the applicability of current accounting standards to the classification, measurement and disclosure of crypto-assets. The findings will inform standard setters and aid their efforts towards providing formal guidance on the accounting of crypto-assets.

The phenomenon of NFT (non-fungible tokens) as an accounting entity

The emergence of the digital economy and increased activity in cyberspace have led to the creation of new technologies and digital products such, as non-fungible tokens (NFT). The article presents the arguments that justify the need to study NFT as an object of legal relations and an object of accounting. A brief description of these items has been given; their types and market of circulation have been studied, and, also the current legal provisions, Russian accounting standards and international financial reporting standards have been analysed. To define NFT as an accounting object, the types of accounting objects enshrined in Federal Law No. 402-FZ “On Accounting” have been considered and the criteria for their attribution in relation to NFT have been analysed. The legal and accounting problems associated with the emergence of a new object have been highlighted and the ways for further research in the field of creating an accounting methodology for NFT as a specific and highly promising digital product have been defined.

The localised accounting environment in the implementation of fair value accounting in Indonesia

Purpose This case study aims to investigate the role of actors in the implementation of fair value standards in an emerging country, Indonesia. Design/methodology/approach This study uses semi-structured interviews with important actors within the local accounting profession, standard setting and regulatory environment, to analyse fair value accounting implementation. This study also incorporates information from press releases and newspapers, to provide a more comprehensive picture of fair value implementation. Findings First, professionals undertake routine actions, cultivate interests and strategically navigate their environment during the process of fair value standard implementation. Second, the role of appraisers becomes more prominent during this process. Third, government involvement is significant in ensuring the successful implementation of global accounting standards. Research limitations/implications First, differing localised contexts, including communities and actors, may shape how an emerging country undertakes the diffusion and implementation of global standards, which in turn can also lead to institutional change. Second, government involvement is crucial in supporting the implementation of global accounting standards within emerging economies. Third, implementing market-based measurements within emerging economies characterised by a lack of an active and liquid market may present challenges. Practical implications Third, implementing market-based measurements within emerging economies characterised by a lack of an active and liquid market may present challenges. Originality/value This study applies the concept of Institutional Work within Institutional Theory to explain how fair value standards are implemented within a localised emerging economy characterised by unique actor roles and goal-directed action.

The effect of the implementation of financial accounting standards on MSMEs

Over the last two decades, the global financial landscape has changed dramatically, including the corporate and political climates, the creation of more market-based economies, and rapid technological advancements. Micro, Small, and Medium Enterprises (MSMEs) is one form of market-based economies created with the most significant business opportunities and very important socially and economically in developing countries for many reasons. However, MSMEs face significant difficulty related to financial reporting standards to evaluate the achievement of business activities. Most MSMEs use a simple form for financial reporting, such as by calculating the difference between inflow and outflow from their business activities. Also, numerous previous studies that focus on Financial Accounting Standards in Indonesia are still limited. Thus, the present study investigates the factors that influence the implementation of Financial Accounting Standards (FAS) of Micro, Small, and Medium Enterprises (MSMEs) in Aceh Province, Indonesia. This quantitative study uses cross-sectional data collected by distributing 200 questionnaires to MSMEs actors that spread North Aceh Regency, namely Lhokseumawe city and Bireuen regency. The data are analyzed using descriptive statistics (e.g., frequency, percentage, mean, standard deviation) and inferential statistic (multiple linear regression) analyses. The study indicated that Perception, Education, Socialization and Incentive factors had significant positive effects on implementing Financial Accounting Standards of Micro, Small, and Medium Enterprises (MSMEs) in Aceh Province, Indonesia. In conclusion, this study has successfully investigated the factors that influence the implementation of Financial Accounting Standards of Micro, Small, and Medium Enterprises (MSMEs) in Aceh Province.

Analysis of the Effect of Sharia Compliance and Islamic Corporate Governance on Fraud in Islamic Banks in Indonesia 2017-2019

This study aims to analyze the factors that influence the occurrence of fraud in Islamic banks in Indonesia. Measurement of fraud in Islamic banks is based on the number of internal frauds that occur in the financial year. The population in this study is Islamic banks in Indonesia for the period 2017-2019. The sample is selected using purposive sampling method and the number of samples obtained is 24 samples. The data used in this study are secondary data in the form of financial reports and corporate governance reports. Data analysis is performed using classical assumption tests and regression analysis. The results of this study indicate that Islamic corporate governance has a significant effect on internal fraud in Islamic banks in Indonesia. Meanwhile, partially the profit sharing ratio and Islamic investment ratio do not have a significant effect on internal fraud in Islamic banks in Indonesia. Islamic banking must comply with accounting standards and Auditing Organizations for Islamic Financial Institutions (AAOIFI) to minimize fraud in operations.