Chapter 3: Islamic Accounting
Question: Do you think the Islamic accounting (process, transactions, development and etc.) will be increased or decreased? Why?
The world accounting in Islam has many meanings according to the situation where it is mentioned and used. In Arabic dictionaries it refers to count and record the financial actions and transactions. Also, it refers to accountability and responsibility by the man self or by others.
In the Holy Quran, there are have a several meaning of accounting such as accountability. In Surah Attalaq-8, Allah says that “people who opposed the command of their God and hid apostles. Did we call to account, to severe account”. In other verse, ...view middle of the document...
In Holy Quran stated all about matter that can we adopt in nowadays including accounting field. Moreover, we are taught will be accountable by doing something in this world.
Regarding on the meaning, I believe that the Islamic Accounting can be increased and will be accepted around the world. It is because based on the meaning, we can find in Islamic Accounting have a strong sense of accountability and trust in doing the work and this will attract non-Muslim to accept this method.
In the Islamic accounting world, one of the early institutions to regulate the market and prevent fraud was ‘al-Hisba’ established in 7th and 8th centuries for the promotion of good and the prevention of evil. Among the unlawful (haram) business practices in Islam, there is ‘riba’ (interest on credit), manipulation, fraud, speculative transactions, gambling, uncertainty/risks, free market interference.
In Islam, it very concern about doing good with other people and this can be a example how Islamic accounting influence people to responsible and do the job properly because every act done will be calculated later. Therefore it can create a sense of integrity in every person. Nowadays, we knows that Islamic banking are going be accepted in the world. Islamic banking has become in the last two decades. The reality is that there are, in our time, around 300 Islamic financial institutions globally, with assets of about $200 - $300 billion, a Dow Jones Islamic Market Index created in 1999 and another index - Dow Jones Citigroup Sukuk (Islamic Bond) Index in Kuala Lumpur - created in 2003 (Pollard and Samers, 2007).
To this situation also contributed the so called “Islamic windows”, which represent separate divisions of the multinational banks devoted to marketing Shari’ah - compliant financial products. This became a trend which spread rapidly into countries where large Islamic communities lived, such as...