Islamic Finance

Evidence of IFRS Adoption in Moslem Finance- Kuwait, Jordan In open up to the parallel amongst conventional and Islamic story, many authors study such comparison in general or for unique(predicate) standards (see for congresswoman Baydoun and Willett, 2000; Haniffa and Hudaib, 2001). According to them, the main differences between conventional and Islamic accounting read to do with the following: a) General economic aspects such as: ? Secular versus religious; ? Economic rationalism versus ace of graven image; ? Individualism versus collectivism; ? Profit maximization motive versus commonsense profit; ? Absolute versus relative ownership.

b) specific accountin g issues alike: ? Conservatism: apply prudent valuation methods and avoid victimisation the most favorable impact on owners versus most favorable to eccentricnership; ? On going concern: bloodline goes forever versus ground on contractual agreement between parties; ? Measuring unit: financial value versus quantity and monetary based (according to zakat calculation); ? Consistency based on the standards/regulations used by the entity versus consistency with Islamic law; ? corporality: decision making public utility versus fulfilling all duties before Allah; ? Users of financial study: identifying economic events and proceeding versus identifying socio-economic and religious events and transactions. In addition, some (Razik, 2009) consider that Islamic accounting and IFRS differ in five issues that are related to to leases, check over contracts, and specialty investment account (where the investors bear part of the championship risk), related party transa ctions; whereas others (Baydoun and Willett! , 2000) analyze the contents of Islamic corporate reports suggesting that a current value added statement should withal be part of Islamic corporate reports in rule to provide greater sentience of the social impact of associations activities. Sulaiman (2000) supports the use of some(prenominal) current value balance sheets and value...If you motivation to get a effective essay, order it on our website: OrderEssay.net

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