The purpose of this chapter is to evaluate how a company should report cryptocurrency investment on their financial statements. In dealing with it, the research problems address the status of positive law and Islamic law in cryptocurrency and how the current economy responds to cryptocurrency. Qualitative descriptive approach and literature review with content analysis method using NVivo 12 plus software are used. The data for this study were obtained from interviews and a review of documents. The finding shows that investments in cryptocurrency held by the companies can be treated as investments in equity with minor adjustments. The content analysis conducted shows that stakeholders are neutral toward this issue. 

EconPapers: Islamic Economic Institutions in Indonesia:Are they Successful in Achieving the Maqasad-al-Shari'ah EconPapers Economics at your fingertips EconPapers Home About EconPapers Working Papers Journal Articles Books and Chapters Software Components Authors JEL codes New Economics Papers Advanced Search EconPapers FAQ Archive maintainers FAQ Cookies at EconPapers Format for printing The RePEc blog The RePEc plagiarism page Islamic Economic Institutions in Indonesia:Are they Successful in Achieving the Maqasad-al-Shari'ah Edited by Toseef Azid, Muhammad Syafii Antonio, Zafar Kayani and Murniati Mukhlisin in World Scientific Books from World Scientific Publishing Co. Pte. Ltd. Abstract: waqf, zakat and sadaqat Keywords: Islamic Economics; Institutions; Maqasad al-Shari'ah; Islamic Capital Market; Shari'ah Entrepreneurship; Indonesia; Finance; Economics; International. waqf, zakat and sadaqat

Islamic institutions have had a very long history, whose performance was muted during the Colonial Period. However, after the Second World War, the revival of the Islamic institutions began. Throughout its history, it had been assumed that these institutions are working for the betterment of humanity. Their target is to achieve a high level of the welfare for the concerned community. Historically these institutions were waqf, zakat and sadaqat. However from the last three decades, Islamic financial institutions have been established with the objective of providing interest- free products, transaction and services for Muslims. However there has been lot of criticism on the performance and role of these institutions. This becomes especially pertinent in a Muslim country like Indonesia, where there is a dire need to know that how these institutions are working and if it is possible for them to achieve the objectives of the Shari'ah. Some scholars have claimed that these institutions are performative and only serving 'lip service', and there are no significant differences between the Islamic and secular institutions where both kinds of institutions operate on the same foundations and differ only in use of technical terminologies. This volume aims to analyze some of the Islamic institutions which are operating in the world's biggest Muslim country, Indonesia, as a case study and analyze the contemporary Islamic Banking products and practices in the light of 'Maqasad al-Shari'ah'. The book's objective is to propose an improved system of Islamic institutions for Muslims to refer to. This volume will also analyze why these institutions are currently not able to comply with the Maqasad al Shari'ah and how it is possible to enhance the level of economic development, social wellbeing, individual freedom and equality, elimination of injustice and poverty, and achieve the other targets of the Maqasad through these institutions.

Indonesian Islamic financial institutions (IIFIs) are in a cross roads when it comes to financial reporting standards. As the industry is moving towards globalized economy, it is tempted to adopt the generally accepted international standards vis-à-vis Islamic compliant financial reporting standards. The major concern with the former, it is not complied with Islamic values, and therefore, IIFIs are in predicament which one is the most viable financial reporting standard. Thus, this paper aims to explore what are the influences towards adopting international financial reporting in Indonesia and how they impact the IIFIs. From the interactions of the actors associate with the process of standardization, the study suggests that political and economic imperialist motive exists in financial reporting standardization in Indonesia. As the IIFIs are established to demonstrate their accountability for both shareholders and society, therefore, not only their operation must uphold the mutuality concept but also their reporting mechanism.

Theoretically, Islamic accounting plays a significant role to expose meaning of accountability; however, not much of Islamic accounting studies have been well exposed. This paper aims to provide future research direction in the area of Islamic accounting by promoting accountability and sustainability after examining 150 articles published in 38 leading journals. The map portrays the flow of debates from 1986 to 2017 to answer what has been researched, what are research directions and what is the level of analysis. The paper finds that the role of Islamic accounting researchers to support the meaning of accountability and sustainability is still insignificant. The finding shows that research on standardization of Islamic accounting and testing the accounting information on the annual reports have become the main research focus with countries under study are Bangladesh, MENA and Indonesia. Contribution of this research is to help future research capture the role of Islamic accounting in the emergence of Islamic economics and finance.

In a typical literature, one can see that monetary transmission works through the channel of interest rate, and policy analyst are observing its impact on inflation, for example, if nominal interest rate increases it leads to incremental change in the user cost of capital, therefore, leading to an overall decrease in general prices level. Because higher interest rate has a negative impact on consumption (postponement) and also on desired investment due to which prices are going down. Another important channel of monetary transmission is the exchange rate. It is observed that an increase in the domestic interest rate has positive impact on the strength of currency which ultimately leads to downward pressure on the prices of tradable goods. A stronger exchange rate has a negative impact on net exports and aggregate demand. It is also an undeniable fact that appreciating currency increases the activities of the economy. Likewise, financial market development or institutional policy frameworks, and other country characteristics have impact on the transmission of monetary policy. Generally, in developing countries, majority of the households and firms are dependent on the bank lending.

This book addresses the theory, practices, challenges, key issues and potential future policies concerning investment and wealth management in connection with Islamic finance. There is a noted scarcity of literature on Islamic approaches towards wealth management from a jurisprudential perspective, and so this book aims to address this lacuna in available literature. It demonstrates strategies for wealth management in keeping with the Qur’an and Sunn’ah, posing questions relating to interest and investment, and proposing financial models for benefiting the poorer segments of society while simultaneously satisfying economic necessities in keeping with Islamic law. Given its breadth of scope, combining perspectives from scholars and practitioners with extensive experience in the banking and finance sector from different Islamic settings including Malaysia, Saudi Arabia, Sri Lanka, Brunei and Indonesia, this edited volume will benefit practitioners, researchers, and graduate students studying finance, economics and business management in an Islamic context.

Kajian ini dibuat dengan tujuan untuk memetakan strategi nasional peningkatan literasi ekonomi dan keuangan Syariah di tataran individu dan keluarga. Kajian ini melengkapi hasil kajian dan alat bantu sosialisasi yang telah dilakukan oleh Bank Indonesia, Otoritas Jasa Keuangan, Kementerian Pendidikan dan Kebudayaan RI, Kementerian Agama RI terutama dalam bidang ekonomi dan keuangan Syariah. Adapun metode yang dipakai adalah studi pustaka dengan referensi nasional dan internasional, Focus Group Discussion (FGD), survei (online dan pertemuan) menggunakan purposive sampling, dan wawancara. Metode dan konten survei sudah divalidasi oleh pakar sebelum dijalankan. Ada tujuh bagian dalam laporan kajian ini yaitu bagian kedua mengenai “Peran Penting Literasi Ekonomi dan Keuangan Syariah” yang menekankan kebutuhan keluarga dan individu. Bagian ketiga, “Menuju Penduduk Muslim yang memahami Ekonomi dan Keuangan Syariah” yang menjelaskan tentang konsep manajemen harta Islami, tahapan literasi ekonomi dan keuangan Syariah, serta Maqashid Syariah dalam pengelolaan keuangan keluarga dan individu. Konsep manajemen harta Islami menekankan kepada lima aspek yaitu penciptaan harta, akumulasi harta, perlindungan harta, purifikasi harta, dan distribusi harta. Adapun konsep pengelolaan harta sebagai pengayaan konsep literasi ekonomi dan keuangan syariah yang dijadikan rujukan dalam membangun model meliputi lima hal yaitu konsep pendapatan, keinginan dan kebutuhan, surplus dan defisit, impian dan ketidakpastian. Bagian keempat, “Analisa Data Literasi Ekonomi dan Keuangan Syariah” yang menjabarkan tentang metode kajian dan provinsi yang dipilih yaitu DKI Jakarta, Bangka Belitung dan Kalimantan Selatan. Seminar literasi ekonomi dan keuangan Syariah juga telah diadakan di Pangkalpinang dan Banjarmasin pada saat survei dilakukan yang telah memperkuat hasil kajian ini. Adapun Bagian kelima menjelaskan tentang “Strategi Nasional Peningkatan Literasi Ekonomi dan Keuangan Syariah” berdasarkan jenjang usia yaitu 0-6 tahun, 7-12 tahun, 13-15 tahun, 16-18 tahun, 19-23 tahun, 24-35 tahun, 36-55 tahun, dan di atas usia 56 tahun. Selain berdasarkan demografi dab jenjang usia, kajian ini juga mengelompokkan peserta berdasarkan kelompok ekonomi, yaitu kelompok pendapatan rendah dan tinggi. Hal ini menjadikan hasil kajian semakin komprehensif dan menemukan hasil yang cukup berbeda dibandingkan dengan kajian – kajian yang telah ada yang hanya fokus ke produk dan jasa keuangan Syariah. Ternyata, tingkat literasi harus lebih mendalam bukan hanya sekedar mengenal produk dan jasa keuangan Syariah tetapi ada hal yang fundamental yang perlu digali yaitu mengapa mereka perlu menggunakannya dan apa manfaatnya untuk kehidupan mereka. Bagian terakhir dari kajian ini adalah mengenai “Rencana Implementasi Strategi” yang dapat dijadikan acuan untuk pengambilan keputusan bagi KNKS dalam pembuatan program, alat bantu serta platform untuk meningkatkan literasi ekonomi dan keuangan Syariah berdasarkan berbagai jenjang usia. xi Rekomendasi tersebut sudah disusun berdasarkan pesan Masterplan Ekonomi Syariah Indonesia (MEKSI) 2019-2024, tujuan pencapaian peningkatan aqidah, Syariah dan akhlaq peserta serta peningkatan sikap, pengetahuan dan ketrampilan dalam meningkatkan wawasan pengelolaan harta Islami. Rencana Implementasi Strategi telah divalidasi oleh pakar pendidikan yang menjadikan hasilnya dapat diandalkan. Sebagai penutup, implementasi program yang telah disusun untuk 2020-2024 perlu didukung oleh semua pemangku kepentingan antara lain Kementerian Pendidikan dan Kebudayaan RI, Kementerian Agama RI, sekolah dan kampus, serta para penggerak pendidikan keluarga di tanah air. Program tersebut sebaiknya disebar untuk masyarakat Indonesia di luar negeri terutama yang kurang mendapatkan informasi dan edukasi mengenai ekonomi dan keuangan Syariah yang tepat

Buku membantu anda bagaimana seharusnya mengelola Keuangan Keluarga secara Islami. banyak keluarga yang tidak mempunyai perencanaan keuangan keluarga sehingga mereka tidak pernah menyisihkan pendapatan mereka sedikit pun untuk tabungan anak-anak masa depan, dana emergensi dalam bentuk deposito, paket asuransi, tabungan naik haji, dan dana tabungan masa depan. Keluarga adalah sebuah organisasi terkecil di struktur kehidupan manusia yang memerlukan manajemen yang baik, strategi perencanaan yang baik, prosedur yang tertata rapi, sistem keuangan yang transparan, dan dapat dipertanggung jawabkan, siap untuk diaudit kapan saja, serta siap untuk dihitung baik pajak ataupun zakatnya. Dengan adanya bantuan dari sistem pencatatan yang baik akan sangat membantu proses perencanaan keuangan keluarga.

1qwThe aim of this study is to assess the level of accounting involvement among participants in an Islamic microfinance program, and to propose a financial accounting and recordkeeping framework for Islamic wealth management practices that can be used by clients and families, this can also give them better insight into finance and their family business. To achieve the two research objectives, the authors used Participatory Action Research (PAR) by preparing an exercise questionnaire as a research instrument for participants for four months. The study is limited to discussing the empowerment of women/mixed participants through microfinance institutions in three countries (Indonesia, Pakistan and Egypt). Institutions selected as case studies provide funds and loans to meet their living needs and run their small businesses. The total participants involved in this study were 130 participants; 68 from Indonesia, 50 from Pakistan and 12 from Egypt. Overall, participants' knowledge of accounting and finance in the three countries is quite similar which is still relatively low. Yet they show a strong interest in adopting simple wealth management practices starting with recording their business assets and cash flows. This exercise initially showed the result that 95% of the participants had no knowledge of accounting matters such as recording their finances and making their financial plans. After three months of training, participants in Indonesia (35%) actively participated and found the exercise useful. As per Pakistan, only 30% of all participants filled out the research instrument. In terms of the IMF, Akhuwat Foundation Pakistan and Bab Rizq Jameel Egypt works with more expertise and professionalism than Baitut Tamkin Tazkia Madani (BTTM) Indonesia. The first two institutions released their annual reports including financial statements that have been audited by Big- Accounting Firms. BTTM on the other hand is still audited by an internal audit firm. Based on the findings, we recommend that regulators in charge of poverty alleviation policies need to focus on basic financial education, regular accounting and wealth management training and strict field supervision to equip the lower classes.

Improper household financial management often becomes a dispute in the family, which eventually becomes the cause of divorce. The divorce rate in Indonesia in 2020 reached 306,688 cases which has increased every year since 2015. According to data in June and July 2020, the number of divorce cases increased by 57 thousand cases with 80 percent of divorce cases that went to Religious Court filed by wives. Of all these cases, not a few are triggered by economic problems in the family. Family financial management hence is a way of managing family finances regularly and carefully through the stages of planning, implementing, and monitoring. By using library research and field research, this research categorizes and interprets the literatures using thematic analysis perspective. Coupled with understanding of maqasad al shari’ah, the results of the study find that Islamic family financial management starts from planning, based on tawhid and straight intentions. Then the family has to manage income, which ensures income is obtained and used in a lawful and tayyib way, complete with sense of mujahadah and ukhuwah. The family also has to manage needs, allocate proportionally (not stingy and wasteful), donate, record every cash flow (money in and out), Then if there is a surplus it must be managed with savings/investment and if the deficit is attempted to stay away from debt. Next, the family has to fulfill five elements of maqasad al shari’ah to achieve family financial dreams. Finally, financial evaluation is carried out by auditing, zuhud, gratitude and muhasabah. So that all financial activities must be run with good morals.

This thesis critically explores the reflexivity and resistance of Indonesian Islamic Financial Institutions (IIFIs) towards International Accounting Standards Board (IASB) and Accounting and Auditing Organisation of Islamic Financial Institutions (AAOIFI) financial reporting standardization projects. The motivation of this study derived from two conflicting arguments as to whether or not Islamic financial institutions require specific financial reporting standards to accommodate their specific Islamic finance transactions. Most of the financial reporting researches adopt a narrative approach in their attempt to answer the ‘Why’ question, but neglect further investigation to respond to the ‘What is going on here?' question. This thesis fills the gap by answering the latter question and unveiling doubts on the required financial reporting standards for IFIs as well as the IIFIs and suggesting way forward for an enhanced stability of the global financial systems, through harmonization of financial reporting regimes. The data of this study was collected from semi structured interviews with 32 participants who are well versed with the knowledge on financial reporting standardization projects for IFIs/IIFIs, Shariah issues, and public policy. One of the chapters employs secondary data from conceptual framework and financial reporting standards issued by IASB, AAOIFI, and Indonesian standard setter. The aspect of reflexivity is examined on the extent of IFRS and AAOIFI adoptions by the IIFIs. It begins with the development of IASB and its promoting journey of IFRS that contains political lobbying in the Indonesian institutional arena. Likewise, the aspect of resistance towards AAOIFI is revealed through exploration of the institutional arena that reflects dissimilar finding with that of IFRS. The study involves not only conventional political discourse but also Islamic political interaction that influences the future of Islamic based financial reporting standardization. In other facet, an analysis of the three reporting standards using Maqāsid ul-Shari’āh lens supports the early assumption on the need of a specific financial reporting for the IIFIs. As a way forward, International Islamic Financial Architecture (IIFA) institutions are also examined to explore what supports required to have Islamic based financial reporting standards for IFIs in general and for the IIFIs in specific.

The thesis makes four main contributions, both to theories and literatures. Firstly, it shows how the hegemonic political economy of accounting exists within the area of financial reporting standardization, which is not simply by identifying the types of isomorphism that influence the organizations’ involvement in the financial reporting standardization. Secondly, in the context of Islamic financial institutions, the different interpretations of Shariah very much dominate in determining the direction of IFIs towards the implementation of Islamic based financial reporting due to the political influence in the respective countries where Islamic finance operates. Hence, the thesis proposes “Islamic Political Economy of Accounting” as a new theoretical framework to analyse similar discourse. Standard setters and regulators of IFIs are required to be tactful when looking into this issue. Thirdly, as the Islamic finance industry is now at continuous growth and maturity while also facing rising challenges, there must be a different approach to regulate the financial reporting standards. The hybrid way may not be appropriate any longer. This is shown in the analysis of the contents of the standards, where low level of Maqāsid ul- Shari’āh compliance is apparent. Lastly, this thesis also constructs an assumption about the attitude of dominant political leading countries towards the development of Islamic finance. As there is currently no real leadership in the area of Islamic finance, it would require influences from dominant leaders with congregated visions and a mission in line with Islamic values.

This article summarizes the multitude of empirical studies in the area of Islamic banking and finance with purpose to analyze impact of Islamic banking and finance studies to practice by mapping research direction and the depth of the study. The studies are categorized based on research paradigm, countries being researched, methods employed, and results that lead to policy direction in the particular period. The research found that the research direction of the papers under study mostly employ positivist paradigm with countries being researched are generally Malaysia, Pakistan, Indonesia and UAE. It documents that the papers did not link directly to the future policy directions ie. to predict and prepare for financial crisis, rather they merely responded to the undergoing policies or themes of the journals. This review provides insights for understanding the importance of guiding future policy direction in the area of Islamic banking and finance by publishing more research policy papers authored by both academics and professionals.

Purpose – This paper aims to explore the alignments of the Takaful industry between the Islamic and the IFRS requirement and the subsequent social and political consequences. 

Design/methodology/approach – Meta analysis of thorough examination of 1* to 4* relevant peer-reviewed journals in the academic journal guide 2015 of the Association of Business School from the period when first IFRS was issued in 2005 to 2012 and where Indonesia declared to fully adopt IFRS. The examination also includes some other appropriate Indonesian and Islamic accounting publications. The paper employs comparative analysis between IFRS, AAOIFI and the financial reporting standards practiced by Takaful industry to examine the hindrance towards the standardization process. 

Findings – It is shown that the literatures emphasis not only on the technical matters related to financial reporting standardization but also on the complex arrangement in different country settings. Learning from Indonesian experience, the literatures suggests that neoliberalism is piercing through different parts of economic and political setting of the country’s infrastructural powers leading up to the influence of financial reporting standardization process. 

Originality/Value- The paper contributes to the existing ontological arguments whether the Takaful industry is a mere business entity that has no specific requirements for financial reporting standards.

The main objective of this paper is to analyse determinants that influence implementation of accounting standards for Islamic financial institutions by examining the history of accounting standards and two different contexts as applied to Islamic financial institutions in the United Kingdom and Indonesia. The paper explores available texts and literature mainly from international journals and text books. Employing the Ibn Khaldun perspective, this study analyses two determinants i.e. institutional setting that may be suitable in the context of the United Kingdom, and accounting needs in the case of Indonesia. The research shows the determinants are well fitted with interdisciplinary characters of Ibn Khaldun model of civilization i.e. G = f(S, N, W, j and g). This explains a civilized society is led by the political authority (G) which is influenced concurrently by factors such as the direction of Shari’ah (S), the role of people (N), the use of wealth (W), the development of a country (g), and the promotion of justice (j). This paper has practical significance for accounting standard setters in the Islamic finance industry and policy makers, for understanding the environmental determinant perspective of the country and using this perspective for positioning important aspect in accounting standard setting, developing policies; and articulating procedures to maximize development of Islamic finance.