The accounting measurement bases in both Islamic and conventional thought

Ahmed El-Galfy, Ahmed El-Masry

Research output: Contribution to journalArticle

Abstract

In the 1970s, the Islamic banking movement re-emerged with the establishment of the Islamic Development Bank (IDB) in 1974 by the Organisation of Islamic Countries (OIC), which has been
considered as the kick-start for the movement’s second phase. At present, there are more than 250 Islamic financial institutions operating in more than 40 countries worldwide. These institutions not only operate in Muslim countries, but have also gained footing in non-Muslim countries. For example, there are 20 Islamic financial institutions in the USA and 50 institutions in Europe adopting the Islamic financial trend; 30 of the latter are operating in the UK. Islamic financial institutions have taken the form of commercial banks, investment banks, investment and finance companies, insurance companies, and financial service companies. The main aim of this paper is to illustrate the bases of accounting measurement in Islamic thought. This would help study and investigate the bases of accounting measurement related, specifically, to the Islamic financial instruments, such as Murabahah, Ijara, Musharakah …etc. The assumptions and the principles related to the accounting measurement in the
Islamic literature with what exists in the conventional literature are compared. This is, (i), to clarify how the Islamic accounting thought was pioneer and comprehensive in achieving not only its accounting objectives but also its economic and social objectives by constructing and adjusting some social systems such as: Zakah, Kharaj and Jizyah and, (ii) to contribute to the efforts made for the standardisation of the accounting bases used by Islamic banks.
Original languageEnglish
Pages (from-to)62-73
JournalInternational Journal of Business Research
Volume5
Issue number1
Publication statusPublished - 2006
Externally publishedYes

Keywords

  • Islamic banking
  • conventional banks
  • accounting measurement bases

Fingerprint Dive into the research topics of 'The accounting measurement bases in both Islamic and conventional thought'. Together they form a unique fingerprint.

  • Cite this