Discount rates selection represent a centrally material factor impacting in goodwill valuation decisions. This study examines the consistency of opportunistic behavior in documenting the variances between discount rates used by companies and independently generated estimates of company specific, risk-adjusted discount rates. This study examines the selection of 20 top listed companies on Bursa Malaysia that have released their 2010 and 2011 annual reports with reported goodwill and analyzed using the CAPM and goodwill intensity. The dominant pattern was for observed discount rates to be lower rather than higher than the estimated value, with 15 (75%) companies of the 20 both in 2010 and 2011 in excess of 150 bps lower than independent risk-adjusted estimate. Therefore, the data provided evidence of the use of aggressively low discount rates, with the result that CGU asset portfolio recoverable amount values will have been overestimated and potential goodwill impairment losses deferred or avoided.

This paper has two objectives. The first is to investigate whether the provision of MFRS 136 (that is equivalent to IAS 36) allows for an earnings management technique termed “big bath” in Bursa Malaysia and, whether the change in firms’ CEOs plays a role in goodwill impairment loss recognition. The second objective is to examine the application of goodwill impairment loss recognition under the provision of MFRS136 in Bursa Malaysia between 2011–2012, using a “Mann-Whitney U” test. Our findings suggest that companies utilize goodwill impairment to take a “bath” regarding earnings management. Moreover, we find that Malaysian companies struggle to understand the ambiguity of the Value in Use (VIU) method under the MFRS 136 as they tend to take extreme accounting treatment strategies. Finally, we find that the new CEOs in Malaysian companies are more conservative in accounting treatment than CEOs with long tenure.

In addition to heart disease, other Malaysian extensive illnesses are mental health disorders. 29.2 per cent of Malaysians have recently suffered from mental illness, which has increased threefold compared to the previous year. The lowest income group accounts for the bulk of Malaysians suffering from mental illness. Currently, Singapore list among the countries has operative providing mental health insurance together with Australia, the United Kingdom and the United States of America. Malaysia is still far behind on offering mental health coverage with such a scheme only provided by AIA Malaysia. Therefore, through the takaful product, the purpose of this study is to address the risk of mental health disorders by hybrid takaful. The paper concluded that in order to maintain the promoting coverage and minimizing damage to mental health patients to human wellbeing, takaful mental health is needed in Malaysia market. In addition, this research would provide insight into the takaful industry for the development of a new and competitive product that could assist patients with a mental health disorder. Keywords: Takaful (Islamic Insurance), Mental Health, Islamic Finance

Islam propagates the spending of ones wealth in the way of Allah and promises multifold reward in return such as waqf. Waqf have a potential to become one of the important mechanisms regarding the socioeconomics realms in Muslim societies that will benefit the communities as a whole. The landscape for the development of waqf has changed and one of the waqf innovations that attract the world’s attention is corporate waqf that was introduced by Johor Corporation Berhad (JCorp). This study examines the influence of corporate waqf activities by subsidiaries of JCorp in enhancing the company performance as one of the element of return from waqf activities. The methodology used is through an analysis of the financial ratio to evaluate the financial condition and performance of subsidiaries companies that contribute to corporate waqf activities. No doubt, in today’s financial world, ratio analysis is a very vital tool in identifying the financial soundness and cost effectiveness of the company by establishing relationship between the items of balance sheet and profit and loss account. The study accomplished that the Jcorp subsidiaries, which involves in corporate waqf activities are financially sound, where profits and returns generated are satisfactorily, which can attract other conglomerates to participate.

The impact of the Fourth Industrial Revolution and the rapid advances in science and technology have created the concept of cloud technology, which effectively supports the developments of Internet of Things (IoT), automation, and robotics. One of the greatest technological changes affecting the accountancy profession is cloud accounting, which helps to reduce infrastructure support costs, improve the accessibility of accounting, save time, and provide larger storage compared to traditional accounting. These changes warrant a new level of preparedness, investment, and adaptation for accounting firms. The aim of this research is to understand the cloud technology service offered by audit firms. In achieving the research objectives, this study conducted interviews to obtain insights into the issues affecting the adoption and use of cloud accounting technology. Consequently, the overview of cloud technology offered by audit firms will enable the study to support the change caused by technological developments and guide the accounting profession in implementing the cloud technology effectively.

We examine how the approaching international lease accounting regulations influence credit rating of particular airfreight company, we capitalize all of still effective operation lease agreements commencing in 2002 and expired on 2026. In particular we use actual operation lease data, not only the disclosed with off-balance sheet. Our results suggest that, on average, capitalization of over 12 months term operation leases, dramatically alter capital structure. Results either reports a positive impact on weighted average cost of capital WACC, credit rating is a financial risk assessment measurement used by credit holders, investors, and analysis, our results is consistent with the lease accounting standard sitters point of view; investors and credit holders have the right to obtain a full transparent picture about firms lease activities in benefit of all parties. We also find some evidence that the positive change in WACC is related to the increasing portion of capitalized lease liability accompanied with an escalating decreeing in conventional debt, in certain conditions, this result suggests that financial lease has the advantage over conventional debt. Keywords:lease accounting reform, capitalization, financial risk, cost of capital, credit rating

The development of audit practice is a continuous process. The strategic system audit (SSA) method is a quite recent audit procedure that represents a complete shift from old audit techniques as it relies on assessing the client's business risk using a top-down rather than a bottom-up (traditional) approach. Previous studies focused on the effectiveness of SSA in performing audit. In addition, previous studies did not rule out the role of auditors' experience in an experimental procedure that compares between the two methods. Moreover, the effect of time pressure on auditors' "JDM" effectiveness under Traditional Audit (TA) and SSA during the orientation phase is still lacking in the literature. Using expert auditors as a benchmark and 81 master degree students, a2x2 factorial design experiment and a Mann-Whitney U test show that auditors under SSA method issue a more effective audit assessment than under TA in the absence or presence of time pressure.

The effectiveness of waqf administration is impeded by poor management of assets, opacity, and unstandardized reporting. Blockchain is expected to solve these issues due to its ability to record and trace every transaction, allowing administrators to discharge their accountability to waqf stakeholders. While there have been numerous proposals for waqf blockchain, there is no explicit framework for the governance of blockchain in waqf institutions. We propose a governance of blockchain framework for waqf institutions based on IT governance dimensions and blockchain governance dimensions from the literature. The framework comprises three dimensions (formation and context, actors, and means of governance/decision making) that subsume eight sub-dimensions across three layers and three stages. We then apply the framework on a blockchain-based waqf organization to examine its usefulness. The framework is among the first to be designed for waqf institutions.

This paper aims to examine the relationship between the board of director’s effectiveness and firm performance in Jordanian listed firms. The study used panel data approach over a period of five years from 2009 to 2013, with a sample of 120 non-financial firms listed on Amman Stock Exchange, these firms represents around 56% of Jordanian listed firms. In terms of the effect of board of directors on firm performance, five characteristics of the board of directors are identified: board of directors’ independence, board size, board meetings, leadership structure and board of directors' ownership. The firm performance was assessed by (ROA) as an accounting-based performance measure and Tobin’s Q (TQ) as a market-based indicator. The findings indicate that the independence of board of directors and board of directors' ownership have a positive impact on firm performance. The results also find that the smaller board size enhances the firm performance. Further analysis shows that the findings fail to reveal any significant impact for the frequency of board meetings and leadership structure on firm performance. The study contributes to the literature on board of directors’ effectiveness and firm performance in developing countries especially in Jordan. This study provides useful information that is of great value to policy makers, academics and other stakeholders.

Covering family’s members with family takaful is a necessary act in today’s environment if the financial risks are to be guarded particularly who are facing with mental health illness. This is due to fact that the cost of mental health services has always been a great barrier to accessing care for people with metal health problems and usually required series of consultations by the expert. Mental health illness becomes one of the major illnesses in Malaysia aside from heart disease that lead for seriously attention among takaful operators to include the mental health treatment in their family takaful premiums due to the worrying number of people suffering from mental health illness. Malaysia is still way behind in offering coverage for mental health illness with only AIA Malaysia and Etiqa Malaysia offers such a policy in the current market and there are huge potential in this product. Consequently, the objective of this paper is to propose a hybrid takaful model for mental health disorders in Malaysia particularly among the lower group of income due to the financial barriers. This paper uses a qualitative approach by analyzing the related document and past literature in achieving the current objective. The outcome from this study concluded that mental health takaful is needed in the Malaysia’s market in improving the mental health assessment in the country where the higher level of collaborative effort among the communities as well as governmental and NGOs is mandatory in combating this issue.

This study presents some evidence of discount rate selection on goodwill impairment testing under the new requirements of FRS 36. The selection of discount rates is believed to be an important key factor that affects the outcome of impairment assessment, especially when using the method of value in use. This study objectively examines the Singapore listed firm’s selection of discount rates disclosed, and then tests and compares the variation between discount rates disclosed by firms for the goodwill impairment testing with independently generated estimates of firm specific risk adjusted discount rates for multi year samples of 2007, 2006 and 2005. In order to achieve the objective of this study, the Capital Asset Pricing Model (CAPM) is chosen because it describes the relationship between risk and expected return and that is used in the pricing of risky securities. For the purposes of this paper, the final research sample consists of 142, 127 and 86 firms that employed the value in use method in goodwill impairment testing and defined only a single discount rate in 2007, 2006 and 2005 respectively. The results show most of the firms understated their discount rates for 2005, while in 2006 and 2007 some firms over-stated their discount rate when compared with an independently estimated risk adjusted discount rate. The results also indicate that the Singapore listed firms have difficulties in the discount rates disclosure which may in turn limit the decision usefulness of their financial disclosures by potentially diluting the robustness of the impairment testing.

This paper aims to conceptualize the relationship between audit committee (AC) characteristics and earnings management (EM). It hypothesizes that political instability moderates the relationship between the two variables. The paper bridges the knowledge gap by proposing a conceptual framework related to AC characteristics, EM, and political instability. This article reviews recent literature on CG and EM to understand how AC characteristics may mitigate EM practices. Moreover, it illustrates the effect of political instability on managers’ engagement in EM. Evidence from prior studies suggests that AC is an important part of the firm’s structure and responsible for monitoring financial information quality in financial reports. It is argued that an effective AC can reduce EM levels. During periods of intense political instability, managers are motivated to engage in high levels of EM to enhance their companies’ financial performance. This paper argues that a more effective AC will deter the opportunistic behaviors of managers to engage in EM.

This paper aims to explore credit evaluation perspective of dual-banking and full-fledge of Islamic banking approach in Malaysia. This study further used qualitative method of analyzing the data collected from in-depth interviews with them. The study found that credit risk management really has a great role to play because it makes financing decisions less risky, it helps the banks to have a secure system of two-dimension of credit risk management. Besides, the commencement of credit risk management is in the time of stage in before the financing decisions until when it does repayment from customers. During the time of making financing decisions, information needed, most important elements and continuous relationship within customers are both valued differently by the different banks.

Research aims: The article aims to describe corporate governance (CG) characteristics and the extent of earnings management (EM) practices in non-financial firms listed on the Palestine Exchange from 2011 to 2018. Design/Methodology/Approach: The study employed the quantitative methodology. Collected data were summarized quantitatively using descriptive analysis with STATA 14. CG data were retrieved manually from published annual financial reports, while financial data for the EM calculation were collected from Thomson ONE. Research findings: Listed non-financial firms in Palestine only moderately complied with the Palestinian Code of Corporate Governance. Some Palestinian firms have also established an audit committee, one of the most important corporate governance mechanisms. Theoretical contribution/Originality: The findings provide insight into CG and EM in Palestine for regulators and policymakers. Practitioner/Policy implication: The results can assist policymakers in strengthening existing regulations and updating the current code of CG or introducing new policies to mitigate EM.

Purpose – The purpose of this paper is to determine the factors influencing Malaysian consumer toward intention to purchase Takaful scheme for mental health disorders. Design/methodology – This paper adopts a quantitative approach by using an extended Theory of Reasoned Action (TRA) model. A pilot study with the total of 60 questionnaires were obtained from online survey to examine the significance relationship using multiple regression analysis. Findings – The result from this study portrays that subjective norm are strong predictors of a Malaysian consumer intention to purchase Takaful scheme for mental health disorders. Moreover, factors such as awareness, perception and attitude have positive and significant impacts on consumer intention to purchase takaful scheme for mental health disorders in Malaysia. Research limitation – There are some constraints. First, it focuses only on the actions of Malaysian consumers against a takaful scheme for mental health disorders; thus, the findings cannot be generalized to other takaful schemes. Therefore, more studies in other takaful settings, such as general takaful, need to begin. Second, this study considered only four factors were awareness, perception, attitude and subjective norm, and the factors selected might not cover all the factors which may have an effect on Malaysia's intentions toward takaful mental health disorders scheme. Originality - This study not only helps takaful operators design, develop and promote better approved takaful products and services, but also offers a new insight into how these products and services can be marketed to these particular consumers. Previous empirical studies that employed TRA focused on various types of variables, such as attitude and subjective norm, especially in the financial service environment. This research thus adds to the body of information by analysing the relative value of the goal affecting it. Keywords: Islamic finance; consumer; intention; takaful; mental health

Zakat in Islam has historically been a vital institution in fulfilling religious needs and social welfare. Its effectiveness in medieval and modern Islam is evident. However, this institution is seemingly not without inefficiencies. Ineffectiveness distribution process and lack of transparency in the zakat management are commonly cited as key impediments (bin Khatiman et al., 2021). Blockchain is expected to solve these issues due to its ability to record and trace every transaction, allowing administrators to discharge their accountability to zakat stakeholders. Thus, this study intended to develop a zakat collection blockchain system with the aim to provide economical and integrated continuous real-time zakat transactions, transparency and traceability by developing smart contracts in zakat management. The study employed four stages of process based on waterfall model starting from the interview session and analyse of the standard operating procedure (SOP) on zakat collection in the Zakat Collection Centre or Pusat Pungutan Zakat-Majlis Agama Islam Wilayah Persekutuan (PPZ-MAIWP). Then, design requirement specification (DRS) is employed after being reviewed and approved by PPZ-MAIWP. The results show that the development of blockchain in the zakat collection system could be eradicating extreme poverty and boost shared prosperity among the community in the country. The study contributes through a transparent and reliable environment for exchanging data and carrying out transactions through a decentralized digital ledger technology to record anything of value and as a result able to ensure transparency, reliability, trust ability and traceability of the zakat transactions.

This study investigates the impact of blockchain technology on estate governance focusing on enhancing transparency, efficiency and security within the sector. A structured questionnaire using a 5-point Likert scale was distributed to 317 estate management professionals to collect quantitative data which was subsequently analyzed using SmartPLS 4. The results underscore transformative potential of blockchain technology revealing strong correlations between its implementation and improved estate governance outcomes. This study demonstrates how blockchain can significantly enhance estate administration by addressing inefficiencies, bolstering security and fostering greater transparency. The proposed framework for integrating blockchain into estate governance offers a comprehensive strategy to manage frozen estates more effectively, reduce administrative delays and minimize disputes. The study's primary contribution lies in its innovative application of blockchain technology to solve prevalent issues in estate management providing a strategic blueprint for future implementations. This study offers actionable insights and practical recommendations for estate management stakeholders emphasizing the critical role of blockchain in ensuring more efficient, transparent and secured governance practices. This study highlights the profound impact blockchain can have on modernizing estate management practices and establishing robust governance frameworks by thoroughly examining the dimensions of transparency, efficiency, and security. This study concludes by advocating for the adoption of blockchain technology to enhance estate governance effectiveness and improve overall management outcomes.

The objective of the study is to investigate the compliance level and disclosure quality of FRS 136 by the top 20 Shari’ah-approved companies in Bursa Malaysia as at 2010. The weighted index is employed to differentiate the quality and importance of each mandatory disclosure under FRS 136. The weighted index was developed by constructing disclosure scoring sheets, obtaining companies’ annual reports, completing scoring sheets for each firm by assigned weighting for the disclosure items and calculating disclosure weighted index. This study revealed that 13 out of 20 companies (65%) failed to comply with the most basic elements of the FRS 136 pertaining to goodwill impairment testing, especially in goodwill allocation and key assumptions used in determining the recoverable amount of CGU assets. This study suggests that the performance of the top 20 Shari’ah-approved companies must improve before Malaysian practice can attain a truly international standard.

Role of external auditing on improving the corporate governance is not clearly among the Arabian companies. The purpose of this study is to review and examine the relationship between external auditing and corporate governance in Arab countries. Related literature was extracted from reliable sources and filtering was conducted to select the articles that fit in the scope of this study. The findings indicate that countries such as Algeria and Iraq received the largest number of articles. Time of the studies is limited to six years with the majority are adopting secondary data or time series data approach. For studies with a questionnaire, approach, the sample size was small and accountants were mainly the respondents of these studies. Listed companies received the majority of the studies and articles related to the issue is increasing. The future work is suggested to investigate the relationship in other countries and to adopt qualitative and quantitative approach using larger sample size or time frame to enhance the generalizability

The application of FRS 136 – Impairment of Assets (Amended by Annual Improvements to IFRSs 2009) was mandatory for all companies listed in Bursa Malaysia from 1 January 2010. The highly prescriptive and technical provisions of Financial Reporting Standard (FRS) 136 – Impairment of Assets (FRS 136, 2009) therefore represent a very substantial variation from past practice. This in turn gives rise to questions about how Malaysian companies and their auditors have fared during the process of transition to a complex reporting regime and in consequence to the quality and consistency of reports produced pursuant to that new regime. Hence, this study examines the degree of technical compliance with the disclosure requirements of FRS 136 (Amended by Annual Improvements to IFRSs 2009) by a sample of 20 large Malaysian companies used as a proxy for audit quality. This research employed six analytical structures to distinguish audit quality among the Big 3 in an attempt to question the homogeneity of audit quality assumption. The evidence presented in this study suggests that there is no variation in audit quality among the Big 3 and contributes to the literature by providing at least preliminary evidence for the proposition that audit quality among the largest audit firms is homogenous, as has so often been assumed in previous studies. The findings will be of interest to investors, analysts, regulators and enforcers, not only in Malaysia but also in other jurisdictions undergoing transition to IFRS, in particular those whose reporting regimes portray similar features.