Financial reporting dimensions of intangibles in the context of Islamic finance

Prior studies have identified that not all “intangibles” are reported as “intangible assets” in the statement of financial position. This particularly concerns the Islamic finance industry where intangibles are often used as underlying assets in structuring products. Accordingly, this research exami...

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Main Authors:	Syed Jaafar Alhabshi, Syed Musa, Syed Agil, Sharifah Khadijah, Ahmed, Mezbah Uddin
Format:	Article
Language:	English
Published:	IIUM Press 2018
Subjects:	HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/68330/ http://irep.iium.edu.my/68330/ http://irep.iium.edu.my/68330/1/68330%20-%20Financial%20Reporting%20Dimensions%20of%20Intangibles.pdf

id	iium-68330
recordtype	eprints
spelling	iium-683302018-12-06T07:28:31Z http://irep.iium.edu.my/68330/ Financial reporting dimensions of intangibles in the context of Islamic finance Syed Jaafar Alhabshi, Syed Musa Syed Agil, Sharifah Khadijah Ahmed, Mezbah Uddin HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance. Prior studies have identified that not all “intangibles” are reported as “intangible assets” in the statement of financial position. This particularly concerns the Islamic finance industry where intangibles are often used as underlying assets in structuring products. Accordingly, this research examines the unique Shari’ah requirements and the dichotomous views on the validity and permissibility of intangibles to be recognized as assets. As a result of an apparent need to re-examine the sufficiency of international financial reporting standards (IFRS/IAS) and the views of Shari’ah scholars on financial assets, the research is designed to analyse the sufficiency of IAS 38 Intangible Assets with reference to The Conceptual Framework for Financial Reporting of International Accounting Standards Board (IASB). For this purpose, an in-depth interview, two focus group discussions and a survey of target respondents from both academia and industry directly involved in reporting of Islamic financial servicesare carried out. From the engagement session with the Shari’ah scholars, the research has identified an alternative view of concern with reference to appropriate Shari’ah rulings to determine the permissibility and validity of intangible assets and its reporting implications. Whereas, a mixed response is observed in the survey in terms of clarity on accounting policy, treatment and disclosures with reference to the technicality of the standards as well as the peculiarity of the context in Islamic finance industry IIUM Press 2018 Article PeerReviewed application/pdf en http://irep.iium.edu.my/68330/1/68330%20-%20Financial%20Reporting%20Dimensions%20of%20Intangibles.pdf Syed Jaafar Alhabshi, Syed Musa and Syed Agil, Sharifah Khadijah and Ahmed, Mezbah Uddin (2018) Financial reporting dimensions of intangibles in the context of Islamic finance. Al-Shajarah: Journal of The International Institute of Islamic Thought and Civilization (ISTAC), Special Issue, Islamic Banking & Finance, (2018). pp. 375-396. ISSN 1394-6870 http://journals.iium.edu.my/shajarah/index.php/shaj/article/view/728
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance. Syed Jaafar Alhabshi, Syed Musa Syed Agil, Sharifah Khadijah Ahmed, Mezbah Uddin Financial reporting dimensions of intangibles in the context of Islamic finance
description	Prior studies have identified that not all “intangibles” are reported as “intangible assets” in the statement of financial position. This particularly concerns the Islamic finance industry where intangibles are often used as underlying assets in structuring products. Accordingly, this research examines the unique Shari’ah requirements and the dichotomous views on the validity and permissibility of intangibles to be recognized as assets. As a result of an apparent need to re-examine the sufficiency of international financial reporting standards (IFRS/IAS) and the views of Shari’ah scholars on financial assets, the research is designed to analyse the sufficiency of IAS 38 Intangible Assets with reference to The Conceptual Framework for Financial Reporting of International Accounting Standards Board (IASB). For this purpose, an in-depth interview, two focus group discussions and a survey of target respondents from both academia and industry directly involved in reporting of Islamic financial servicesare carried out. From the engagement session with the Shari’ah scholars, the research has identified an alternative view of concern with reference to appropriate Shari’ah rulings to determine the permissibility and validity of intangible assets and its reporting implications. Whereas, a mixed response is observed in the survey in terms of clarity on accounting policy, treatment and disclosures with reference to the technicality of the standards as well as the peculiarity of the context in Islamic finance industry
format	Article
author	Syed Jaafar Alhabshi, Syed Musa Syed Agil, Sharifah Khadijah Ahmed, Mezbah Uddin
author_facet	Syed Jaafar Alhabshi, Syed Musa Syed Agil, Sharifah Khadijah Ahmed, Mezbah Uddin
author_sort	Syed Jaafar Alhabshi, Syed Musa
title	Financial reporting dimensions of intangibles in the context of Islamic finance
title_short	Financial reporting dimensions of intangibles in the context of Islamic finance
title_full	Financial reporting dimensions of intangibles in the context of Islamic finance
title_fullStr	Financial reporting dimensions of intangibles in the context of Islamic finance
title_full_unstemmed	Financial reporting dimensions of intangibles in the context of Islamic finance
title_sort	financial reporting dimensions of intangibles in the context of islamic finance
publisher	IIUM Press
publishDate	2018
url	http://irep.iium.edu.my/68330/ http://irep.iium.edu.my/68330/ http://irep.iium.edu.my/68330/1/68330%20-%20Financial%20Reporting%20Dimensions%20of%20Intangibles.pdf
first_indexed	2023-09-18T21:36:58Z
last_indexed	2023-09-18T21:36:58Z
_version_	1777412885689925632

Financial reporting dimensions of intangibles in the context of Islamic finance

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