What is it about?
Islamic financial institutions or in this study Islamic banks are currently in dispute and still in search of the most viable financial reporting standards to be applied. Through this study, we document that Shariah harmonisation is one of the fundamental issues in the standardisation project. From the survey in Indonesia, it is reported that the stakeholders do not fully agree that the Shariah harmonisation is the main barrier as various actors are more authoritative at the same time.
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Why is it important?
The paper has practical significance for financial reporting standard setters for Islamic banks and policy-makers to understand the key behavioural and demographical dimensions of their stakeholders. These dimensions can be applied to effectively position important aspects in financial reporting standards setting.
Perspectives
Following the common nature of a research, this paper suggests tentative solutions albeit the content is sufficient to unveil 'what is going on question'. In the discussion and conclusion, the paper attempts to bridge both positivism to interpretivism to embark at a clearer direction for future research. Thus, we would like to encourage future researchers to extend the research using different research paradigm and methodology to show different evidence of the study. The Islamic finance is still at its developing stage which requires more rigorous inputs, one of them is in the area of financial reporting.
Dr Murniati Mukhlisin
Tazkia University College of Islamic Economics
Read the Original
This page is a summary of: The need for Shariah harmonization in financial reporting standardization, International Journal of Islamic and Middle Eastern Finance and Management, November 2015, Emerald,
DOI: 10.1108/imefm-10-2013-0110.
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