Globally, International Financial Reporting Standards (IFRS) are used by more than 100 countries for various types of organizations. The purpose of this paper is to examine the opinion of practitioners in Islamic financial institutions (IFIs) on Shariah issues when adopting IFRS and International Accounting Standards (IAS) to report Islamic financial transactions. Primary data collection involved a group interview with representatives, such as Shariah officers, accountants and academic experts to obtain insights on how the industry practitioners deal with general and specific IFRS issues in applying IFRS and IAS. The result from the group interview revealed that practitioners are highly concern on various Shariah issues, such as the applicability of time value of money, the terminologies used in IFRS and IAS that reflect conventional concepts of banking and takaful. This study provides both the conceptual and practical issues faced by practitioners in applying IFRS for reporting Islamic financial transactions. It suggests the need for collaboration between academicians, standard setter and regulator in providing technical guidance applicable for reporting Islamic financial transactions.

Purpose: The purpose of this study is to identify the competencies required of Shari’ah auditor (SAR) in the Islamic banking environment. Design/methodology/approach: A qualitative approach using a multiple-case study through the semi-structured interview was used. Data was gathered from a representative of Central Bank of Malaysia, and 30 other respondents consist of the Head of Shari’ah audit (HSA) and SAR from four types of banking institutions. A focus group discussion was later conducted to validate the model of competency proposed. Findings: Results show a mixed practice on the recruitment of SAR. Most banking institutions prefer to use their existing internal auditors as opposed to recruiting fresh graduates or acquire experienced SAR from other financial institutions. Knowledge in Shari’ah, Islamic banking and Fiqh Muamalat is considered as the essential knowledge component for SAR, while auditing is revealed as the core skill that SAR should have to perform the Shari’ah audit effectively. The study also found that personal skills such as willingness to learn and teamwork as the complementing characteristics to the knowledge and skill components, as a package required for a competent SAR. Research limitations/implications: The results of this study would have both theoretical and practical contributions to the regulatory bodies, academicians and professionals. Theoretically, this study made a concerted effort to enhance prior studies on the qualification aspect of Shari’ah audit literature, emphasizing the elements necessary to recruit competent SARs in the Islamic financial institutions (IFIs). The element of “time” has been infused to the existing effective job performance theory add dynamics to the model, recognizing the need for years of experience as part of elements necessary to become competent SAR. In practice, the competency model is recommended to the industry players in pooling competent talents in the Islamic finance industry (R4) and (B5). In spite of its limitation to confine only to the IFIs, it sheds light on human resource management within the Islamic organizations. Practical implications: The study would contribute to the practitioners as a guideline to the Human Resource Department in recruiting their SAR and also for succession planning purposes. Originality/value: A competency model for SAR was proposed focusing on building knowledge, core and personal skills that can be used as guidance in determining the criteria needed for a competent SAR, which is a new dimension for Islamic auditing literature. The sub-objective of determining the elements of competency, as well as understanding the current practice of recruiting the SAR became the input in the building of the competency model.

The resurgence of waqf institutions creates the need to establish good accounting system for these institutions. The aim of this paper is to evaluate the needs for developing accounting standards and Statement of Recommended Practice for Charity (SORP) based on the AAOIFI (Accounting and Auditing of Islamic Financial Institutions) framework. The purpose of waqf is to provide recurring charity that generates continuous income flow to the needy. Waqf accounting may improve transparency and enhance accountability of waqf institutions in Malaysia. The absence of guidelines or standards on accounting for waqf triggers the interest to examine the relevance of waqf accounting so that transparency and accountability of waqf institutions could be assured. Thus, it is suggested that accounting is a useful means to discharge mutawalli's (trustee) accountability in waqf administration and management. Further study should be undertaken to propose the appropriate accounting standards for waqf institutions. �IDOSI Publications, 2013.

Purpose: Since International Financial Reporting Standards (IFRS) are not primarily meant for the accounting needs of Islamic banks, the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) was established to develop specific accounting standards for Shari’ah compliance. The purpose of this paper is to assess the de jure harmonisation between the disclosure requirements of the IFRS-based Malaysian Accounting Standards (MAS) and those of the AAOIFI. Design/methodology/approach: Using Malaysia as a case study, the paper examines the extent of the de jure congruence between the IFRS-based MAS and AAOIFI’s Financial Accounting Standard No 1 (FAS1), which is considered to be one of the key disclosure standards for Islamic banks. We employ leximetrics and content analysis to analyse these accounting standards and the additional guidelines introduced by the Malaysian Accounting Standards Board (MASB) and the Central Bank of Malaysia (Bank Negara Malaysia, BNM) to identify the gaps between different tiers of MAS and FAS1. Findings: The study finds that de jure congruence between the IFRS-based MAS and AAOIFI standards has improved through the introduction of additional accounting guidelines by both the MASB and the banking regulator, BNM. However, some gaps remain between the two standards. These gaps may be difficult to completely eliminate due to differences in the fundamental principles underlying the development of both standards. Originality/value: While some studies have explored the de facto congruence between AAOIFI accounting standards and others, this paper is the first, to the best of the authors’ knowledge, to examine the de jure congruence between those standards with the IFRS-based MAS.

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Muslim consumers are concerned about the status of Islamic religious requirements of products and services. The producers' ability to trace the beginning to end processes will gain the confidence of the consumers that the whole processes from the production, processing and distribution of the products are Shariah-compliant. Halal traceability provides further information about which Halal standards have been applied, allows the consumer to verify the Halal claims and ensures that the product delivered to the customer is thoyyib (wholesome, healthy, safe, nutritious and of good quality). This paper seeks to develop a Halal traceability framework for Halal food producers based on Halal traceability deployments in a Halal certified food production company. The case study method is employed to learn about the initiatives of the company in relation to traceability of Halal food production. Based on the experience of the studied case, a framework is generated that Halal food producers can refer to as a proper guideline to ensure Halal compliance along the production, transportation and distribution system. The framework has theoretical interest for replicability to other Halal food producers. � IDOSI Publications, 2012.

The Shariah Governance Framework (SGF) is a set of organizational arrangements through which Islamic Financial Institutions (IFIs) ensure effective oversight, responsibility and accountability of the board of directors, management and Shariah Committee. In measuring the IFIs compliance to the Shariah, SGF requires regular internal Shariah reviews and Shariah audit. This paper aims to identify the independence and competency quality that requires for human capital development in Shariah audit. This research adapts focus group study conducted with the stakeholders of IFIs which consist of regulators, IFIs management, employees and shareholders. The results from this study indicate that Shariah auditors must possess Shariah and accounting knowledge. However, if the Shariah auditors do not have the necessary qualifications, their experiences in the Islamic banking could be considered. In terms of independence, the Shariah audit function shall currently attach to the internal audit department. The findings of the study could be used in developing syllabus and training modules for Shariah audit that reflects the Shariah requirements and also the industry's needs. Future research could be done by expanding the sample of the study that covers wider group of informants to achieve variety of feedbacks from the Shariah audit experts.

Internet Service Providers (ISPs) nowadays deal with high demand to promote good quality information. However, the knowledge to develop new pricing scheme that serve both customers and supplier is known, but only a few pricing plans involve QoS networks. This study will seek new proposed pricing plans are offered with QoS networks involved. The single link multi QoS Networks scheme is solved as an optimization model by comparing two models in multi QoS networks. The decisions whether to set up base price to be fixed to recover the cost or to be varied to compete in the market are considered. Also, the options of quality premium to be fixed to enable user to choose classes according to their preferences and budget or to be varied to enable ISP to promote certain service are set up. � 2013 Asian Network for Scientific Information.

This article will analyze new improved charging scheme with base price, quality premium and QoS networks involved. Sain and Herpers [5] already attempted to obtain revenue maximization by creating charging scheme of internet. The plan is attempted to solve multi service networks scheme as an optimization model to obtain revenue maximization using our improved model based on Byun and Chatterjee [2] and Sain and Herpers [5]. The results show that improved model can be solved optimally using optimization tool LINGO to achieve better revenue maximization. Better results are obtained in all cases rather than in [5]. The advantage of our new model is that ISP also can set up their base price and quality premium based on ISP preferences. For some cases for getting revenue maximization, we do not offer one service and just utilize some of the services.

PurposeThis paper aims to examine some issues in IFRS9 with regards to classification and measurement of Islamic financial assets. In addition, the paper discusses the Shariah concerns on the use of fair value to measure financial assets. Design/methodology/approachThis paper adopts qualitative method via the study of documents and textual analysis of Shariah opinions of scholars and relevant accounting standards. FindingsThe paper found that the classification and measurement of equity-based Islamic financial assets do not fit into the �default� classification category of amortised cost, as the future cash flow receivable does not constitute solely the payment of principal and interest (fixed rate payment). With regards to fair value measurement, Shariah concern arises during the adoption of fair value at Level 2 (reference of asset values from input other than quoted prices in active markets) and Level 3 (use of discounted cash flow method to arrive to asset valuation) because of the existence of in uncertainty or gharar as compared to Level 1 (fair value referred to quoted prices of similar assets). Practical implicationsFindings of the paper provide a starting point for a debate and extensive research on issues related to classification and measurement of Islamic financial assets and the use of fair value as a method of subsequent revaluation of Islamic financial assets. The Shariah analysis in the paper is useful for International Accounting Standard Board to engage with Islamic financial institutions and local accounting standard setters to reflect the unique nature of Shariah-compliant financial instruments. The paper serves as a basis to devise technical solutions to address accounting and reporting issues of Islamic financial instruments. Originality/valueThe paper offers Shariah analysis on the issue of classification, measurement and impairment model for Islamic financial assets. The paper is considered as the first paper that examines areas of possible tensions when applying IFRS9 to the accounting of Islamic financial assets. In addition, the paper has contributed to the literature in Islamic accounting and auditing. � 2016, Emerald Group Publishing Limited.

Recent issuance of Shariah Governance Framework by Bank Negara Malaysia has shown a significant impact towards the establishment of the Shariah audit and consequently, towards the role of the Shariah Committee. It is the aim of this paper to study on the impact of the Shariah audit function towards the role of Shariah Committee with regards to the post implementation of the Shariah Governance Framework. The study adopts a single case study research. Findings from invdepth interviews reveal that the Shariah audit function has an added value in ensuring the compliance towards the Shariah principles. This study also provides challenging issues faced by the Shariah Committee of the selected establishment. Hence, it is believed that this study can be benefited by other IFIs in improving their Shariah Committees structure. Future studies could be done to examine post implementation effect of the adoption of Shariah governance framework in the context of other functions such as Shariah research, Shariah risk management and Board of Directors. � IDOSI Publications, 2013.

Product recalls are damaging to companies due to its effects to financial performance as well as the image of the company. Product recall management is the final step of traceability system in a company. When the incidence of product recall happens, a company must have a good recall management system that works as the last defense to the company's image. This study examines the product recall management in two companies operating in Halal industry. The objective of this study is to examine the implementation of Halal traceability measures and recall programs in the companies under the study. This study employed case study method to obtain data from two companies operating in Halal industry; one is a manufacturing of Halal product while another is a slaughterhouse. This study provides analysis on Halal traceability system implemented by two companies and the procedure of food recall produced by Jabatan Kemajuan Islam Malaysia (JAKIM). Findings of the study indicate that both of the surveyed companies practiced seven elements of traceability system to prevent them from involving in the incidence of food recall. The results also imply that food recall management and Halal traceability implementation are important in order to maintain the company from receiving negative impacts of food recall. Future comparative research on the similarities between food recall in Halal food and non-Halal food industry could be conducted to improve the product recall management in the Halal industry.

Shariah audit is important as the third line of defence in ensuring the operations ofIslamic Financial Institutions (IFIs) are in line with Shariah principles. The operationsrefer not only to day to day operations, process and procedures and management recordsbut also the financial statements of the IFIs. Shariah audit gives an indication to themarket that the IFIs are complying with the Shariah guidelines. This is especiallyimportant as the market is keener on knowing and seeing that IFIs perform its bidding.The resurgence of Islamic finance over the past 30 years plus the sub-prime crisis hascaused greater emphasis for the IFIs to be ever more Shariah-compliant. The purpose ofthis chapter is to provide an overview on the importance of Shariah audit as one of thelines of defence in terms of internal control for IFIs. Secondly, the chapter also providessuggested auditable areas for the audit scope of Shariah audit in the financial statementsof IFIs. Accordingly, the chapter provides guidance for future empirical and policyimpact research on audit scope for Shariah audit in financial statements of IFIs. � 2014 Nova Science Publishers, Inc.

Cooperative sector governance is instrumental in ensuring the effectiveness, responsibility, and accountability in both conventional and Shari’ah-compliant cooperatives. This study examines Shari’ah governance (SG) arrangements within the cooperatives in Malaysia. The objectives of this paper are to explore the application of SG in the cooperative sector in Malaysia and to evaluate the adequacy of SG adoption in cooperative. This study uses qualitative methods where the data are collected using focus group discussions and in-depth interviews with regulators, experts, and the governance organs of the cooperatives. The study focuses on credit cooperatives that have been listed in the 100 Best Cooperative Directory issued by Suruhanjaya Koperasi Malaysia (SKM) annually from 2012 to 2016. The findings from thematic analysis on interviews conducted indicate that the first objective, most respondents agreed that cooperatives should be operated based on the objectives of its establishment. The findings on the adequacy of adoption of SG in Shari’ah-compliant cooperatives indicate that the practice is at an infancy stage, with plenty of support and motivation are needed to ensure effective and efficient implementation of SG. Emergent findings from the interviews reveal that the Islamic attributes are crucial for a cooperative’s SG organs such as Islamic accountability, Shari’ah mindset, Islamic culture, awareness and readiness, manpower competencies and cooperation (ta'awun). It is vital for the SG organs to have such attributes in order to foster awareness among them to be more responsible and willing to adopt good SG practices. The observation of good SG practices in the cooperative sector in Malaysia can help the cooperative movement to positively grow and contribute equitably to community.

The concept of venture philanthropy has been greatly discussed by various parties especially among the policy makers. The increasing social problems call for corporations to respond positively and take responsibilities in the social sector. It encourages venture philanthropy activities among profit and non-profit organizations in enhancing business values and creating positive social impacts. There have been past studies that looked at how venture philanthropy concept can be linked with Islamic philanthropy. Islamic philanthropy includes but not limited to zakat, waqf and sadaqah. The instruments within Islamic philanthropy aim to serve the purpose of narrowing social distance and reducing inequalities. This conceptual paper aims to understand further the concept of venture philanthropy and how it links to Islamic philanthropy. This paper also aims to explore how venture philanthropy approach is applicable in enhancing waqf practices.