Accounting treatment for corporate zakat: a critical review

Adnan, Muhammad Akhyar; Bakar, Nur Barizah Abu

doi:10.1108/17538390910946258

Cited by 40 publications

(14 citation statements)

References 2 publications

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“…According to (Adnan and Bakar, 2009), zakat is generally understood as the third pillar of Islam. Hudayati and Tohirin 2010) argue that the position of zakat is as important as prayer.…”

Section: Literature Review Definition Of Zakatmentioning

confidence: 99%

The Effectiveness of Zakat Disbursement by Amil Zakat Institutions in Indonesia

Bahri

Utama

Arif

et al. 2021

almaal

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The Amil Zakat Institute (LAZ) is an institution licensed to assist the National Board of Zakat (Baznas) in collecting, distributing, and utilizing zakat. One of the main tasks of the LAZ is to distribute zakat to mustahiq in the Very Effective category. This study compares the effectiveness of zakat disbursement at the Amil Zakat institution. The effectiveness of the allocation-to-collection ratio (ACR) method was determined using Zakat core principles (ZCP). The objects used in this research are the financial statements of the National Zakat Institute, including LAZ IZI, LAZ Rumah Zakat, and LAZ Dewan Dakwah. Measurements were performed from 2015 to 2019. The results of the study found that the level of disbursement effectiveness from 2016 to 2019 was LAZ Dewan Dakwah (n=101% highly effective category), LAZ IZI (n=92% highly effective category) ), and LAZ Rumah Zakat (n=88% effective category). The implication is that the three LAZs have advantages in terms of their disbursement. Therefore, it is suggested to optimize the collection of zakat through LAZ. Therefore, the benefits of zakat are increasingly felt by mustahiq

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“…According to (Adnan and Bakar, 2009), zakat is generally understood as the third pillar of Islam. Hudayati and Tohirin 2010) argue that the position of zakat is as important as prayer.…”

Section: Literature Review Definition Of Zakatmentioning

confidence: 99%

The Effectiveness of Zakat Disbursement by Amil Zakat Institutions in Indonesia

Bahri

Utama

Arif

et al. 2021

almaal

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“…Our study has a potential to contribute to the Islamic banking disclosure literature. In fact, while the majority of previous studies (Maali et al , 2006; Akhyar Adnan and Barizah Abu Bakar, 2009; Mirfazli, 2008; Hassan and Syafri Harahap, 2010; Darmadi, 2013; Abdullah et al , 2015a, 2015b; Grassa et al , 2018) have focussed on voluntary disclosure, a little attention has been given to the mandatory one. Besides, while a considerable attention has recently been paid to compliance with AAOIFIs’ requirements, the majority of the research studies have focussed only on a single country (Vinnicombe, 2012; Sarea, 2012; Ahmad and Daw, 2015).…”

Section: Introductionmentioning

confidence: 99%

Corporate governance and compliance with AAOIFI governance standards by Islamic banks

Mnif

Tahari

2020

IMEFM

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Purpose This study aims to examine the effect of the main corporate governance characteristics on compliance with accounting and auditing organisation for Islamic financial institutions’ (AAOIFI) governance standards’ (GSs) disclosure requirements by Islamic banks (IB) that adopt AAOIFIs’ standards in Bahrain, Qatar, Jordan, Oman, Syria, Sudan, Palestine and Yemen. Design/methodology/approach The sample consists of 486 bank-year observations from 2009 to 2017. Findings The findings reveal that compliance with AAOIFIs’ GSs’ disclosure requirements is positively influenced by the audit committee (AC) independence, AC’s accounting and financial expertise and industry expertise, auditor industry specialisation, IB’s size and IB’s listing status. On the other hand, it is negatively influenced by the ownership concentration. Research limitations/implications This study has only examined compliance with AAOIFI’s GSs’ disclosure requirements and has focussed on one major sector of the Islamic financial institutions (which is IB). Practical implications The findings are useful for various groups of preparers and users of IBs’ annual reports such as academics and researchers, accountants, management of IBs and some organisations. Originality/value While the study of the AAOIFIs’ standards has grown contemporary with considerable contributions from scholars, however, the majority of these studies are descriptive in nature. Indeed, the existing literature that has explored the determinants of compliance with AAOIFI’s standards is in the early research stage. To the best of the knowledge, there is a paucity of empirical research testing this issue.

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“…Those who oppose zakaton income argued that there is no clear or vigorous argument and no specific concrete example from the Sunnahof the Prophet Muhammad SAW. However, those who agree and support the zakat on income assume that the actual zakat on income is not a new thing in Islam, in which the source is so clear and vigorous from the Quran [1].Zakat is commonly considered as an essential alternative to solving one of the most prevalent social and economic problems in the world, namely poverty [2]. Zakat is not considered a personal matter even though it is given by personal consciousness because zakat is a right and obligation of every Muslim [3].In the early twentiethcentury, the existence of zakat on income has become widely recognized.…”

Section: Introductionmentioning

confidence: 99%

“…Zakat is not considered a personal matter even though it is given by personal consciousness because zakat is a right and obligation of every Muslim [3].In the early twentiethcentury, the existence of zakat on income has become widely recognized. Thisis markedby the emergence of a great contemporaryscholar and highly prolific writer of Egyptian masyhurasal, Yusuf al-Qardawi [2]. His books became the relevant references of Muslims in the world and gave a significant influence on the development of discipline related to zakat, including zakat on income.…”

Section: Introductionmentioning

confidence: 99%

The urgency of Zakat on Income Management for Gorontalo Community Empowerment

Kasim¹

2019

Proceedings of the the First International Conference on Islamic Development Studies 2019, ICIDS 2019, 10 September 2019, Banda

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The purpose of the research is to explain the substance of zakat on income regulation, to examine the government role in the management, utilization, and the importance of zakat on income management. Furthermore, the study aims to determine and analyze the constraints that obstruct the management of zakat on income in Gorontalo.The research is socio-legal research, which uses a qualitative analysis technique.The data is comprised of primary and secondary data. This research used the legislation, law concepts or theories, and case approach. Moreover, the research employed literature review, observation, and interview as the data collecting techniques.The results showed that the management of the zakat on income in Gorontalo is still low. There is a substantial weakness in the management of zakat on income, as the existing regulation has not accommodated the interest of the Islamic community, especially those who are obligated to giving zakat. Meanwhile, there are a lot ofprofessional groupswho are not aware of the obligation of giving their zakat on income. Hence, there is a necessity to penalize those who did not obey the regulation to raise awareness in the importance of paying zakat. Other factors that affect such phenomena are the lack of reliable and professional human resources as well as less supervision from the government.Also, the lack of community awareness of zakat on income culture and government role in zakat distribution result in low attention on the management of zakat on income. Zakat on income can empower the less fortunate people by underlying the importance of zakat on income management and by doing a proper administrationof the process of collecting, distributing, utilizing, as well as enhancing theprocess of zakat on income. Also, the management of zakat on income must be done as professional, transparent, and proportional as possible. Therefore, it can give a positive contribution to the local government, especially the National Zakat Board or Badan Amil Zakat Nasional (BAZNAS) of Gorontalo Province.

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Accounting treatment for corporate zakat: a critical review

Cited by 40 publications

References 2 publications

The Effectiveness of Zakat Disbursement by Amil Zakat Institutions in Indonesia

The Effectiveness of Zakat Disbursement by Amil Zakat Institutions in Indonesia

Corporate governance and compliance with AAOIFI governance standards by Islamic banks

The urgency of Zakat on Income Management for Gorontalo Community Empowerment

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