Accounting treatment for corporate zakat: a critical review
Muhammad Adnan () and
Nur Barizah Abu Bakar
International Journal of Islamic and Middle Eastern Finance and Management, 2009, vol. 2, issue 1, 32-45
Purpose - The purpose of this paper is to review the accounting treatments for corporate zakat, as advocated by accounting standards and guidelines, as well as those been practised by relevant corporations. The aim is to determine their appropriateness and adherence to both the Islamic as well as the accounting theoretical perspectives. Design/methodology/approach - Accounting standards and guidelines related to zakat, including the Financial Accounting Standard No. 9 and the Technical Release Findings - The study reveals that there is a general misconception of zakat, as indicated in several standards and guidelines, which has consequently resulted in inappropriateness in their proposed corporate zakat recognition and measurement and hence presentations. These inaccuracies, in one way or another, have not been in line with the true spirit of zakat in Islam. More worryingly, some unfavorable consequences may and in fact have already been implicated on the larger Muslim community as a result. Research limitations/implications - An alternative view on the accounting treatment of corporate zakat is offered in this paper with the aim to provide a fair and proper assessment of zakat on corporate wealth, which is more parallel to the true spirit of zakat. Originality/value - The paper integrates both the revealed and the contemporary accounting knowledge in scrutinizing the standards and practices as well as in recommending an improved and meaningful alternative.
Keywords: Islam; Accounting procedures; Accounting standards; Social economics (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
http://www.emeraldinsight.com/10.1108/175383909109 ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eme:imefpp:v:2:y:2009:i:1:p:32-45
Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://emeraldgroupp ... ournals.htm?id=imefm
Access Statistics for this article
International Journal of Islamic and Middle Eastern Finance and Management is currently edited by Dr Kabir Hassan
More articles in International Journal of Islamic and Middle Eastern Finance and Management from Emerald Group Publishing
Bibliographic data for series maintained by Virginia Chapman ().