SHARIA ACCOUNTING

Ivana Yustitia (1802112508)

The idea of syari'ah accounting which is Islamic-based accounting has developed rapidly
and is increasingly widespread both among the general public and the government. And until
now, the development of the Islamic economy has developed rapidly; the Islamic economic
system has begun to be recognized in various countries. Economic systems that apply sharia
values in concept and practice over the past few years have been able to show positive impacts
on the economies of various countries. Shari'ah accounting is basically the same as accounting in
general, it's just that in shari'ah accounting there are several things that differentiate it from
conventional accounting. These differences can be seen in terms of capital, principles, concepts,
characteristics and objectives. With the birth of syari'ah accounting as one of the branches of
accounting, it is very good because it has many positive impacts, especially in the economic
sector in a country that adheres to it.
1. Accounting in Islam
In the Islamic Perspective (Harahap, 1992), it is concluded that based on various studies
carried out in the West, it turns out that the Islamic conception passed down to humans by Allah
SWT through the Messenger of Allah, turns out to be a complete way of life system, in
accordance with and not contradicting science and existing natural phenomena. Literature that
discusses this topic in the country can be seen in the book Supervisory and Management
Accounting in an Islamic Perspective (Harahap, 1992), Islamic Accounting (Harahap, 1999),
Organization and Sharia Accounting (Triwiyono, 2000) and so on. This discussion of accounting
in Islam is nonsense and not apologetic in nature, but it can really be justified in accordance with
its legitimate reference sources. Accounting in Islam can be seen through the holy guidelines of
Muslims, the Koran as follows:
In the Al-Quran Surah Al-Baqarah verse 282
O you who believe, if you are not in cash for a specified time, let a writer among you
write correctly. And the writer should not be reluctant to write it down as Allah has taught him,
so let him write, and let the person in debt imitate what is written, and let him fear Allah his
God, and let him not reduce any of his debts. If the debtor is a person who is weak in mind or in
a weak condition or he himself is not able to judge, then let his representative believe it honestly
and witness it with two witnesses from men among you. If there are not two men, then it is
permissible for a man and two women from the witness that you are pleased with, so that if
someone forgets one person.

From this verse we can note that in Islam, since the emergence of Islamic civilization
since the Prophet Muhammad SAW there has been an order to carry out a recording system
whose emphasis is for the purpose of truth, certainty, openness, justice between the two parties
who have a muamalah relationship earlier. In other words, we can say that Islam requires
recording for the purpose of justice and truth. Meanwhile, recording for other purposes such as
data for decision making is not required. Islamic pressure on the obligation to record is:
1. Making evidence of transactions (muamalah) the basis for later resolving subsequent
problems.
2. Safeguard against manipulation or fraud, both in the transaction and the result of the
transaction (profit). What do you think about accounting? In accounting the objectives of
recording are:
o Accountability or as proof of transaction.
o Income determination.
o Information used in the decision-making process, etc.
2. Islamic Accounting Concepts
In analyzing this, we have difficulty in obtaining literature material that is available in
library materials. Most likely it has been included in the literature that was burned by the tantara
Gengis Khan. At the moment, it is only obtained from archaeological research results and for this
we have not produced many concrete results. The approach we will use is rationing or a logical
approach. Accounting is actually a “muamalah” domain in Islamic studies. This means that it is
left to the ability of the human mind to develop it. However, because of the importance of this
problem, Allah SWT even gave it a place in the holy book Al-Quran Sura Al-Baqarah verse 282.
The placement of this verse is also unique and relevant to the nature of that accounting. He was
placed in the Cow Females letter as a symbol of economic commodity. It is placed in the 2nd
letter which is analogous to “double entry”, is placed in verse 282 which describes the balance
figure or balance sheet. It can even be examined the relevance of the following verse in the
context of double entry or its pairwise nature:
 And everything we created in pairs so that you would remember the greatness of Allah
(Adz Dzariyat: 49).
3. Some Thought Theory and Concept of Islamic Accounting
Gambling and Karim (Harahap, 1992) draw a hypothesis because Islam has sharia that all
its followers adhere to, it is only natural that people have financial and accounting institutions
that are submitted through self-proof according to religious grounds. They formulated three
models, including the "Colonial Model" which states that if the society is Islamic then the
government should apply Islamic law and the Accounting Theory should also be Islamic
Accountant Theory. They also emphasized that according to its nature, Islam should have
accounting because of the importance of emphasizing the social aspect and the need to
implement the zakat system and Baitul maal.
DR. Scott (Harahap, 1993, 1995) is a writer who pays a lot of attention to ethical and
moral issues in giving birth to accounting theory. He always uses the criteria of fairness and truth
in formulating any accounting theory, this model is called the Ethical Theory of Accounting.
According to him, in presenting financial statements, accountants must pay attention to all
parties (users) in treating them fairly and correctly. And providing accurate data should not lead
to misinterpretation or bias.
Shaari Hamid, Russel Craig, and Frank Clarke (1993) in their article entitled: "Religion:
A Confounding Cultural Element in the International Harmonization of Accounting" put forward
two things:
1. Whereas Islam as a religion that has special rules in the financial economy system (for
example the free interest banking system) definitely requires a special accounting theory
which can accommodate the sharia provisions.
2. If in various studies it is concluded that cultural aspects that are local in nature (national
boundaries) greatly influence the development of accounting, then Islam as a religion that
transcends national boundaries should not be ignored. Islam can encourage
internationalization and harmonization of accounting.
Toshikabu Hayashi (1989) in his thesis entitled: "On Islamic Accounting" discusses and
acknowledges the existence of Islamic accounting. In his writings which originated from his
thesis taking his master's degree, he told about Western Accounting which he judged to have
self-made characteristics based on the philosophy of capitalism. According to him, the
characteristics of western accounting lose their way when it comes to ethical and social aspects
and is value free. Meanwhile, the trend must have a social nuance as Islamic accounting has and
is recognized by Gambling and Karim. In Islamic accounting, he says that there is a "meta rule"
that is outside the accounting concept that he must obey, namely Sharia law which comes from
God which is not a human creation.
4. Islamic Accounting Theory
From the information above, we can no longer deny the existence of Islamic accounting.
The next problem is how and what is Islamic accounting? To answer this, it is still difficult,
especially in terms of limited opportunities, expertise and personnel. While the capitalist
accounting theory framework alone took decades to arrive at the accounting conceptual
framework and it was carried out no less than 5 studies and several improvements (Harahap,
1994: 16). If we want to get an Islamic accounting concept then according to the colonial model
as put forward by Gambling and Karim the Islamic accounting concept should be born from:
Islamic Community

Islamic economics

Islamic Accounting Theory

Islamic Accounting Practices

(Islamic Accounting Structure)

From the other side of Islamic accounting, we can describe it as follows:

Individual Company Institutions

Conducting Muamalah (Business) Activities Must Be in Accordance with Shari'a

Transaction Input Activities Recorded (Accounting) Report Output

AK principles + Emphasis on the Justice, Truth, and Upholding of the Law of God
By trying to make the image above as a basis, we think the basic concepts of Islamic accounting
are as follows:
The basic concepts are not much different except for two things:
1. The source of the law is Allah through the Qur'an and Sunnah instruments. This source of
law should be the safeguard against every accounting postulate, conceptual principle and
technique.
2. Emphasis on accountability, honesty, truth and justice.
3. Problems
This situation can be illustrated in this Figure: Hypothesis of the Structure of Accounting Theory
following:
Allah SWT

Al-qur’an and Hadist Islamic Community

The purpose of Financial Statement

Postulate Concept

Basic Principle

Accounting Standard

Financial Statement
Hypothesis of the Structure of Accounting Theory
If there is a question about the postulates, concepts and principles of Islamic accounting,
at this point I can answer is that this problem is not as easy as imagined. Of course, to formulate
this, a multidimensional and multidisciplinary study is needed. What is clear is that the literature
so far has not explained it. But from the postulates, concepts and principles, we can share which
ones are in line with the Islamic concept. For example, which of the 3 concepts is used:
Proprietary, Entity, Enterprise Theory? So, I will be responsible for enterprise theory because it
covers more social and accountability aspects. Likewise, regarding accounting principles.
Islamic accounting can judge which of the existing principles contradicts Islamic principles, then
they are eliminated while those that are relevant and which support are taken and for things that
need to be emphasized. This means that we continue to take advantage of existing conventional
principles, we don't need to abolish them and look for new ones. Enterprise Theory explains that
accounting must serve not only the owner, the company but also society in general.
Sharia Accounting Standards in Indonesia
Sharia Accounting Standards (SAS) are Sharia Financial Accounting Standards
Statements (PSAK) aimed at entities that carry out sharia transactions, both Islamic institutional
entities and non-Islamic institutions. SAS development is carried out by following the general
SAK model but based on sharia by referring to the MUI fatwa. The following is a list of Islamic
Financial Accounting Standards which are effective as of January 1, 2018:
No Islamic Financial Accounting Standards Date Ratification Effective date

1 Basic Framework for Compilation and 27 June 2007 1 January 2008

Presentation Sharia Financial Report
2 PSAK 59 Islamic Banking Accounting 1 Mei 2002 1 January 2003
3 PSAK 101 Presentation of Financial Statements 25 Mei 2016 1 January 2017
Sharia (revised 2016)
3 PSAK 102 Murabahah Accounting 25 Mei 2016 1 January 2017
(amendments)
4 PSAK 103 Salam Accounting (amendments 6 January 2016 1 January 2017
2016)
5 PSAK 104 Istishna Accounting '(amended 6 January 2016 1 January 2017
2016)
6 PSAK 105 Accounting for Mudharabah 27 June 2007 1 January 2008
7 PSAK 106 Musyarakah Accounting 27 June 2007 1 January 2008
8 PSAK 107 Accounting for Ijarah (amendments 6 January 2016 1 January 2017
2016)
9 PSAK 108 Accounting for Insurance Transactions 25 Mei 2016 1 January 2017
 Sharia (revised 2016)
10 PSAK 109 Accounting for Zakat and Infaq 6 April 2010 1 January 2012
11 PSAK 110 Accounting for Sukuk (revised 2015) 24 February 1 January 2016
2015
12 PSAK 111 Accounting W’ad 18 August 1 January 2018
2017
Accounting and Auditing Organizations for Islamic Financial Institutions (AAOIFI)
The existing PSAK Syari'ah is a further development of PSAK No.
59 which regulates the syari'ah banking accounting because it is deemed insufficient to
meet the development of syari'ah banking products which are increasingly taking shape. PSAK
No. 59 was originally formed based on standards issued by AAOIFI which specifically regulates
accounting and auditing standards for Islamic financial institutions. The emergence of PSAK No.
59 as a product of DSAK - IAI needs to be praised and is the beginning of the recognition and
existence of Sharia Accounting in Indonesia. This PSAK was ratified on May 1, 2002, starting
from January 1, 2003 or accounting which ended in 2003. Valid for only 5 years.
The AAOIFI standard is the main reference in the formation of the existing Syari'ah
PSAK because these institutions provide standards that are not regulated in IFRS so that they can
make syari'ah banking activities run smoothly. The PSAK Syari'ah that has been issued by the
IAI are:
 Basic Framework for the Preparation and Presentation of Sharia Financial Statements
 PSAK 101: Presentation of Sharia Financial Statements
 PSAK 102: Murabahah Accounting
 PSAK 103: Accounting Greetings
 PSAK 104: Istishna Accounting '
 PSAK 105: Accounting for Mudharabah
 PSAK 106: Musyarakah Accounting
 PSAK 107: Accounting for Ijarah
 PSAK 108: Accounting for Troubled Murabahah Debt Settlement
 PSAK 109: Accounting for Zakat and Infaq / Alms
 PSAK 110: Hawalah Accounting
 PSAK 111: Accounting for Sharia Insurance Transactions
PSAK 101-106 was ratified on June 27, 2007 and is effective starting January 1, 2008 or the
accounting year ended 2008. PSAK 59 vs PSAK 101-106. There are several differences between
PSAK No. 59 and PSAK 101-106, namely:
PSAK 101-106 (Shariah entity &
SAK 59 (Sharia banking only)
non-sharia)
Introduction: Basic Framework for The Preparation of
- purpose Sharia Financial Report Reporting
- Scope
Recognition/Measurement PSAK 101 Presentation of Sharia
Wishful Thinking Report
Mudh, Musy, Murab, salam, istishna, PSAK 102 Murabahah Accounting
ijarah, wadiah, qardh, sharf
Neraca, L/R, AK, Dana Inv Terikat, ZIS, PSAK 104 Istishna Accounting
Lap Qard
Only for bank syariah
Applies for convensional
(general, BPRS) and shariah entities
Lk's purpose is not in PSAK 59 There are 4 Objectives of LK (shariah
compliance, accountability on
fund, profitability, Social Function)

No Measurement method set Historic, net

realizable, current
method

Not governing parties related to Set up related parties with entities

sharia entities sharia
CONCLUSION
Sharia accounting is the accounting process for transactions in accordance with the rules
set by Allah SWT. It should be grateful for the reality that both the Islamic economy and its
accounting continue to show developments from time to time. It is normal to have questions
about the prospects and challenges ahead at this stage. Based on our religious beliefs, coupled
with social realities based on developments that have occurred so far, we must be optimistic
about its future as one of the promising business tools of al-falah, the world and the hereafter.
 Sharia accounting is concerning all aspects of life which is broader not only concerning
economic and business practices as in the capitalist system. Islamic accounting is actually
broader than just calculating numbers, financial information or accountability. He concerns all
enforcement law so that there is no violation of the law, either civil law or law related to
worship.
While in Indonesia, the development of sharia accounting is also considered to have increased
rapidly, marked by the frequent use of seminars, workshops, discussions and various trainings
that discuss various Islamic economic and accounting activities, ranging from banking,
insurance, pawnshops, to education, all labeled as sharia And at this time we can see that there
have been many established banks or other financial institutions based on sharia accounting, this
indicates that the concept of sharia accounting has been very developed. Moreover, IAI also
issued regulations regarding Sharia Accounting which were stated in the Sharia PSAK.