Characteristics Of Islamic Accounting

Objectives and Characteristics of Islamic Accounting

Benjamin Dedić

Subject: Comparative Accounting

Mentor: Meliha Bašić, PhD
September 201
Contents
Islamic economy 3
Different approaches 4
Meaning of Accounting in the Holy Quran 4
Objectives of accounting in Islamic methodology 5
Features of accounting in Islamic methodology 6
Declared AAOIFI objectives: 6
Accountability through Zakat 7
REFERENCES 8

History of Islamic accounting
Origins of organized accounting in the form we use today can be traced back to Italy and Luca Pacioli. His book, Summa de Arithmetica, Geometria, Proportion et Proporionalita, published in 1494 CE is considered as first written text on accounting. Islamic

Islamic accounting, it is the only accounting in the world based and ruled by guidance derived from the religion sources while conventional accounting is derived from human laws. Human laws are made based on their experience, knowledge and thinking. Sources of conventional accounting were taken from culture and commercial law practice which are made by people who have interest in that field.
“And O my people, give full measure and weight in justice and do not deprive the people of their due and do not commit abuse on the earth, spreading corruption.”
“What remain (lawful) from Allah is the best for you, if you would be believers. But I am not a guardian over you”
Al- Qur’an (Surah Hud, verses

Without writing (recording) transactions, we cannot count the credit ness and debit ness, Allah has made writing copulatory, He says: “O you who believe, when you deal with each other in transactions involving future obligations in a fixed period of time record it in writing” (AL-Bakarah - 282).
(2) Ascertaining justice, and more convenient to prevent doubts. Allah says: “Be not averse to writing down whether it be small or great with the term thereof. That is more equitable in the sight of Allah, and more sure for testimony and the best way of avoiding doubt between you”. (AL-Bakkara - 282). (3) Helping in judgment between dealers. The judgeman depends mainly on which is written down in records when he makes decisions. As it is mentioned above Allah says… “… more sure for testimony” means it is a good and suitable evidence. (4) Helping in ascertaining the results of business during a certain period of time, profit or loss,.
(5) Counting up the amount of zakah due at its time, and its distribution, between whom