Accounting Disclosure Of The Financial Statements In Islamic Financial Institutions From An Islamic Perspective

Khaled Hassn  A Ahmed; Murni Yusoff; Shahir Akram Hassan

Authors

Khaled Hassn A Ahmed Lecturer
Murni Yusoff Senior Lecturer
Shahir Akram Hassan Associate Professor

Keywords:

Accounting, Disclosure, Financial, Statements, IFI

Abstract

In recent years, there has been a significant focus on accounting disclosure, driven mainly by the reliance of external stakeholders, particularly those involved with financial institutions, on the information shown in financial statements to guide their decision-making processes. Since these parties lack the authority to access information from financial institutions directly, the omission of relevant information within the financial statements renders them deceptive compilations that provide uninformative data, thus impacting the decision-making process of individuals seeking such information. This study aims to provide a comprehensive definition of accounting disclosure in Islamic financial institutions, as outlined by the accounting standard for Islamic financial institutions released by AAOIFI, with a specific focus on the Islamic perspective. This can be achieved by examining the notion of disclosure, its significance, and various forms inside these establishments from a legal perspective and exploring disclosure mechanisms. This study employed a descriptive methodology by analyzing data obtained from prior studies and historical records. The findings revealed a decline in customer confidence in Islamic financial institutions.

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Author Biographies

Khaled Hassn A Ahmed, Lecturer

Faculty of Economics and Political Science at Al-Zaytoonah University, Libya; PhD Candidate , Center for Islamic Development Management Studies, University Sains Malaysia.

Murni Yusoff, Senior Lecturer

Center for Islamic Development Management Studies, University Sains Malaysia.

Shahir Akram Hassan, Associate Professor

Center for Islamic Development Management Studies, University Sains Malaysia.

References

Document

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Journal

al-Mayhi, R. A., Attia, R. A. H., Al-Ajouri M. R., & Omar, F. A. 2022. Accounting disclosure of comprehensive income items and its impact on the investment decision (field study). Scientific Journal of Financial and Administrative Studies and Research, 14(1), 1-52

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Thesis

Abdel Moneim Atta Al-Aloul. 2008. The Role of Accounting Disclosure in Supporting the Control and Accountability System in Public Shareholding Companies, Gaza Strip – Palestine. Master Thesis, Islamic University of Gaza.

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Othman Ziad Ashour. 2008. The Extent of Commitment of Palestinian Industrial Shareholding Companies to the Accounting Disclosure Requirements in their Financial Statements in accordance with International Accounting Standard No. (1). Master Thesis, Islamic University of Gaza.

Website

al-Darar al-Sunniyyah – al-Mawsu‘ah al-Hadithiyyah. t.t. Shuruh al-Ahadith. https://www.dorar.net/hadith/sharh/133016 (accessed on 1st September 2023)

al-Muhasabah, Dalil Ta‘lim. 2021. Ahamm al-Ma‘lumat ‘An al-Daribah. https://almohasabah.com/ (accessed on 1st September 2023)