Repository logo
  • English
  • Català
  • Čeština
  • Deutsch
  • Español
  • Français
  • Gàidhlig
  • Italiano
  • Latviešu
  • Magyar
  • Nederlands
  • Polski
  • Português
  • Português do Brasil
  • Srpski (lat)
  • Suomi
  • Svenska
  • Türkçe
  • Tiếng Việt
  • Қазақ
  • বাংলা
  • हिंदी
  • Ελληνικά
  • Српски
  • Yкраї́нська
  • Log In
    New user? Click here to register.Have you forgotten your password?
Repository logo
    Communities & Collections
    Research Outputs
    Fundings & Projects
    People
    Statistics
  • English
  • Català
  • Čeština
  • Deutsch
  • Español
  • Français
  • Gàidhlig
  • Italiano
  • Latviešu
  • Magyar
  • Nederlands
  • Polski
  • Português
  • Português do Brasil
  • Srpski (lat)
  • Suomi
  • Svenska
  • Türkçe
  • Tiếng Việt
  • Қазақ
  • বাংলা
  • हिंदी
  • Ελληνικά
  • Српски
  • Yкраї́нська
  • Log In
    New user? Click here to register.Have you forgotten your password?
  1. Home
  2. USIM Journals
  3. Journal of Muamalat and Islamic Finance Research (JMIFR)
  4. Comparative Analysis of Financial Reporting Practices in Conventional and Islamic Banks in Malaysia
 
  • Details
Options

Comparative Analysis of Financial Reporting Practices in Conventional and Islamic Banks in Malaysia

Journal
The Journal of Muamalat and Islamic Finance Research
Date Issued
2012
Author(s)
Safeza Mohd Sapian 
Universiti Sains Islam Malaysia 
Zurina Shafii 
Universiti Sains Islam Malaysia 
Syarifah Fairuz Syed Mohamad
Abstract
The financial position and performance for any company are translated into the financial statements which form part of the Annual Report of the company. Information in the financial statements of Islamic financial institutions (IFIs) is important for stakeholders to make economic and investment decisions as well as to assess the IFIs' extent of compliance with the Shariah principles and whether or not they have completed their duty in contributing to socioeconomic justice and stability. This paper aims to examine the differences between the financial statements of Islamic and conventional banks in order to highlight the differences of operations of both types. Although both types of banks are using the same accounting standards, there are issues unique to Islamic banks that require the management to provide different types of information in addition to the standard information found in conventional banks annual reports. In this study, we have conducted a comparative analysis using qualitative method by the way of content analysis to examine the differences between financial statements of Islamic banks and their conventional counterparts. The study found that the difference of disclosure of financial information in the two types of banks is due to the different nature of Islamic banks' operation as compared to the conventional banks especially in investment management and the use of its Islamic financial contracts. As for the components of annual report, little differences were found from the content analysis of the banks underanalysis. This study recommends some improvements for the Islamic bank's financial reporting so that they would provide more transparency in a fair and equitable manner to the users view of observing Islamic principles and making economic decisions. Detailed future work could be done to study the usefulness of additional information on financial statements of Islamic banks from the perspectives of stakeholders.
Subjects

Financial statements

Islamic banks

Conventional banks

File(s)
Loading...
Thumbnail Image
Name

Comparative Analysis Of Financial Reporting Practices In Conventional And Islamic Banks In Malay.pdf

Size

1.36 MB

Format

Adobe PDF

Checksum

(MD5):443518c4557758e7de254a6ca0cf1dab

Welcome to SRP

"A platform where you can access full-text research
papers, journal articles, conference papers, book
chapters, and theses by USIM researchers and students.”

Contact:
  • ddms@usim.edu.my
  • 06-798 6206 / 6221
  • USIM Library
Follow Us:
READ MORE Copyright © 2024 Universiti Sains Islam Malaysia