Divine text and ethical view point on disclosure requirement
Previously, they has being many writings done on the topic regarding the importance of disclosure in accounting from shari’ah perspective, as it stands, that we have being seeing from the conventional finance adding ethical practices such as consistency, reliability, comparability transparency etc. into accounting standard. This has become increasingly vital in accounting practices. However, when we look at it from the shari’ah perspective more and less all the above mentioned criteria are supported within the context. Under the pretext of shari’ah the Islamic accounting concept cannot be applied without the ethical aspects.
An action cannot simply be viewed to be good; it must be also accompanied with right intentions. Furthermore, Islamic ethics relay fundamentally on its conception of man in relation to self, Allah almighty and society. Because the Shari’ah utters certain personal responsibilities and obligations to society, the accountant cannot merely embrace the face value of the utility maximizing theory that traditional neoclassical economic theory has advocated (Vejzagic, 2014 ). In essence of this sentiment following Hadith of Prophet (peace be upon him) can be quoted:
“None of you truly believe until he wishes for his brother what he wishes for himself (Bukhari)
In addition, the following verses of the Holly Quran should be guide to accountant in discharging his accountability:
“Oh you who believe, deceive not Allah and His Messenger, nor deceive knowingly your Amanat” (things that were entrusted to you) (Quran)
In another place Quran says:
“And know ye that you’re possessions and your progeny are but a trial; and that it is Allah with whom lies your hig...
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...sposed; such practice will help to reduce the non-halal engagement in the future.
3.2 Disclosure on Zakat
Zakat is a fourth pillar of Islam, it’s a religious obligation upon all Muslims who possess required amount of cash at his disposal; however, there are difference of opinions among the scholars as to whether Islamic institutions, banks should require to pay zakat or not. The Islamic Fiqh Academy is of the opinion that the companies are not required to pay zakat, however, when it’s being required or demanded by law in that case it can pay zakat but if there is no demand by law for companies to pay zakat, in that case it’s up to the management to decide whether to pay or not. So based on the above mentioned scenarios, that the institutions are expected to disclose information to help in calculating the amount of zakat that their individual shareholders should pay
Ethics plays a vital role in developing accurate and high quality financial statements for management, financial institutions, and investors. As management utilizes financial statements to make decisions regarding the operations of the business, it is necessary to review accurate financial statements to make strategic decisions about the future of the organization. Investors and financial institutions require accurate financial statements to make informed decisions upon whether to invest funds into the organization or the wisdom of lending funds to said organization.
This statement is similar to the statement of Cain, “Am I my brother’s keeper?” I believe that the narrator feels that he should not have to take accountability for his brother’s careless actions because he is not his brother’s keeper.... ... middle of paper ... ...
If what it is is what it is for each one, thereby, what it is to be done is what each one believes that
“I will bury him myself./If I die for doing that, good:/I will stay with him, brother;/and my crime will be devotion.”
These verses stipulate a cautious examination and clear comprehension by everybody as these verses determine the rules that manage relations among Muslim and different groups. The verses are basic to our comprehension by all. The verses are basic comprehension of what Muslim ought to request themselves and how different groups should consider Muslims
The Financial Accounting Standards Boards laid out the strict loyalty to the accounting ethics to ensure the integrities, the reliabilities and the comparability of the financial statements. Integrity in accounting in my mind is huge, because the community, the organization, or the state is trusting the professional accounting with their money. Therefore, the most fundamental thing that they can require from the accountant is integrity, that they can trust us, that we will do what we said we would do, also that we are not going to say or do anything that is not
As an individual and ambitious accounting student with plans to pursue a career in public accounting, I recognize the importance of understanding my core personal values and behaviors that guide the ethical principles of my everyday actions. I recognize that I have a responsibility to myself, family, future colleagues, future clients, and the general public to follow certain guidelines and conduct myself in an ethical manner. Furthermore, I acknowledge the idea that ethical dilemmas will occur, but I am committed to my “Personal Code of Ethical Values” (as seen above) that represent my desire to live ethically in every facet of my life.
In today’s business environment it has becomes essential for accountants to have a basic grasp of business ethics. Having the guidelines in places gives accountants a relatively consistent method of addressing ethical situation (based on interpretation). Even simply having a course dedicated to ethics shows accounting students that this is an issue which is an important part of the training and will at least give them a chance to address their own morality. As well as this, teaching morality also gives the company a level of deniability when it comes to any scandals or unethical behaviour.
Managerial accounting has changed over the years. Managerial accounting focuses on more than the financial aspect. We will be looking at how managerial accounting affects the business world today. Business also look to the economy, federal taxes, and the financial market so it can make the best decisions for their business.
Accounting has been a living part of history since the Neolithic period and remains a prevalent and ever-evolving profession still to this day. This essay therefore proposes to look at the significance and role of history specifically related to the accountancy field. In order to substantiate this claim of the importance of accounting history, numerous benefits of accounting history will be presented. Factors such as the use of historical research and its availability thereof to constantly develop accounting policies will be discussed as well as how historical accounting practices can be used to understand current practice and assist in the training of individuals in the accounting field. Lastly, the importance of history in the development
AAF001-6 FINANCIAL ANALYSIS ASSESSMENT 2 INDIVIDUAL REPORT MANAGEMENT ACCOUNTING FOR “ASDA” Written and Submitted by: NAME – Saikat Panja Student ID - 1223846 SUBMISSION DATE: Monday 23RD JANUARY 2015
An Accounting Information System (AIS) can be defined as software that helps accountants to collect data and process it to create information ((Bagranoff, Simkin and Norman 2010)
The revenue/cost period-: Revenue and the cost period in accounting that the company get income from normal business activities. It’s referred to normal business income that the company got by selling their product and service.
Accounting is a very important term to our modern society. It is the career for men and women who at the start have their eyes set on top positions in industry, management, government, and general business. Accounting is a basic need of every businessman, from the operator of a filling station to the government of the United States. It's so important to our society. None of the business organization can operate without is. They are there-somewhere-in every business. In small business, people use pen, ink and skill keep the records. In large business, modern accounting machines are used to operate. Men and women are directing these machines in the accounting process. Wise businessmen enter business must have some accounting knowledge.