Islamic Finance

Evidence of IFRS Adoption in Islamic Finance- Kuwait, Jordan

In lever to the parallel between conventional and Islamic accounting, many authors
assay such comparison in general or for unique(predicate) standards (see for instance
Baydoun and Willett, 2000; Haniffa and Hudaib, 2001). According to them, the main
differences between conventional and Islamic accounting read to do with the
following:
a) General economic aspects such as:
? Secular versus religious;
? Economic rationalism versus Unity of graven image;
? Individualism versus collectivism;
? Profit maximization motive versus commonsense profit;
? Absolute versus relative ownership.




b) Specific accounting issues alike:
? Conservatism: apply prudent valuation methods and avoid victimisation the most
favorable impact on owners versus most favorable to eccentricnership;
? On going concern: business goes forever versus ground on contractual
agreement between parties;
? Measuring unit: monetary value versus quantity and monetary based
(according to zakat calculation);
? Consistency based on the standards/regulations used by the entity versus
consistency with Islamic law;
? corporality: decision making usefulness versus fulfilling all duties before
Allah;
? Users of financial study: identifying economic events and transactions
versus identifying socio-economic and religious events and transactions.
In addition, some (Razik, 2009) consider that Islamic accounting and IFRS differ in
five issues that are related to to leases, curb contracts, and specialty investment
account (where the investors bear part of the business risk), related party transactions;
whereas others (Baydoun and Willett, 2000) analyze the contents of Islamic corporate
reports suggesting that a current value added statement should also be part of Islamic
corporate reports in order to provide greater sentience of the social impact of
companys activities. Sulaiman (2000) supports the use of some(prenominal) current value balance
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