...The effect of the board of directors’ characteristics on corporate social responsibility disclosure by Islamic banks: evidence from Gulf Cooperation Council countries Abdullah Awadh Bukair and Azhar Abdul Rahman Abstract Corporate social activities have become major subjects because of their effects on the quality life of citizens, in particular, and on the society at large. Therefore, today, there is an increase awareness of social responsibility due to the challenges meeting the financial institutions (particularly, Islamic banking) around the world. This paper examines the influence of the board of directors’ characteristics, consisting of board size, board composition, and the separation roles of CEO and chairman, on corporate social responsibility (CSR) disclosure in 53 annual reports of Islamic banks of Gulf Cooperation Council (GCC) countries after controlling of bank size, financial performance and relevant public. Based on the framework of legitimacy theory, the findings show that CSR disclosure has a negative and insignificant relationship with board composition. On contrast, the study found insignificantly and positive association between CSR disclosure and other characteristics of board of directors (board size and the separation roles of CEO and chairman). With regards control variables, the study indicates that bank size and financial performance have a positive and significant influence on CSR disclosure, while relevant public has no effect. Therefore, the results...
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...Note: This Introduction appears in Christopher Napier & Roszaini Haniffa (eds) Islamic Accounting (Cheltenham: Edward Elgar, 2011), pp. xiii-xx. The printed version may differ slightly from the text set out below, and the printed version should be regarded as definitive. An Islamic Perspective of Accounting: Introduction and Overview Christopher Napier and Roszaini Haniffa Introduction The emergence of Islamic banks and other Islamic financial institutions since the 1970s has stimulated a modern literature that has identified itself as addressing “Islamic Accounting”. What does the term “Islamic Accounting” mean in the rapidly growing contemporary literature? Napier (2009) has proposed three interrelated aspects: a historically-oriented sense, in which “Islamic Accounting” refers to ideas and practices in Muslim-majority countries in past periods; a practice-oriented sense, where the focus is on how entities describing themselves as “Islamic” account for and report their transactions and activities; and a principle-oriented sense, where fundamental accounting concepts and methods form a coherent body of ideas and practices based on the religion of Islam. The word “Islam” means total submission or surrender to the will of God (Allah), and a Muslim is one who so submits. However, this raises the question of how Muslims can determine what the will of God is. The principal sources are the Qur’an, which is considered by Muslims to be the exact words of revelation from...
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...corporate image. This social concern has given the birth of corporate social responsibility (CSR). While the concept of CSR is widely accepted, there is no single, universally accepted definition of CSR. Generally, it refers to business decision-making linked to ethical values, compliance with legal instruments, and respect for people, communities and the environment. CSR has been defined as “the integration of business operations and values whereby the interests of all stakeholders, including customer, employees, investors and the environment are reflected in the organization’ polices and actions” (Smith,2002). An international survey of corporate sustainability reporting conducted by KPMG in 2002 found that 45%of the world’s largest 250 companies now produce environmental and social reports, up from 35% in 2000. This survey shows how much disclosure of CSR is expanded. The companies have to satisfy the divergent number of stakeholders, the credible relationship is created through CSR reporting. It improves communication with the community and other stakeholders (Anand, 2002) and results in competitive advantage (King, 2002). CSR through ensuring better and safe working environment, elimination ofcorruption, focusing of human rights and environmental sustainability are now recognized as essential factors for the sustainable development of societies (Raihan et. al., 2002). The present study mainly visualizes CSR information in the selected private commercial banks (PCBs) of Bangladesh...
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...“Islamic Accounting : Their Position in International Standard Harmonization” Rendy Anggita Putra “Islamic Accounting : Their Position in International Standard Harmonization” 1. Abstract According to (Susela, 1999) said the development of accounting theories is are affected by several factors including political and economic interests of certain people or group in community. Therefore, it can be also called if the accounting is a significant tool to illustrate the interests and perspectives of the various stakeholders. Islamic industry of finance has obtained tremendous growth in last few years, both in number of assets that manage by industry and in the diversity of financial products. A global system that can rule the industry will become significantly important for the Islamic finance sector in order to meet the needs of continued growth (Vinnicombe, 2012). Harmonization of Shari’a accounting standards has continue to be made by the AAOIFI as it is also done by the International Accounting Standards Board (IASB) for conventional accounting harmonization. In its development, financial reporting in Islamic accounting adds some different additional reports than conventional accounting to accommodate the unique transactions of Islamic economics. In that regard, this paper have objective to explore the main important values of Shari’a accounting and reporting standards of Islamic Accounting and try to find the answers of Islamic accounting positions among the process...
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...An Internship Report On Audit Procedure of UHY Syful Shamsul Alam & Co. and A Comparative Analysis on IFRS (IAS) and AAOIFI on Financial Reporting Issues Department of Finance Faculty of Business Studies University of Dhaka An Internship Report On Audit Procedure of UHY Syful Shamsul Alam & Co. and A Comparative Analysis on IFRS (IAS) and AAOIFI on Financial Reporting Issues (As partial fulfillment of BBA Program) Submitted To Department of Finance University of Dhaka Supervised By Taher Jamil Lecturer Department of Finance University of Dhaka Submitted By Md. Rased Mosarraf ID: 16-062 Department of Finance University of Dhaka Date of Submission: May 22, 2014. Letter of Transmittal May 22, 2014. Taher Jamil Lecturer Department of Finance University of Dhaka Subject: Submission of internship report. Dear Sir, I have the pleasure to submit an Internship Report after completing a successful three month Internship attachment at a CA firm named “UHY Syful Shamsul Alam & Co.” on “Audit Procedure of UHY Syful Shamsul Alam& Co. and A Comparative Analysis on IFRS (IAS) and AAOIFI on Financial Reporting Issues”. I have concentrated my best effort to achieve the objectives of the report and hope that my endeavor will serve the purpose. The practical knowledge and experience gathered during report preparation will immeasurably help in my future professional life. I will be obliged if you kindly approved this endeavor...
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...Journal of Financial Reporting and Accounting Insurance vs Takaful: identical sides of a coin? Hairul Suhaimi Nahar Downloaded by ZHONGNAN UNIVERSITY OF ECONOMICS AND LAW At 10:31 08 December 2015 (PT) Article information: To cite this document: Hairul Suhaimi Nahar , (2015),"Insurance vs Takaful: identical sides of a coin?", Journal of Financial Reporting and Accounting, Vol. 13 Iss 2 pp. 247 - 266 Permanent link to this document: http://dx.doi.org/10.1108/JFRA-02-2015-0029 Downloaded on: 08 December 2015, At: 10:31 (PT) References: this document contains references to 66 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 248 times since 2015* Users who downloaded this article also downloaded: Mohamed Sherif, Nor Azlina Shaairi, (2013),"Determinants of demand on family Takaful in Malaysia", Journal of Islamic Accounting and Business Research, Vol. 4 Iss 1 pp. 26-50 http:// dx.doi.org/10.1108/17590811311314276 Khalid Al-Amri, (2015),"Takaful insurance efficiency in the GCC countries", Humanomics, Vol. 31 Iss 3 pp. 344-353 http://dx.doi.org/10.1108/H-05-2014-0039 Nor Aziah Abu Kasim, (2012),"Disclosure of Shariah compliance by Malaysian takaful companies", Journal of Islamic Accounting and Business Research, Vol. 3 Iss 1 pp. 20-38 http:// dx.doi.org/10.1108/17590811211216041 Access to this document was granted through an Emerald subscription provided by emeraldsrm:509129 [] For...
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...either through its impact on economic behavior or its impact on other cultural values. There are difference between Islamic values and attitudes inherent in Western accounting system. Islamic proprietor views accounting as an opportunity to show compliance with religious requirement. For less committed, it is merely as technical matter to measure and convey information to third parties on how efficiently the resources have been used. The very assumption that resources are scarce as mentioned by western economist is actually contradicts with the attitudes of most religions. Islam believed that God has provided enough resources for everyone. The scarcity will not exist if the resources are used sensibly. During the Abbasid period, an institution called Hisbah was established to ensure all business activities like trading, lending, borrowing and commercial activities are in compliance with shariah requirements. However, during the Ottoman Empire the existence of western bank established in Islamic countries result to the decline of Islamic Financial Principles and replacement to European Based Secular Law which permits the usury or interest and any other activities not sanctioned by Shariah. As a result, nowadays most of Islamic countries do not practice their strict financial principles as it was before. The adoption of western model of economic perceive by Islamic Communities have brought material gain into an elite which solely focus on...
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...the journal August 2005 Tackling the key issues in banking and capital markets* 1 Contents Page Editor’s comments 2 New challenges for central banks 4 Business integrity: A foundation for rebuilding reputation 16 The battleground for consumer banking 24 India: From sleeping tiger to stirring elephant 30 IFRS: Is your financial reporting sustainable? 42 Shari’a compliant financial services – standing its ground 48 Editor’s comments 2 by Phil Rivett the journal • Tackling the key issues in banking and capital markets Phil Rivett Global Leader, Banking & Capital Markets, UK Tel: 44 20 7212 4686 Email: phil.g.rivett@uk.pwc.com 3 Welcome to the August 2005 edition of the PricewaterhouseCoopers banking and capital markets journal. This is the 7th edition of the journal and brings together a rich selection of topics from our industry experts. Central banks are increasingly coming under the spotlight as they face a number of changes and challenges. In ‘New Challenges for Central Banks’, Chris Sermon, Peter Trout and Elizaveta Filipova highlight some of the new and existing opportunities facing the central banking sector in the areas of accounting, reporting, transparency, corporate governance and risk management and explore the importance of evolving practices and developments. Trust and integrity are fundamental to the financial sector, no more so than now following recent corporate transgressions. In ‘Corporate...
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...International Journal of Islamic Financial Services Vol. 1 No.3 ISLAMIC BANKING IN BANGLADESH: PERFORMANCE, PROBLEMS & PROSPECTS Md. Abdul Awwal Sarker Islamic banks can provide efficient banking services to the nation if they are supported with appropriate banking laws, and regulations. This will help them introducing PLS modes of operations, which are very much conducive to economic development. It would be better if Islamic banks had the opportunity to work as a sole system in an economy. That would provide Islamic banking system to fully utilize its potentials. Studies show that Islamic banks can not operate with its full efficiency level if it operates under a conventional banking framework, their efficiency goes down in a number of dimensions. The deterioration is not because of Islamic bank’s own mechanical deficiencies. Rather it is the efficiency-blunt operations of the conventional banking system that puts obstructions to efficient operation of Islamic banks. This does not mean that the survival of Islamic banks operating within the conventional banking framework is altogether threatened. Evidences from Bangladesh indicate that Islamic banks can survive even within a conventional banking framework by which over from PLS to trade related modes of financing. The Genesis of Islamic Banking in Bangladesh At birth, Bangladesh inherited an interest based banking system, which was introduced here earlier when the country was a part of British Colony. Since its...
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...Importance of Islamic Accounting in Modern Era by: Chusnul Asfadillah Student of Airlangga University, Surabaya, Indonesia +62899 372 1772 Ines Nur Latifah Student of Airlangga University, Surabaya, Indonesia +62878 8432 3738 DR. Raditya Sukmana Lecturer of Airlangga University, Surabaya, Indonesia + 62 878 5421 6776 ABSTRACT Purpose – This paper aims to determine the importance of the Islamic Accounting in modern era. In particular, the paper analyzes the values of the Islamic principles in the accounting process that prevent the unexpected activity such as fraud, dishonest etc to appear in reality. Arthur Anderson case was a result of the fraudulent activities that lead to its termination. Certainly this kind of case is expecting not to be happened in the future. Design/methodology/approach – The paper adopts the descriptive analysis and elaboration of the important element of the Islamic principles used in the accounting process. Furthermore, this paper attempt to make clear distinction between values underlying the Islamic accounting and that of the conventional accounting. Findings – the comparison of those two systems leads to the conclusion that the value in Islam such as honest, fair, truth (which is important in the Islamic accounting process) has more meaning than the similar value of in the conventional accounting. Hold firmly the Islamic value obviously leads to the decrease fraudulent practices and other unexpected activities. Moreover, it increases the social welfare...
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...Analysis of Islamic Banking in Pakistan. Submitted By: Saad Alam 2151407 Submitted To: Sir Qayyum Qureshi | | | | | Type | Public Limited | Traded as | KSE: MEBL | Industry | Islamic Banking, Commercial Banking | Founded | 1997 | Headquarters | Karachi, Pakistan | Products | Murabaha, Ijarah, Diminishing Musharakah, VISA Debit Card, Saving Accounts, Consumer Banking etc. | Number of employees | 7,000 - 2014 | Slogan | The Premier Islamic Bank | Website | www.meezanbank.com | | PROFILE:Meezan Bank (Urdu میزان بینک) is the first and largest Islamic commercial Bank of Pakistan. The Bank is headquartered in Meezan House - Karachi, Pakistan. It has a network of over 490 branches in more than 100 cities of Pakistan. It commenced operations in 2002 when State Bank of Pakistan issued first-ever license for Islamic commercial banking. The Bank has a market share of 35% in Islamic banking industry of the country.JCR-VIS Credit Rating Company Limited, an affiliate of Japan Credit Rating Agency, has rated the Bank’s short term rating at A1+ (A-One Plus), the highest standard in short term rating, and the long-term entity rating at AA (Double A) with “Stable” outlook, making it the only Islamic bank with AA credit rating in the Islamic banking industry of Pakistan. | | HISTORY:The founder of Pakistan, Quaid-e-Azam Mohammed Ali Jinnah while delivering speech at the opening ceremony of State Bank of Pakistan...
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...of mercantilism, sometimes called "Islamic capitalism", were developed between the eighth and twelfth centuries. The monetary economy of the period was based on the widely circulated currency the gold dinar, and it tied together regions that were previously economically independent. A number of economic concepts and techniques were applied in early Islamic banking, including billsofexchange, partnership (mufawada,including limitedpartnerships,or mudaraba), and forms of capital (al-mal), capital accumulation (name al-mal),cheques, promissory notes,trusts (see Waqf),transactionalaccounts, loaning, ledgers and assignments.Organizational enterprises independent from the state also existed in the medieval Islamic world, while the agency institution was also introduced during that time. Many of these early capitalist concepts were adopted and further advanced in medieval Europe from the 13th century onwards. Bangladesh is one of the largest Muslim countries in the world. The people of the Muslim community wishes to design their economic activities in accordance with the percepts of Islam so the establishment of some numbers of Islami Bank in Bangladesh is the true reflection of long day’s deep cry in their heart. The Objective of Social Islami Banking is not only to earn profit, but also to do good and welfare to the people. Islam upholds that, money, income and property belong to Allah and this wealth is to be used for the good of the society. Social Islami Banks operate their banking...
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...World Journal of Social Sciences Vol. 2. No. 6. September 2012 Issue. Pp. 1 – 13 Practice of Corporate Social Responsibility in Islamic Banks of Bangladesh Quazi Sagota Samina* The evolution of Shariah based profit –loss sharing centered Islamic banking, worldwide has changed the thought of financial institutions even of the developed countries in the west. On the other hand the recognition of importance of corporate social activities in the business organizations as well as in financial institutions has accelerated the significance of Islamic banks as in Islam these CSR practice have been emphasized in different ways. Likewise the Islamic financial institutions all over the world, Islamic banks in Bangladesh are also being engaged in various social activities as a part of their responsibilities. In this study it has been tried to find out whether the Islamic Banks of Bangladesh are adhering to the prescribed forms of the CSR activities or not. This paper is mainly designed based on the CSR forms to be followed by Islamic banks as has been prescribed by Farook (2007) in his study “On Corporate Social Responsibility of Islamic Financial Institutions” under the light of Islamic Shariah. The research found compliance to the mandatory forms by the 6 full fledged sample Islamic banks in Bangladesh whereas variety in involvement in recommended forms of CSR activities by considering the scenario of banks from 2007 to 2011. The study also finds a strong positive correlation between CSR...
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... The idea of Islamic banking was initiated and brought up by some economists who were conscious about socio economic development of Muslim nations based on Islamic principles. It was based on noble vision and objective of Islamic banking base on profit and loses sharing principle. The foundation of Islamic banking theory that they proposed was based on mudaraba and musharakah contracts as mechanism to operate Islamic banking system. “The early contributions on the theory of Islamic banking were only discussed as part of the subject in Islamic economic system. For example, the book by Qureshi on Islam and the Theory of Interest (Qureshi (l946)) which looked upon banking as a social service that should be sponsored by the government like other public institutions such as public health and education.2 His view was based on the point that the bank could neither pay any interest to account holders nor charge any interest on loans advanced. He also suggests the possibility for both Islamic banks and entrepreneur to create a partnership. No mention was made of profit-sharing.” Other economists were come up with different ideas at earlier stages such “the principle of mudarabah was appealed systematically by Uzair (l955). His main contribution lay in suggesting mudarabah as the main premise for 'interest less banking'. However, his argument that the Islamic bank should not make any capital investment with its own deposits rendered...
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...KULIYYAH OF ECONOMICS AND MANAGEMENT SCINECES | ISLAMIC ACCOUNTING AND FINANCE | MASTER OF SCIENCE (FINANCE) | ACC6810 | ACCOUNTING IMPLICATIONS OF JIONT MUDARABAH (MUDARABAH MUSHTARAKAH) SUBMITTED TO: Prof. Dr. Abdul Rahim Abdul Rahman Basheer Hussein Altarturi G1111009 Semester 1 2012 Contents 1 Introduction 3 2 Mudarabah in a Traditional Viewpoint 4 2.1 Traditional Mudarabah; an Overview 4 2.2 Business Issues in the Traditional Mudarabah 5 3 Introduction to the Joint Mudarabah (Mudarabah Mushtarakah) 6 3.1 The Joint Mudarabah (Mudarabah Mushtarakah) Concept 6 3.2 Main Features of the Mudarib Mushtarak 8 3.2.1 The Conditions Issue 8 3.2.2 Capital Guarantee Issue 8 4 Accounting Issues in Mudarabah Contract 9 4.1 Profit Distribution 9 4.2 Reporting and Presentation 12 4.3 Agency Problem 13 5 Conclusion 14 6 Bibliography 16 Introduction Islamic banking and finance (IBF) emerged as an alternative from conventional banking and finance. IBF are different from conventional banking and finance as their objectives, operations, principles and practices must compliance with Islamic ethics and Islamic law (Shari’ah). Among other things, Shari’ah prohibits dealing in interest (riba), gambling and undertaking speculative transactions which subject matter and outcome are unknown (gharar), while it requires transactions to be lawful (halal). Therefore, IBF have tended to modify the conventional banking and finance...
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