ACCOUNTING
FOR ISLAMIC BANK
TRANSACTIONS
ACCOUNTING
FOR ISLAMIC BANK TRANSACTIONS
Hanudin Amin
PENERBIT UNIVERSITI MALAYSIA SABAH
KOla Kinabalu • Sabah • Malaysia http://w"w.ums.edu.my
2014
A M<-mber oflhe Malavslan Scholarly Pubhshong Counc.1 (MAPIM)
©
Universiti Malaysia Sabah, 2008 Reprinted 2014
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Perpustakaan Negara ~lalaysia
Hanudin Amin
Accounting for Islamic hank transartions / Hanudin Amin.
Includes index Bihliograrhy: p. 99-100 ISB:'\1978-967-5224-06-5
1. Ac(Ounting-lsldmic countries. 2 Bcmks and hdnlJng-Religious dSpt'l1so-1sIam.
3. Economks-Rt'ligious aspt>t:t-blam. I. Tillt>.
657.088297
Typeface for text:
Te"t ~'pe and leading siZt>:
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Penerhit Uni\'ersiti Mala\,sid Sahah Tingkat Bawah, Perrus~kaim Vniversiti ~Ialaysia Sahdh Jalan V\IS
88-tOO Kola Kinabalu, Scthdh Percetakan Keningau Sdn. Bhd.
Lot 26, Phdse I, HSK Industrial Centn', Km 8, Jalan Penampdng. 88.300 Kold Kinahdlu, Scthah
To my family, with love,
Zuraidah Anis, Muhammad Nour Imran and Nasrullah.
CONTENTS
..
''"!'ft _ _ _ _ _ is -..w .-..n" .•--'_ ...
List of Figures viii
List of Tables viii
Preface ix
Glossary x
Chapter 1 \\-'hat is an Islamic Accounting? 1 Chapter 2 Islamic Accounting Standards 11 Chapter 3
Mlldam/mflAccounting 33 Chapter 4
MllslmmkalzAccounting 43 Chapter 5
Mil m/mlml'Accounting 57 Chapter 6
SalalllAccounting 71 Chapter 7
fjaml'Accounting 79 Chapter 8
ZnkatAccounting 91 Chapter 9 Auditing in Islamic Accounting 105
Sample of Exercises 113
Bibliography 121
Appendix 125
Index 127
vii
LIST OF FIGURES
Figure
1.1 Islamic accounting standards development 5.1 Murabahah concept
5.2 Murabahah to the rurchase orderer
LIST OF TABLES
Page
958 61
Table Page
5.1 The differences between Murabahah, MPO and BBA 60 7.1 The differences between Ijarah and AIT AB 83 9.1 The differences between SSB and external auditors 110
viii
GLOSSARY
M/lraballall Bai BilIlaIllall Ajil 5alalll
MII~/lI1rakall
Mllt/araball ljllrall Zakat 51l11rialt Riba GllI1rar Wadlall Rabbllill/al Mlldtlrib Famid lklltikar 5adaqalr
WaqfFahl'a Fllqallll Fi'lll
ljaralr MlllltalllOa Biltllllllcck Alljamil
TII/IIIIII/aal bay HClIlislr gctfyyall
Mllrabal",Jr to tile p"rclll1St? ortiaer Halal
MlIsJrarakalt Mlltllllllqisllll AI-M/ldarabalr AI-Mil tlaqall Al-M/ldllmbllil AI-M(1t]lIytJlldllll Qard
x
Mark-up sale
Deferred payment sale Deferred delivery sale Profit and loss sharing Profit sharing
Leasing
Compulsory levy for Muslims A way of life (Muslims) Interest
Uncertainty Safe custody Provider of funds Entrepreneur
Inheritance divisions according to al-Quran
Exploitative monopoly Gift, voluntarily given Charitable endowments Unanimous opinion Fiqh expert
Understanding
Ijarah form, ownership is changed from lessor to
1t.>SSt.'eIjarah form, two contracts sale and leasing
Deposit
Involves financier, supplier and purchase in Murabahah Permitted
Diminishing Mushara"ah General investment account Specific investment account
Loan