...“Islamic Accounting : Their Position in International Standard Harmonization” Rendy Anggita Putra “Islamic Accounting : Their Position in International Standard Harmonization” 1. Abstract According to (Susela, 1999) said the development of accounting theories is are affected by several factors including political and economic interests of certain people or group in community. Therefore, it can be also called if the accounting is a significant tool to illustrate the interests and perspectives of the various stakeholders. Islamic industry of finance has obtained tremendous growth in last few years, both in number of assets that manage by industry and in the diversity of financial products. A global system that can rule the industry will become significantly important for the Islamic finance sector in order to meet the needs of continued growth (Vinnicombe, 2012). Harmonization of Shari’a accounting standards has continue to be made by the AAOIFI as it is also done by the International Accounting Standards Board (IASB) for conventional accounting harmonization. In its development, financial reporting in Islamic accounting adds some different additional reports than conventional accounting to accommodate the unique transactions of Islamic economics. In that regard, this paper have objective to explore the main important values of Shari’a accounting and reporting standards of Islamic Accounting and try to find the answers of Islamic accounting positions among the process...
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...PBSA 811 PEC – Individual Assignment MANUSCRIPT REVIEW FORM Student: 25807609 Name: Ngwanasegolo Walter Solomon MakgaiLecturer’ s name: Professor Pieter BuysModule name: Financial Reporting PBSA811Title of manuscript: Independent Reviews: Perceptions of Chartered Accountants (South Africa) Journal: Southern African Journal of Accountability and Auditing Research Vol. 12: 2011 (25-36) | | 1. Are the Title and Abstract Appropriate? Explain On the one hand, the paper title does not seem to fully capture the essence of the paper. The meaning is ambiguous in that, it might either mean the perceptions of chartered accountants study is conducted by an independent review, or, it might suggest that the study is about how Chartered accountants perceive independent reviews. On the other hand, the authors (Odendaal and De Jager, 2011) have rightly specified that the study applies to Chattered Accountants in South Africa. The research findings are based on this geographical location. But while the title could have been more comprehensive, the abstract seems sufficient in that it summarises the study objective as to “determine the perceptions of Chartered Accountants (South Africa) regarding independent reviews” and goes on to report the process of data collection (questionnaire) as well as the summarised findings of the study. Recommendations are also outlined in the abstract. The abstract therefore provides a concise summary of what the reader should expect in the entire...
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...The Importance of Islamic Accounting in Modern Era by: Chusnul Asfadillah Student of Airlangga University, Surabaya, Indonesia +62899 372 1772 Ines Nur Latifah Student of Airlangga University, Surabaya, Indonesia +62878 8432 3738 DR. Raditya Sukmana Lecturer of Airlangga University, Surabaya, Indonesia + 62 878 5421 6776 ABSTRACT Purpose – This paper aims to determine the importance of the Islamic Accounting in modern era. In particular, the paper analyzes the values of the Islamic principles in the accounting process that prevent the unexpected activity such as fraud, dishonest etc to appear in reality. Arthur Anderson case was a result of the fraudulent activities that lead to its termination. Certainly this kind of case is expecting not to be happened in the future. Design/methodology/approach – The paper adopts the descriptive analysis and elaboration of the important element of the Islamic principles used in the accounting process. Furthermore, this paper attempt to make clear distinction between values underlying the Islamic accounting and that of the conventional accounting. Findings – the comparison of those two systems leads to the conclusion that the value in Islam such as honest, fair, truth (which is important in the Islamic accounting process) has more meaning than the similar value of in the conventional accounting. Hold firmly the Islamic value obviously leads to the decrease fraudulent practices and other unexpected activities. Moreover, it increases the social...
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...------------------------------------------------- Ethics and Values in Management Interim Report February 10, 2014 February 10, 2014 Submitted to: Prof. N. R. Govinda Sharma Submitted by: Group C10 Submitted to: Prof. N. R. Govinda Sharma Submitted by: Group C10 Table of Contents Introduction: 2 Ethical Issues Involved 2 1. Not Following Corporate Governance Norms 2 2. Tampering the financial data - 2 3. Misleading the Shareholders Fund- 3 4. Insider trading at Satyam- 4 Ethical Dilemma faced by Ramalinga Raju 4 Theories and Approaches that may be used to resolve dilemma 5 Hosmer’s Six Step Process: 5 Kohlberg Model: 6 Recommendations for Resolving the dilemma 8 Conclusion 9 References 9 Introduction: The Satyam Computer Services’ scandal brought to light the importance of ethics and its relevance to corporate culture. The fraud committed by the founders of satyam is a testament to the fact that “the science of conduct” is swayed in large by human greed, ambition, and hunger for power, money, fame and glory. Scandals to the recent financial crisis have time and again proven that there is a need for good conduct based on strong ethics. we examine the gross negligence of stakeholder concerns and over indulgence of key management on a personal and organizational level in immortal practices for personal benefit. We also assess the implications of ethics in the business...
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...financing as their products. The findings show that concepts of BBA and Ijarah practise in Islamic Institutions in Malaysia are differ from the actual Islamic teachings. The study also reveals that Islamic banks are restricted to the Malaysian requirements in providing their products. Page no Abstract 2 Introduction 4 Literature review 5 Methodology 7 Findings 7 Conclusion 13 1.0 INTRODUCTION Financial Accounting Organization for Islamic Banks and Financial Institutions is known as Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). It was established in 1991 (AAOIFI, 2007, p.8). AAOIFI standards are drawn from Islamic teaching. The standards free from three important concepts that are used in conventional institutions which are interest, ambiguity and gambling. These standards help investors or depositors especially among Muslims to invest or deposit their funds in shariah compliance institutions. AAOIFI standards are the best in terms of Islamic shariah principles. Islamic finance is becoming more popular even with non-Muslim investors. Today, Islamic banks are operating in more than 50 countries for example Bahrain, France,...
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...Information Systems consulting lines of DBS Consulting Services, using the Activity-Based Costing system (ABC) and the conventional costing system based on computing hours. ABC provides more detailed and accurate information than the conventional costing system because ABC is based on consumption of resources by production of a product or service line and focuses on the activities that drive costs, recognising that activities consume resources. The conventional method allocates overhead costs based on hours consumed (in this case computing hours), which may not represent the actual consumption of indirect resources expended by the service. A costing system should provide information to help minimise waste, but should not be wasteful in it-self . The resources required to design, implement and maintain a costing system should be less than the benefit derived from the use of the system. This report is to compare the conventional costing system against an ABC System for DBS Consulting Services and will discuss the following: 1. ABC improving costing accuracy 2. Profitability of DBS Consulting Service using conventional costing procedures and ABC 3. Recommendation of the adoption of ABC based the results conventional costing and ABC 4. Aggressive expansion? 5. Factors to be taken into account when implementing ABC 6. How to encourage positive reactions. 1. ABC IMPROVING COSTING ACCURACY ABC is said to improve costing accuracy when compared with conventional costing...
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...CONVENTIONAL ACCOUNTING SYSTEM AND INFORMATION TECHNOLOGY: EXPERIENCES IN MY PLACES OF WORK. BEING A SEMINAR PAPER PRESENTATION IN ACCOUNTING AND INFORMATION TECHNOLOGY FOR MASTERS IN ACCOUNTING (MAC) DEPARTMENT OF ACCOUNTING FACULTY OF ADMINISTRATION SCHOOL OF POSTGRADUATE STUDIES AHMADU BELLO UNIVERSITY, ZARIA, NIGERIA BY: KALU NNANNA NWONYUKU JUNE, 2013 CONTENTS 1.1.1 INTRODUCTION 1.2.1 THE MEANING OF ACCOUNTING AND ACCOUNTING PROCESS 1.2.2 THE ROLES AND FUNCTION OF ACCOUNTING INFORMATION 1.2.3 BASIC ELEMENTS OF AN ACCOUNTING INFORMATION 1.2.4 BASIC ACCOUNTING POSTULATES AND PRINCIPLES 1.3.1 MEANING OF INFORMATION TECHNOLOGY 1.3.2 ADVENT OF INFORMATION TECHNOLOGY IN ACCOUNTING SYSTEM 1.3.3. THE IMPORTANCE OF INFORMATION TECHNOLOGY TO ACCOUNTING SYSTEM 1.4.1 INFORMATION TECHNOLOGY USE FOR AN ACCOUNTING SYSTEM 1.4.2 SOFTWARE FOR ACCOUNTING INFORMATION SYSTEM 1.4.3 FACTORS TO CONSIDER WHEN CHOOSING ACCOUNTING SOFTWARE 1.4.4 HOW TO CHECK ACCOUNTING SOFTWARE 1.5.1 MERITS OF COMPUTERIZED ACCOUNTING SYSTEM 1.5.2 DEMERITS/LIMITATION...
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...ABACUS, Vol. 45, No. 3, 2009 doi: 10.1111/j.1467-6281.2009.00295.x MARTIN BLOOM Accounting For Goodwill abac_295 379..389 This article provides a means of resolving one of accounting’s ongoing problems—how to account for goodwill in an era where the unidentifiable intangible asset is often an entity’s largest value component. Despite the general recognition that, in practice, the two classes of goodwill are indistinguishable in terms of their ability to generate streams of revenue, a distinction is traditionally drawn between internally generated and purchased goodwill. The former should not be brought to account because it is impossible to do so within the accepted rules of double entry bookkeeping and historical cost based accounting. On the other hand, there is no difficulty in bringing purchased goodwill to account, but controversy has always existed as to how to treat the amount once recognized. It can confidently be expected that, as anomalies and practical difficulties manifest themselves in practice, the current impairment regime will, in its turn, be abandoned. Key words: Accounting; Double account; Goodwill, internally generated, purchased. Controversy on how to account for goodwill has continued over many decades. It is certainly an example of Sterling’s (1975) lament that because of the way we conceive of issues ‘accountants do not resolve issues, we abandon them’ (quoted in Chambers, 1995). The ideas proposed here are based on redefining the problem. They...
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...ISLAMIC FINANCE: CAN IT BE A REMEDY FOR FINANCIAL CRISES? I. INTRODUCTION The financial system is at the heart of the modern economy. When this system works well, it enables to allocate resources that maximize the productivity of the economy. On the contrary when it does not work properly, the whole economy starts to decline. Because financial system must be considered as an in-built part of real economy in terms of credit mechanism. The recent global financial crisis began in August 2007 and after this time it spread gradually to the financial markets in the world. Although it is not severe as in its beginning phase but recovery is not but its aftershock is still going on. There has been numerous research conducted by many economists and analysts. According to the many of these studies, risky transactions, lack of surveillance, and greed that underlie this financial crisis. The relationship between Islamic finance and the financial crises has been discussed by many authors in some of these research. All those works has been done after the beginning of the global financial crisis. Thanks to its strength aspects include risk sharing mechanism, strict Sharia governance rules, tighter supervision and transparency policy, almost all of these works have been concluded that Islamic finance may make significant contributions to prevent financial crises like the current one. Also the reality of the limited impact of the current global financial crisis on Islamic Finance-based institutions...
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...days you see ‘everybody.com’ and ‘e-everything’. CRM (Customer Relationship Management) has been undergoing evolution towards the Web for some years but only relatively recently have we seen the term eCRM. So what is eCRM? Is it old CRM with some Internet access bolted on? Or is it more fundamental than that? To properly understand eCRM it is useful to look at the evolution of CRM and to review its original objectives. As can be seen in Figure 1, CRM evolved out of the SFA (Sales Force Automation) systems from the early 90s. Prior to this, companies were not treating Sales & Marketing as priorities for IT investment. Areas such as Accounting, Office Automation and ERP were the money-spinners and it was difficult to find a seriously funded project for Sales & Marketing system. Today it is very different, CRM is considered as very important in most organisations and for many it has become a major element of their ongoing IT investment. Of course, investment in any IT system has to ultimately contribute to increasing profitability. There is a close correlation between growth in revenues & profits and the benefits gained from well-implemented CRM, these benefits are: • Retaining existing customers • Selling more to existing customers • Finding and winning new customers Figure 1 - CRM Evolution...
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...Centralized Planning in Cruise Industry Abstract This paper identifies the conventional supply chain planning system MRP (materials resource planning) and the complexity of global cruise supply chain management and suggests a contemporary centralized ERP (enterprise resource planning) to solve supply chain issues. Introduction and background The ever-expanding cruise ship industry seems to have no end to its own growth. In the 1980s the growth beat every expectation and since then, the sustained growth has repeatedly given the cruise sector the title of the fastest growing segment in the tourism industry with an 8.4% average annual growth from 1980 to 2003 and a projected similar pattern for the coming years. Another sign of booming business is the fact that every cruise company is ordering 1–2 ships per year to increase their capacity. With these increasing size and capacity expansions, the problem of supply chain and logistics management is also compounded. The ships benefit from very tiny time windows to re-supply and these are not increasing proportionally with size. Therefore, these bigger ships will create new challenges on an operational level. To worsen the problem, cruise ships are committed to the supplies present onboard once leaving the port. Therefore, demand forecasting must be very precise if the safety stock is to be reduced in this space-starved environment, while preventing costly stock outs. Overall planning of supply chain Cruise industry consists...
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...Chapter One Introduction 1.1 INTRODUCTION Foreign exchange refers to the financial transaction where currency value of one country is traded into another country’s currency. The whole process gets done by a network of various financial institutions like banks, investors and governments. The exchange rate varies according to the value of each country’s currency which is based on the health of that particular country’s economy. Any individual or company engaged in overseas business should be aware of the risks of currency fluctuations. Customers without commercial contracts expressed in domestic currency (or fixed by an agreed rate of exchange) are fully exposed to what is known as an exchange risk. Exchange risk may arise because of exchange rate movements in the period from the original commercial contract, to the time of settlement of the domestic equivalent of the foreign currency amount. Foreign exchange risk management is designed to preserve the value of currency inflows, investments and loans, while enabling international businesses to compete abroad. Although it is impossible to eliminate all risks, negative exchange outcomes can be anticipated and managed effectively by individuals and corporate entities. Businesses do so by becoming familiar with the typical foreign exchange risks, demanding hard currency, diversifying properly and employing hedging strategies. No countries of the world can produce all their necessary commodities and services. So it has to buy the commodities...
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...on profit and loses sharing principle. The foundation of Islamic banking theory that they proposed was based on mudaraba and musharakah contracts as mechanism to operate Islamic banking system. “The early contributions on the theory of Islamic banking were only discussed as part of the subject in Islamic economic system. For example, the book by Qureshi on Islam and the Theory of Interest (Qureshi (l946)) which looked upon banking as a social service that should be sponsored by the government like other public institutions such as public health and education.2 His view was based on the point that the bank could neither pay any interest to account holders nor charge any interest on loans advanced. He also suggests the possibility for both Islamic banks and entrepreneur to create a partnership. No mention was made of profit-sharing.” Other economists were come up with different ideas at earlier stages such “the principle of mudarabah was appealed systematically by Uzair (l955). His main contribution lay in suggesting mudarabah as the main premise for 'interest less banking'. However, his argument that the Islamic bank should not make any capital investment with its own deposits rendered his analysis somewhat impractical. Al-Arabi (l966) also suggested a banking system with mudarabah as the...
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...impressed and frightened by the extraordinary growth rates achieved by a set of Eastern economies. Although those economies were still substantially poorer and smaller than those of the West, the speed with which they had transformed themselves from peasant societies into industrial powerhouses, their continuing ability to achieve growth rates several times higher than the advanced nations, and their increasing ability to challenge or even surpass American and European technology in certain areas seemed to call into question the dominance not only of Western power but of Western ideology. The leaders of those nations did not share our faith in free markets or unlimited civil liberties. They asserted with increasing self-confidence that their system was superior: societies that accepted strong, even authoritarian governments and were willing to limit individual liberties in the interest of the common good, take charge of their economies, and sacrifice short-run consumer interests for the sake of long-run growth would eventually outperform the increasingly chaotic societies of the West. And a growing minority of Western intellectuals agreed. The gap between Western and Eastern economic performance eventually became a political issue. The Democrats recaptured the White House under the leadership of a young, energetic new president who pledged to "get the country moving again--a pledge that, to him and his closest advisers, meant accelerating America's economic growth to meet the Eastern...
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...Arabian Journal of Business and Management Review Vol. 1, No.4; November 2011 THE SURVIVAL OF ISLAMIC BANKING VIS-À-VIS NON-INTEREST BANKING IN NIGERIA, AN OVERVIEW DR. AKINYEMI BALOGUN,* Head of Department, Accounting and Banking &Finance/Business Administration, Achievers University, Owo, Ondo State, Nigeria ABSTRACT This Paper Examines and gives an Overview of the Survival of Islamic Banking visà-vis Non-Interest Banking In the Nigerian Economy, its background and Origin, a review on non-interest banking system in Nigeria compared with other countries, arguments from different analyst on Non-interest banking System, the implication of statutory auditor, the implication, the role of auditor, the laws and guidelines guiding non-interest banking in Nigeria, differences between Islamic banking system and conventional banking System, its benefit, timing, profit sharing and problem. KEYWORDS: Non-interest Banking, Islamic Banking, Statutory Auditors, Guidelines, Conventional Banks, Nigerian Economy, Overview, Benefits and profit sharing. *Dr. Akinyemi Balogun is a multi professional, a financial expert, a manager of repute, a chartered banker and associate chartered institute of marketing, fellow national institute of marketing, associate chattered institute of management. Dr. Akinyemi Balogun is the head of department of Business Administration, college of social and management sciences (COSMAS), in Achievers University, Owo. The views expressed in the paper are purely...
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