A study on the application of Malaysian Accounting Standards (MASB i-1/FRS i-1) on the presentation of financial statements by Islamic financial institutions / Yunita Awang ... [et al.]

Awang, Yunita and Ghazali, Rosliza and Abdul Ghani, Roseziahazni and Aminuddin, Azmi (2007) A study on the application of Malaysian Accounting Standards (MASB i-1/FRS i-1) on the presentation of financial statements by Islamic financial institutions / Yunita Awang ... [et al.]. [Research Reports] (Unpublished)

Abstract

This study was taken to investigate the degree of application of MASB /-1 (FRS /-1) by the Islamic Financial Institutions (IFIs) and to identify the reasons that encourage the selected I FIs to apply the Standard in the presentation of their financial statements. Due to these reasons, the study was conducted into two phases, namely early adoption and application of MASB /-1 and current application level of FRS /-1. For the early adoption and application of the Standard, all the financial institutions offering Islamic banking services were selected, while for the current level of application, only ten Islamic Banks were selected due to a series of merger and acquisition activities in the second round of the banking consolidation. The assessment of MASB /-1 (FRS /-1) applications was conducted via company’s Annual Reports and inputs from company’s checklist and responses from the practitioners. The checklist was designed in accordance to the requirements of MASB /-1 (FRS /-1). Findings of the research showed that in general most IFIs had complied with the Standards except for very few common items. All IFIs under this study did not disclose unusual supervisory restriction; and earnings and expenditure prohibited by Shariah.
Not all of the IFIs disclosed additional information which is encouraged by the Standard such as Value Added Statement, Environmental Report, Statement of Zakat Fund and Statement of Qard Hassan Fund. The main reason that encourages IFIs to apply MASB /-1 (FRS /-1) in the presentation of their financial statements is to meet the Bank Negara Malaysia (BNM) requirement. These findings, to a certain extent, would be a reference to all interested groups in this field, namely the academicians, financial statement preparers, government and accounting
standards setter.

Metadata

Item Type: Research Reports
Creators:
Creators
Email / ID Num.
Awang, Yunita
UNSPECIFIED
Ghazali, Rosliza
UNSPECIFIED
Abdul Ghani, Roseziahazni
UNSPECIFIED
Aminuddin, Azmi
UNSPECIFIED
Subjects: H Social Sciences > HG Finance > Banking
H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance
H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance > Capital budget. Capital investments. Fixed capital
H Social Sciences > HG Finance > Profits. Corporate profits
H Social Sciences > HJ Public Finance > Finance, Islamic
Divisions: Universiti Teknologi MARA, Terengganu > Dungun Campus > Faculty of Accountancy
Keywords: Islamic Financial Institutions ; Financial Statements ; Zakat
Date: December 2007
URI: https://ir.uitm.edu.my/id/eprint/49764
Edit Item
Edit Item

Download

[thumbnail of 49764.pdf] Text
49764.pdf

Download (138kB)

Fulltext

Fulltext is available at:
  • Kaunter Perkhidmatan Maklumat | Perpustakaan Cendekiawan | Dungun

ID Number

49764

Indexing

|

Statistic

Statistic details