OBJECTIVES AND CHARACTERISTICS

OF ISLAMIC ACCOUNTING :

PERCEPTIONS OF MUSLIM
ACCOUNTING ACADEMICIANS IN
YOGYAKARTA, INDONESIA

PREPARED BY:

NUR AMALINA BINTI SHUKOR
NOOR ZULIANI BINTI ABDUL GHANI
NORJIHAN BINTI BURHANUDDIN
NORMAH BINTI KAMARDEN
SAADATULDARAIN BINTI CHE SARUJI
CHARACTERISTICS OF ISLAMIC
BUSINESS ACTIVITIES
Islam is basically an ethical and moral code of conduct

Just and truthful
Cooperate with each other in the establishment of justice and
righteousness
Not allowed to exploit others
Adala (Justice)
Good behaviour or an act which benefits other persons without any
obligations.
The practice of Ihsan:
Leniency
Service motives
Consciousness of Allah and of His prescribed priorities.
Ihsan (Benevolance)
DECISION
USEFULNESS
STEWARDSHIP
ISLAMIC
ACCOUNTABILITY
ACCOUNTABILITY
THROUGH ZAKAT
OBJECTIVES OF ISLAMIC ACCOUNTING
DECISION USEFULNESS
Financial reports should provide information which is useful for the
users :
a) Information about Islamic banks compliance with the Islamic
Shariah.
b) Information about economic resources and obligations and the
effect of transactions, other events and circumstances and related
obligations.
c) Information to assist the concerned parties in the determination of
Zakat on the fund.
d) Information to assists in estimating cash flows that might be
realized from dealing with the Islamic bank, the timing of those
flows and the risks associated with their realization.
e) Information to assist in evaluating the Islamic banks discharge of
its fiduciary responsibilities to safeguard funds and to invest them.
f) Information about Islamic banks discharge of its social
responsibility.

STEWARDSHIP
It is a separation of ownership and capital.
Contribute to custody and safeguard of the
assets and resources.
Enhancement of the managerial and
productive capabilities of the Islamic bank.
Encouraging compliance with its established
goals and policies.

ACCOUNTABILITY
Duty to provide an
account or reckoning of
those actions for which
one is held responsible.
The first or prime
accountability arises
through the concept of
Khilafa whereby a man is
a trustee of Allahs
resources.
Net profit is no longer
used a basis of
performance
measurement as it is
replaced by Zakat
orientation.
CHARACTERISTICS OF ISLAMIC
ACCOUNTING
Financial Measurement
Zakat as a cornerstone for measurement tools.
Zakat is a concept in Islam deals with the measurement of assets.
Zakat as one pillars in Islam
The early development of Muslim govt related to Zakat
Disclosures and Presentations
Should fulfill the duties and obligations according to the Islamic Shariah
Islamic enterprise should disclose:
Any prohibited transactions they made
Zakat obligation they have to pay and already paid
Social responsibility- charities, wages to employees, environmental
protection.
Islamic accounting systems encourage business to
behave in Islamic manners and discourage any an un-
Islamic behaviour.
CONCLUSION
The objectives and characteristics of the business
should encourage them to be Ihsan and not to be
unjust.