Journal of Islamic Accounting and Business Research最新文献

{"title":"Ethical discourse of ethical (Islamic) finance: a systematic literature review (1988–2022) and the way forward","authors":"Shinaj Valangattil Shamsudheen, Shamsher Mohamad, Aishath Muneeza, Ziyaad Mahomed","doi":"10.1108/jiabr-11-2022-0315","DOIUrl":"https://doi.org/10.1108/jiabr-11-2022-0315","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper aims to portray the publication pattern, key themes, study trends and future directions for the studies on ethics in Islamic finance. A total of 194 published documents that includes journal articles, books and book chapters and conference proceedings were screened for the period 1988 to August 2022 and categorized based on designated sectors of the Islamic finance industry. This paper also highlights the change in research trends in all three sectors of Islamic finance and suggests possible areas for future research.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>A comprehensive systematic literature review was conducted using the “advanced search” function of “google scholar” by using the option “find articles” with the keywords “Ethic (s/al)”, “Islamic banks”, “Islamic banking”, “Islamic finance”, “Islamic capital markets” Takaful, Islamic insurance without restricting the time frame, author list and the platform. Furthermore, the search for relevant articles was conducted on other mainstream index databases such as “Web of Science” and “Scopus”.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>Among the highlights of the findings were an increase in publications on ethical issues after the global financial crisis and an increase in publications in high-impact mainstream business and finance journals. A higher number of studies were documented in the area of Islamic banking and finance followed by Islamic capital markets and Islamic insurance/Takaful. Although a greater number of empirical studies were published than conceptual studies, dominance was resulted due to the replication of the studies in various jurisdictions based on the same concepts or models rather than applying diversified concepts in various jurisdictions.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study contributes to the growing literature on ethical and/or Islamic finance as a guide for researchers to identify research gaps and provides a systematic direction for future studies in the area of ethics in Islamic finance.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141567334","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Quantitative framework for shariah-compliant multi-period fuzzy portfolio optimization: a sustainable approach to ethical investing","authors":"Moad El Kharrim","doi":"10.1108/jiabr-02-2024-0052","DOIUrl":"https://doi.org/10.1108/jiabr-02-2024-0052","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper aims to propose a Shariah-compliant multi-period fuzzy portfolio optimization model that accounts for Shariah compliance through purification processes and incorporates various Shariah constraints, including sustainability constraints. This model aims to ensure both ethical alignment and robust portfolio management while navigating modern financial complexities and fostering responsible and sustainable investment practices.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The methodology involves a dynamic programming method to solve the proposed program, with returns of the assets assumed to be trapezoidal fuzzy variables. This approach allows for the quantification of portfolio return and risk by the possibilistic mean and semivariance of the fuzzy returns, respectively. A numerical study based on real stock market data tests the efficiency of the proposed algorithm.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The research showcases the model’s effectiveness in managing Shariah-compliant portfolios under financial uncertainties and supports the importance of incorporating ethical and sustainability constraints in investment decisions. It highlights the capability of the proposed model to offer a structured approach to ethical investing within the Islamic finance framework.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>While the paper provides a solid foundation for Shariah-compliant portfolio optimization, it acknowledges the complexity and computational demands of the model. Future research could explore simplifying the model without compromising its ethical and Shariah-compliant principles.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This work introduces a novel integration of Shariah compliance with fuzzy portfolio optimization techniques, addressing the need for dynamic, ethical investment strategies in Islamic finance. The incorporation of purification processes and sustainability constraints into a fuzzy portfolio optimization model represents a unique contribution to the field.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141567335","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"CSR reporting practices of Islamic and conventional banks based on ownership differences","authors":"Md. Abdur Rouf, Md. Alamgir Hossan, A.N.M. Jahangir Kabir","doi":"10.1108/jiabr-03-2023-0081","DOIUrl":"https://doi.org/10.1108/jiabr-03-2023-0081","url":null,"abstract":"Purpose\u0000This study aims to provide a thorough knowledge of the context and degree of corporate social responsibility (CSR) reporting in the annual reports of Islamic and mainstream banks in Bangladesh and to investigate whether ownership and the level of CSR reporting are connected.\u0000\u0000Design/methodology/approach\u0000This study uses the content analysis method to examine 150 annual reports from the 30 listed banking companies as its sample. The data are fitted to an ordinary least square regression model to determine the impact of independent factors on the overall CSR reporting score.\u0000\u0000Findings\u0000The study’s findings show that, on average, Islamic and conventional banks (ICBs) in Bangladesh disclose CSR data at rates of 46.27% and 43.44%, respectively, ranging from 14.15% to 76.32%. Furthermore, according to the study, ICBs’ public share ownership and CSR reporting showed a significant relationship. Conversely, institutional share ownership and foreign share ownership have been found to have no significant relationship with CSR reporting in conventional banks, but institutional share ownership has been found to have a significant relationship with the CSR reporting in Islamic banks.\u0000\u0000Social implications\u0000The research is expected to obtain the most accurate situation of Bangladeshi ICBs’ CSR reporting. To formulate regulations in this regard, governmental and other regulatory authorities can also obtain comprehensive information on CSR reporting procedures.\u0000\u0000Originality/value\u0000The paper contributes to the CSR works, as it presents empirical evidence of the effects of ownership distribution on the CSR reporting of ICBs in developing countries such as Bangladesh.\u0000","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2024-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141680353","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A tie strength framework for improving the poor asnaf students’ normative commitment and behaviour","authors":"Aishah Binti Tamby Omar, Rasidah Arshad, Rosmah Mat Isa","doi":"10.1108/jiabr-07-2022-0185","DOIUrl":"https://doi.org/10.1108/jiabr-07-2022-0185","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to examine the relationship between tie strength and poor asnaf student’s normative commitment and its impact on behaviour.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>A sample of 129 poor asnaf students participated in this study. SMART-PLS 3.2.8 was used to analyse the data.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings show that the tie strength dimension (trust, emotional intensity, mutual confiding and relational exchange) positively relates to poor asnaf student’s normative commitment. Also, the result shows that poor asnaf students’ normative commitment is positively related to recipient behaviour.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>This study focuses on poor asnaf students receiving zakat financial education aid.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The findings provide valuable information on the factors that encourage poor asnaf students’ normative commitment. Related parties, such as the zakat institution, could use these findings to plan further action to enhance the poor asnaf student’s normative commitment and behaviour.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>The study showed that the social tie strength framework could be used to determine the variables affecting poor asnaf student’s normative commitment and behaviour.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141547934","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Gold characteristics as safe haven and assets diversification for Sharia stocks in Indonesia","authors":"Sylva Alif Rusmita, Dian Filianti, Ega Nuriayu Mayasani, Khairunnisa Abd Samad","doi":"10.1108/jiabr-11-2021-0302","DOIUrl":"https://doi.org/10.1108/jiabr-11-2021-0302","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to determine the role of gold as a safe haven, hedge and asset diversification for Shariah stock in conditions of extreme stock market declines.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Quantitative approach is used by applying the threshold generalized autoregressive conditional heteroskedasticity (TGARCH) model to capture bad or good news in the market condition and quantile regression method to obtain the extreme values of stock returns in several market conditions. The data used were the daily closing price of gold and the Jakarta Islamic Index from January 2011 to October 2022.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The average conditions show gold does not have a hedge property and only acts as an asset diversification. Second, gold has a substantial, safe haven property in every economic condition. However, the safe-haven property of gold seemed to weaken during the most extreme stock market decline. Thus, although gold appears as a safe haven and asset diversification, it remains a risky investment and only provides a minor role in the face of the extreme stock market period.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>This research provides a discourse and literature for Islamic investors and investor managers to choose the right investment instrument in various economic conditions where gold has a function as diversification and safe haven in their asset portfolio under any other asset portfolio conditions which is also in line with modern portfolio theory. For policymakers, the study can be used as material for consideration in making policies related to the accessibility of gold as an investment instrument.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study presents the originality by using the price of Antam gold as a proxy for gold investment during the latest research year data and focusing on case studies in Islamic capital market in Indonesia. Moreover, this research provides quantile regression that sharply discussion in various economics condition.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141508947","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Market power and Shariah compliance on Islamic banks: Does public listing matter?","authors":"Hasan Mukhibad","doi":"10.1108/jiabr-11-2022-0303","DOIUrl":"https://doi.org/10.1108/jiabr-11-2022-0303","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to explain the effect of customer loyalty, financial performance and market power on <em>Shariah</em> compliance (SC).</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This study investigates 101 fully-fledged Islamic banks (IBs) from 27 countries, and panel data regression methods were used to analyze the data. This study uses alternative empirical models and the generalized method of moment (GMM) system to address endogeneity problems.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>This study finds that high profitability causes a decrease in SC. High levels of competition cause the IBs to make policies to increase their SC. However, the effect of competition on SC depends on the ownership status of the IBs – high levels of competition cause unlisted IBs to increase their SC. However, for listed IBs, severe competition weakens their SC.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>This study focuses on interest-free IB deposit products as SC indicators.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>This paper suggests regulators should control the IBs’ competition to increase the level of competition among IBs and conventional banks to increase the SC.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study develops two SC indicators that focus on the relationship between the rate of return for investment account holders (RRIAH) and the interest rate (IR): the difference between the IR and the RRIAH and the elasticity of the RRIAH with the IR.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141508948","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The effect of industry sector and profit-loss sharing financing on credit risk of Islamic banks in Indonesia considering COVID-19 pandemic","authors":"Sakti Arief Wicaksono, Permata Wulandari, Nur Dhani Hendranastiti","doi":"10.1108/jiabr-04-2023-0135","DOIUrl":"https://doi.org/10.1108/jiabr-04-2023-0135","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The COVID-19 pandemic has affected economic activity both globally and nationally, which also has an impact to banking sector and Islamic banking is no exception. This study aims to see how the impact of Islamic bank financing in seven sectors affected by the COVID-19 to the credit risk of Indonesian Islamic banks. In addition, this study also tries to see whether the proportion of <em>mudharabah-musharaka</em> or profit-loss sharing (PLS) financing also affects credit risk in Indonesian Islamic banks.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This study uses fixed effect panel data regression over the period 2011–2020.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results of this study show that wholesale and retail trade financing will increase credit risk in Indonesian Islamic banks as a policy implication. In terms of the proportion of PLS financing, it shows that a larger share of PLS financing will reduce credit risk in Islamic banks.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This paper demonstrates that despite the industry’s perception of PLS as riskier than murabaha-based instruments. According to the research, PLS financing will lower credit risk in Islamic banks. This study found that PLS contributes to overall economic stability by shifting the function of Islamic banks from a simple lending body to an active market catalyst/manager/consultant to market players seeking financial aid.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141529882","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The audit expectations gap firms listed on the Palestine Stock Exchange: empirical evidence on Palestinian stakeholders","authors":"Mustafa Faza’, Nemer Badwan, Montaser Hamdan","doi":"10.1108/jiabr-12-2023-0431","DOIUrl":"https://doi.org/10.1108/jiabr-12-2023-0431","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The purpose of this study is to empirically evaluate the audit expectations gap among stakeholders in listed firms in Palestine. The purpose of the investigation is to determine whether or not there is a gap in audit expectations between auditors and investors, auditors and board directors, as well as among auditors and financial managers and also among auditors and shareholders.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>To attain its ultimate objective, this study was created using an exploratory descriptive methodology grounded in the use of quantitative methods. A structured questionnaire was used to gather study data from 81 respondents, and a statistical package for the social sciences-26 was then used for analysis.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results of this research showed that there is a sizable difference in audit expectations among shareholders, financial managers and board directors, as well as among auditors and investors. The findings also demonstrate that, in comparison to the difference between auditors and financial managers, the gap between auditors and board directors and auditors and shareholders is very narrow.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>This investigation, which examines the audit expectations gap in great detail, has some significant limitations. This study was limited to the Palestinian market alone. Future research might compare or examine the variations in audit expectations in Jordan, Lebanon, Syria, Iraq and Iran, among different countries. In addition, the demand for accurate and reliable financial reports has sparked a recent increase in interest in auditing, a long-standing sector that has expanded in recent years.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The study has several practical implications, for example, it underlines how crucial it is to make stakeholders aware of the limitations and difficulties related to the auditing process. By doing this, the situation that audit committees and listed firms find themselves in will be easier for investors, board directors, financial managers and shareholders to understand. The way that auditors and stakeholders communicate can help reduce this gap since it affects how much each party underestimates or understates the other’s obligations.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This paper contributes to the literature by analysing and identifying the causes of the audit expectations gap in companies listed on the Palestine Stock Exchange and providing useful insights and potential solutions to close or mitigate it. It also adds a new contribution to the literature related to the audit expectation gap. This investigation offers unambiguous evidence of a sizable discrepancy between audit expectations and actual performance in terms of formal auditor obligations as outlined by current law, as well as auditor relia","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141529883","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Islamic accounting research for upcoming research agenda","authors":"Meiryani Meiryani","doi":"10.1108/jiabr-10-2023-0332","DOIUrl":"https://doi.org/10.1108/jiabr-10-2023-0332","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to offer quantitative data on the expansion of Islamic accounting literature. The analysis concentrated on publishing patterns, nations that conduct Islamic accounting research, prominent contributors, leading writers, highly productive nations, keywords and papers with the greatest citations.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The author describes the field’s development and structure, including co-citation, co-authorship and bibliographical coupling, using a bibliometric approach combined with content analysis. The author discovers that Malaysia is the most pertinent nation, Universiti Sains Islam Malaysia is the most pertinent university and the most pertinent journal is the <em>Journal of Islamic Accounting and Business Research</em>.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The author stresses the importance of critically assessing such approaches as more research looks into the possible contribution of Islamic banks to the provision of Shari’ah-compliant microfinance to rural small and medium enterprises. Finally, all business models are changing paradigms as a result of Industry 4.0. information and communication technology advancements might increase the adoption of Islamic accounting. Future research could create Shari’ah-compliant Islamic accounting models based on financial technology (fintech) for the benefit of underprivileged business owners who have little access to accounting and financing through conventional financial channels. The consideration of the necessity of regulatory reform to enhance the practical feasibility of Islamic accounting as a vehicle for economic transformation could also be helpful to policymakers.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>Future research could create Shari’ah-compliant Islamic accounting models based on financial technology (fintech) for the benefit of underprivileged business owners who have little access to accounting and financing through conventional financial channels. The study’s consideration of the necessity of regulatory reform to enhance the practical feasibility of Islamic accounting as a vehicle for economic transformation could also be helpful to policymakers.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141529884","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Islamic financial accounting standards in Pakistan: a comparison with AAOIFI","authors":"Muhammad Bilal Zafar","doi":"10.1108/jiabr-10-2023-0335","DOIUrl":"https://doi.org/10.1108/jiabr-10-2023-0335","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper aims to compare the Islamic financial accounting standards (IFAS) prevailing in Pakistan declared by the Securities and Exchange Commission of Pakistan (SECP) with accounting standards of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Both standards related to Islamic financial accounting have been thoroughly reviewed, compared and discussed to find out the differences and similarities, along with the depth needed to meet the needs of Islamic finance. </p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>AAOIFI accounting standards provide a comprehensive view of complex transactions, whereas SECP standards have limitations. The proposed recommendations aim to bridge the gap by conducting periodic reviews and revisions of IFAS prevailing in Pakistan to keep up with the dynamic nature of the Islamic finance industry.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The regulators should establish institutional arrangements for adapting AAOIFI accounting standards, enabling efficient and effective upgrading of existing accounting standards for Islamic financial institutions and alignment with international best practices.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>There is a dearth of studies related to Islamic financial accounting in the context of Pakistan; this is one that contributes to this area.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141529885","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}