An exploratory study of accounting and reporting practice for waqf among state Islamic religious councils in Malaysia
Nowadays, Muslims has been exposed to the increasing number of waqf practice and the importance of waqf to the society due to the huge benefits in the socio-economic development and assist the poor and those in need. However, there is a lack of accounting system and systematic management of waqf...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universiti Kebangsaan Malaysia
2018
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/84978/1/84978_An%20Exploratory%20Study%20of%20Accounting.pdf http://irep.iium.edu.my/84978/ http://www.ukm.my/ijit/wp-content/uploads/2018/06/IJIT-Vol-13-June-2018_9_90-104.pdf https://doi.org/10.24035/ijit.13.2018.009 |
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| Summary: | Nowadays, Muslims has been exposed to the increasing number of waqf practice and
the importance of waqf to the society due to the huge benefits in the socio-economic
development and assist the poor and those in need. However, there is a lack of
accounting system and systematic management of waqf assets and the absence of
written procedures of recording financial transactions of waqf assets. The purpose of
this research is to identify the range of differences of waqf accounting practice in
details and discover the rationale behind the diverse of accounting and reporting
practices for waqf. It examines accounting and reporting practices in terms of
recognition, measurement and disclosure in eleven selected state waqf institutions. It
provides an insightful meaning of the issues and challenges on how accounting is
practice in these State Islamic Religious Councils (SIRCs). From the analysis conducted,
it is found that the financial accounting and reporting related to waqf in SIRCs differs
in terms of the guideline used, the recognition and measurement (valuation of waqf
asset) as well as the disclosure and reporting practice of waqf. The variations of
accounting and reporting practices in these waqf institutions portray the dynamism of
waqf accounting and reporting among SIRCs in Malaysia. The reason for the variation
in accounting practice is attributed to the nature of SIRCs governance where each
SIRC is headed by its ruler (Sultan) as the ultimate authority in Islam and the fatwa
councils’ decision. The decision of the Board members with regard to the management
and administration of waqf may differ in each states. |
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