SCHOOL OF ACCOUNTING & FINANCE

MODULE OUTLINE FOR: AB51004 Islamic Accounting and Reporting (5IS)

SESSION: 2009/2010

Compulsory
For:

N/A

Optional
For:

Postgraduates

Scotcat
Value:

20 credits at level 5

Course
Organiser
and
lecturer:

Dr Rania Kamla
Room B17
r.kamla@dundee.ac.uk

Aims of the course

This module introduces students to some of the main topics and debates in Islamic
accounting and reporting. This taught MSs module offers an opportunity to understand
and study the theoretical basis of Islamic accounting and factors behind the contemporary
and global emergence of Islamic accounting, Islamic accounting standards and
regulations as well as some accounting and reporting practices in Islamic financial
institutions. On successful completion of the module students should understand and
critically appreciate key theoretical and practical aspects of Islamic accounting as well as
the impact of political, social, cultural and economic factors influencing Islamic
accounting.
Learning Objectives
Achieve knowledge and understanding of:
1. theoretical foundations and debates underpinning Islamic accounting and
reporting.
2. accountability and social responsibility in Islamic accounting.
3. Islamic accounting regulations and standards.
4. operations of Islamic banks and Islamic financial institution.
5. global dimensions of Islamic accounting and reporting.
Achieve the intellectual and transferable skills to:
1. develop critical appreciation of theory and practice of Islamic accounting and
reporting.

2. analyse and discuss developments and academic debates surrounding Islamic

accounting and reporting.
3. make use of computing and internet academic resources
4. develop team work, presentation, writing and orally communication skills.
Integration and progression
This module explores the global phenomenon of Islamic accounting from critical
theoretical and empirical dimensions. It connects and draws on related developments and
debates in the literature of international accounting, critical accounting, social accounting
and financial accounting and reporting.
Indicative Content and readings
Week one: Theoretical dimensions of Islamic accounting.
The aim of this topic is to outline Islamic teachings and Sharia arguments informing the
concepts of Islamic economics, finance, accounting and reporting.
Readings:
Lewis, M. K. (2001), Islam and accounting. Accounting Forum, Vol. 25 No. 2 June 2001.
Week two: Islam, business accountability and accounting
The aim of this topic is to examine the social and environmental dimensions of Islams
teachings and their implications on business accountability, accounting and reporting.
Readings
Kamla et al, (2006), Islam, Nature and Accounting: Islamic Principles and the Notion of
Accounting for the Environment Accounting Forum, Vol. 30, No. 3, pp. 245-265.
Lewis, M. K. (2001), Islam and accounting. Accounting Forum, Vol. 25 No. 2 June 2001.
Week three: Operations and accounting practices of Islamic banks.
The aim of this topic is to outline the characteristics of Islamic banking. It also considers
the products offered by Islamic banks in comparison to conventional banking and their
implications on accounting practices in Islamic banks.
Readings:

Baydoun and Willett (2000), Islamic corporate reports Abacus, Vol. 36, No. 1,
2000.
Brown et al (2006), Operational efficiency and performance of Islamic banks In
Handbook of Islamic Banking, pp. 96- 115. Edward Elgar.
Lewis (2001), Islam and accounting, Accounting Forum, Vol 25 No 2 June
2001.
Mirakhor and Zaidi (2006) Profit-and-loss sharing contracts in Islamic finance
In Handbook of Islamic Banking, pp. 49- 63. Edward Elgar.

Week four: Operations and accounting practices of Islamic banks.

The aim of this topic is to outline the characteristics of Islamic banking. It also considers
the products offered by Islamic banks in comparison to conventional banking and their
implications on accounting practices in Islamic banks.
Readings:

Baydoun and Willett (2000), Islamic corporate reports Abacus, Vol. 36, No. 1,
2000.
Brown et al (2006), Operational efficiency and performance of Islamic banks In
Handbook of Islamic Banking, pp. 96- 115. Edward Elgar.
Lewis (2001), Islam and accounting, Accounting Forum, Vol 25 No 2 June
2001.
Mirakhor and Zaidi (2006) Profit-and-loss sharing contracts in Islamic finance
In Handbook of Islamic Banking, pp. 49- 63. Edward Elgar.

Week five: Operations and accounting practices of Islamic banks

The aim of this topic is to outline the characteristics of Islamic banking. It also considers
the products offered by Islamic banks in comparison to conventional banking and their
implications on accounting practices in Islamic banks.
Readings:

Baydoun and Willett (2000), Islamic corporate reports Abacus, Vol. 36, No. 1,
2000.
Brown et al (2006), Operational efficiency and performance of Islamic banks In
Handbook of Islamic Banking, pp. 96- 115. Edward Elgar.
Lewis (2001), Islam and accounting, Accounting Forum, Vol 25 No 2 June
2001.
Mirakhor and Zaidi (2006) Profit-and-loss sharing contracts in Islamic finance
In Handbook of Islamic Banking, pp. 49- 63. Edward Elgar.

Week six: Reading week

Weeks seven and eight: Reporting in Islamic financial institutions

The purpose of this topic is to examine financial and social reporting practices in Islamic
banks and other financial institutions.
Readings:

Maali et al (2006), Social Reporting by Islamic Banks, Abacus, Vol. 42, No. 2,
2006.

Week nine: Islamic accounting regulations and standards.

The purpose of this topic is to shed light on the emergence and the role of the AAOIFI
(Accounting and Auditing Organisation for Islamic Financial Institutions). The topic also
considers the regulations and standards developed by the AAOIFI and their relationship
with International Accounting and Reporting Standards (IFARs).
Readings:

Karim, R. A. (1989), The independence of religious and external auditors: The

case of Islamic banks. Accounting, Auditing and Accountability Journal, Vol. 3,
No. 3, pp. 34-44.

Lewis (2001), Islam and accounting, Accounting Forum, Vol 25 No 2 June

2001.

Maurer (2002), Anthropological and accounting knowledge in Islamic banking

and finance: Rethinking critical accounts, Journal of Royal Anthropological
Institute, 8, 645-667.

Week ten: Critical reflections on Islamic accounting and reporting.

This topic critically evaluates the global developments in contemporary Islamic
accounting and reporting.
Readings:
Kamla (2009), Critical Insights into Contemporary Islamic Accounting. Critical
Perspectives of Accounting, doi:10.1016/j.cpa.2009.01.002
Kuran, T. (2004), Islam and Mammon: The Economic Predicaments of Islamism.
Princeton University Press.

Pollard, J. and Samers, M. (2007), Islamic banking and finance: postcolonial political
economy and the decentring of economic geography Transactions of the Institute of
British Geographers NS 32 313-330 2007.
Tinker, T. (2004), The enlightenment and its discontents: Antinomies of Christianity,
Islam and the calculative science. Accounting, Auditing and Accountability Journal, Vol.
17 No. 3, pp. 442-475.
Tripp, C. (2006), Islam and the Moral Economy: The challenge of Capitalism. Cambridge
University Press, Cambridge.
Week eleven: Revision week
Module Timetable:
Semester one: two hours lecture and seminar 11:00-1:00 on Wednesday from week 1 to
week 5 and week 7 to week 10 inclusive.
Assessment
A group (or individual depends on the number of students registered on the course) report
and presentation counting for 25% of the mark.
The final exam will count for 75% of the mark.
Degree Examinations
The exam content will be based on the material and topics addressed in the lectures. The
exam will last two hours.

The University Marking Scale given in the table below determines your performance:
Literal
Reporting
Scale
A1
A2
A3
B1
B2
B3
C1
C2
C3
D1
D2
D3
MF
CF
BF

Descriptor

Honours class

Excellent

1st

Very good

2(i)

Good

2(ii)

Satisfactory

Marginal fail
Clear fail
Bad fail

Marginal fail
Clear fail
Bad fail

Marking/Aggrega
ted Scale
21
20
19
18
17
16
15
14
13
12
11
10
9
6
2