ISLAMIC ACCOUNTING: ITS ESSENCE AND CONTEMPORARY ROLE
Keywords:
Islamic accounting, Islamic financial system, islamic banking and finance, statement of changes in restricted investments, zakat, charity, financial result, accounting process, islamic accounting systemAbstract
The article sheds light on the essence of Islamic accounting and its importance in today's financial sector. The article attempts to delve into the essence of Islamic accounting by answering the question of what traditional accounting itself is. The functions of traditional accounting are compared with those of Islamic accounting. Special attention is paid to the balance sheet and the income statement, which are forms of financial reporting. In particular, the rules for reflecting the assets of unlimited account holders and their related revenues in the financial statements are clarified. Several definitions of Islamic accounting are presented one by one. In conclusion, the differences in the functions of Islamic and traditional accounting are highlighted.
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