...Sukuk: General Review Challenges on Shariah-compliance & Accounting Implications Monsif MOUMNI Introduction The growth and popularity of the use of Islamic finance has been exceptional since the central bank of Bahrain issued the first sovereign sukuk in 2001. In fact, the size of the global Islamic finance market exceeds US$2 trillion. Although the sukuk market is still small compared to the conventional bond market, sukuk are considered as the most successful financial product among the Islamic financial institutions and also considered as one of the fastest industries in its growth in international financial landscape. Sukuk generally refers to Shariah-compliant bonds; the spread in a striking pace of sukuk in GCC1 and Muslim-majority countries in Asia has made from it a very important way for fund raising. Recently sukuk have also been attracting attention in non-Islamic countries in Europe, Asia, and Africa; for example in 2014, sovereign sukuk were issued by the United Kingdom, Hong Kong, Luxembourg, and South Africa (Lackmann, 2015). The main objective of this paper is to provide a panoramic picture describing the key elements characterizing sukuk from different perspectives combined. In this review we will first try to present the general context of sukuk i.e. the definition, types, and the basic structure of sukuk, and also to make a contrast of conventional bonds with sukuk to outline the main differences, and next we will discuss about controversy...
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...com/locate/jaccpubpol On the global acceptance of IAS/IFRS accounting standards: The logic and implications of the principles-based system q Salvador Carmona *, Marco Trombetta IE Business School, Calle Pinar, 15-1B, 28006 Madrid, Spain a r t i c l e i n f o a b s t r a c t The widespread acceptance of International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) makes it timely to examine their technical determinants as well as their implications for the accounting profession and the process of accounting harmonization. In this respect, we suggest that the principles-based approach to the standards and its inner flexibility enables the application of IAS/IFRS to countries with diverse accounting traditions and varying institutional conditions. Furthermore, the principles-based approach involves major changes in the expertise held by accountants and, hence, in their educational background, training programs, and in the organizational and business models of accounting firms. Finally, we submit that the standards set by the IAS/IFRS constitute a step forward in the process of accounting harmonization, although there is still far to go in the comparability of accounting measures across countries and regions. Ó 2008 Elsevier Inc. All rights reserved. Keywords: Globalization Accounting harmonization Convergence Principles-based standards Rules-based standards 1. Introduction The harmonization of accounting standards has made considerable progress within...
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...process in the accounting world. The Financial Accounting Standards Board accomplishes this mission through a comprehensive and independent process that encourages broad participation, objectively considering all stakeholder views, and by being subjected to oversight by the Financial Accounting Foundation’s Board of Trustees. Through these few necessary requirements they help form a very effective and sound standard setting process. The first part of the standard setting process that plays a crucial role in this process is the Rules of Procedures. The Rules of Procedure of the standards setting process describes the FASB’s operating procedures, and includes the due process activities that are to be open to public participation or observation to provide transparency into the standards-setting process. These rules set forth procedures followed by the FASB in establishing and improving standards of financial accounting and reporting for nongovernmental entities, including procedures related to the issuance of such standards and other communications. They also describe briefly the relationship of the FASB to the Foundation and its two advisory councils, the Financial Accounting Standards Advisory Council and the Private Company Council. The FASB is an independent, private-sector body created to serve an important public interest. Since 1973, it has been the designated organization in the private sector for establishing and improving standards of financial accounting and reporting...
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...The Winchester Mystery House is a well-known mansion in Northern California. It once was the personal residence of Sarah Winchester, the widow of gun magnate William Wirt Winchester. It was continuously under construction for 38 years and is reported to be haunted. It now serves as a tourist attraction. Under Winchester's day-to-day guidance, its "from-the-ground-up" construction proceeded around the clock, without interruption, from 1884 until her death on September 5, 1922, at which time work immediately ceased.[3] The cost for such constant building has been estimated at about US $5.5 million[4] (if paid in 1922; this would be equivalent to over $75 million in 2012).[5] The Queen Anne Style Victorian mansion is renowned for its size and utter lack of any master building plan. According to popular belief, Winchester thought the house was haunted by the ghosts of the people who fell victim to Winchester rifles, and that only continuous construction would appease them. It is located at 525 South Winchester Blvd. in San Jose, California.[6] As of 2013, the house is under private ownership by Winchester Mystery House, LLC, a limited liability company owned by partners Edna May Raney; Gerard Raney; Ray Farris II; Sandra Farris; and M. Valerie Bovone. It is not operated by the County of Santa Clara or the U.S. National Park Service. Inspiration Although this is disputed, popular belief holds that a Boston medium told Winchester that she had to leave her home in New Haven and...
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...will consider legal, tax, accounting, and other implications when selecting from the four business types. The Four Forms of Business’ There are four main forms of business organizations that Sandy the owner of Webb Inc. must choose form to start the process of forming her business. The legal entity in which a business owner can choose from is sole proprietorship, partnership, C corporation, and S corporation. Along, with the advantages and disadvantages of each type of business form. Sole proprietorship is the most common form utilized for a small business. This type of form is used, especially in the early stages of a business controlled by one person. This one person is directly responsible for the management and conduct of the company. The advantage of present the sole proprietorship is that this is least experience to own and operate because there are no particulars concerning the legal organization. There are no rules governing in which it must have a purpose. The disadvantage of this type of form is that the owner is liable for the actions and debts created for and against the company. Tax implications for sole proprietors are taxes are paid on his or her personals income taxes. The business is not taxed separately. The legal implications of being a sole proprietor means they are held personally liable for any business-related obligation. The creditor can come after their house or any other of their possessions. The accounting implications for this type of company is...
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...The Malaysian Institute of Certified Public Accountants DISCUSSION PAPER TAX IMPLICATIONS RELATED TO THE IMPLEMENTATION OF FRS 117: LEASES Prepared by: Joint Tax Working Group on FRS Date of issue: 22 January 2010 Tax Implications Related to the Implementation of FRS 117: Leases Disclaimer: This document is meant for the purpose of discussion only and the Malaysian Institute of Accountants, The Malaysian Institute of Certified Public Accountants and the Chartered Tax Institute of Malaysia (“the Institutes”) are not, by means of this document, rendering any professional advice or services. This document is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a professional advisor. Whilst every care has been taken in compiling this document, the Institutes make no representations or warranties (expressed or implied) about the accuracy, suitability, reliability or completeness of the document for any purpose. The Institutes, their Councils and Council members, Committees and Committee members, Working Groups and Working Group members, employees and agents accept no liability to any party for any loss, damage or costs howsoever arising, whether directly or indirectly from any action or decision taken (or not taken) as a result of any person relying on or otherwise using this...
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...the state of frame that it is in, RSJ Security Services will become a positive element in the field of security. RSJ Security Services will focus primarily on clients and community interests, as well as employee needs. 3. RSJ Security Services will employee an experienced security staff, appealing to experienced security personnel, and present, and former military personnel, and implement based on client contracts using full time officers. RSJ Security Services will begin by having one employee, and that is the owner Roberto Santiago Juarez at the time of the launch of the company. With over seventeen years of experience in the security field he will oversee the entire operations of the security company. He will mange and finance/accounting, hiring, and human respources. In turn, security officers will be employed as client engagments are created and will be accounted for as a cost of sales. In turn, RSJ Security Services will provide professional and detailed security for its clients through the following...
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... SECTION A: basic information ❑ Introduction Welcome to LUBS 5016 Financial Reporting and Regulation. This course is compulsory for MSc Accounting and Finance students. It is taught in the second semester, is worth 15 credits if successfully completed and comprises 10 lectures supported by a series of workshops or tutorials. The course is assessed by means of an examination in May/June 2012 (100 per cent). ❑ Prerequisites There are no prerequisites for this module nor is the passing of this module a prerequisite for any other module. Aims This module is designed to provide students with an understanding of the main economic and political issues that underpin academic and policy-oriented debates about the regulation, purpose and value of financial reporting. Objectives On completion of this module, students will be able to demonstrate knowledge and understanding of: • The international nature of accounting; • Financial statements produced under various systems of income measurement; • The major elements in a conceptual framework for financial accounting and its usefulness to policy makers; • The theories of accounting standard setting and the debates between different schools of theory; • The economic consequences of accounting standards and how they can be of use to its policy makers; • The impact and context of corporate social reporting. ...
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...Small Business Idea Paula Boyce University of Phoenix Accounting ACC - 561 Professor Trenda Hackett December 07, 2011 Small Business Idea The government has released fund for creating small businesses. One’s interest is to establish a small business and must determine which of the four forms of business organization will best suit the business chosen. Legal, tax, accounting, and other implications when selecting from the four business types are matters of considerations (University, 2008 - 2011). The four forms of business include Sole proprietorship, Partnership, C Corporation, and S Corporation. Discussion will explain advantages and disadvantages of the four forms of business, financial statement associated with each form of business organization, and the consequences of tax implications, legal implications, and accounting implications such as SOX and FASB. An explanation what one’s business provides, the choice of one’s business organization form, and one’s rationale for choosing the form of business organization chosen (University, 2002). Sole proprietorship advantages and disadvantages Sole proprietorship is the most common and simplest form of business. An individual owns and manages the business and is responsible for business transactions and responsible for debts and liabilities incurred (AllBusiness.com, 2007, p. 1). Advantages of sole proprietorship is the proprietor is in full control of the business, no corporate taxes, legal cost is...
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...Small Business Idea Paper ACC/561 Anne Holland University of Phoenix Michael De Marco July 16, 2012 Small Business Idea Paper When having the excitement of starting a business, there are several factors and steps to go through before getting the plan started. In the fallowing paper bravely describe our business plan for our new company. We will mention some of the factors that go alone with the process of starting a business. Therefore, summarizing in a substantial way the different types of business structures that are suitable for small and medium sized business, along with describe the legal, tax, accounting, and other implications when of each form of business structure. Business Plan According to Abrams, R. (2003), “ The business plan process entails five fundamental steps: (1) Laying out your basic business concept, (2) Gathering data on the feasibility and specifics of your concept, (3) Focusing and refining the concept based on the data you compile, (4) Outlining the specifics of your business, and (5) Putting your plan in compelling form”. New Business Project Business Name: Universal ATM Service Product or Service: Retailed of Automated Teller Machines, Automated Teller Machines Products, Transactions Processing, Automated Teller Machines Placement, and Automated Teller Machines Services and Repairs. Business Structure: Limited Liability Company (LLC) Rationale for choosing this form of business organization: the founders of Universal ATM Service...
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...II. CLASSIFICATION OF ACCOUNTING INFORMATION/ ACCOUNTING DISCIPLINES 1. The Accounting Profession The accounting profession may be divided into two disciplines, namely private accounting and public accounting. a) Private accounting These are accountants employed by a business firm or a NGO- frequently called management accountants. b) Public accounting This provides services on a fee basis. An accountant may practice as an individual or as a member of a public accounting firm. Public accountants who meet the required education, experience and pass required examinations may become CPA’s. 2. Specialized accounting fields/ branches There are several specialized fields in accounting. The two most common are financial accounting and managerial accounting ( this is based on user’s point of view). Other fields include:- Cost accounting, Environmental accounting, Tax accounting, Social accounting, etc. 3. Management Accounting – Management accounting is concerned with the provision of appropriate financial information to people within the organization (management and employees) to help them make better decisions. – It involves professional knowledge and skills in the preparation, presentation and interpretation of information required by management at all levels of the organizational structure. ← In other words, Management Accounting is concerned with data gathering (from both internal and external sources), analyzing, processing, interpreting...
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...Public Sector’, which is more strategic and corporate in its thinking. This ‘New Public Sector’ is intended to replace a public sector characterized by bureaucracy, professionalism and departmentalism. In this paper we take a specific look at the National Offender Management Service (NOMS) from an accounting perspective to shed light on the influence and changes involved of defining something as an accounting entity. We will look closer at and critically evaluate the issues involved in the representation of NOMS as an accounting entity. Furthermore, we will analyze the implications of the representation of NOMS as an accounting entity on definitions of organizational accountability. Therefore, we look in a next step which aspects of NOMS’ accountability are highlighted in the Accounts and what aspects are left out? Finally we examine what issues, items and risks are kept “off-balance sheet”? And what might be consequences of this. According to Hendrikson (1970) defining something as an accounting entity is to represent an area of interest, to make real and to circumscribe the objects and activities of which financial reports will speak. Therefore the concept of an economic or accounting entity assumes a more or less common agreement that something concrete, bounded and whole...
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...IFRS: History of Convergence The business environment today is one of a truly global perspective. There are few businesses left in this world that does not conduct business on an international basis. The need for a universal accounting system is a direct result of the magnitude of international business. Investors, managers, CEOs, and virtually all stakeholders need to understand the accounting information of the other businesses they interact with, regardless of the country or region of the world that business is located. “The effort to join the international financial community in a single set of standards has been in motion for over 40 years. The International Accounting standards Committee was formed in 1973. This committee evolved into the International accounting Standards Board (IASB) in 2001. International security regulators supported accounting regulators in the call for universal standards” (Thomas, 2009, p. 369). “The regulators in the U.S. have been slow to join the efforts for global convergence. In 2002, the Financial Accounting Standards Board (FASB), which issues U.S. GAAP, and the International Accounting Standards Board entered into the Norwalk Agreement. This agreement acknowledges their commitment to high quality accounting standards for use domestically and across borders. This agreement aims to remove the differences between U.S. GAAP and IFRS standards, keep standards in agreement after initial convergence, continue work on joint projects, and coordinate...
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...What is carbon accounting? Carbon accounting is measuring, monitoring, benchmarking and reporting an organizations green house gas emission in a given accounting period. Carbon Accounting is not is a greener form of financial accounting. How do you perform Carbon Accounting? First the type and amount of emissions for which the business is responsible is identified and calculated for tCO²-e (tonnes of CO² or equivalent) using internationally recognised methods. The result is a detailed account or inventory of a Businesses Emissions for a defined period in time. This inventory is then used in reporting emissions internally and recommending possible solutions for reduction of the business exposure to the cost of emissions. We simplify what can be a complex and involved process. * We Collect and Measure your Carbon Footprint using internationally recognised data collection and emissions data calculation standards from the Greenhouse Gas Protocol (GHG), the latest version of the National Greenhouse Accounts (NGA) Factors released by the Department of Climate Change and other reputable Australian and International sources. The Carbon and Carbon Equivalent Emissions are then reported with relevant business indicators which can be easily understood. * We Monitor and Report Carbon Emissions across an entire enterprise or supply chain and report those emissions for compliance, analysis and business forecasting. * We recommend Mitigation Strategies to Reduce Carbon Emissions...
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...problem arising from worldwide accounting diversity? ------------------------------------------------- A: Seeing as the essential function of accounting is to present accurate information about the status and operations of economic entities, the greatest problem arising from worldwide accounting diversity has to do with the implications it can hold for the quality of accounting information. While it’s not always the root cause, it’s safe to say that inadequate accounting information is often a contributing factor to the depth and breadth of many crises. Because whereas fair and accurate accounting procedures and presentation serves the primary function of reducing informational risk, low quality and inaccurate accounting has the effect of increasing informational risk. Moreover, it’s considered accepted knowledge that the mere threat of disclosure improves various elements of management, especially risk management. And in the absence of appropriate accounting practices, management is incentivized neither to employ adequate internal controls nor manage risk effectively. So because low quality accounting information and inadequate disclosure requirements entail heightened informational risk, the reduction of which being the main purpose of the accounting function, substandard accounting information should be considered the greatest problem arising from worldwide accounting diversity. (b)Q: Which group is most affected by worldwide accounting diversity? A: The answer to the...
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