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com Abstract: Davison’s study “The accounting lecturer’s role in integrating Biblical values with le arning”; O. Teckle’s, “Conveying Christian ethics in accounting and financial manageme nt courses”, E. M. Tebbs’s, “Managing the Financial Resources of a Family: An Adventis t Perspective”, H. Foster’s, “The Integration of Values and Learning: An application t o accounting”, Thomas-Nathan and Dechun’s, “Do Local Religious Norms Affect Auditor’s Go ing Concern Decisions?” and others put that a lot of studies in the West are inte rested in harmony of Western values and accounting. Quran describes itself: “We ha ve sent down to you the Book as an exposition of all things, a guidance, a mercy and glad tidings to the Muslims” (16:89); and it has got examples of all (social, economic, cultural) events (17:89, 18:54) that we can follow the traces of the duties of an accountant in the verses. The longest verse of Quran (2: 282) is th e foundation of Islamic accounting that that’s why the history of the ‘recording of all accounts’ dates back to the first century of Islam. ‘Not to hide the real number s’ that ‘kitman (to hide)’ is prohibited (2:284) in different verses. Muslim accountan ts have to insist lunar calendar for accounts (10:5); and think “Are predictions a lways true ?” (10:36); thinking also on “clothing of taqwa (Godfearing) is the best” ( 7:26) Accountant should be thrifty, and s/he should prepare lectures about the h arms of prodigality (6:141) for the staff and workers. Accountant must say the t ruth (33:70) when CEO, patron, owner or shareholders of the firm sell the compan y (or their lots.) Accountants (should) encourage the CEOs (or shareholders) to give more charity to the poor and to the workers of the company especially in th e years of much profits is seen in the balance sheets. An account for qarz-i has an (lending without interest) (5:12; 57:11,18; 64:17; 2:245; 73:20) in the balan ce sheet should be put, and this account should be used for individuals or trust worthy companies and the accountant should give struggle for qarz-i hasan to be institutionalized. Muslim accountant must avoid interest operations (2:275-79), and s/he must not permit paying bribery to State or judicial organs or other per son/institutions (2:188.) S/he also should control/follow marketing-advertisingaccounting operations that are they compatible to Islamic rules or not?. An acco untant also should think probable and extraordinary events like flood, quake and different calamities and put necessary spare money (reserves) into the balance sheets remembering “We shall surely test you with fear and hunger, and loss of pro perty and lives and crops..” (2:155.) Quran makes remembered an accountant differ ent aspects of his/her (daily) duty and and in the paper they will be studied.
Introduction. Every culture and civilization has got an accountancy tradition. I n their paper, Bloom and Solotko note interesting points of Confuciusian account ancy: “The most important Chinese philosopher, Confucius, was primarily concerned with improving social welfare and ethical behaviour. He preached enlightened sta te leadership and conformity to traditions. Believing in equal opportunity educa tion and public service, Confucius trained individuals to become government offi cials. He emphasized the importance of working with others harmoniously, contend ing that government should operate on the basis of propriety, morality, and ritu
als rather than laws and punishment. This paper examines the main tenets of Conf ucianism and considers Chinese and Japanese accounting principles in light of Co nfucianism. The influence of Confucius on both Chinese and Japanese accounting i s apparent.” (Bloom and Solotko, 2010) Ethical, Religious and Historical Accounting Studies in the West. Geoffrey Goldsmith’s studies as a productive writer in accountiing field are impor tant: His dissertation: “Self-Regulation of the Financial Disclosure of Evangelical Notfor-Profit Organizations”, (1994) and academic article "Accounting s Foundation: Postmodernism or Biblical Principles?” (Belhaven e-journal 2005), and professional presentations: "Comprehensive Biblical Integration of the Accounting Curriculu m" Christian Business Faculty Association Seattle Pacific University, WA Oct. 2 007. "FASB’s Proposed Changes in Financial Statements: Why and How" National Asso ciation of Government Accountants Jackson, MS July 2007. "Accounting s Foundati on: Postmodernism or Biblical Principles?" Christian Business Faculty Associati on, San Diego, CA, October 2005. "Postmodern Accounting", Niagara Falls Univers ity International Conference on Emerging Issues in Business, Niagara University , NY, August 2005. "Teaching Accounting in Postmodern America", Christian Busin ess Faculty Association Conference, San Antonio, TX, October 2004 And his paper: “Accounti ng’s Foundation: Should the Philosophical Foundation of Accounting Be Postmodernis m or Christianity?” His notes in the abstract are very useful: “The Financial Accoun ting Standards Board (FASB) regulates financial accounting. FASB issues two kind s of accounting pronouncements. The first kind are Statements of Financial Ac-co unting Concepts (SFACs). They are the theoretical foundation for the regulations which are promulgated in the Statements of Financial Accounting Standards (SFAS s). FASB‟s theoretical statements are based on unstated philosophical assumptions about ethics and human nature. For example, FASB has assumed that investors are rational and are able to understand financial statements. In a paper I presented previously for the Christian Business Faculty Association, I looked at the cont radictions between the currently popular philosophy of postmodernism and FASB’s fo undational assumptions. The paper provided a useful perspective for accounting e ducators, particularly those in state institutions who cannot overtly teach from a religious perspective. In this paper, I have extended the discussion—in order t o make it even more useful for those teaching in Christian colleges who want to integrate faith and learning—to show points of compatibility between FASB’s philosop hical assumptions and biblically-based Christian philosophy.” He also notes: “…(3.) A fundamental Christian doctrine is that of the imago dei (first definition: God s own self-actualization through humankind; and second, God s care for humankind. ) We are created in the image of God, with dignity, reason, emotions, will, and intellect. God cherishes us, giving us great value. Nevertheless, depravity is a nother fundamental Christian doctrine. We are all heirs to the rebellion of Adam and Eve—depraved sinners who are incapable of wholeheartedly following God‟s law. W e are, however, extremely capable of—and experienced in—breaking his commandments in creative ways. A worldview that recognizes this is necessary in the accounting profession because the preparation of financial statements requires moral integr ity—or at least an audit.” And Goldsmith completes the paper with these statements: “I am still working my way through the process of thinking about the com-patibilit y of FASB’s philosophical assumptions with biblical principles. This paper is only a tentative step in that direction. But I think that a restoration of Christian virtues holds great promise for providing a solid ethical foundation for the ac counting profession in a culture that is sinking into a quicksand of relativism, meaninglessness, and irrationality. I also am hopeful that this pa-per could st imulate other Christian accounting instructors with useful ideas for integrating Christian principles into their curricula.” Mwanahiba Davison’s study: “The Accounting Lecturer’s Role in Integrating Biblical Val ues with Learning”; Teckle Orshiso’s: “Conveying Christian Ethics in Accounting and Fi
nancial Management Courses”; Henry C. Foster’s: “The Integration of Values and Learnin g: An Application to Accounting”; Emily Dubo and R. Tebbs’s: “Managing the Financial R esources of a Family: An Adventist Perspective” are also seen as studies intereste d in Christian viewpoint on accounting. The Sixteenth Conference on Accounting and Management History will be held in Na ntes on March 23-25, 2011. The conference, which has the theme of "Perception, R epresentations, and Measures of Profit," The original call for papers explains the goals of the conference: participants will consider how Old Regime merchant s, bankers, industrialists, or financiers understood profit, how these perceptio ns were formed, what information was important, what instruments for observing, measuring, and predicting were used to support decisions.” We also see another “Call for Papers: Keeping account of charity: account-books an d budget surveys as a source for individual charitableness. Session at the Europ ean Social Science History Conference, Glasgow University, Scotland, UK, 11 - 14 April 2012, in the Social Inequality Network.” Organizers mentiones interesting n otes: “In 1627 the Dutch burgomaster Jacob van Brouckhoven (1577-1642) started ke eping a register in which he recorded all charitable expenses he made. He used i t to record the expenses on the almshouse he built, but he also registered the c ouples he housed in some of his property, occasional alms to individuals, the an nual stipend he gave a poor relative, and the donations he made to several insti tutions of poor relief. Studies of poor relief and charity often focus on instit utional sources, but these give us only insight into part of the complete range of charitableness people in the past engaged in. People did not just found and build almshouses, b equeath part of their estate to the poor or join in collections held by institut ions engaging in poor relief: they also gave alms to beggars in the street, hous ed poor people in their backyard or contributed to their upkeep. This informal r elief however seldom made it into the records of poor relief institutions, and t hus often escapes the notice of historians. To circumvent this problem, a seldom used, let alone systematically studied, source should be considered: the accoun t-books of individuals, in which they recorded their income and expenses. Along entries informing us on the cost of life and the sort of things people bought, t hey often also include entries on charitable expenses. Separate charitable accou nt-books like Jacob van Brouckhoven’s will have been rare; but one might expect that people conscientious enough to keep track of their expenses also recorded what they gave to poor reli ef in all its guises. We would like to invite contributions from all periods and cultures on charitable expenses in account-books and budget surveys. Questions which we would like to see addressed are: what did people give, how, when and wh ere? How frequent were these expenses? Can one say anything about the charitable percentage of the total of their expenses? Did they write anything on their mot ivations for giving? From what class were they? And finally: do account-books exist of people receiving poor relief?” A very useful statement is seen in the call for papers of 2th Balkans and Middle East Countries Conference on Auditing and Accounting History (was held in İstanbu l between 15-18 September 2010) and emphasizes the importance of historical stud ies in the field:: “With the dawn of the 21st Century, economic globalization has directed the Balkans and Middle East towards a changing process of accounting re cording and auditing rules, especially within the context of developments in the European Union. Africa, Central Asia and South East Asia have also been faced w ith the same requirements. On the other hand, these requirements have shown them selves in the globalization of accounting standards. Naturally, this conference is oriented towards the requirements of a large geographical area. It is not un remarkable that accounting history has been growing rapidly not only in western countries but also in the above mentioned national cultures in this geographic r egion. In addition to that, the belief that today’s accounting and auditing needs will be shaped by historical developments is being reinforced…The conference theme
is Auditing and Culture in Accounting from Past to Present ” Papers About Islamic Accounting History in Last World Congress of Accounting His torians
Papers about Islamic Accounting History appeared in last (the 12th) World Congre ss of Accounting Historians (that was held on September 14-18, 2010 in İstanbul) t hat will be useful to mention them: Vehbi Karabıyık’s paper: “The Accounting Formation o f Ottoman Empire and an Auditing of a Corruption in Accounting in the Early 18th Century”. The other papers are: “Finance Inspection Board: Ottoman Era (1879-1922)” b y Emre Çelebiler-Oktay Güvemli, “Financial Management in Ottoman Empire and Investigat ion of Illegally Acquired Assets at the End of XVIIIth Century” by Fatma Şensoy, “Waqf s in the Ottoman Empire and the Accounting Record System in the Waqfs” by Sudi Apa k-Mikail Erol-Osman Uluyol-Ahmet Akcan, “Ottoman Archive Documents in Terms of Acc ounting History” by Mustafa Budak, “Taxation in Islamic Economy: Instances from Soko to Caliphate and Lessons for Sharia Compliant States of Nigeria” by Kabiru I. Dand ago, “ “The First Course Books on Double-Entry Accounting in the Ottoman Era” by Mehme t Özbirecikli-Ümmühan Arslan, “Overview of Different Paradigms Concerning the Origin of Double-Entry Bookkeeping” by Kambiz Forqandost Haqiqi, “Accounting System of the Cha ritable Endowments in the Ottoman Empire (16th to 19th Centuries) by Kayhan Orba y, “Jami‘u’l-Hisab: A Mardiban (Stairs) Style Accounting Instruction Book from the Ear ly 14th Century Ilkhanate State” by Fehmi Yıldız-Batuhan Güvemli, “The Mardiban Method Use d in Ottoman State Accounting: The Organization of a Central Accountancy and Rec ordkeeping System” by Mahmut Sezinler, “Regulating Auditing in Saudi Arabia: from St ate to Selfregulation” by Hussam A. Al-Angari, “The Development of Auditing Professi on in Palestine: Critical Approach” Akram I. Rahhal, “Analysis of Ottoman Public Deb t Administration (OPDA) on the Progress of Accounting at the Ottoman Empire and the Influence of this Debt Management” by Cengiz Toraman-Hasan Abdioğlu-Sinan Yılmaz, “T he Establishment Story of a School (Hamidiya School of Commerce) Giving Accounti ng Education in the Second Half of the 19th Century” by Ayten Çetin-Ayşe Pamukçu-Ertuğrul Yüksel, “Mehmed Cavid Bey (1875-1926) and His Thoughts (on Accounting)” by Necati Aydın, “The Mardiban (Stairs) Accounting System and Comparison with Present Day Accounti ng Rules: An Example about Kitchen Expenditures in Ottoman State” by Cengiz Torama n-Cemal Elitaş-Oğuzhan Aydemir, “A Sample Implementation Related to the Muqataa System (Taxation for Cultivated Lands) in the Ottoman Empire and Stairs Accounting Met hod” by Cemal Elitaş-Feyyaz Yıldız-Bilge Leyli Elitaş, “A Sample Application of Stairs Acco nting Method and Cash Awqaf in Ottoman State” by Uğur Özcan-Bilge Leyli Elitaş-Oğuzhan Kal kan, “Bilateral Limitation in Accounting and Kitabu’s-Siyaqat” by Remzi Örten, “State Acco unting System in the Ottoman Empire -Stair Method: Catalogue Work” by Cengiz Tora man-Oğuzhan Aydemir, “The Establishment and Historical Development of General Direct orate of Public Accounts (Muhasabat Muduriyyat al-Umumiyya of Ottoman Empire)” by Yılmaz Öztürk. VERSES ABOUT ACCOUNTING IN QURAN Muhasaba (to call to account) thought is seen in different chapters of Quran: “…Whet her you make known what is in your souls or hide it. Allah will bring you to acc ount for it…” (2: 284) We see the term of “Yawm al hesab” (Day of Reckoning) as a Qu ranic concept: “Moses said: “I have taken refuge in my God and your God against arro gant one who does not believe in the Day of Reckoning” (40:27) Quran encouraged M uslims to interrogate themselves, from the early days of Islam; “Their reckoning h as drawn near for mankind, while they turn away in carelessness” (21: 1), “Then are mankind returned to Allah, their God, their real God. Surely His is the judgemen t, and He is the most swift ofreckoners.” (6: 62), “For them, there is an abundant r eward which they have earned. Assuredly, Allah is Swift at reckoning.” (2: 202), “…The y (believers) fear their God and dread an evil reckoning” (13: 21) Mankind is remi nded that there is a Hereafter and all of his/her deeds will be questioned/rewar ded: “This it is taht you are promised for the Day of Reckoning” (38: 53), “A suitable recompense! This is because they did not expect reckoning” (78: 26-27) Every man is responsible (especially) from his/her deeds: “…You are not by any means accounta
ble for them, nor are they accountable for you,..” (6:52); “…We (God) shall bring fort h for him (man) on the day of Resurrection a book he shall find wide open. (It w ill be said to him): “Read your book! Your soul is sufficient this day as reckoner against you!” (17: 13-14) The word “kafir” (disbeliever) (that with its singular, plural and verbal forms is r epeated in Quran approximately 500 times) (Abdulbaqi, 605-613) means in classica l Arabic “man who hides (the realities)” points that Muslims should be transparents. Quran is a source of spiritual doping especially in economic meltdowns for acco untants and other employers and employees: “Is not He (God) Who accepts the man’s pr ayer who in embarrassment when he entreats to Him and He (God) takes off their t roubles..” (27:62) Muslim accountant gives morale to the employees and other (even ceo and) high executives and shareholders and he/she reminds the shareholdres a nd all of the business milieu: “…Who gives sustenance for you from the sky and the e arth? Is there any God beside Allah?” (27:64) Accountant thinks (also) his/her fau lts in the negative positions of the company and returns to Quran and thinks als o his/her and the other faults of executives and other employees and then thinks also sone sins may be they committed and calls the staff for istigfar (repentan ce): “…Whoever fears Allah, He shows (opens) a way (an exit) for him and gives suste nance that the man can not guesses…” (65: 2-3), “Allah will ease the hardship of the man who fears Him” (65:4) Are predictions always true? “…But a conjecture is no subst itute for truth..” (10:36) That’s why accountant does not estimate/not put an opinio n what he/she does not know and accountant knows/believes that exact estimation of the future of the business life is impossible: “…No man knows what he/she will e arn tomorrow…” (31: 34) that’s why he/she is not in a panic in downturns and he/she be lieves that Allah is not muharrik-i awwal (first mover) but Muharrik-i Daimi (Pe rmanent Mover) and Allah can interfere the (amount of) sales if He wants: “…So seek (demand) your provision from Allah, and serve Him (perform your prayers) and giv e thanks to Him..” (29: 17), “…Assuredly, Allah is Able to do all things” (29: 20) Espec ially in dangerous economic times Muslim accountant does not forget: “…and beside Al lah there is for you no friend nor helper” (29:22) And accounted prays for succes s of his/her firm. On the other hand, economic collapse is possible every time ( because of): “…Everything will perish save His countenance” (28: 88) In the event, the camel of the Prophet, ‘Adwa’ was passed in a race that no any other camel could not pass that the companions of the Prophet were surprised. But the Prophet said: “It is a right for Allah to make fallen/declined every thing that it had risen (in the past)” (Shawkani, 1971, from Bukhari and Ahmad) When a firm began to lose and it was known that it would go to bankrupty, the accountant’s duty is to help to di ssolve the firm in an easy way with a minimum loss as far as possible. Muslim accountants should propagate that the accounting year should be designed according to Hagira (lunar) calender: “They question you (O Muhammad) about the ( phases of) the moon. Say: “They are seasons fixed for mankind and for the pilgrima ge.” (2:189) Accountant does not permit/ connive giving a part of the capital (of the company) as a bribe: “Do not eat up one another’s property among yourselves by u njust means, nor bribe with it the judges in order that you may knowingly and wr ongfully deprive others of their possessions.” (2: 188) The (new) product of the c ompany may be very good but the society/customers may not buy it or a best selle r product of the company may not been sold in this year: “And when you said, “O Mose s! We can not endure only one kind of food, so call on your God to give us some of the varied produce of the earth, gren herbs, cucumbers, garlic, lentils and o nions! He (Moses) said: “Would you Exchange that which is higher for that which is lower?” (2: 61) Although Allah used to send manna (meat of the bird of quail) and salwa (a kind of sweet) every day but they did not them some times later that’s w hy a prudent accountant must think probable damages/loss and put deposit money i nto the accounts of the company. Besides marketing faults and mistakes, a natura l disaster is possible every time: “We (God) shall surely test you with fear and h unger, and loss of property and lives and crops; but give glad tidings to the st eadfast. Who say, when a misfortune comes to them: “We belong to Allah, and to Him
we shall return. “(2: 155-156) Peace is encouraged in Quran (4:128) and although God emphasizes that He does not want war: “…As often as they light a fire for war, A llah extinguishes it..” (5: 64) but war(s) is also a reality in long history of th e humanity that’s why a cautious accountant thinks necessary precautions in his/he r balance sheets/reports. The longest verse of Quran (2: 282) is the foundation of Islamic accounting that that’s why the history of the ‘recording of all accounts’ d ates back to the first century of Islam. ‘Not to hide the real numbers’ that ‘kitman ( to hide)’ is prohibited (2:284) in different verses. Accountant must say the truth (33:70) when CEO, patron, owner or shareholders of the firm sell the company (o r their lots.) Accountants (should) encourage the CEOs (or shareholders) to give more charity to the poor and to the workers of the company especially in the ye ars of much profits is seen in the balance sheets. An account for qarz-i hasan ( lending without interest) (5:12; 57:11,18; 64:17; 2:245; 73:20) in the balance s heet should be put, and this account should be used for individuals or trustwort hy companies and the accountant should give struggle for qarz-i hasan to be inst itutionalized. Muslim accountant must avoid interest operations (2:275-79); s/he also should control/follow marketing-advertising-accounting operations that are they compatible to Islamic rules or not?. A Muslim accountant always encourage s low(er) profit and high(er) production and productivity. Conlusion. Although there are a lot of studies according to different Christian sects on accounting in the Western world, but Quranic viewpoint on the duties of accountant is more detailed. Especially in the today’s ongoing economic crisis, p owerful ethical principles of Quran on accounting should be much studied.
Abdulbaqi, Muhammad Faud (no date). Mujam’al-Mufahras li-Alfaz al-Qur’an al-Kariym. Çağrı Yayınları: Istanbul Bloom Robert, Solotko John(2010). The Foundation of Confucianism in Chinese and Japanese Accounting (trs. Cengiz Güney-A.Vecdi Can) article in Akademik Bakış Dergisi (Journal of Academic Viewpoint), issue, 20 (April-May-June) 2010. Jalalabad, Kir gizistan: www.akademikbakis.org Shawkani(1971/1391). Nayl al-Awtar, VIII/89. Mustafa al-Babi al-Halabi wa Awlada h, Qahira http://www.belhaven.edu/Belhaven/faculty/GeoffreyGoldsmith.pdf http://www.cbfa.org/Goldsmith.pdf www.papers.ssrn.com/sol3/papers.cfm
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