Financial reporting of intangible assets in Islamic finance
Purpose – This paper aims to address the financial reporting dimensions of intangible assets with specific reference to International Accounting Standards (IAS) 38 as well as relevant International Financial Reporting Standards (IAS 38 exclusion) that are embedded within intangible assets. These h...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
International Shari'ah Research Academy for Islamic Finance (ISRA)
2017
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/68327/ http://irep.iium.edu.my/68327/ http://irep.iium.edu.my/68327/ http://irep.iium.edu.my/68327/1/68327%20-%20financial%20reporting%20on%20intangible%20assets.pdf |
| Summary: | Purpose – This paper aims to address the financial reporting dimensions of intangible assets with specific
reference to International Accounting Standards (IAS) 38 as well as relevant International Financial
Reporting Standards (IAS 38 exclusion) that are embedded within intangible assets. These have implications
for Islamic financial assets with identifiable and measurable intangible components.
Design/methodology/approach – The study uses the qualitative research method by way of interviews
followed by focus group discussions with professional accountants/accounting academics and Sharīʿah
scholars/advisors from academia, the industry and regulatory bodies. Analysis of relevant literature is made
to understand the subject matter and Sharīʿah-related issues.
Findings – The study observes that the accounting dimensions of tangible assets are generally consistent
with Sharīʿah requirements. However, significant variation arises when the dimensions of intangible assets
are represented in financial assets.
Research limitations/implications – The paper presents an exploratory in-depth analysis within the
context of intangible assets as specified in IAS 38.
Originality/value – The paper elucidates the comparative accounting dimensions and Sharīʿah
requirements in reporting financial assets. |
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