This research aims to provide insights into the process of implementing an Activity-Based Costing (ABC) system in the Accountant General's Department of Malaysia (AGD). Additionally, this paper examines the critical factors that influence the success of the ABC implementation process, the usefulness of the ABC system and the challenges faced during the process of implementation. Using a single case study approach, this research uses semi-structured interviews, a selfdeveloped questionnaire survey and a documents review as methods of data collection. The findings show that the most critical factors impacting the success of ABC implementation in the AGD are related to the technicality of the ABC system during the design stage. However, findings also reveal that the ABC information derived from the ABC system has limited use. This study makes a contribution to the empirical literature on the application of the New Public Management (NPM) mechanism, particularly the adoption of a private sector management technique in the context of a public sector organization in a developing country.
This article proposes Syari’ah-based accounting treatment for collecting and distributing zakat from the perspective of a zakat institution as a trustee. The proposed accounting treatment considers the current practices of zakat institutions in Malaysia in accounting for the collection and distribution of zakat as well as the expert opinion on the Syari’ah aspects regarding the collection and distribution of zakat. Using the method of content analysis of financial statements and discussions with zakat institution officials, the study found that current accounting practices for collection and distribution among the zakat institutions studied did not show much difference. The zakat institutions account for the collection of zakat as revenue when received and the distribution of zakat as expenditure when payment or distribution to asnaf is made. The amount of zakat collection that has not yet been allocated to asnaf during a given accounting period is recognised as equity. However, based on the findings from interviews with a group of fiqh experts, focus should be given to examining the accuracy of the practice of recognising zakat collection as revenue, distribution of zakat as expense and excess of zakat collection as equity and whether the practice is in line with Islamic law or Syari’ah. In line with the zakat institution’s role as a trustee, it is proposed that the zakat collection and distribution be recognised as receipts and distributions and disclosed in the Statement of Receipts and Distributions on a cash basis. Meanwhile, excess zakat collection in the current year is recognised as a liability. The proposal also aims to ensure that the reporting of zakat information in the financial statements is accurate and does not mislead the Muslim community as stakeholders, in addition to better disclosing the zakat institution’s accountability as a trustee. The proposed Syari’ah-based accounting treatment for the collection and distribution of zakat can be a guide in developing a financial reporting conceptual framework and specific Syari’ah-compliant accounting standards for zakat institutions in Malaysia. Keywords: zakat, collecting zakat, distributing zakat, accounting of zakat institutions
The fuqaha and current scholars have recognised the role of human beings and jinn in fulilling their responsibilities as servants of the Almighty and their trusted responsibilities to the rest of mankind. Certain of discussion under the corpus of Islamic legal knowledge declare that an entity organised by a group of people (syahsiyyah iktibariyyah) is set up to shoulder the responsibilities and fulil the trusts from Almighty God that cannot be carried out eficiently by an individual due to its existence over a longer period of time than the average human age. The question is whether the establishment of a State Islamic Religious Council (MAIN) is in line with the characteristics and concept of entities that have been debated by current and previous fuqaha. If this study hypothesis is true, then a MAIN is a legal entity with limited dhimmah in which all its activities are bound by the State Islamic Religious Administration Enactment as well as other statutes relating to civil law at the federal level. The objective of this study is to analyse the concept of limited dhimmah in accordance with Islamic law on the operations and activities of a MAIN in general and its implications regarding current accounting practices by a MAIN. This study has used a qualitative method through semi-structured interviews with, a number of experts including the upper management of MAIN, Shari’ah advisory committees of Islamic inancial institutions and States Fatwa committees. The study has found that a limited concept of dhimmah applies to a MAIN. Therefore, the MAIN of each state in Malaysia must carry out its trusted and responsibilities in compliance with current accounting standards set by the government. This is in line with the iqh method of tasarruf al-Imam Manut bil-maslahah, which indicates that all activities conducted by the MAIN are aimed at safeguarding the interests and maslahat of Muslims. Several policy recommendation and implication are also discussed in this study. Keywords: Legal Entity, Dhimmah, Sakhsiyyah I’tibariyyah, Accounting Practice, Enactment
This article presents a critical review of revenue recognition practices among the institutions administering waqf, zakah and baitulmal (WZB) in Malaysia. Through a content analysis of financial statements and focus group discussions with the accountants and management of the five WZB institutions, the findings show that different revenue recognition practices have been employed, particularly in recognizing revenues of waqf for specific purpose and in recognizing ‘faraid’ properties or portion of estates of a deceased person that belong to baitulmal. Furthermore, the review of practices of the sample institutions reveals different pointof recognition of ‘luqatah’ as revenue and diverse measurement basis were used in revenues recognition. The findings provide understanding on the current practices of recognition of the various types of revenues administered by the institutions of WZB. The findings can also be used as inputs in developing Islamic accounting standards that will harmonize the accounting and reporting practices among WZB institutions. Keywords: waqf, zakah, baitulmal, revenue recognition, Islamic accounting
As trustees, waqf institutions are not only accountable to Allah SWT but also to individuals and society. It has been recognised in prior studies that financial reports are the main medium to discharge accountability. In order to discharge the dual accountability obligation, financial information alone is insufficient. Instead, non- financial information also needs to be disclosed in the financial report. Through questionnaire survey to accountants and management of waqf institutions, auditors, academicians and representatives of accounting professional bodies in Malaysia, this paper has identified the importance of disclosure of a list of non-financial information related to waqf. Overall, the results show that almost 90 percent of the non-financial information is regarded as having high level of disclosure importance. It is identified that the most important item for disclosure is the information within the category related to accounting policy whilst the least important information for disclosure is the information within the category of employee and employment. The findings indicate the importance of justification of accounting figures as well as explanation of the performance of waqf assets management and social responsibility of waqf institutions. The findings may be used, particularly by waqf trustees, as disclosure guidelines for better discharging accountability through reporting. Keywords: Islamic accountability, Accountability reporting, Disclosure of non- financial information, Accounting for waqf, Waqf
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.