Proposed best practices of financial information disclosure for Zakat institutions: a case study of Malaysia

Zakat is a compulsory levy imposed on the Muslims who are relatively financially well. Zakat plays a crucial role in Islamic economy since it is one of the important economic tools to elevate the poverty. The confidence of the zakat payers on the process of zakat collection and distribution perfor...

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Main Authors:	Htay, Sheila Nu Nu, Salman, Syed Ahmed
Format:	Article
Language:	English English
Published:	IDOSI Publication 2014
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/36463/ http://irep.iium.edu.my/36463/ http://irep.iium.edu.my/36463/ http://irep.iium.edu.my/36463/1/36463_Proposed%20best%20practices%20of%20financial%20information.pdf http://irep.iium.edu.my/36463/2/36463_Proposed%20best%20practices%20of%20financial%20information_SCOPUS.pdf

id	iium-36463
recordtype	eprints
spelling	iium-364632017-09-20T04:05:41Z http://irep.iium.edu.my/36463/ Proposed best practices of financial information disclosure for Zakat institutions: a case study of Malaysia Htay, Sheila Nu Nu Salman, Syed Ahmed HG1501 Banking Zakat is a compulsory levy imposed on the Muslims who are relatively financially well. Zakat plays a crucial role in Islamic economy since it is one of the important economic tools to elevate the poverty. The confidence of the zakat payers on the process of zakat collection and distribution performed by the zakat institutions plays the essential role in order to collect more zakat. Public confidence can be gained by transparent and full disclosure of financial information of the institutions. Many international organizations such as AAOIFI and IFSB and local standard setting bodies like MASB have provided the accounting guidelines and standards for the transparency of the companies. The prevailing standards focus on the profit oriented institutions and to the extent of our knowledge, no guideline has been issued for the financial reporting aspect of zakat institutions. Thus, the objective of this research is to propose best practices of financial information disclosure for zakat institutions. Both primary and secondary data are used in this study. Primary data is collected from the questionnaire and secondary data is obtained from the relevant books, articles and internet resources. In addition, library research and in terms of data analysis, descriptive statistics is employed. The results from the questionnaire reveal that there is a need for the guidelines for financial information disclosure. The respondents highlight that disclosure on accounting policy and changes and board of trustees, risk management, statement of internal control, important highlights, disclosure on zakat collection and distribution and statement of cash flow are the essential components of reporting. The findings will be the interest of zakat authorities, regulators, zakat payers, zakat recipients and researchers. IDOSI Publication 2014 Article PeerReviewed application/pdf en http://irep.iium.edu.my/36463/1/36463_Proposed%20best%20practices%20of%20financial%20information.pdf application/pdf en http://irep.iium.edu.my/36463/2/36463_Proposed%20best%20practices%20of%20financial%20information_SCOPUS.pdf Htay, Sheila Nu Nu and Salman, Syed Ahmed (2014) Proposed best practices of financial information disclosure for Zakat institutions: a case study of Malaysia. World Applied Sciences Journal, 30 (30 A). pp. 288-294. ISSN 1818-4952 https://www.idosi.org/wasj/wasj30(icmrp)14/37.pdf 10.5829/idosi.wasj.2014.30.icmrp.37
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Htay, Sheila Nu Nu Salman, Syed Ahmed Proposed best practices of financial information disclosure for Zakat institutions: a case study of Malaysia
description	Zakat is a compulsory levy imposed on the Muslims who are relatively financially well. Zakat plays a crucial role in Islamic economy since it is one of the important economic tools to elevate the poverty. The confidence of the zakat payers on the process of zakat collection and distribution performed by the zakat institutions plays the essential role in order to collect more zakat. Public confidence can be gained by transparent and full disclosure of financial information of the institutions. Many international organizations such as AAOIFI and IFSB and local standard setting bodies like MASB have provided the accounting guidelines and standards for the transparency of the companies. The prevailing standards focus on the profit oriented institutions and to the extent of our knowledge, no guideline has been issued for the financial reporting aspect of zakat institutions. Thus, the objective of this research is to propose best practices of financial information disclosure for zakat institutions. Both primary and secondary data are used in this study. Primary data is collected from the questionnaire and secondary data is obtained from the relevant books, articles and internet resources. In addition, library research and in terms of data analysis, descriptive statistics is employed. The results from the questionnaire reveal that there is a need for the guidelines for financial information disclosure. The respondents highlight that disclosure on accounting policy and changes and board of trustees, risk management, statement of internal control, important highlights, disclosure on zakat collection and distribution and statement of cash flow are the essential components of reporting. The findings will be the interest of zakat authorities, regulators, zakat payers, zakat recipients and researchers.
format	Article
author	Htay, Sheila Nu Nu Salman, Syed Ahmed
author_facet	Htay, Sheila Nu Nu Salman, Syed Ahmed
author_sort	Htay, Sheila Nu Nu
title	Proposed best practices of financial information disclosure for Zakat institutions: a case study of Malaysia
title_short	Proposed best practices of financial information disclosure for Zakat institutions: a case study of Malaysia
title_full	Proposed best practices of financial information disclosure for Zakat institutions: a case study of Malaysia
title_fullStr	Proposed best practices of financial information disclosure for Zakat institutions: a case study of Malaysia
title_full_unstemmed	Proposed best practices of financial information disclosure for Zakat institutions: a case study of Malaysia
title_sort	proposed best practices of financial information disclosure for zakat institutions: a case study of malaysia
publisher	IDOSI Publication
publishDate	2014
url	http://irep.iium.edu.my/36463/ http://irep.iium.edu.my/36463/ http://irep.iium.edu.my/36463/ http://irep.iium.edu.my/36463/1/36463_Proposed%20best%20practices%20of%20financial%20information.pdf http://irep.iium.edu.my/36463/2/36463_Proposed%20best%20practices%20of%20financial%20information_SCOPUS.pdf
first_indexed	2023-09-18T20:52:15Z
last_indexed	2023-09-18T20:52:15Z
_version_	1777410071611834368

Proposed best practices of financial information disclosure for Zakat institutions: a case study of Malaysia

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