• Abstract and Figures
• Public Full-text

International Journal of Zakat: Special Issue on Zakat Conference 2018 page 1-16 Concept of Revenue, Expenses and Liabilities in Accounting for Zakat, Waqf and Baitulmal in Malaysia: An Analysis from Shariah Perspective Marina Abu Bakar Sultan Abdul Halim Mu’adzam Shah International Islamic University (UniSHAMS) ABSTRACT Revenue, expenses and liabilities are an important concept in current accounting practices. These concepts are applied in accounting standards where this standard serves as a guideline for a company or organization in preparing and presenting income, expenses, assets and liabilities in accordance with the standards set by the International Accounting Standards Board (IASB). The accounting standards issued by this international body refer to conventional accounting standards. In Malaysia, the State Islamic Religious Council (MAIN) as the trustee for Zakat, Waqf and Baitulmal uses standards issued by the Malaysian Accounting Standards Board, Private Entity Reporting Standards (PERS) and best practice guidelines by the National Audit Department (Malaysia) (JANM). These two documents are used as references in the preparation of financial reporting for MAIN. However, there are problems in terms of implementing these concepts for Zakat, Waqf and Baitulmal with current accounting standards. This is because current accounting practices are different from the concepts of revenue, expenses and liabilities adopted by Zakat, Waqf and Baitulmal according to Islamic law. This study aims to analyze the concept of revenue, expenses and liabilities in Zakat, Waqf and Baitulmal accounting from Shariah perspective. The design of this study is qualitative. The method of content analysis was used to analyze data from sources such as classical Fiqh books. The findings show that there is a difference between the concept of revenue, expenses and liabilities in Zakat, Waqf and Baitulmal accounting in the Islamic context. The study is expected to help the parties involved to develop accounting standards for zakat, waqf and baitulmal which are compliant with Shariah. Keywords: Islamic accounting standards, Zakat, Waqf, Baitulmal INTRODUCTION and this includes the accounting aspects of the three entities. Accounting or in Arabic The Malaysian Constitution, clause 3 (4) Al-muhasabah, is a process involving states that Islam is under the jurisdiction of recording activities, classifying, analyzing the Sultan and the King for the monarchy and interpreting trading activities in a and under the authority of the King of the logical form or in accordance with the States for the non-monarchical states, such purpose of providing financial information as Malacca, Penang, Sabah, Sarawak and before making a decision (Mohd Abdullah the Federal Territory. This religious affair Jusoh & Hazianti Abdul Halim, 2009). In is contained in the Ninth Schedule of the summary, the accounting for zakat, waqf Malaysian Constitution. Among them is and baitulmal is the measurement, Zakat, Waqf and Baitulmal (Azizah disclosure or the provision of certainty Dollah, 2012). By implication, the State about the information that helps the MAIN Islamic Religious Council (MAIN) in each to decide on the allocation of resources for state is responsible for managing zakat, the three entities. In the Islamic economic waqf and baitulmal matters in Malaysia system, a Shariah-based accounting system 1 2 International Journal of Zakat: Special Issue on Zakat Conference 2018 must have a scope that not only affords its financial data to stakeholders in an entity organization, but also takes into account only. In fact, the application of the Islamic the interests of the general public. accounting system will ensure that Basically, this accounting system is stakeholders in a moving entity responsible for the community and continuously within the limits of Islamic because of the ethics of society influenced law and at the same time, can achieve the by the Shariah demands, then monitoring socioeconomic objectives of the entity the activities of the organization so that it (Bala Shanmugam & Vignesen Perumal, is in harmony with Islamic law is an 2005). Among the objectives of Shariah important responsibility. Each of these accounting is to produce human beings activities should be measured in terms of who have the principle of Tauhid and obey law (halal-haram continuum) and any the provisions of Allah. Therefore, the sharia contradictory measures have no development of values of truth, honesty value (Mohd. Khir Ashari, 1991). and justice must be practiced in Islamic Some accounting theorists feel that accounting. As an implication, generally Western accounting adopt narrow accepted accounting measures (standards) marginalization, utilitarian economic can only be implemented as long as it does principles and assumes liberal democracy not conflict with Islamic law (Abdullah as the basis of society (Lehman, 1992). On Said & Normala, 2011). In summary, the the other hand, Islamic accounting can be comparison between conventional regarded as a comprehensive accounting accounting and Islamic accounting can be process for providing appropriate illustrated as follows in Table 1. information, which is not limited to Table 1. Similarities and Differences Between Conventional Accounting and Islamic Accounting Element Anglo-American Accounting Islamic Accounting Model Model Economic approach Micro Macro Society-based main user Investors and accounting policy Country, Management, lenders Objectives-oriented value Asset Assessment Previous Cost Price Current Price Income Determination Revenue-Expenses approach Asset-Liability Approach Time value of money Yes No Time Frame Yes Yes Main Focus Income Statement Balance Sheet Theoretical Concepts Entity Theory Theory of Ownership Accounting postulates (assumptions) Based on Income Based on Shariah Law Fixed Interest Yes No Legal Orientation Common Law Shariah Law Accounting Ethics Professional Ethics Religious Ethics Stock Exchange Market Yes Yes Bon Yes Yes, on condition Accounting Approach Value Approach Events Approach Business dichotomy and moral Yes No personal Source: Taheri (2003) Concept of Revenue, Expenses and Liabilities in Accounting for... 3 Meanwhile, MAIN as a statutory or benefit. For example, property in the body is subject to the PA Treasury form of objects that can be touched (ain) is Circular 3.1 regarding the applicable gold and animals. Whereas, the example of accounting standards. Hence, all the State property in the form of benefits is dwelling Islamic Religious Council (MAIN) has in the house and riding on horses. Based adopted the Private Entity Reporting on the definition of this property, it is Standards (PERS) issued by the Malaysian understandable that any unmanageable Accounting Standards Board (MASB) in items such as trees in the forest, fish in the preparing the financial statements. water or birds in the air are not classified However, these standards cannot meet the as property (Zaydan, 2001). From the requirements for creating MAIN account point of the term, the jurists differed in the and transaction reporting related to zakat, terms of property and divided into two waqf and baitulmal accurately (Maliah, et groups. Muslim jurists apart from the al., 2016). This problem occurs because Hanafi school expressed the opinion that the concept of revenue, expenses and property is a valuable item. If the item is liabilities implemented are different from damaged, then the person who spoils the the concepts adopted by zakat, waqf and item must pay compensation. Muslim baitulmal according to Islamic law. jurists from the Hanafi school also Therefore, this article attempts to analyze expressed their opinion that the property is the concept of revenue, expenses and an object that can be controlled and taken liabilities in accounting for zakat, waqf advantage of them. According to them, and baitulmal from Shariah perspective to property is also restricted to physical assist in the development of accounting objects and substances that can be felt standards for Shariah-compliant zakat, (tangible). Therefore, they asserted that waqf and baitulmal. rights and benefits are not considered as property, otherwise considered as ownership. This view conflicts with the CONCEPT OF REVENUE, EXPENSES view of other schools because they thought AND LIABILITIES IN ISLAM that the rights and benefits are considered as property. This is because the purpose of In general, there is no specific discussion the property itself is not the substance, but about the concept of revenue, expenses the benefits of the property. This view of and liabilities in Islam by the classical the jurists implies the laws of seizing, Muslim jurists. Discussions relating to the lease and inheritance. For example, in the concept of revenue, expenses and case of seizing, if a person seizes the liabilities are discussed separately in garment and uses it, then for a moment he debates on property theory and the theory returns the garment to his owner, he shall of ownership in Islam. Therefore, the compensate his beneficial value to the theory of property and ownership in Islam garment according to the jurists other than should be clarified in order to understand the Hanafi school. On the other hand, the concept of revenue, expenses and according to the Hanafi school, he does liabilities in Islam. not have to pay compensation for the garment unless the seized garment is a Discussion about the Theory of Property donated property (waqf) or an orphan’s in Islam property (Wahbah al-Zuhayli,

Load more

  82

Copy Link