Major Areas of scope


Major Areas of scope

Major Areas of scope

 

  • Islamic Accounting: the need, issues, and directions enabling Islamic economics business and finance to bring fair play and justice with the stakeholders in ethical perspective; Contributors may write on the objectives, the approach and tools, governance, issues of contention with regard to IFRS and necessary guideline for their adaptation for removing the contentious issues. While doing this they may also refer to what has been done so far as and its pros and cons for various stakeholders and for Islamic finance itself.
  • Islamic Finance Principles and Fundamental Accounting Concepts
  • Accounting and Maqasid al Shariah;
  • Analysis of AAOIFI’s Accounting Standards in the light of Islamic law of contracts, IFRS, national Standards;
  • Business Entity Concept;
  • Historical Cost Principle,
  • Concepts of capital maintenance; return on financial capital, as distinguished from a return on physical capital – ‘holding gains and losses’ and ‘capital maintenance adjustments’;
  • Accrual accounting tests on the concepts of accrual, deferral, allocation, amortisation, realistrion and recognition;
  • Accounting and validity of contracts
  • Accounting for Contracts where agreements are equally and proportionately un-performed; and analysis of validity of such contracts;
  • Determining an entity’s income during a reporting period – two approaches: the asset/liability view and revenue/expense view
  • Valuation (Cost Price, selling price, or replacement price) and revenue recognition issues in various modes of business in Islamic finance;
  • Fair value principle and accounting for FOREX – mutual exchange of currencies as per the rules of bai al sarf;
  • Need for and issues in constructive liquidations investment accounts to ensure that appropriate profits and losses are shared between the parties in line with Shari’ah principles;
  • Accounting for investment deposits pools; valuation issues in movements of assets from one pool to other; constructive liquidation in case of compounding of daily paid profits (as some banks are doing);
  • Decision making as per Islamic law: Operating, financing and investing
  • Issues in Financial Reporting:
  • Accounting practice of the IFIs while considering International Accounting Standards, various GAPPs;
  • Definition of assets, liabilities, equity, revenues and expenses; Income / Gains and losses; rrelationships between income and the component of income
  • Qualitative characteristics that financial information should possess – basic elements of financial reports and how these elements are to be recognized and measured;
  • Issues in recognizing interest as an opportunity cost;
  • Concept of time value as per Islamic law and recording of qard al hasan ( interest free loans) as per IFRS / GAPs;
  • Reporting system to achieving an equitable allocation and distribution of wealth;
  • Stock holders / stakeholders approaches and CSR;
  • Uniformity of substance and form
  • Methods and bases of accounting;
  • Cash / spot, credit and forward contracts – valuations, accruals and recognitions
  • Reserves, Deferrals, and write-offs;
  • Fair value concept relating to various categories of assets – corporeal, cash equivalent/ debts / monetary assets, and usufructs / services;
  • Standardisation at country, regional, global or nature of industry levels;
  • Accounting and Valuation for Zakah
  • The impact of Stable Currency Principle on financial reporting;
  • Off balance-sheet financing (disclosure in the notes to the financial statements);
  • Assertion of immateriality to justify non-disclosure of unfavorable information or departures from standards;
  • Relevance of form over substance;