<i>Sukūk</i>
            and the Islamic Capital Markets: An Introduction

McMillen, Michael J. T.; Hunt‐Ahmed, Karen

doi:10.1002/9781118653814.ch9

Cited by 1 publication

(1 citation statement)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Sukuk refers to an Islamic bond specifically known as a certificate (DFM, 2013;Iqbal and Mirakhor, 2011;McMillen, 2013). Instead of using interest for coupon payment, a fee is used as coupon payment for ijarah (leasing) sukuk.…”

Section: Literature Review and Issues 21 Sukuk Characteristicsmentioning

confidence: 99%

Sharia accounting standard for sukuk (Islamic bond) accounting in Indonesia

Siswantoro

2018

JIABR

View full text Add to dashboard Cite

PurposeThis paper aims to analyze the need of Islamic banks for specific Statement of Financial Accounting Standards (SFAS) No. 110 for sukuk accounting in Indonesia. In fact, some Islamic banks have already prepared International Financial Reporting Standards (IFRS), and accordingly, a suitable standard is needed for this case. Design/methodology/approachThe research methodology involved interview with a senior accounting manager of an Islamic bank focusing on relevant topics in sukuk to sharpen the analysis. Equally important, research reviewed and compared financial statements on sukuk accounting among Islamic banks, before and after adoption of sukuk accounting standard. FindingsIFRS require market valuation based on interest rate. As interest rate is unlawful in Islamic teaching, IFRS may not accordingly be suitable. Therefore, SFAS No. 110 was issued by the Indonesian Institute of Accountants (Ikatan Akuntan Indonesia). Considering the fact that this standard did not explicitly adopt the IFRS paradigm, there have been consequent conflicts in Islamic bank management because of preference of global recognition to IFRS. Adopting IFRS would be more compatible with other countries’ general accounting standards. In addition, significant differences are found in sukuk accounting treatments by Islamic banks before and after the standard adoption. Research limitations/implicationsThis research only focuses on such question of why specific accounting standard for sukuk accounting is needed by Islamic banks in Indonesia, while only few Indonesian Islamic banks were initially aware of the issue. Originality/valueThis paper may be the first paper discussing the response to and need for sukuk accounting in Indonesian Islamic banks.

show abstract

Section: Literature Review and Issues 21 Sukuk Characteristicsmentioning

confidence: 99%

Sharia accounting standard for sukuk (Islamic bond) accounting in Indonesia

Siswantoro

2018

JIABR

View full text Add to dashboard Cite

show abstract

Sukūk and the Islamic Capital Markets: An Introduction

Cited by 1 publication

References 0 publications

Sharia accounting standard for sukuk (Islamic bond) accounting in Indonesia

Sharia accounting standard for sukuk (Islamic bond) accounting in Indonesia

Contact Info

Product

Resources

About