An Islamic perspective on the true and fair view override principle
Purpose – This paper aims to determine whether the “true and fair view override” (TFVO) principle is relevant and applicable in Islamic accounting. In addition, the paper examines the roles that TFVO could play in Islamic accounting and auditing. Design/methodology/approach – A qualitative resear...
Saved in:
Main Authors: | , , |
---|---|
Format: | Article |
Language: | English English |
Published: |
Emerald Group Publishing Limited
2014
|
Subjects: | |
Online Access: | http://irep.iium.edu.my/41514/1/JIABR_2014.pdf http://irep.iium.edu.my/41514/4/41514_An%20Islamic%20perspective%20on%20the%20true%20and%20fair%20view%20override%20principle_scopus.pdf http://irep.iium.edu.my/41514/ http://dx.doi.org/10.1108/JIABR-12-2011-0005 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Institution: | Universiti Islam Antarabangsa Malaysia |
Language: | English English |
id |
my.iium.irep.41514 |
---|---|
record_format |
dspace |
spelling |
my.iium.irep.415142017-09-06T03:51:35Z http://irep.iium.edu.my/41514/ An Islamic perspective on the true and fair view override principle Salihin, Abang Abdul Hamid, Fatima Abdulrahman Anam, Ousama HF5601 Accounting. Bookkeeping Purpose – This paper aims to determine whether the “true and fair view override” (TFVO) principle is relevant and applicable in Islamic accounting. In addition, the paper examines the roles that TFVO could play in Islamic accounting and auditing. Design/methodology/approach – A qualitative research method was used based on documentary and textual analysis of the Shari’ah fundamentals (Islamic legal sources) and relevant accounting standards and regulations. Findings – The paper found that the TFVO is relevant and applicable in Islamic accounting and auditing and not contradictory to the rules of the Shari’ah. Therefore, the concept is acceptable for use in Islamic accounting. Moreover, based on the several roles played by the TFVO, in the Islamic context, the practicality of this concept in Islamic accounting provides further justification for its continued usage. Practical implications – The findings of the paper provide a basis to support the inclusion of theTFVO in Islamic accounting standards, as well as possible usage by Islamic financial institutions (IFIs). Thus, regulators of IFIs and Islamic accounting standards setting bodies can consider it in their challenging task of standardizing accounting practices due to the different interpretations of transactions from the various Madhahib and multiple accounting concepts and practices. In addition, the discussion in the paper reminds accountants and auditors of IFIs and Islamic organizations that providing a true and fair view (TFV) is paramount; thus an override of inapplicable accounting standards and regulation is allowed, but not Shari’ah. Thus, TFVO can assist accountants to record transactions that reflect the economic reality of the IFIs, especially prior to accounting regulations keeping pace with the rapid business environment. Originality/value – The paper has highlighted a very important issue relating to the TFV, specifically the TFVO, from the Islamic perspective. The paper is considered as the first paper that contextually analyses this issue based on Islamic legal sources using a qualitative approach. In addition, the paper has contributed to the literature in Islamic accounting and auditing. Emerald Group Publishing Limited 2014-09-02 Article REM application/pdf en http://irep.iium.edu.my/41514/1/JIABR_2014.pdf application/pdf en http://irep.iium.edu.my/41514/4/41514_An%20Islamic%20perspective%20on%20the%20true%20and%20fair%20view%20override%20principle_scopus.pdf Salihin, Abang and Abdul Hamid, Fatima and Abdulrahman Anam, Ousama (2014) An Islamic perspective on the true and fair view override principle. Journal of Islamic Accounting and Business Research, 5 (2). pp. 142-157. ISSN 1759-0817 http://dx.doi.org/10.1108/JIABR-12-2011-0005 |
institution |
Universiti Islam Antarabangsa Malaysia |
building |
IIUM Library |
collection |
Institutional Repository |
continent |
Asia |
country |
Malaysia |
content_provider |
International Islamic University Malaysia |
content_source |
IIUM Repository (IREP) |
url_provider |
http://irep.iium.edu.my/ |
language |
English English |
topic |
HF5601 Accounting. Bookkeeping |
spellingShingle |
HF5601 Accounting. Bookkeeping Salihin, Abang Abdul Hamid, Fatima Abdulrahman Anam, Ousama An Islamic perspective on the true and fair view override principle |
description |
Purpose – This paper aims to determine whether the “true and fair view override” (TFVO) principle is
relevant and applicable in Islamic accounting. In addition, the paper examines the roles that TFVO
could play in Islamic accounting and auditing.
Design/methodology/approach – A qualitative research method was used based on documentary
and textual analysis of the Shari’ah fundamentals (Islamic legal sources) and relevant accounting
standards and regulations.
Findings – The paper found that the TFVO is relevant and applicable in Islamic accounting and auditing
and not contradictory to the rules of the Shari’ah. Therefore, the concept is acceptable for use in Islamic
accounting. Moreover, based on the several roles played by the TFVO, in the Islamic context, the practicality
of this concept in Islamic accounting provides further justification for its continued usage.
Practical implications – The findings of the paper provide a basis to support the inclusion of theTFVO
in Islamic accounting standards, as well as possible usage by Islamic financial institutions (IFIs). Thus,
regulators of IFIs and Islamic accounting standards setting bodies can consider it in their challenging task of
standardizing accounting practices due to the different interpretations of transactions from the various
Madhahib and multiple accounting concepts and practices. In addition, the discussion in the paper reminds
accountants and auditors of IFIs and Islamic organizations that providing a true and fair view (TFV) is
paramount; thus an override of inapplicable accounting standards and regulation is allowed, but not
Shari’ah. Thus, TFVO can assist accountants to record transactions that reflect the economic reality of the
IFIs, especially prior to accounting regulations keeping pace with the rapid business environment.
Originality/value – The paper has highlighted a very important issue relating to the TFV,
specifically the TFVO, from the Islamic perspective. The paper is considered as the first paper that
contextually analyses this issue based on Islamic legal sources using a qualitative approach. In
addition, the paper has contributed to the literature in Islamic accounting and auditing. |
format |
Article |
author |
Salihin, Abang Abdul Hamid, Fatima Abdulrahman Anam, Ousama |
author_facet |
Salihin, Abang Abdul Hamid, Fatima Abdulrahman Anam, Ousama |
author_sort |
Salihin, Abang |
title |
An Islamic perspective on the true and fair view override
principle |
title_short |
An Islamic perspective on the true and fair view override
principle |
title_full |
An Islamic perspective on the true and fair view override
principle |
title_fullStr |
An Islamic perspective on the true and fair view override
principle |
title_full_unstemmed |
An Islamic perspective on the true and fair view override
principle |
title_sort |
islamic perspective on the true and fair view override
principle |
publisher |
Emerald Group Publishing Limited |
publishDate |
2014 |
url |
http://irep.iium.edu.my/41514/1/JIABR_2014.pdf http://irep.iium.edu.my/41514/4/41514_An%20Islamic%20perspective%20on%20the%20true%20and%20fair%20view%20override%20principle_scopus.pdf http://irep.iium.edu.my/41514/ http://dx.doi.org/10.1108/JIABR-12-2011-0005 |
_version_ |
1643612037138350080 |