Comparative Analysis of Islamic Accounting with Conventional Accounting

• Published in: Uluslararası İslam ekonomisi ve finansı araştırmaları dergisi 2018-01, Vol.4 (1), p.96
• Main Authors: Ersoy, Mehmet, Çatikkaş, Özgür, Yatbaz, Ayhan
• Format: Article
• Language: English
• Subjects: Accounting; Islamic financing
• ISSN: 2149-8393; 2149-8407
• DOI: 10.25272/j.2149-8407.2018.4.1.06

The aim of this study is to examine and discuss Islamic accounting in the context of conventional accounting, and to establish a theoretical framework for it. In the study, the concept of accounting and Islamic accounting was emphasized, and the related literature was searched. At the end of the comparative evaluation it was seen that the traditional principles of the Islamic accounting were separated from traditional accounting. It can be said that the basic assumptions and qualitative features that apply to traditional accounting are also largely applicable to Islamic accounting. However, the information users in Islamic accounting have a broader meaning than conventional accounting. Apart from the IASB, AAOIFI, which sets standards in the field of Islamic accounting, also sets standards on audit, governance, ethics and financial instruments. Islamic accounting has made significant progress in Malaysia and Bahrain, which have been designated as Islamic finance centers. The development of Islamic accounting in Turkey depends on the development of Islamic banking and finance industry. One of the main objectives of Turkey's Istanbul Finance Center vision is the dissemination and development of Islamic banking and finance. In order for this process to be carried out in a healthy way, Islamic accounting should be given the same important. Firstly, Turkey needs a commission consisted of the experts in the field of both accounting and Islamic religion. This commission must discuss what to do for developing Islamic accounting in Turkey. In addition, under universities, research centers related to Islamic accounting or sub-units under existing centers should be established. These units can organize scientific events such as congresses, conferences, workshops, panels about Islamic accountancy. Within these activities, specialists in Islamic accounting can be invited from abroad to benefit from their knowledge and experience. Finally, the BRSA, PBAT and PSA can jointly discuss what can be done about legal and institutional arrangements.