Ijarah
INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES
ACCOUNTING FOR ISLAMIC BANKS ACC 4561 SECTION 2
IJARAH
21ST DECEMBER 2012
PREPARED FOR: MDM. ROS ANIZA MOHD. SHARIFF
PREPARED BY: GROUP 4 MOHAMAD SHAFIQ BIN MUSA NUR AIN BT MAZUPI NADHIRAH AZIDY NURUL NAJAT BT HALIM MUHAMMAD AYMAN BIN A YAZID (0824825) (0812550) (0933644) (0831108) (1011065)
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ABSTRACT This paper is on the study of Ijarah Financing in Malaysia and Bahrain with the related issues faced by Islamic Banks in Malaysia regarding Ijarah. All the data were extracted from the annual reports 2011 for each respective bank in Malaysia and Bahrain and the data were analyzed to measure the contribution of Ijarah towards the banking industry. Besides, the assignment also aims to find out more on issues occurring in Islamic Bank in Malaysia based on the interview conducted with a few chosen banks. The findings shows that the variations of Ijarah offered are different between Islamic Banks in Malaysia and Bahrain.
1
TABLE OF CONTENT
Descriptions A. Introduction B. Ijarah (Islamic Leasing) C. Types Of Ijarah D. A Comparative Study Of AAOIFI (FAS 8) AND MASB 10
Page 3 3 4 6
E. Findings And Discussion F. Issues On Ijarah Financing G. Recommendation H. Limitations I. Conclusion J. References
10 15 17 17 18 19
2
A. INTRODUCTION Unlike conventional economics which focuses on profit maximization, the Islamic economic system aims at the “study of human falah achieved by organising the resources of earth on the basis of cooperation and participation (Akram Khan, p.55).” In other words, the Islamic economic system aims at attaining Allah s.w.t’s pleasure, while pursuing economic activities within the boundaries of the Islamic shariah. The Islamic shariah puts a heavy importance on the well being of the community and social justice. Thus, this also means the prohibition of interest. The prohibition of interest is one of the main factors that
ACCOUNTING FOR ISLAMIC BANKS ACC 4561 SECTION 2
IJARAH
21ST DECEMBER 2012
PREPARED FOR: MDM. ROS ANIZA MOHD. SHARIFF
PREPARED BY: GROUP 4 MOHAMAD SHAFIQ BIN MUSA NUR AIN BT MAZUPI NADHIRAH AZIDY NURUL NAJAT BT HALIM MUHAMMAD AYMAN BIN A YAZID (0824825) (0812550) (0933644) (0831108) (1011065)
0
ABSTRACT This paper is on the study of Ijarah Financing in Malaysia and Bahrain with the related issues faced by Islamic Banks in Malaysia regarding Ijarah. All the data were extracted from the annual reports 2011 for each respective bank in Malaysia and Bahrain and the data were analyzed to measure the contribution of Ijarah towards the banking industry. Besides, the assignment also aims to find out more on issues occurring in Islamic Bank in Malaysia based on the interview conducted with a few chosen banks. The findings shows that the variations of Ijarah offered are different between Islamic Banks in Malaysia and Bahrain.
1
TABLE OF CONTENT
Descriptions A. Introduction B. Ijarah (Islamic Leasing) C. Types Of Ijarah D. A Comparative Study Of AAOIFI (FAS 8) AND MASB 10
Page 3 3 4 6
E. Findings And Discussion F. Issues On Ijarah Financing G. Recommendation H. Limitations I. Conclusion J. References
10 15 17 17 18 19
2
A. INTRODUCTION Unlike conventional economics which focuses on profit maximization, the Islamic economic system aims at the “study of human falah achieved by organising the resources of earth on the basis of cooperation and participation (Akram Khan, p.55).” In other words, the Islamic economic system aims at attaining Allah s.w.t’s pleasure, while pursuing economic activities within the boundaries of the Islamic shariah. The Islamic shariah puts a heavy importance on the well being of the community and social justice. Thus, this also means the prohibition of interest. The prohibition of interest is one of the main factors that