Delima Case Study
OBJECTIVES AND CHARACTERISTICS OF ISLAMIC ACCOUNTING:
Perceptions of Muslim Accounting Academicians
IN YOGYAKARTA, INDONESIA
By :
Rizal Yaya
Muhammadiyah University of Yogyakarta – Indonesia & Shahul Hameed bin Mohd. Ibrahim
International Islamic University Malaysia
ABSTRACT The quest for the objectives and characteristics of Islamic accounting has become a major concern among Islamic accounting writers. However, Islamic accounting theory has not been tested under different cultural contexts. This research, therefore, aims to extend previous research by exploring the consensus among Indonesian Muslim accounting academicians in Yogyakarta on the objectives and characteristics of Islamic accounting. Based on the statistical tests applied in this research, it is found that the Muslim accounting academicians in Yogyakarta have a strong consensus on some principles which can be used later as a basis for developing Islamic accounting.
OBJECTIVES AND CHARACTERISTICS OF ISLAMIC ACCOUNTING:
Perceptions of Muslim Accounting Academicians
IN YOGYAKARTA, INDONESIA
1. Introduction
Wolk and Tearney (1997) state that the diversity of users has been the main obstacle in determining the objectives of accounting. Even within a group of users there is also extensive diversity. Different objectives would also exist in societies other than the capitalist society where conventional accounting was developed. In a socialist society, for example, the objective of accounting is to strengthen the control of the central authorities over the activities of an enterprise (Bailey, 1988). Consequently, in the design of the standardized accounting systems, the central authorities are regarded as the primary users of the information to be generated rather than the capital provider as in the capitalist society (Bailey, 1988). The reason for this different accounting is explained by Hameed (2001) in that a different
Perceptions of Muslim Accounting Academicians
IN YOGYAKARTA, INDONESIA
By :
Rizal Yaya
Muhammadiyah University of Yogyakarta – Indonesia & Shahul Hameed bin Mohd. Ibrahim
International Islamic University Malaysia
ABSTRACT The quest for the objectives and characteristics of Islamic accounting has become a major concern among Islamic accounting writers. However, Islamic accounting theory has not been tested under different cultural contexts. This research, therefore, aims to extend previous research by exploring the consensus among Indonesian Muslim accounting academicians in Yogyakarta on the objectives and characteristics of Islamic accounting. Based on the statistical tests applied in this research, it is found that the Muslim accounting academicians in Yogyakarta have a strong consensus on some principles which can be used later as a basis for developing Islamic accounting.
OBJECTIVES AND CHARACTERISTICS OF ISLAMIC ACCOUNTING:
Perceptions of Muslim Accounting Academicians
IN YOGYAKARTA, INDONESIA
1. Introduction
Wolk and Tearney (1997) state that the diversity of users has been the main obstacle in determining the objectives of accounting. Even within a group of users there is also extensive diversity. Different objectives would also exist in societies other than the capitalist society where conventional accounting was developed. In a socialist society, for example, the objective of accounting is to strengthen the control of the central authorities over the activities of an enterprise (Bailey, 1988). Consequently, in the design of the standardized accounting systems, the central authorities are regarded as the primary users of the information to be generated rather than the capital provider as in the capitalist society (Bailey, 1988). The reason for this different accounting is explained by Hameed (2001) in that a different
References: AAOIFI. 1996. Accounting and Auditing Standards for Islamic Financial Institutions. Manama, Bahrain: Accounting and Auditing Organization for Islamic Financial Institutions. Baydoun, N. and Willet, R. 1997. Islam and accounting: ethical issues in the presentation of financial information. Accounting, Commerce and Finance: The Islamic Perspective. 1 (1): 1-24. Al-Faruqi, I. 1982. Islamization of Knowledge. Washington: IIIT. Triyuwono, I. 2000