Comparing the value-relevance of AAOIFI versus IFRS accounting numbers in the Takaful industry

Mejri, Mariem; Othman, Hakim Ben; Abdou, Hussein A.; Hussainey, Khaled

doi:10.1108/jiabr-10-2020-0333

Cited by 4 publications

(3 citation statements)

References 55 publications

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“…a donation to a fund that allows mutual assistance between the participants in the fund in the event of a claim. As defined by Mejri et al (2022), the debate is still ongoing as, according to the positivist line of thought, it may be possible to apply IFRS 17 to Takaful as risk sharing is typical of non-Islamic mutual insurance companies:…”

Section: Resultsmentioning

confidence: 99%

“…The literature analysed has focused on observing the adoption of IAS/IFRS. This has been done with comparative studies of adoption in different Islamic countries, with studies targeting individual accounting standards (Mejri et al , 2022; Mukhlisin, 2017) or with studies directed at whether or not international standards had an impact in terms of cost and change in governance policies (Abu-Tapanjeh, 2009; Sarea, 2016). Building on these premises, our contribution provides a different observation lens with some unpublished contributions.…”

Section: Discussionmentioning

confidence: 99%

“…Additionally, as suggested Diab and Mohamed Metwally (2019), the different contexts can create institutional complexity in managing social and religious aspects. Finally, other studies compare the adoption of IAS/IFRS in different Islamic countries (Mejri et al , 2022; Mukhlisin, 2017) or verify possible correlation regarding costs in adopting better such accounting principles (Abu-Tapanjeh, 2009; Sarea, 2016). Therefore, a comprehensive review of the literature, changes, adaptations or alternative accounting standards that might be needed to ensure the compatibility of IAS/IFRS with the specific characteristics of Islamic finance appears to be necessary in light of the updating of specific standards such as IFRS 9 (IFRS, 2023a) and new standardisation requirements (Abras and Jayasinghe, 2022).…”

Section: Introductionmentioning

confidence: 99%

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Exploring IFRS in Islamic finance: a bibliometric and coding analysis of emerging topics and perspectives

Calandra,

Lanzalonga,

Biancone

2024

IMEFM

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Purpose Emerging economies are increasingly benefiting from Islamic finance principles. The distinctive features of this unconventional form of finance are starting to be considered even in developed economies. Islamic finance operates under prohibitions on interest, gambling, speculation and complex derivatives according to the dogma in the Quran, Sunnah, Ijma and Qiyas. International financial reporting standards (IFRS) allow companies to attract global capital due to overcoming international borders. However, Islamic finance cannot apply all accounting standards. Therefore, this study aims to explore the implementation of international accounting standards in the Islamic finance context to present applications and future research fields. Design/methodology/approach Using a bibliometric and coding analysis, the study analyses 226 peer-reviewed journal papers extracted from the Scopus database. Using the bibliometrix package, the authors explored the literature’s intellectual, conceptual and social structures, categorising the findings into thematic clusters relevant to traditional and Islamic finance paradigms. Findings The results reveal new and interesting elements using the lens of the conceptual, intellectual and social structure. Additionally, the authors find out three main thematic clusters: (1) IFRS and Islamic finance: general principles; (2) IFRS and Zakat; (3) IFRS and Murabaha compatibility; (4) IFRS and Takaful; and (5) IFRS and auditing organisation for Islamic financial institution: governance strategies. Originality/value The contribution is original as the authors discover institutional theory perspectives and a diatribe between positivist and ontological approaches.

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Section: Resultsmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Exploring IFRS in Islamic finance: a bibliometric and coding analysis of emerging topics and perspectives

Calandra,

Lanzalonga,

Biancone

2024

IMEFM

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Institutional work for IFRS adoption: the case of IFRS 17 insurance contract for Islamic insurance in Malaysia

Wahyuni,

Azhar,

Fajriati

2023

JIABR

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Purpose The global insurance industry has implemented International Financial Reporting Standards (IFRS) 17 insurance contracts effective from January 1, 2023. The Islamic insurance (Takaful) industry would find itself at a crossroads if IFRS 17 should also be adopted for Takaful contracts. This paper aims to explore the process of IFRS 17 adoption for Takaful contracts in Malaysia and the implementation of the standard in the early adoption year. Design/methodology/approach Applying a qualitative approach, this study uses a literature review search and interviews to analyze deeper into the adoption process in Malaysia. Using institutional work, this paper analyses the process timeline, the actors and their roles and actions in the adoption process. The authors interviewed 12 informants from different backgrounds comprising the national standard setters, preparers and the IFRS 17 consultants. Findings The adoption process of IFRS 17 in Malaysia is an interplay between the accounting standard setter, the government and the industry associations who are the major actors in the process. These actors have different roles and contributions, but they work together to accomplish a single vision, adopting IFRS 17 for all. There is an interplay between actors to disrupt the accounting practice and involved in creating various institutional work to ensure the concerns of Takaful practitioners are well addressed. This research also found that the companies faced significant challenges in applying the standard in the early months of implementation. Research limitations/implications This paper contributes to the literature by providing an explanation and examples of the IFRS adoption for Shariah transactions. The story of Malaysia can become a case study for other countries that are still deciding on adopting IFRS 17, especially for the Islamic insurance industry. Practical implications The story of Malaysia can become a case study for other countries that are still deciding on adopting IFRS 17, especially for the Islamic insurance industry. Originality/value This paper contributes to the literature on the debate of the application of IFRS to Shariah transactions by using institutional work theory as a framework.

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Islamic financial accounting standards in Pakistan: a comparison with AAOIFI

Zafar

2024

JIABR

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Purpose This paper aims to compare the Islamic financial accounting standards (IFAS) prevailing in Pakistan declared by the Securities and Exchange Commission of Pakistan (SECP) with accounting standards of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Design/methodology/approach Both standards related to Islamic financial accounting have been thoroughly reviewed, compared and discussed to find out the differences and similarities, along with the depth needed to meet the needs of Islamic finance. Findings AAOIFI accounting standards provide a comprehensive view of complex transactions, whereas SECP standards have limitations. The proposed recommendations aim to bridge the gap by conducting periodic reviews and revisions of IFAS prevailing in Pakistan to keep up with the dynamic nature of the Islamic finance industry. Practical implications The regulators should establish institutional arrangements for adapting AAOIFI accounting standards, enabling efficient and effective upgrading of existing accounting standards for Islamic financial institutions and alignment with international best practices. Originality/value There is a dearth of studies related to Islamic financial accounting in the context of Pakistan; this is one that contributes to this area.

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Comparing the value-relevance of AAOIFI versus IFRS accounting numbers in the Takaful industry

Cited by 4 publications

References 55 publications

Exploring IFRS in Islamic finance: a bibliometric and coding analysis of emerging topics and perspectives

Exploring IFRS in Islamic finance: a bibliometric and coding analysis of emerging topics and perspectives

Institutional work for IFRS adoption: the case of IFRS 17 insurance contract for Islamic insurance in Malaysia

Islamic financial accounting standards in Pakistan: a comparison with AAOIFI

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