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- PublicationA critical assessment of the waqf law being prepared by IDB/IRTI and Quwait FoundationMurat Cizakca (Vakiflar Genel Mudurlugu, 2014)
There is a huge need in the Islamic world to revitalize the waqf system. The currently dilapidated state of waqfs in most countries should actually be considered as an opportunity to design a thorough reform taking into consideration not only the classical Islamic waqf law but also the latest practices and norms in the west. It is to be hoped that such a synthesis of the classical Islamic and modern western practices and norms in conformity with the Shariah will lead to an ideal waqf law that can be of vital importance for the restoration of this institution
- PublicationAccounting for Islamic financial transactions: a case study on financial reporting practicesZulkarnain Muhamad Sori (IBA Press, 2018)
This hypothetical case study was developed based on the financial statements of Bahrain Islamic Bank and Bank Islam Malaysia Berhad. The banks were registered in two different countries namely Bahrain and Malaysia that adopted Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and International Financial Reporting Standards (IFRS) (the standards are locally adopted and named as Malaysian Financial Reporting Standards (MFRS)) issued by International Accounting Standards Board (IASB) respectively. The key issues explored in this case are: the motivation for recording and reporting Islamic financial transactions; types and purposes of financial statements prepared by Islamic financial institutions (IFIS) in the two different financial reporting regimes; Shari'ah perspectives of key accounting assumptions such as substance over form, time value of money, fair value and principles of probability. Understanding the Shari'ah perspective of key accounting assumptions would help preparers and users of financial statements to appreciate the effect of accounting policy adopted for financial reporting.
- PublicationAccounting for leasing: the case of Islamic car financingShamsher Mohamad Ramadili Mohd; Zulkarnain Muhamad Sori (IBA Press, 2018)
This case was developed based on a real-life experience dealing with an Islamic car financing contract (i.e. Al-ljarah Thumma Al-Bay |AITAB] contract - Sale and Leaseback) between a Malaysian Islamic Financial Institution and their customer. It is well recognised that AITAB is governed by the Malaysian Hire Purchase Act 1967, that oversees conventional (nor Islamic) car financing, yet it is used for both financing modes. The contract requires clarification on the following: understanding of the nature of the contract used and the relevant transactions involved; revenue recognition (current and future); capitalisation of relevant costs in the asset's value; fair value of leased asset; recognition of financial assets and liabilities; and disclosure requirements from the bank and customer perspectives. Users of the case are assumed to be familiar with the various regulatory requirements and theoretical foundation of the "Accounting for Islamic Financial Transactions" from IFRS/MFRS (International Financial Reporting Standards/Malaysian Financial Reporting Standards) and the AAOFI (Accounting and Auditing Organization for Islamic Financial Institutions) reporting perspectives.
- PublicationAccounting for musharakah mutanaqisah home financingMahmoud Al Homsi; Alam Asadov; Zulkarnain Muhamad Sori (UMK Press, 2019)
This chapter provides the discussion on accounting issues for musharakah mutanaqisah (MM) home financing in the case of Malaysia. Though the MM mode of financing has addressed the 'ambiguities and risk issues in conventional mortgage financing and the controversy that surrounds other financing packages like al Bai Bithaman Ajil and Bay al Inah (Mydin-Meera & Abdul-Razak, 2009), there are some practical issues in operating this mode of financing, as Islamic banks operate this type of contract more closely to conventional practice, thereby lacking the spirit of the contract itself ...
- PublicationAccounting for the property acquisition: the case of musharakah mutanaqisahZulkarnain Muhamad Sori (IBA Press, 2018)
This case was developed based on a real-life experience related to an lslamic equity home financing contract (ie. Musharakah Mutanaqisah) between a Malaysian Islamic Bank and their customer. The Musharakah Mutanaqisah (MM) Financing mode has gained popularity in house financing in Malaysia, where the bank and customer enter into a contract of joint property ownership and the customer's ownership of the asset gradually increases throughout the financing period and fully owns the asset after the last financial settlement. This case aims to: illustrate the process of property acquisition using the MM financing mode; account the various transactions involved in MM financing; account capitalisation of acquisition costs; recognise and disclose financial assets/liabilities; and determine Fair value of the MM assets. Users of the case are assumed to be familiar with the various regulatory requirements and theoretical foundation of the "accounting for Islamic Financial transactions" from reporting perspectives of IFRS/MFRS (International Financial Reporting Standards/Malaysian Financial Reporting Standards) and the AAOIFI (Accounting and Auditing Organization for lslamic Financial lnstitutions).
- PublicationAchievements of venture capital and its potential in emerging markets with specific reference to TurkeyCizakca, Murat (Edward Elgar Publishing Limited, 2014)
Venture capital (VC) is a financial institution and a method of investment, which has become enormously popular in the United States particularly since the 1970s. One of the most remarkable characteristics of VC is the fact that it prefers to finance young entrepreneurs or start-ups that are usually rejected by the conventional institutions of finance.
- PublicationAdapting mudarabah financing to contemporary realities: a proposed financing structureObiyathulla Ismath Bacha (Edward Elgar Publishing Limited, 2014)
Islamic banking in Malaysia, despite its recent start, has seen very rapid growth. This growth however has beem uneven. While short-term trade financing has always been dominant and grown rapidly, Mudarabah financing by Islamic banks in Malaysia has reduced to insignificant amounts. Yet, Mudarabah which is based on profit and loss sharing has always been considered to be at the core of Islamic financing and in tune with the shariah's injunctions against interest based financing
- PublicationAn Islamic perspective on economic developmentIqbal, Zamir; Mirakhor, Abbas (Palgrave Macmillan, 2010)
Islam has provided a blueprint of how a society is to be organized, and how the affairs of its members are to be conducted in accordance with its prescriptions. The system itself has not been applied in its entirety, with the exception of a brief period at the inception of Islam. Only in recent decades have Muslims become interested in society-wide implementation of Islamic teachings, with all this implies for development.
- PublicationAn overview of corporate governance: some essentialsShamsher Mohamad Ramadili Mohd; Zulkarnain Muhamad Sori (UPM Press, 2012)
The Oxford Dictionary define 'corporate' is an adjective belonging to a corporation, while 'governance'derives from the Latin gubernare, meaning 'to steer', which implies that corporate governance involves the function of direction rather than control. Therefore, corporate governance is a function of governing a corporation.
- PublicationAnalisis Syariah terhadap bitcoinMuhd Rosydi Muhammad; Marjan Muhammad (Penerbit IKIM, 2020)
Pada Januari 2009, Satoshi Nakamoto telah menghasilkan mata wang kripto pertama yang dikenali sebagai bitcoin. Pada peringkat awalnya, mata wang kripto ini kurang mendapat sambutan meskipun teknologi yang mendasarinya amat berinovasi dan berdaya maju. Bitcoin (menggunakan simbol BTC) ini hanya mula menarik minat pengguna selepas nilainya melonjak sebanyak 600 peratus bagi BTC1 dalam masa kurang daripada setahun; iaitu BTC1 bersamaan dengan nilai USD1,000 pada 1 Januari 2017 kepada USD7,000 pada 3 November 2017. Kejayaan besar yang dicapai bitcoin ini telah menyumbang kepada penghasilan lebih banyak mata wang kripto seumpamanya dicipta dan dilancarkan. Sehingga 7 Januari 2018, lebih daripada 1,284 mata wang kripto telah dibangunkan dan bilangan ini dijangka akan terus meningkat.
- PublicationAn analysis of accounting from Islamic perspectivesNurazleena Ismail; Zulkarnain Muhamad Sori (UMK Press, 2019)
This chapter provides a discussion of a study that examines accounting in Islamic perspectives. The discussion includes an overview of the development of Islamic finance, accounting in Islamic perspectives, decision usefulness, stewardship, accountability, financial measurement, disclosure and presentation and four key accounting assumptions, namely 'substance over form', 'time value of money', 'fair value' measurement and 'recognition based on probability', which serve as important guides to preparers of financial information ...
- PublicationApplication of conventional benchmark in Islamic wealth managementMohamed Anouar Gadhoum; Shamsher Mohamad (Edward Elgar Publishing Limited, 2017)
LIBOR (London Interbank Overnight Rate) is a rather recent concept, even if English banks had been in banking business for many decades before the invention of LIBOR as the world's favorite benchmark for cost of money. LIBOR emerged in the 1980s to serve as a benchmark to account for interest rate risk when a surge in the use of futures contracts began to trouble lending decisions. Futures have been offered since 1972, and by the 1980s had become a major risk-hedging instrument in the developed countries. Due to the absence of a reliable benchmark back then, a solution was sought from the Bank of England. The banking industry trade group, the British Bankers' Association, launched LIBOR with the dollar, the yen and the pound sterling to have LIBOR serve as the benchmark.
- PublicationApplication of Shariah governance framework in Islamic financial institutionsMohamed Eskandar Shah Mohd Rasid; Shamsher Mohamad Ramadili Mohd; Zulkarnain Muhamad Sori (UMK Press, 2019)
This chapter provides discussion on a study that investigates the perceptions on shariah governance practices among Malaysian Islamic financial institutions. The chapter explores the effectiveness of implementation of Shariah Governance Framework among Malaysian IFIs with the focus on their level of commitment, the challenges and suggestions to further improve the effectiveness of implementation of this framework. The system of corporate control, effective and efficient governance that is consistent with shariah guidance has been an important agenda for Islamic Financial Institutions (IFIs) since the existence ofIslamic Finance in Malaysia. This is especially important in light of rapid growth in Islamic Finance industry not only in Malaysia but globally. The well-functioning Islamic finance industry can only be sustained if there is good corporate governance practice by IFIs that comply with the shariah guidance.
- PublicationApproaches to Islamic banking in the GulfWilson, Rodney (Gerlach Press, 2012)
Islamic banking is more developed in the Gulf region that anywhere else in the world. Although there is much information and writings on Islamic banking on the Arab side of the Gulf, much less is available on the workings of the Islamic banking system in Iran. The aim here is to examine the very different approaches taken by Iran and its Guld Arab neighbors to Islamic banking. The political factors that determined these different approaches will be analyzed and their implications explored.
- PublicationArab Spring and reorganization of the stateCizakca, Murat (Kure Yayinlari, 2014)
Although "Arab Spring" is the name given to the latest events in the Middle East, I am of the opinion that the Arab world has just entered into a winter. Dictators are falling like leaves but it will take a while for the spring to blossom. Moreover, unlike in nature, the transition is not an automatic process. Spring will come only if certain pre-conditions are fulfilled.
- PublicationAudit committee and auditor independence: the Malaysia caseSazali Abdul Wahab; Shamsher Mohamad Ramadili Mohd; Zulkarnain Muhamad Sori (UPM Press, 2012)
The efforts towards better corporate governance practices of firms in the Malaysian capital market were started by the Securities Commission (SC) as early as 1996 in three-phased shift disclosure-based regulations (DBR). During Phase 1 (1996-1999: Flexible/Hybrid Merit Based Regime), the emphasis was to regulate on disclosure, due diligence and corporate governance. Phase 2 (January 2000: Partial DBR) still focused on corporate disclosure, due diligence and corporate governance, but included focus on promotion of accountability and self-regulation. In Phase 3 (2001 onwards: Full DBR) the SC enforced high standards of disclosure, due diligence and corporate governance as well as exercise of self regulation and responsible conduct ...
- PublicationAudit committees from the legal perspectives: the case of MalaysiaShamsher Mohamad Ramadili Mohd; Zulkarnain Muhamad Sori (ICFAI University Press, 2008)
Good corporate governance practices are a trademark of developed capital markets. Stringent regulation of capital markets is not a consistent way to mitigate financial mishaps in developed market environment. Malaysian government has adopted a market deregulation approach, and delegated the responsibilities of ensuring a fair and proper functioning of financial institutions to the Securities Commission. The commission is required to issue listing requirements for public and listed companies to establish audit committees. This paper discusses the Malaysian audit committees' duties from the legal perspective. The discussion covers audit committee's fiduciary duties, duty to be diligent, duty of care and skill and statutory duties which are framed in order to make the functioning of Audit committees more effective.
- PublicationAuditor in dilemma: the case of non-audit servicesYusuf Karbhari; Sazali Abdul Wahab; Shamsher Mohamad Ramadili Mohd; Zulkarnain Muhamad Sori (UPM Press, 2013)
Evidence of audit failures documented worldwide have led to major criticism of the auditing professions' independence and exposed its implication on shareholders and stakeholders' interests. External auditors are expected not only be independent but more importantly must be seen to be independent when examining and attesting clients' financial statements. Auditors are expected to decide on reporting strategies without any influence from their clients' management.
- PublicationAuditor independence: where is it?Mohammad Noor Hisham Osman; Siti Zaidah Turmin; Zulkarnain Muhamad Sori (UPM Press, 2013)
We are in doubt on whether the book editors will ever publish this article that questioning the degree of auditor independence. We have repeatedly heard from colleagues (and foes) that papers that touched this issues has been sidelined by unseen upper hands from being accepted in academic publications. However, we choose to remain steadfast to express our concern about auditor indepence. In this article attempt to, albeit in a small scale, discuss and report an objective assessment of this pertinent concept.
- PublicationAwqaf in history and its implications for modern Islam economiesCizakca, Murat (Edward Elgar Publishing Limited, 2014)
This paper aims at analysing the relevance of the historical awqaf system for modern Islamic economies. The main argument focuses on the fact that the awqaf system has provided throughout Islamic history all the essential services at no cost to the state. Thus, a successful modernisation of the system implies a significant cut in government expenditure and all the associated benefits; including downsizing the state sector and a reduction and even an eventual elimination of riba. As far as the modernisation of the system is concerned, historical evidence indicates that the real exiting potential lies in the cash awqaf. It is envisaged here that two powerful Islamic financial institutions, the cash awqaf and mudarabah need to be combined. It is argued further that this combination should take place within the framework of Islamic banks and thus alter the portfolio of these banks in the desired direction, i.e. increasing the mudarabah/murabahah ratio.
- PublicationAwqaf in history and its implications for modern Islamic economiesCizakca, Murat (CERT Publications Sdn. Bhd., 2011)
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