Universal Journal of Accounting and Finance Vol. 9(2), pp. 267 - 274
DOI: 10.13189/ujaf.2021.090217
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Islamic (Partner) Accounting and its Comparison with International Financial Accounting Standards (IFRS)

Ekaterina Yu. Voronova ^1,*, Husan Sunatullaevich Umarov ^2
1 Department of Accounting, Statistics and Auditing, Moscow State Institute of International Relations of the Ministry of Foreign Affairs of the Russian Federation (MGIMO University), 76 Vernadsky Prospect, Moscow, 119454, Russian Federation
² Moscow State Institute of International Relations of the Ministry of Foreign Affairs of the Russian Federation (MGIMO University), 76 Vernadsky Prospect, Moscow, 119454, Russian Federation

ABSTRACT

Accounting information systems are evolving along with modern information technology, which opens up countless opportunities to expand the intellectual, scientific and professional potential, contributing to the culture and "language" of accounting, professional principles extend beyond one country. However, differences in national and regional accounting systems still persist and reflect not only a diversity of accounting policy views but also deeper structural differences rooted in legal, financial and social systems. The Islamic (partner) accounting model appears to be the least studied and, at the same time, the most different from other accounting models. The economy of Islamic states is an important part of the world economy, so Islamic and other companies operating or investing in an Islamic institutional environment have a direct interest in proper disclosure of accounting information. The major goal of the research is to find similarities and differences between the IFRS and Islamic banking and to prove that it's beneficial in the modern Islamic countries. In order to assess and compare the IFRS and the Islamic banking practices the authors used comparative analysis and empirical study of the major parts of the both accounting systems. The major findings include the proof of the positive role of Auditing Organization for Islamic Financial Institutions (AAOIFI) which develops norms of convergence of International financial accounting standards (IFRS) and AAOIFI, and the proof that Islamic banking is based on the Sharia and Islamic ethics, but can be based on other principles that are not contrary to Sharia. The authors have come to a conclusion that zakat (religious tax for the poor and needy) is a positive social external effect, and that Islamic accounting is characterized by greater disclosure than traditional accounting.

KEYWORDS
Islamic (Partner) Accounting, International Economic Information System, Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), Islamic Ethic, Accounting Principles, Zakat

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Ekaterina Yu. Voronova , Husan Sunatullaevich Umarov , "Islamic (Partner) Accounting and its Comparison with International Financial Accounting Standards (IFRS)," Universal Journal of Accounting and Finance, Vol. 9, No. 2, pp. 267 - 274, 2021. DOI: 10.13189/ujaf.2021.090217.

(b). APA Format:
Ekaterina Yu. Voronova , Husan Sunatullaevich Umarov (2021). Islamic (Partner) Accounting and its Comparison with International Financial Accounting Standards (IFRS). Universal Journal of Accounting and Finance, 9(2), 267 - 274. DOI: 10.13189/ujaf.2021.090217.