Syllabus Accounting for Islamic Banking

Subject Overview

Since the mid 20^th century, there has been a serious effort within Muslim societies to apply fully the Islamic tenets in their daily lives. This includes the application of Islamic economic teachings, as discussed variously in many verses of the holy Qur’an, in the ahadith, as well as exemplified in the real life of prophet Muhammad (M.P.B.U.H) and his companions.

The most vivid example of this effort can be seen in the establishment of Islamic financial institutions such as banks, insurance companies, capital markets, mutual funds and so forth, both in Muslim and non-Muslim countries. The proliferation and growth of Islamic banks particularly, both nationally and internationally, has been remarkable. Islamic banks now stand side by side with their conventional counterparts in more than 150 countries worldwide.

Because of the abovementioned reasons, it imperative for students to understand how Islamic banks operate. This course is directed specifically at accounting students, providing an understanding not only of the operations of these banks, but also the processes required to record the bank’s unique transactions, as well as how to prepare financial statements as required by the bank’s stakeholders.

Subject Objectives

This subject is designed to provide students with the ability to recognize and record a variety of transactions in Islamic banks and Islamic financial Institutions generally.

After completing the course, it is expected that students will be able to:

1. distinguish between Islamic banks and conventional banks, both their basic concepts as well as their operations
2. explain the accounting concepts applied within Islamic Banks and financial institutions
3. record various kinds of transactions used in the operation of Islamic banks and financial institutions
4. prepare the Financial Statements of Islamic banks and financial institutions.

Materials and References

· Textbooks

1) AAOIFI [2001] Accounting, Auditing and Governance Standards for Islamic Financial Institutions, Manama, Bahrain.Ö

2) Ikatan Akuntan Indonesia [1994] Conceptual Frameworks for Preparation and Presentation of Financial Statements (Jakarta: IAI)Ö

3) AAOIFI [2002] Shari’a Standards, Manama, Bahrain.

· Journals

1) Adnan, M. Akhyar [1997] “The Shariah, Islamic Bank and Accounting Concepts”, Jurnal Akuntansi dan Auditing Indonesia, Vol. 1, No. 1, May 1997, pp 47-80.

2) Hameed, Shahul [2000] “The Need for Fundamental Research in Islamic Accounting” IBFnet.

· Websites

1) http://www.aaoifi.org

2) http://www.islamic-finance.com

3) http://www.bi.go.id

Assessment

Exams

The mid-term exam will be held as scheduled by the Department of Accounting. The final exam will be held at the end of semester. The exams involve a number of accounting problem calculations and several short answer questions. The exams are 80 minutes in duration.

Essays

Students are required to submit a 1000-1500 word essay about accounting for Islamic banks. The precise topic will be announced in week 4, and the paper must be submitted in week 8. The essay must be written individually.

Assignments

Two assignments will be given during the semester. The first assignment requires an investigation into current accounting issues in Islamic banks generally You must then write a report of 1000-1500 words. The second assignment requires you to write a report of 1000-1500 words that gives an analysis of the presentation of Islamic Bank Financial Statements with.

End of Semester Result

The final grade will be based on the mid-test, final test and assignments. The percentage distribution will be allocated as follows:

Mid term exam 35%

Final exam 35%

Assignments 30%

Total 100%

Policy on assessment

Essays and assignments will not be accepted after the due date unless arrangements for an extension of time have been made prior to the due date. If you do not agree with the result that you achieve for any piece of assessment for this subject please contact the lecturer immediately. You have a right to know the reasons why your work has received a certain grade and to request it be reassessed if you believe it has been unfairly assessed.

sumber : http://www.findpdffile.com/id/doc/Jurnal%20Akuntansi-1.html

Subject Organization and Lecture Program / Topics

Week	Topics	References
01	Introduction of Islamic Perspective on Accounting	Adnan [1997], Shahul [2002] and Triyuwono [1997] [see journal references]
02	Understanding of Riba and Islamic Banks Operations	Antonio, 2001
03	Conceptual Framework of Islamic Banks Accounting	IAI, 2002; AAOIFI 2001
04	Accounting for Wadiah	IAI, 2002; AAOIFI 2001, PAPSI, 2003
05	Accounting for Murabahah	IAI, 2002; AAOIFI 2001, PAPSI, 2003
06	Accounting for Salam	IAI, 2002; AAOIFI 2001, PAPSI, 2003
07	Mid- term exam
08	Accounting for Istisna	IAI, 2002; AAOIFI 2001, PAPSI, 2003
09	Accounting for Mudharabah	IAI, 2002; AAOIFI 2001, PAPSI, 2003
10	Accounting for Musharakah	IAI, 2002; AAOIFI 2001, PAPSI, 2003
11	Accounting for Ijarah	IAI, 2002; AAOIFI 2001, PAPSI, 2003
12	Accounting for fee-based transactions	IAI, 2002; AAOIFI 2001, PAPSI, 2003
13	Accounting for Qardhul Hasan & Zakat	IAI, 2002; AAOIFI 2001, PAPSI, 2003
14	Preparation of Financial Statements	IAI, 2002; AAOIFI 2001, PAPSI, 2003
15	Final exam