School of Management

ACE464 ISLAMIC ACCOUNTING

Academic Session 2016/2017

Group 6

PREPARED FOR: DR. MD. HARASHID HARON

MUHAMMAD FAIZAL IKMAL BIN MOHAMAD 129438

NUR ANIS SHAHIRA BINTI MOHD KHALIL 129452
SHANGITA SUVARNA GANGARAJ 120887
TUN NADIA SYAFEQAH BINTI DZULKARNAIN 129502

NAME : MUHAMMAD FAIZAL IKMAL BIN MOHAMAD

1)What could you conclude and consequently synthesize for the introduction-to-course

session?

Accounting can be defined generally as the process of identifying, measuring and

communicating economic information in order to permit informed judgement by
the users of information.

I think Islamic Accounting is a theory derived from Islamic source and traditions and it is
required to be practices in Islamic Financial Institution. It was a slightly different body of
accounting ideas and practices than Conventional Financial Institution. It is essential to
running all these practices and this practices have to be work within Islamic financial
institution such as Islamic Bank and Zakat Institution.

Besides that, I also think that an accounting should be influenced by the way the economic
system is organized and the foundation in its system. I think Islamic Accounting are not
derived from cultural and thoughtful elements aided by science, but one whose original
source is affirmed by intellectual and intuitive principles.

Islam already prescribe that human beings cannot achieve their reason and fulfill their
roles in life unless otherwise they continual to act and make decisions relating to the
management of their environment based on truth and justice. Basic parts would be involving
the equity and equitability as the main concept.

2) Explain how the syntheses of the individual above may possible the group (your group) as

a whole, in a thinkable ways.

In my opinion, every member in a group have their very own judgement, perspective and also
different solution for every problem. As for Islamic Accounting that the main source is solve
in intellectual and intuitive principles. Its good for a group which have many ideas and
solutions to be argued. This kind of argument can expend the idea into more creative way and
better solution. Cooperation also taking the most important part from each member because
as a team, the every individual have the responsibility to work together actively in order to
achieve the goals or derived mutual benefit in the most effective way. I also think that the
good management in a group is derived based on truth, equitability and justice that improved
the result of decision making
NAME : NUR ANIS SHAHIRA BINTI MOHD KHALIL

1)What could you conclude and consequently synthesize for the introduction-to-course

session?

What I could conclude and consequently synthesize from the introduction-to-course session
are briefing about the chapters of the subjects that I taking this semester. Then, I can
summarize what I have learnt after the lecture. So, I can get better understanding about the
chapter. Moreover, I can strengthen my accounting knowledge about the fundamental,
concept and quality in Islamic point of view and practices as applied in Islamic institution
and organisation. I knew the Islamic Accounting course can be subsets with the accounting
itself. For example, in having a quality financial statements report, we as accountants need to
have good justification and judgement. But, before that, accountant must be justice, sense of
equality and must disclose all the facts in the reports. Next, I can analyse and have good
understanding in contemporary issues happens in organisation in context of modern
corporation and financial institution.

2)Explain how the syntheses of the individual above may possible the group (your group) as
a whole, in a thinkable ways.

In my opinion, as a group, we can have various understanding about the fundamental

knowledge of accounting principles as applied in Islamic Accounting institution and
organisation. From that, we can combine all the ideas that linked to contemporary issues
happen in organisation. Then, we can think of the solution or any other ways to prevent the
issues. We also can discuss on interesting chapter and try to get deeper information to analyse
the topics together. When in group, all members can throw any suggestion that they think
suitable and fit with the topic. Moreover, the information we get from the discussion and
argument, make us realise about the importance having justice and equality in the
organisation.
NAME :SHANGITA SUVARNA GANGARAJ

1)What could you conclude and consequently synthesize for the introduction-to-course

session?

Based on introduction to course session ,I realized that Islamic accounting is not just
underlying and analyzing the values of Islamic principles in the accounting process but
teaches the comparison of two systems.This leads to a conclusion that the value of Islamic
such as honest,fair ,truth has more meaning than the similar value of in the conventional
accounting.I believe being an accountant in future, must present the most useful financial
statement and financial reporting that lie on the truth, justice, fair, goodwill, honesty,
benevolence, and reliability in order to be used for precise decision making.Hence,Islamic
accounting will set a good platform and provide relevant guidance for me in order to perform
accounting job ethically.Relevantly,I believe Islamic accounting will provide good
understanding and benefits in terms of curbing fraudulent and poverty by grasping the
Islamic concepts deeply.

2)Explain how the syntheses of the individual above may possible the group (your group) as
a whole, in a thinkable ways.

In my point of view,the combination of those syntheses from individual may able to merge
the ideas to create a productive and effective discussion related to Islamic accounting.Besides
that, when working on problems, answering questions about the reading, or discussing case
studies working together on content can master the basics of Islamic accounting .Different
syntheses and perspectives from individual results in better solutions and performance of the
assignments.Last but not least,the discussion in group make us to be aware and realize that
equality and justice is important in framework of accounting.
NAME : TUN NADIA SYAFEQAH BINTI DZULKARNAIN

1)What could you conclude and consequently synthesize for the introduction-to-course

session?

Islamic accounting provides the information which users of the financial statements of
Islamic banks depend on in assessing the Islamic banks extent of compliance with Shariah
and determining rights and obligations of all interested parties in accordance with the
principles of Shariah. There are many similarities between Islamic and conventional
accounting, as both are about providing useful economic information to permit users to make
rational decisions by facilitating comparisons and thereby minimising the cost of assessing
alternatives investments. However, the nature of transactions in Islamic organisations which
deal within Shariah framework is different as Islamic organisations have a duty to contribute
to socioeconomic justice and stability.

While conventional accounting is based upon modern commercial law, Islamic accounting is
based upon ethical law originating in the Quran and Sunnah which ultimate purpose is to
ensure that Islamic organisations abide by the principles of the Shariah in their dealings.
Information provided by conventional accounting focus on individuals who control resources
while IA information concentrates on the community who participate in exploiting resources.
They aim at promoting efficiency, leadership, and commitment to justice. It also differs in the
type of information needed in both types of accounting and how it is measured and valued,
recorded and communicated. CA is based on economic events and transactions while IA is
based on socioeconomic and religious event and transactions. In fact, CA mainly uses historic
cost to measure and value assets and liabilities; which restricts this model due to assumptions
of the monetary unit and its inflation. From an Islamic point of view, both financial and non-
financial measures regarding the specific events and transactions are measured and reported.
To calculate Zakat, assets need to be measured in contemporary terms, not historical cost.

Another difference between CA and IA is in the users of the information. The management of
Islamic corporations is accountable not only to the shareholders. It is accountable to the
society as a whole. These users need to evaluate that the Islamic corporation makes money in
an ethical way and in accordance with Shariah principles, and deploy its resources in a
profitable manner; hence Islamic organizations should disclose additional information to their
reporting, such as the liquidity, solvency, risks taken and contribution in fulfilling social
responsibilities, such as protection of the environment and contribution toward charitable
activities.

2) Explain how the syntheses of the individual above may possible the group (your group) as
a whole, in a thinkable ways.

Based on the individual answer above, it can affect the whole group in several ways. First, it
makes us want to make sure that we have assigned our group members with equal amount of
work load for our group assignments. Justice is very important in every aspect of a group
work. Everyone should get a just behaviour or treatment. Next, when it comes to stability, it
can be concluded that stability can also be referred to reliability. Therefore, every member
needs to make sure that they can rely on each other in that particular group. Other than that, I
can also synthesize that we must also follow the ethical rules that have been set in the Quran
and Sunnah while delivering our own part in the group assignments. Quran and Sunnah
contain many good moral values that can be instilled in our daily lives. Those who usually
abide the values stated in the Quran and Sunnah are promised to have good, fulfilled and
content lives.