Beruflich Dokumente
Kultur Dokumente
(Week 1 & 2)
Development of Islamic
Banking System
ACCOUNTING
A PROCESS OF
Recognising,
recording,
classifying
and summarising
business
transaction
Documents
Vouchers
Ledger
Trial Balance
Report (Mgmt)
Measuring,
Analyzing,
Interpreting Result
of Operation
Reporting &
Presenting
Financial Position
Profitability
= Income - Expenses
Financial Statement
Growth
Liquidity
Productivity
Balance Sheet
Income Statement
Stmt of Changes
In Equity
Cash Flow Statement
Notes to Accounts
STAKEHOLDERS
1. Management
2. Board of Directors
3. Shareholders
4. Investors
5. Creditors
Traditional
Islamic
Comprehensive Economic
income
Performance
Fulfilment of
Amanah
Financial
Position
Financial
Position
Financial Trust
and Obligation
Cash Flow
Cash Position
Cash Entrusted
Equity
Statement
Wealth
Ownership
Wealth
Entrusted
Introduction to AAOIFI
Accounting Standards and
Objectives of Financial
Accounting and Reporting
Primary Purpose
To enhance the confidence of users of the
financial statements of the IFIs and
ultimately to promote IFIs
Objectives
Develop accounting and auditing thought
relevant to IFIs
Disseminate accounting and auditing
thought relevant to IFIs
Prepare, promulgate and interpret
accounting and auditing standards for IFIs
Review and amend accounting and auditing
standards for IFIs
Financial Accounting
Statements of
Standards
Financial
Musharaka Financing
Accounting
Profit Allocation Basis
Objectives
Investment Account
Concepts
Holders
Financial Accounting Salam Financing
Standards
Ijarah Financing
Presentation and
Zakah
Disclosure of Financial Istisna Financing
Statements of Islamic Provisions and Reserves
Banks
Presentation and Disclosure
Murabaha Financing
of Financial Statements of
Islamic Insurance
Mudaraba Financing
Companies
Auditing Standards
Objectives and
Principles of Auditing
The Auditors Report
Terms of Audit
Engagement
Governance Standards
Syariah Supervisory
Board
Syariah Review
Internal Syariah
Review
Code of Ethics
Code of Ethics for
Accountants and
Auditors of IFI
New Financial
Accounting Standards
Investment Fund
Disclosure Bases for
Determining and
Allocating Insurance
Surplus (and deficit)
New Auditing Standards
Audit Tests for Syariah
Compliance
Accounting unit
Separate legal entity; limited liability; owners
are different from managers
Similar to the concept of juridical person in
the case Waqf & Baitulmal
Almost similar to Mudarabah as far as the
purpose and principles
Liabilities limited to the capital contribution &
may be injurious to the creditors in the case
of liquidation
To be constrained by the syariah as to the
rights and obligations
Periodicity
periodic reports of financial positions as of
a given date and divided into reporting
periods (normally annual)
Accounting for zakat based on haul (one
year complete ownership)
Going concern
contracts assumed to continue until there
is evidence to the contrary
Para 21 MASBi-1 when material
uncertainties, those uncertainties should
be disclosed
Recognition
Define the basic principles that determine
the timing of revenue, expense, gain and
loss
Measurement
Define the broad principles that
determine the amount at which assets,
liabilities, owners equity etc. are
recognized
Revenue Recognition
Recognized when realized, when one of 3 condition
is met:
Matching Concept
Matching of revenues and gains with
expenses and losses that relate to that
period
Measurement Attributes: acquisition cost
(HC), cash equivalent value, assets
replacement cost etc.
In the case of Zakat measurement,
preference is current market value (AAOIFI
FAS 9: Cash Equivalent Value)
1. Relevance
Predictive Value (ability to predict
potential outcome)
Feedback Value (ability to verify the
accuracy of prior prediction)
Timeliness (available as soon as after
the reported events)
2. Reliability
Representational faithfulness
(information reflect what it purports to
present)
Objectivity (measurement and disclosure
appropriately used and if replicated by
independent person gives the same
result)
Neutrality (accounting information
directed towards common needs of users
and not needs of particular group of
users)
3. Comparability
Able to make comparison of the banks
performance and position over time and
with other banks
4. Consistency
Consistent in applying accounting
measurement, valuation and disclosure
methods from one period to another
5. Understandability
Aware of the abilities and limitations of
those for whom accounting information is
provided
6. Materiality
Accounting information is regarded
material if its omission, non-disclosure or
misstatement results in distortion of the
financial statements