Accounting Standards for Islamic Financial Institutions in United Kingdom and Indonesia

  • Ahmed Sameer El Khatib PUC-SP

Abstract

The objective of this paper is to analyse determinants that influence implementation of accounting standards for Islamic Financial Institutions (IFIs) by examining the history of accounting standards and two different contexts as applied to IFIs in the United Kingdom and Indonesia. The paper explores available texts and literature mainly from international journals and textbooks. Employing the Ibn Khaldun perspective, this study analyses two determinants i.e. institutional setting that may be suitable in the context of the United Kingdom, and accounting needs in the case of Indonesia. The research shows the determinants are well fitted with interdisciplinary characters of Ibn Khaldun model of civilization i.e. G = f(S, N, W, j and g). This explains the political authority (G) which is influenced concurrently by factors such as the direction of Shari’ah (S), the role of people (N), the use of wealth (W), the development of a country (g), and the promotion of justice (j) leads a civilized society. This paper has practical significance for accounting standard setters in the Islamic finance industry and policy makers, for understanding the environmental determinant perspective of the country and using this perspective for positioning important aspect in accounting standard setting, developing policies; and articulating procedures to maximize development of Islamic finance.

Published
Apr 10, 2018
How to Cite
EL KHATIB, Ahmed Sameer. Accounting Standards for Islamic Financial Institutions in United Kingdom and Indonesia. Revista de Negócios, [S.l.], v. 21, n. 2, p. 7-24, apr. 2018. ISSN 1980-4431. Available at: <https://proxy.furb.br/ojs/index.php/rn/article/view/6259>. Date accessed: 18 oct. 2021. doi: http://dx.doi.org/10.7867/1980-4431.2016v21n2p7-24.
Section
Articles

Keywords

Ibn Khaldun model, Accounting Standards, Islamic Financial Institutions, The United Kingdom, Indonesia.