Accounting and accountability of waqf, zakat and Baitul Mal (WZB) in Malaysia: A review of literature

This article reviews literature on accounting and reporting for waqf, zakat and baitul mal (WZB). Given that WZB are under the purview of the State Islamic Religious Councils (SIRCs), the structure of the administrative machinery of Islamic affairs is discussed and how this gives rise to the unique...

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Main Authors:	Sulaiman, Maliah, Mohamad, Muslim Har Sani, Abdul Rashid, Hafiz Majdi, Osman@Hussin, Ahmad Zamri, Siraj, Siti Alawiah, Nuhu, Ibrahim
Format:	Article
Language:	English
Published:	Institut Perakaunan Negara, Jabatan Akauntan Negara Malaysia 2016
Subjects:	HJ1438 Public Finance In Islam HJ9701 Public accounting
Online Access:	http://irep.iium.edu.my/61497/ http://irep.iium.edu.my/61497/6/61497_Accounting%20and%20accountability%20of%20Waqf_complete.pdf

id	iium-61497
recordtype	eprints
spelling	iium-614972018-01-29T07:23:18Z http://irep.iium.edu.my/61497/ Accounting and accountability of waqf, zakat and Baitul Mal (WZB) in Malaysia: A review of literature Sulaiman, Maliah Mohamad, Muslim Har Sani Abdul Rashid, Hafiz Majdi Osman@Hussin, Ahmad Zamri Siraj, Siti Alawiah Nuhu, Ibrahim HJ1438 Public Finance In Islam HJ9701 Public accounting This article reviews literature on accounting and reporting for waqf, zakat and baitul mal (WZB). Given that WZB are under the purview of the State Islamic Religious Councils (SIRCs), the structure of the administrative machinery of Islamic affairs is discussed and how this gives rise to the unique demarcation in powers and authority on policies pertaining to Islam between the Federal and state governments is clarified. The notion of accountability as is generally understood in the West is elaborated and subsequently compared with the concept of accountability from Islam’s perspective. Prior studies on waqf and zakat examining the accounting and reporting aspects were reviewed. Issues such as poor documentation and record keeping, absence of sound accounting system, limited disclosure on the level and types of information, absence of separate financial statements are some of the pertinent findings of such studies. The paper also raises important questions about the validity of the current accounting practices of WZB and put forth various suggestions for future research. Finally, the initiative by the Accountant General's Department (AGD) to develop a financial accounting and reporting framework and standards for WZB is indeed laudable, timely and significant for the proper development of annual performance reporting of SIRCs. However, such an initiative should involve regulatory bodies such as the Jabatan Kemajuan Islam Malaysia (JAKIM), SIRCs as well as academics. Expertise from both accounting and Sharia should also be involved in this endeavour. Institut Perakaunan Negara, Jabatan Akauntan Negara Malaysia 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/61497/6/61497_Accounting%20and%20accountability%20of%20Waqf_complete.pdf Sulaiman, Maliah and Mohamad, Muslim Har Sani and Abdul Rashid, Hafiz Majdi and Osman@Hussin, Ahmad Zamri and Siraj, Siti Alawiah and Nuhu, Ibrahim (2016) Accounting and accountability of waqf, zakat and Baitul Mal (WZB) in Malaysia: A review of literature. IPN Journal of Research and Practice in Public Sector Accounting and Management, 6. pp. 1-14. ISSN 2180-4508
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HJ1438 Public Finance In Islam HJ9701 Public accounting
spellingShingle	HJ1438 Public Finance In Islam HJ9701 Public accounting Sulaiman, Maliah Mohamad, Muslim Har Sani Abdul Rashid, Hafiz Majdi Osman@Hussin, Ahmad Zamri Siraj, Siti Alawiah Nuhu, Ibrahim Accounting and accountability of waqf, zakat and Baitul Mal (WZB) in Malaysia: A review of literature
description	This article reviews literature on accounting and reporting for waqf, zakat and baitul mal (WZB). Given that WZB are under the purview of the State Islamic Religious Councils (SIRCs), the structure of the administrative machinery of Islamic affairs is discussed and how this gives rise to the unique demarcation in powers and authority on policies pertaining to Islam between the Federal and state governments is clarified. The notion of accountability as is generally understood in the West is elaborated and subsequently compared with the concept of accountability from Islam’s perspective. Prior studies on waqf and zakat examining the accounting and reporting aspects were reviewed. Issues such as poor documentation and record keeping, absence of sound accounting system, limited disclosure on the level and types of information, absence of separate financial statements are some of the pertinent findings of such studies. The paper also raises important questions about the validity of the current accounting practices of WZB and put forth various suggestions for future research. Finally, the initiative by the Accountant General's Department (AGD) to develop a financial accounting and reporting framework and standards for WZB is indeed laudable, timely and significant for the proper development of annual performance reporting of SIRCs. However, such an initiative should involve regulatory bodies such as the Jabatan Kemajuan Islam Malaysia (JAKIM), SIRCs as well as academics. Expertise from both accounting and Sharia should also be involved in this endeavour.
format	Article
author	Sulaiman, Maliah Mohamad, Muslim Har Sani Abdul Rashid, Hafiz Majdi Osman@Hussin, Ahmad Zamri Siraj, Siti Alawiah Nuhu, Ibrahim
author_facet	Sulaiman, Maliah Mohamad, Muslim Har Sani Abdul Rashid, Hafiz Majdi Osman@Hussin, Ahmad Zamri Siraj, Siti Alawiah Nuhu, Ibrahim
author_sort	Sulaiman, Maliah
title	Accounting and accountability of waqf, zakat and Baitul Mal (WZB) in Malaysia: A review of literature
title_short	Accounting and accountability of waqf, zakat and Baitul Mal (WZB) in Malaysia: A review of literature
title_full	Accounting and accountability of waqf, zakat and Baitul Mal (WZB) in Malaysia: A review of literature
title_fullStr	Accounting and accountability of waqf, zakat and Baitul Mal (WZB) in Malaysia: A review of literature
title_full_unstemmed	Accounting and accountability of waqf, zakat and Baitul Mal (WZB) in Malaysia: A review of literature
title_sort	accounting and accountability of waqf, zakat and baitul mal (wzb) in malaysia: a review of literature
publisher	Institut Perakaunan Negara, Jabatan Akauntan Negara Malaysia
publishDate	2016
url	http://irep.iium.edu.my/61497/ http://irep.iium.edu.my/61497/6/61497_Accounting%20and%20accountability%20of%20Waqf_complete.pdf
first_indexed	2023-09-18T21:27:13Z
last_indexed	2023-09-18T21:27:13Z
_version_	1777412272326443008

Accounting and accountability of waqf, zakat and Baitul Mal (WZB) in Malaysia: A review of literature

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