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Diverse accounting standards on disclosures of Islamic financial transactions: Prospects and challenges of narrowing gaps

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dc.FundingDetailsFocussing on accounting, the MASB was established in 1997 as an independent standard-setting body mandated to develop and issue Accounting and Financial Reporting Standards (FRS) in Malaysia (MASB, 2013). MASB decided to re-position the Malaysian Financial Reporting Standards (MFRS) towards the IFRS in 2008 to ensure the compatibility of financial reporting with global standards (IFRS Foundation, 2014; Shafii et al., 2013;
dc.contributor.affiliationsFaculty of Economics and Muamalat
dc.contributor.affiliationsDurham University
dc.contributor.affiliationsAmBank Group
dc.contributor.affiliationsCardiff Business School
dc.contributor.affiliationsUniversiti Sains Islam Malaysia (USIM)
dc.contributor.authorAhmed H.en_US
dc.contributor.authorTajul Ariffin F.A.en_US
dc.contributor.authorKarbhari Y.en_US
dc.contributor.authorShafii Z.en_US
dc.date.accessioned2024-05-28T08:43:58Z
dc.date.available2024-05-28T08:43:58Z
dc.date.issued2019
dc.description.abstractPurpose: 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.en_US
dc.description.natureFinalen_US
dc.identifier.doi10.1108/AAAJ-10-2015-2266
dc.identifier.epage896
dc.identifier.issn9513574
dc.identifier.issue3
dc.identifier.scopus2-s2.0-85067616247
dc.identifier.spage866
dc.identifier.urihttps://www.scopus.com/inward/record.uri?eid=2-s2.0-85067616247&doi=10.1108%2fAAAJ-10-2015-2266&partnerID=40&md5=7d1614a25f68b46c608b8a3da542dbae
dc.identifier.urihttps://oarep.usim.edu.my/handle/123456789/9365
dc.identifier.volume32
dc.languageEnglish
dc.language.isoen_USen_US
dc.publisherEmerald Group Publishing Ltd.en_US
dc.relation.ispartofAccounting, Auditing and Accountability Journal
dc.sourceScopus
dc.subjectAAOIFI accounting standardsen_US
dc.subjectDe jure congruenceen_US
dc.subjectInternational Financial Reporting Standardsen_US
dc.subjectIslamic bankingen_US
dc.subjectMalaysian Accounting Standardsen_US
dc.titleDiverse accounting standards on disclosures of Islamic financial transactions: Prospects and challenges of narrowing gapsen_US
dc.title.alternativeAccount. Audit. Account. J.en_US
dc.typeArticleen_US
dspace.entity.typePublication

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