The Basic Concepts of Preparation and Presentation of Islamic Financial Statements

Abstract

The potential of Islamic banking continues to be enhanced to build a national sharia economic ecosystem, it’s can contribute optimally to the national economy and social development. Operational principles and accounting standards are one of the foundations for progress in Islamic banking. An overview of the pros and cons of Islamic banking can be identified through its performance which is reflected in the financial statements. The focus of this paper is on the preparation and presentation of Islamic financial statements along with a comparison of financial statements between sharia and conventional, in which conventional financial statements contain fewer elements of financial statements. This type of research is library research which analyzes data with descriptive analysis. The results of this research indicate that Islamic financial statements are not only related to commercial aspects but also cover all aspects of human life, be it economic, political, social, or moral philosophy. In addition to reflecting Islamic banking activities,