Access the full text.
Sign up today, get DeepDyve free for 14 days.
The Indonesian Management and Accounting Research, 11
Dubai Financial Market (DFM) (2013)
DFM standard for issuing, acquiring and trading Sukuk
Shariah Journal, 16
Mohd Sukor, R. Muhamad, Gunawa, Alwin Yogaswara (2008)
Malaysian Sukuk: issues in accounting standardInternational Journal of Mechanical and Materials Engineering, 16
G. Altarawneh, Michaël Lucas (2012)
Understanding the dominance of Western accounting and neglect of Islamic accounting in Islamic countriesJournal of Islamic Accounting and Business Research, 3
Ministry of Finance (2004)
Studi tentang Investasi Syariah di Pasar Modal Indonesia
M. Ayub (2007)
Understanding Islamic Finance
D. Siswantoro (2012)
Is “not‐real” price lawful?Journal of Islamic Accounting and Business Research, 3
Zamir Iqbal, A. Mirakhor (2006)
An Introduction to Islamic Finance: Theory and Practice
B. Maurer (2010)
Form versus substance: AAOIFI projects and Islamic fundamentals in the case of sukukJournal of Islamic Accounting and Business Research, 1
Mahmoud El-Gamal (2006)
Islamic Finance: Law, Economics, and Practice
Rifaat Karim (2001)
International accounting harmonization, banking regulation, and Islamic banks☆The International Journal of Accounting, 36
A. Sarea, Hj Hanefah (2013)
The Need of Accounting Standards for Islamic Financial InstitutionsInternational Management Review, 9
A. Naim, M. Isa, Mohd Hamid (2013)
The effects of new AAOIFI standards on Sukuk in choosing the most authentic Islamic principlesJournal of Islamic Accounting and Business Research, 4
PurposeThis paper aims to analyze the need of Islamic banks for specific Statement of Financial Accounting Standards (SFAS) No. 110 for sukuk accounting in Indonesia. In fact, some Islamic banks have already prepared International Financial Reporting Standards (IFRS), and accordingly, a suitable standard is needed for this case.Design/methodology/approachThe research methodology involved interview with a senior accounting manager of an Islamic bank focusing on relevant topics in sukuk to sharpen the analysis. Equally important, research reviewed and compared financial statements on sukuk accounting among Islamic banks, before and after adoption of sukuk accounting standard.FindingsIFRS require market valuation based on interest rate. As interest rate is unlawful in Islamic teaching, IFRS may not accordingly be suitable. Therefore, SFAS No. 110 was issued by the Indonesian Institute of Accountants (Ikatan Akuntan Indonesia). Considering the fact that this standard did not explicitly adopt the IFRS paradigm, there have been consequent conflicts in Islamic bank management because of preference of global recognition to IFRS. Adopting IFRS would be more compatible with other countries’ general accounting standards. In addition, significant differences are found in sukuk accounting treatments by Islamic banks before and after the standard adoption.Research limitations/implicationsThis research only focuses on such question of why specific accounting standard for sukuk accounting is needed by Islamic banks in Indonesia, while only few Indonesian Islamic banks were initially aware of the issue.Originality/valueThis paper may be the first paper discussing the response to and need for sukuk accounting in Indonesian Islamic banks.
Journal of Islamic Accounting and Business Research – Emerald Publishing
Published: May 8, 2018
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.