Articles Relating to Accounting on Islamic Principles

In: Religion Topics

Submitted By amirasarrudin
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3. Islam and nature: insights for development of environmental accounting
They have discussed on the centrality of the principle of Trusteeship (khilafah) to an Islamic environmental ethics that would implicate accounting. In Islam, the principle Trusteeship is mostly explain on the role of accountant or Muhtasib in Islam. Muhtasib are responsible to ensure that business is not harmful or cause any negative impact to the community.
Besides, the Tawheed principle stressed on the concern to monitor, report and act upon changes in flora and fauna and ecological phenomenal. It assesses the impact of a business’s activity upon the eco-system to ensure that this is within target limit consistent with the measure. The concerns underscore the need for openness in law and policy-making governing accounting which mitigate some potentially corrupting influences on the process involved. It will counter tendencies towards cheating and creating false measure.
Islamic community principles are suggestive of a system of informing and disclosing to the Umma that is explicitly orientated to the public interest (Istislah). In Islam, the financial economistic disclosure is highly relevant and should reflect amounts properly available for distribution: The calculation of Zakat requires in turn the calculation of net assets, to a full and relevant disclosure that is ‘balanced’ (between an optimistic overstatement and a pessimistic understatement) according to Lewis (2001, p.114). Accountant seek accounts to assess whether the profit made is actually earned, is fair or excessive and is reflective of a monopolistic position (Hussain, 1999; Lewis, 2001, p.110). Accountings more generally properly give attention to such diverse matters as the health status of the community and the impact of activities of a business, for instance, on valued local culture.
The Islam principle also…...

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