Islamic Finance

Evidence of IFRS Adoption in Muslim Finance- Kuwait, Jordan In open up to the parallel in the midst of conventional and Islamic accountancy, many authors cheque much(prenominal) comparison in general or for unique(predicate) standards (see for obiter dictum Baydoun and Willett, 2000; Haniffa and Hudaib, 2001). According to them, the main differences between conventional and Islamic method of accounting read to do with the following: a) General economic aspects such as: ? Secular versus religious; ? Economic rationalism versus adept of graven image; ? Individualism versus collectivism; ? Profit maximisation motive versus commonsense profit; ? Absolute versus relative ownership.

b) special accounting issues alike: ? Conservatism: apply prudent rating methods and avoid victimisation the most favorable impact on owners versus most favorable to eccentricnership; ? On going concern: employment goes forever versus ground on contractual agreement between parties; ? Measuring unit: pecuniary value versus quantity and monetary based (according to zakat calculation); ? Consistency based on the standards/regulations used by the entity versus consistency with Islamic law; ? corporality: decision making value versus fulfilling all duties before Allah; ? Users of financial study: identifying economic events and legal proceeding versus identifying socio-economic and religious events and transactions. In addition, some (Razik, 2009) consider that Islamic accounting and IFRS differ in five issues that are related to to leases, discipline contracts, and specialty investment account (where the investors bear part of the headache r isk), related party transactions; whereas o! thers (Baydoun and Willett, 2000) analyze the contents of Islamic corporate reports suggesting that a current value added statement should similarly be part of Islamic corporate reports in regularise to provide greater sentience of the social impact of fraternitys activities. Sulaiman (2000) supports the use of some(prenominal) current value balance sheets and value...If you trust to get a effective essay, order it on our website: OrderEssay.net

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