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Islamic
Towards Islamic Accounting Accounting
Anthropology Anthropology

How secular anthropology reshaped

accounting in Indonesia 629
Aji Dedi Mulawarman
Received 19 February 2015
Department of Accounting, Faculty of Economics and Business, Revised 30 January 2016
Universitas Brawijaya, Malang, Indonesia, and 1 June 2016
31 July 2016
9 November 2016
Ari Kamayanti 26 December 2016
30 March 2017
Department of Accounting, Politeknik Negeri Malang, Indonesia Accepted 8 May 2017

Abstract
Purpose – The purpose of this study is to shed light on how accounting, which has been recognised as a
contributor to the modernity problem, has been influenced by secular anthropology, which hinges on the
concept of “self”. Based on Akbar S. Ahmed’s concept of Islamic Anthropology, Islamic Accounting
Anthropology (IAA) is proposed as an answer to shift the accounting paradigm.
Design/methodology/approach – A case study in Indonesia was conducted by studying the
development of the nation’s Shariah accounting from the perspective of diffusionism as an approach to
anthropology. Following the constructivist tradition, IAA, which rejects the Social Darwinism notion of the
superiority of the West over the East as the basis of the evolution of civilisation, is used as tool to realise
Islamic norms through synchronic-diachronic study, constructing an accounting concept and invoking
accounting transformation through accounting education.
Findings – This study finds that accounting has been greatly affected by secular Western culture through
education and educators as agents that find their legitimation in country policies. Standard setters have also
taken the same stance by siding with the capital market. By proposing IAA, it is hoped that Islam will replace
the concept of “self-interest” as the faith of accounting and promote welfare for the ummah.
Research limitations/implications – The problem of modernisation lies in the newfound faith of self-
interest. In accounting, self-interest is ingrained in accounting theories such as Positive Accounting Theory, Entity
Theory and Agency Theory, and thus accounting has become a tool to support neoliberal society. IAA will help
produce accounting that is rooted in local wisdom and necessity yet very much embedded in Islamic values.
Practical implications – IAA suggests that accounting education must be geared towards anthropology
detached from the Orientalism-secularism concept. This shift can be accomplished by integrating IAA into
the accounting education curriculum.
Social implications – Based on IAA, accounting practices can be designed under the guidance of the Quran
and result using a synchronic-diachronic approach. By changing the ontological view through accounting
education, accounting can drive societal consciousness towards the welfare of society instead of self-happiness.
Originality/value – Islamic accounting and anthropology are two subjects that are rarely discussed concurrently.
Keywords Welfare, Secular, Orientalism, Islamic Accounting Athropology, Ummah
Paper type Research paper

Introduction Journal of Islamic Accounting and

Business Research
Accounting cannot be viewed as a simple technological tool (Amernic and Craig, 2009); we Vol. 9 No. 4, 2018
pp. 629-647
believe that accounting is faith in itself. Accounting maintains a dominant evolutionism © Emerald Publishing Limited
1759-0817
based on Protestant Christianity and or Judaism in the West (Weber, 1930; Yamey, 2009). DOI 10.1108/JIABR-02-2015-0004
JIABR Consequently, accounting becomes, once again, the offspring of capitalism, which has now
9,4 evolved to neoliberalism. This understanding is essential; without it, any attempt to liberate
accounting from the capitalism trap will be a cul de sac. Fundamentally, in this paper, we are
tracing the causes of modernity problems starting from their roots, i.e. the values of
modernity. Islamic Anthropology will guide us through this process to propose solutions to
the prevailing chaos. Islamic Accounting Anthropology (IAA) as a unique science can be
630 directly used to design research methodology and accounting studies to emancipate the
ummah from the economic and social injustice caused by capitalism.
The prevailing system of capitalism, as proven by the existence of evolution for the sake
of increasing laissez faire and self-interest through the free market towards capital
accumulation, is a problem with today’s economy (Bell, 1978). This problem might arise, as
claimed by Carrier (2005, p. 443), because of the redefinition of economics as a study of price
formation. Any intrinsic value is regarded as either meaningless metaphysics or primitive,
and consequently, religion and ethics should also be rejected. There is no other meaning
with value but price, and thus there is no justice outside the market itself.
In this way, accounting plays a supporting role as a dominant guiding force in capitalism
by documenting bottom-line profit, wealth accumulation and market orientation. Historically,
accounting was not always secular and capitalistic. Accounting was brought to Italy by
Muslim traders. These Muslim activities in accounting were discerned by Luca Pacioli, who is
considered the father of accounting (a misguided Orientalist perspective), in his book Summa
De Arithmetica. “In the name of God” was written in Pacioli’s double bookkeeping, indicating
the his deep spiritual foundation of accounting. In this way, capitalism can be viewed as having
pseudo-religion/spiritual principles as attached faith instead of embedded faith, as evident from
the process of accounting evolution[1], which indicates that even if we view accounting as a
tool, this “tool” has been developed based upon (religious) faith.
This same view would also enable us to use faith (Islam) to emancipate accounting
through IAA. Will the emancipation of modern accounting by Islam take the path of
embedded faith or attached faith (as seen in the West)? As we shall soon discuss, the course
of the evolution of Islamic accounting through history has been similar to that in the West.
In this evolution, we can see that accounting, even Islamic accounting, has developed in line
with modernity in society from a global view as represented by Accounting and Auditing
Organisation for Islamic Financial Institutions (AAOIFI) through both its accounting bodies as
well as standards. However, the term Shariah seems to have become a mere symbol and is used
to legitimate the order of conventional accounting (e.g. accrual concept, going concern, mark to
market, etc.). This phenomenon has been observed in Islamic banks in which interest-based
loans are validated as Islamic by the Shariah Board (Kamla, 2009). Mulawarman (2011a, p. 2)
views AAOIFI as quite accommodative in the adoption of conventional accounting in Shariah
accounting standards. This tendency is reflected in the AASIFI (Accounting and Auditing
Standards for Islamic Financial Institutions) adopted in 1998, which is similar to conventional
standards. We will explore this phenomenon further in the following section, but it is believed
that mimicry of Western conventional accounting will retain the egoism of stockholders and
push accounting away from the purpose of maqashid Shariah.
The tendency of the products of AAOIFI to follow the modern development of
accounting is evident in their similarity to conventional Western accounting and banking[2]
regulations based on the Basel Accord. This tendency fits the cultural evolutionism concept
under the influence of the Orientalist view that, according to Said (2003), everything,
including accounting, must evolve to modernity as perceived by the West. In addition, this
view regards universality and uniformity as the keys to modernisation. Uniformity and
universality will intervene in the substance of religion and thus be a hindrance to the
creation of methodology that springs from a specific religious tradition (Rudyansjah, 2012, Islamic
pp. 164-165). Accounting
Of course, AAOIFI may argue that any standard that is published by AAOIFI must
undergo a public hearing process before its publication as delineated by Karim (1999, p. 241):
Anthropology
The public hearing is also meant to increase awareness of AAOIFI’s standards amongst the
financial community. Furthermore, it is intended to enhance confidence in the financial
statements of Islamic financial institutions on the part of the users of these statements. AAOIFI is 631
very much encouraged by the number of central banks, Islamic financial institutions, and
professional accountants who attended the public hearings. Members of the accounting and
auditing committees in our organization who are responsible for drafting the standards have
benefited tremendously from the useful discussions that took place in these public hearings.
In this way, it is the central banks, Islamic financial institutions and professional accountants
who will benefit from the useful discussions that occurred in these public hearings. The
decision usefulness in this case is therefore very limited to the interest of capital owners.
The individuals acting as representatives of the people in that public hearing are assumed to
have made rational decisions for all. This is true if the theory of public choice[3] is used,
which we oppose because of its emphasis on economic rationality.
We can further use diffusionism as another anthropological approach to view the
development of Islamic accounting. Under diffusionism, civilisation forms because of the
existence of an assumed centre of culture. The West, for example, because of its assumed
stance as the centre of culture, feels the right to conquer the world. Western culture is now
represented by the existence of multinational corporations (MNCs), whose purpose as
elucidated by Perkins (2006, p. 31) is to dominate through “corporatocracy [. . .] [as] the new
elite who had made up their mind to rule the planet”. A similar stance is taken by Jews, as
stated by Ford (2006). In this regard, Western accounting plays its role and diffuses to all areas,
assuming its superiority. The West as well as its accomplices (i.e. locals who have Western
education) become the agents of acculturation. According to Fathoni (2006, p. 33), agents of
acculturation are those who spread foreign (Western) ideas into a nation through culture.
Acculturation is hence carried out with the underlying notion of cultural superiority. By
contrast, Islam clearly states that everyone is equal regardless of their race or origin[4]. This
tenet is confirmed by the Prophet Mohammed PBUH in his last sermon[5], in which he stated
that everyone is equal except for hihe/sher taqwa.
Both global and local accounting developments have provided sufficient evidence that
accounting has become a technology that brings universality and uniformity to move
civilisation towards Western modernity. From the perspective of anthropology, especially
evolutionism, accounting can be seen as a technology that is used for adaptation in the
evolutionary process. An opposing concept by Julian Steward (1976) in Birx (2011, p. 449)
elucidates that the cultural core[6], which is the connectivity to nature, not technology, is the
starting point and source for the development of civilisation. Such a civilisation would be
shaped by its own culture, which is unique rather than similar to other cultures as a result of
a changing environment. The cultural core might diminish because of increasing
dependence on technology, which will decrease the attachment to nature. The solution is
therefore the following: accounting should be designed to bring us back not only to our
cultural core but also to our values, which are rooted more deeply than the cultural core, that
is, in Islam! Accounting should not be viewed as technology but as culture, not as tools but
as values. Accounting should reflect our true faith.
In this paper, we shed light on the nature of AAOIFI and the Indonesian Accounting
Association (IAI), which can be viewed as separate from the maqashid Shariah concept
(even if maqashid Shariah is stated as an important purpose of these institutions). This
JIABR deviation is apparent when “Islamic accounting” is brought into practice; it still falls into the
9,4 trap of conventional “profit and market” logics. The ummah interest is lost in favour of the
interest of the market.

Method
The fundamental basic assumption of Western anthropological approaches is functionalism. In
632 Western anthropology, any aspect of formation of culture can be accepted as long as it can be
explained in its functional term. Religion or faith is equated as myth if it cannot be explained as
a function in society. Religion is considered in the context of modern morality, that is,
Kantianism, which emphasises the rational, reasonable and conscious mind, springing from
Aristotelianism (Rudyansjah, 2012, p. 160). Consequently, this strain of anthropology is termed
functionalism or social anthropology. In this form, Western anthropology can provide a means
for any hegemony to maintain its existence. At this point, we confirm that although we will use
Western anthropology in this paper, we refuse to take up some underlying assumptions. We
disagree with the view of evolutionism of the development of society from a primitive condition
to modernity, although diffusionism has been viewed as the spreading of a more superior
culture. We also disagree with the view of the cultural core as simply routine/functional
practice and instead view the cultural core as the historical and contextual values underlying
any practice, including accounting. We use applied anthropology as opposed to pure
anthropology or abstract anthropology because of its rejection of cultural relativism (a
mainstream in the study of anthropology), which, in contrast to pure anthropology, enables the
adoption of a place or position in determining which value is to be held with a purpose to
suggest a value-laden solution (in this case, Islam) (Marzali, 2005, p. 13).
This research is conducted using the recommendations proposed by Ahmed (1989) to
construct Islamic Anthropology. However, we make a few modifications to extend his
recommendations to suit our purpose and to specify assumptions that should not be omitted,
namely:

referring to the Quran and hadist as normative sources, which will be confirmed by
Islamic practices through synchronic and diachronic studies;

viewing Islam from a theological rather than sociological perspective; and

enhancing the development of Islamic (accounting) anthropology in the continuous
process of education (from bachelor to doctorate degree).

Following these three assumptions, we conduct research based on documentation (historical

facts), literature studies and collection of empirical evidence in Indonesian Muslim society as
well as in education. Taking Indonesia as one of many distinct cultural-geographical types
as a basis to develop IAA, this research portrays how accounting is a product of cultural
diffusion brought by agents, namely, educators.
The findings are structured in accordance with the methodological approach. First, by
using diffusionism as an anthropological strand, we provide evidence on how the perceived
superiority of Western thought has penetrated Indonesian scholars to govern Indonesian
Islamic accounting. Second, the same superiority of culture gives way to the growth of
dominant positive accounting replacing rationalism and pragmatism (or self-interest) as the
basis of (Islamic) accounting, as evident in the composition of Shariah accounting boards
and Shariah accounting standards. Third, we emphasise the need to use IAA by providing
empirical evidence from both Muslim society and accounting education practices via a non-
Orientalist anthropological perspective to confirm that accounting can be based on local
roots yet embedded in Islamic values. From the IAA perspective, we also provide evidence
that education is an essential ingredient as well as the most important starting point to Islamic
trigger emancipation. Accounting
Anthropology
Result and discussion
Anthropological perspective of positive accounting: a highway to neoliberalism
The era of Plato and Aristotle, when the growth of rationalism (based on a priori knowledge)
and empiricism (based on a posteriori knowledge) began, essentially marks the beginning of 633
secularisation, far before the era of enlightenment/auckflaruung in the West. Purification of
knowledge (similar to desacralisation of knowledge by Al Attas, 1981) reaches its apex in
the tenets established by the Vienna Circle, which affirm that social science should follow
the logic of natural science; hence, similar mechanistic assumptions and methods should be
used equally in universal language.
When accounting is also seen as a natural science[7] (Sterling, 1975), it fulfils the
scientific criteria only when it is based on empiricism and rationalism. The entry point
enabling accounting to comply with the logic of natural science is positive science[8], in
contrast to the view of accounting as a normative science. Normative accounting is replaced
by positive accounting because it addresses questions pertaining to what “ought” or
“should” be done, which focuses on deductive reasoning, not empirical or evidential analysis
(Tinker and Puxty, 1995, p. 6). Positive accounting theory in the USA blossomed with the
help of several education institutions, such as University of Stanford, University of Illinois,
University of Texas, University of California Los Angeles, New York University, University
of Rochester and University of Berkeley[9], as the true “heir” of positive accounting theory.
The accounting education system has subsequently followed positivism as a true “religion”:
The million dollars donated towards conferences, research projects, and chairs in positive
accounting research has installed antinormative bias in the educational system. University
students are not instructed in the normative activity of reasoning out the “correct” expense,
revenue, asset or claim; rather they are drilled in rote learning of FASB rules. In short, faithful to
the positive accounting tradition, teaching has focussed on, “what is”, not “what should be”.
Indeed, the blind faith in what the rules are has displaced any conception of where the rules come
from [. . .] (Tinker and Puxty, 1995, p. 10)
Despite the fact that positive accounting only presents a “temporary” reality in market studies
and is criticised as an “ideological embarrassment” (Tinker and Puxty, 1995, p. 7), it finds its
way to Indonesia through moral intellectuals or academics indoctrinated[10] in positivism.
With this newfound “faith”, which is in essence self-interest, accounting adapts financial
theory, which is also based on empirical evidence such as the Agency Theory. Jensen (1994,
p. 44) explains that the “central position of agency theory is that rational self-interested
people always have incentives to reduce the losses these conflicts engender”. The positive
accounting theory of Watts and Zimmerman (1986, p. 3) also emphasises the importance of
self-interest. This theory ultimately carries anthropocentric value, such as that described by
Watts and Zimmerman (1986, p. 3):
We assume that all these various parties in selecting or recommending accounting and auditing
procedures act so as to maximize their own welfare (i.e. their expected utility). To make a decision on
accounting reports, individuals want to know how the alternative reporting methods affect their
welfare.
The true religion that has replaced transcendental religion is firmly stated by Jensen (1994,
p. 45) as self-interest, which can function more efficiently in a structured authority:
JIABR I am sceptical of our ability to change human nature. Thousands of years of effort by all great
religions of the world have failed to eradicate the reality of self-interest. Instead, I place my bets
9,4 on the institutional structures, contracts and informal arrangements that we create to reduce
conflict, to govern our relations, and to increase the extent of cooperation and the benefits we reap
from it. Such efforts, which arise from self-interest, are privately rewarding and improve the
quality of life in our society.

634 One governing structure is the market itself. Earlier, we elucidated that Carrier (2005, p. 443)
defines economics as a study of price formation in which any intrinsic values, such as
religion or ethics, are irrational and ought to be rejected. The market is therefore regarded as
the centre of justice. Within the market, there are firms who, under the larger heading of self-
interest, hold opposing views in addition to the value of price. Coase (1937), in Fontrodonna
and Sison (2006, p. 5), points out that a firm’s function is to determine the cost of production
in a system of relationships in which agency conflicts are present. Ethically, a business/firm,
as Friedman (1970) states, has a social obligation to increase its profit. Thus, both the
market and a firm have a similar underlying faith: self-interest.
Self-interest has become a prophetic goal linking economics, finance and accounting as
shown in Figure 1. This truly reflects the core of modernity and its resulting problems.
This self-interest is the key of modernity problems because of its individualism, as
supported by Bell (1978, pp. 16-22):
The fundamental assumption of modernity, the thread that has run through Western civilization
since the sixteenth century, is that the social unit of society is not the group, the guild, the tribe, or
the city, but the person [. . .]. In the economy, there arises the bourgeois entrepreneur [. . .] What
defines bourgeois society is not needs but wants [. . .] Society is seen [. . .] as a composite atomistic
individuals who pursue only their own gratification.
It is individualism that fuels unrestrained capitalism and its course towards secular Western
modern society. The emphasis on individual instead of ummah, as specified in maqashid
Shariah, has created a widening gap between the rich and the poor, creating an imbalance
between nature and destruction. Accounting and its self-interest in profit as the bottom line
have inflicted considerable injustice, as Chwastiac and Young (2003, p. 536) prove that
corporations, through financial statements:
[. . .] silence the negative impact of their activities upon the earth, the hell of war and the beauty of
peace, the spiritual, human, and social impoverishment arising from excessive consumption, and
the dehumanization of workers.
What is the status of Islamic accounting? In the global context, neoliberal positive
accounting might also be the stance of Islamic accounting produced by AAOIFI. The
AAOIFI Shariah Board members are appointed for four-year terms. Among their many
responsibilities, they are charged with achieving harmonisation and convergence of

Economics Value is Price (Market)

Accounng
(bridging values in
Finance Value is Firm economics and finance)
(Theory of the Firm)

Figure 1.
Self-interest as a Self-Interest
newfound religion (Individualism)
concepts and their application among the Shariah supervisory boards of Islamic financial Islamic
institutions. They are also obliged to provide Shariah opinion in matters requiring collective Accounting
Ijtihad (reasoning), settle divergent points of view or act as an arbitrator. By contrast, the
Standards Board members are appointed by the Board of Trustees for five-year terms. They
Anthropology
are responsible for regulating the accounting profession and/or preparing accounting and
auditing standards, certified accountants and users of the financial statements of Islamic
financial institutions.
However, as shown in Table I, the Shariah Board consists mostly of representatives of 635
the banking industry and financial institutions instead of scholars. Consequently, AAOIFI
bases its decisions largely on investors’ interests, consistent with the proposal by Graham
and Neu (2003) that organisation and accounting technology are designed not only to
stabilise international boundary asymmetry and uncertainty but also to provide salient
liberalisation for MNCs. Confirming this viewpoint, on 26 January 2016, AAOIFI held a
course on Capital Market Authority. Under the diffusionists’ perspective, it can be argued
that the superiority of “market” culture springing from self-interest as faith has directed the

No. Name Institution

1 Shaikh Muhammad Taqi Usmani State Bank of Pakistan Sharia Board Chairman, Vice-President
Darul-Uloom Karachi, Pakistan
2 Shaikh Abdulla Bin Sulaiman Al Member, Council of Senior Scholars, and Advisor to the Royal
Manea Court, Saudi Arabia
3 Dr Abdul Sattar Abu Ghuddah President and General Secretary of the Unified Shari’ah Board of
Al Baraka Banking Group
4 Prof. Dr Hussain Hamed Hassan International Expert and Advisor, Chairman and Member of
IFIs’ Shari’ah Supervisory Boards
5 Prof. Dr Abdullah bin Member, Council of Senior Scholars, and Advisor to the Royal
Mohammad Al Mutlaq Court, Saudi Arabia
6 Dr Nizam Mohammad Al Yakubi International Expert and Advisor, Chairman and Member of
IFIs’ Shari’ah Supervisory Boards
7 Prof. Dr Yousif Abdullah Al International Expert and Advisor, Chairman and Member of
Shubaili IFIs’ Shari’ah Supervisory Boards
8 Dr Essam Khalaf Al Enezi Chairman and Member of IFIs’ Shari’ah Supervisory Boards
9 Dr Aflah Al Khalili Muftis Council in Oman
10 Dr Abdul Rahman Al Atram International Expert and Advisor, Chairman and Member of
IFIs’ Shari’ah Supervisory Boards
11 Prof. Dr Nazih Hammad Chairman of Citi Islamic Bank Sharia Board
12 Dr Qais Al Shaikh Mubarak Member, Council of Senior Scholars, Saudi
13 Prof. Dr Mohammad Othman Prof., in University of Jordan
Shubair
12 Dr Albashir Mohammad Ezz el- Vice Chairman, Central Bank of Libya Sharia Board
Din Al Gheryani
13 Dr Aznan Hasan Vice Chairman of Securities Commission Sharia Board, Malaysia
14 Dr Osaid Muhammad Adeeb Head of Shari’ah at Abu Dhabi Islamic Bank, UAE
Kailani
15 Dr Ibrahim Ahmed Al Shaikh Al Member, Central Bank of Sudan Sharia Board
Darir Table I.
16 Dr Mohammad Sahri Member, Highest Shari’a Council, Morocco
17 Mr Elhadi Elnahaoui Islamic Development Bank
AAOIFI Shariah
18 Dr Hamed Hassan Merah Sharia Board Rapporteur and Secretariat board members
appointed in
Source: www.aaoifi.com February 2013
JIABR choice of representation of the Shariah Board, and it is therefore quite understandable that
9,4 Islamic accounting has developed in line with the capital market.

Diffusion of “Western” accounting culture in Indonesia

In the local context, i.e. Indonesia, although real commodities do play a larger role than the non-
real sector[11], accounting education has developed by using the positive accounting of the
636 Western capital market. This development is solely because of the US education of Indonesian
academics, which has instilled similar Orientalist sentiments towards accounting.
Neoliberal positive accounting in Indonesia, as a new faith, is greatly influenced by the
generation of US-educated economists shaped by the capitalist mind-set and known as the
Berkeley Mafia (a term introduced by David Ransom in Ramparts magazine, 4th edition
1970). The Berkeley Mafia and the army[12] are essentially a movement of “intellectual/
moral leadership”, a term introduced by Gramsci (1971), to legitimate the domination of the
West. The evolution of accounting towards Western accounting through the development of
“intellectual/moral leadership” was first established during Indonesian colonisation by the
Dutch as far back as 1642. Abdoelkadir (1982) notes that the first The Netherlands
accounting firm was established in 1918, and bookkeeping was soon taught in business
schools. Enrolment in these schools was a privilege for children with high social status
(children of the heads of districts of the rich/royal family) that were notabene already
detached from the oppressed society caused by Dutch colonisation. From this moment on,
“modern” values were transferred as part of the Orientalist strategy to educate the primitive
East. Unfortunately, as part of this process, local intellectuals/morals, who originally stood
apart from their local communities because of their high community status, mimicked the
West and turned against the interests of their nation. Their role shifted towards that of
comprador/inlander/slave, a term used by Rais (2008, p. 83), or buaya putih-white
crocodile[13], a term proposed by Supadjar (2005).
Abdoelkadir (1982) further explains that Indonesia followed the Dutch system in World
War II when the Japanese took over Indonesia and started training accountants in 1942-
1944. Distinguished Indonesian accountants were first recognised after the Japanese
occupancy, namely Prof. Sindian Jayadiningrat, Prof. Rachmat Sumitro, Prof. S. Hadibroto
and Prof. Sumarjo. After Indonesian independence in 1945, Universitas Indonesia (UI)
established a master accounting major in 1953. UI soon modelled its accounting education
using a “guided study system” after a plan used in the USA. Accounting education further
evolved towards Western accounting beginning in 1958, when the Ministry of Education
and Culture as well as the Directorate of Higher Education and the Consortium of Economic
Science outlined programmes for Indonesian accounting academics to study abroad, mainly
in the USA. During this education process, they acquired and then transferred Western
values (secularism) of accounting[14].
Prof. Widjojo Nitisastro was a member of the Berkeley Mafia and became the Dean of the
Faculty of Economics of Universitas Indonesia. This university became one of the largest
and most distinguished universities in Indonesia. Accounting lecturers were subsequently
sent to the University of California, University of Kentucky, University of Texas, University
of Wisconsin, University of Missouri and Kent State University, among other institutions.
America-centric (read: positive-centric) accounting has played a dominant role in defining
Indonesian accounting. Positive accounting became the accounting mainstream for several
years, despite the non-mainstream accounting brought by the later wave of academicians
educated at the University of Wollongong[15], Australia, or European universities.
This stance is still apparent today. A distinguished lecturer from a well-known state
university who is also a policymaker at the Indonesian Institute of Accountants-Education
Compartment (IAI-KAPD) stated in an IAI accounting meeting in Banjarmasin in 2012 that she Islamic
would help lead Indonesian accounting education to comply with IFAC standards. She is not Accounting
alone. This attitude is unanimous among Indonesian accounting standard setters. In an annual
meeting for Indonesian accountants in 2010, a senior accountant and standard setter, Bambang
Anthropology
Sudibyo explained that compliance with IFAC standards is an attempt to form a single, solid
economic community and to comply with the ASEAN Free Trade Area (AFTA).
In anthropology, the role of agents, known as acculturation agents, in introducing and
dispersing culture (in this case, accounting techniques through IFRS) is important to
637
produce kulturkreis. The history of accounting kulturkreis[16] in Indonesia dates as far back
as 1973, when the IAI adopted accounting standards from the US GAAP (Generally
Accepted Accounting Principles) as well as some standards from Australia (A Statement of
Australian Accounting Principles). In 2012, the continued evolution of accounting towards
Western accounting was apparent in the agreement by IAI to fully adopt and implement
IFRS (International Financial Reporting Standards). One goal of IFRS is “to develop a single
set of high quality, understandable, enforceable and globally accepted international
financial reporting standards (IFRSs) through its standard-setting body, the IASB” (www.
ifrs.org). The terms “enforceable” and “globally accepted” indicate that IFRS is becoming a
forced kulturkreis – a religion or faith that is “planted” – as the West infiltrates international
accounting standards with its Protestant ethics.
The Indonesian Shariah accounting standards can be said also to follow positive
(pragmatic) accounting, as stated by a member of the IAI Standards Board:
There is a belief that Islamic Finance has a significant role in the strengthening of economic
potential. The trend of internationalisation of Islamic Finance is getting stronger and becoming
more integrated with the global finance system. More than 600 Islamic Financial Institutions are
now operating in more than 60 countries. Assets from Global Islamic Finance at the moment are
USD 1 billion and may grow up to USD 2 billion in the next 3-5 years (Speech given to the XI IAI
congress, 8-10 December 2010, Hotel Indonesia Kempinski, Jakarta).
According to this statement, Islamic finance is simply viewed as “good” or “ethical” from the
material aspect. Humans have a material purpose to achieve civilisation as proposed by the
nature of man according to the ontological view of humans, in opposition to the dictate of
the Quran to fight in the way of God (At Taubah 9:38) and to be khalifah (Al Baqarah 2:30).
Islamic finance should not be measured by materialistic growth (as the essential nature of
capitalism). Growth is the root of American liberalism and an economic ideology of liberal
innovation[17] (Bell, 1978, p. 79). This similar materialistic stance of Islamic finance again
brings us back to the realisation that Islamic finance has adopted the faith of positive
accounting as delineated by Tinker and Puxty (1995). Although an Islamic pillar is among
the three pillars of Indonesian accounting standards, we can perform a similar analysis of
the tendency to use this standard by analysing the Islamic accounting standard setters,
known as DSAS (Dewan Standar Akuntansi Syariah). In 2013, 50 per cent of the members
were 50 per cent public accountants, insurance and bank industries. The data in Table II
suggest that Western accounting firms might have a central role in determining Shariah
standards because the head of the Islamic accounting standard setters represents one of the
Big 4 Western accounting firms. This is similar to the composition of the AAOIFI Shariah
Board, which emphasises the importance of the market as a more superior “culture”.

Implications of the secular anthropological approach to accounting and the need for IAA
Conceptually, both AAOIFI and IAI set their accounting standards based on Entity Theory,
which follows positive accounting and reflects the “faith” of self-interest in two respects:
JIABR No. Name Institution
9,4
1 M. Jusuf Wibisana Partner, PricewaterhouseCoopers
2 Amin Musa PT Asuransi Ekspor Indonesia (ASEI)
3 Arif Machfoed Academic/Universitas Indonesia
4 Cecep Maskanul Hakim Bank Indonesia, Islamic Financial Services Board
5 Dewi Astuti Bank Indonesia/Syariah Banking Control Team
638 6 Endy M. Astiwara Sharia Supervisory Board Manulife Insurance Indonesia
7 Hasanudin Shariah Board Member, Majelis Ulama Indonesia (DSN-MUI)
8 Ikhwan Abidin Basri Shariah Board Member, Majelis Ulama Indonesia (DSN-MUI)
9 Kanny Hidaya Shariah Control Board, Bank DKI Syariah
10 Setiawan Budi Utomo Shariah Board Member, Majelis Ulama Indonesia (DSN-MUI)
11 Sri Yanto Technical Director, KAP Kanaka Puradiredja, Nexia International
12 Wasilah Universitas Indonesia
13 Wiroso Universitas Trisakti, Associate Member Batasa Tazkia Consulting
Table II. 14 Yasir Academic
Members of the
Indonesian DSAS Source: www.iaiglobal.or.id

(1) The separation of the corporation/company as an entity acts as a limitation of the

owners’ liability.
(2) Both produce Income Statements, in which income is purposed towards the
company’s stockholders. AAOIFI, as an Islamic organisation, adds these
statements: statements of restricted accounts for deposits or investment made by
depositors based on mudharabah muqayyadah, a statement of Qard Hassan and a
statement of Zakat and charity funds (Latifah et al., 2012).

Thus, the real issue is the conceptual theory underlying accounting, not the technical debates
that are currently taking place among accounting academics and standard setters. These
debates, among many, focus on technical issues, such as how to account for Ijarah (AAOIFI
agrees to an operating lease, while IFRS agrees to a finance lease), sukuk (AAOIFI agrees to
sale, whereas IFRS agrees to non-sale) or sukuk valuation (AAOIFI agrees to valuation by DCF,
whereas IFRS agrees to not use DCF). The discourse is played out at the technical/valuation
level, while the essential issue of profit as the bottom line remains neglected.
Shariah accounting in Indonesia is also in the midst of similar technical debates with
little or no substantial theoretical discussion, as it decided not to follow AAOIFI. The
chairman of DSAS states the following reasons for why DSAS has not adopted AAOIFI
standards[18]:
AAOIFI’s standards deal with financial institutions only and do not deal with parties transacting
with institutions. AAOIFI’s standards are too broad and less detailed since they deal with
auditing as well as accounting. There might be differences in the Islamic rules applied to certain
transactions as the result of local deliberation (ijtihad).
In turn, DSAS had adopted the conceptual framework of IFRS, which is geared for the
market, especially capital markets (although there are statements, such as PSAK 109 and
110, that do not only govern financial products, similar to statements by AAOIFI). The
Statement of Shariah Accounting Standards 101-110 adopts conventional accounting, which
is oriented towards accumulation of capital (reflected in Profit and Loss Sharing/PLS). This
orientation leads to egoism of capital owners and managers instead of promoting the welfare
of ummah (maqashid syariah). PLS represents the very foundation of Agency Theory as a
theory frequently used in accounting. Jensen and Meckling (1994, p. 17) state that Agency Islamic
Theory has its own basic assumption of man (and his religion) in their Resourceful, Accounting
Evaluative, Maximizing Model (REMM):
Anthropology
The REMM model, in contrast, explains the evolution of customs and mores as reflection in
habits, unquestioned beliefs, and religion of behavior patterns that reflect optimal behavior given
the costs and benefits of various actions. When the underlying costs and benefits of various
actions change, individuals are faced with a conflict between new, optimal forms of behavior and 639
culturally accepted but inefficient, forms [. . .] And if the new behavior patterns are indeed
optimal, the population will-through experience, education and death-gradually accommodate the
new behavior in the culture.
There are two key points that can be noted from this statement. First, religion is measured in
terms of costs and benefits (functional or utilitarian religion). Second, education, among
experience and death, facilitates the evolution of a new form of culture that is more efficient
and modern, again implying an Orientalist view.
Because of its emphasis on function (tool), Islamic accounting cannot proceed without
political process. Watts (1992) describes that the financial statements of a business are
empirically affected by market and political interest. Reality should be adapted in the
business environment as a relative interaction product between rational individual wants
and egoism (self-interest). This interaction is a form of agency relation in both the market
and political process. In short, the accounting foundation (whether pragmatic Islamic or
conventional accounting) reflects self-interest, power and politics (Mulawarman, 2011a,
p. 97), which can be equated with secularism as proposed by Al Attas (1981)[19]. Positivism
is the highway that leads to the problem of modernity: neoliberalism.
First, it is imperative to note the importance of contextuality in accounting, as the most
essential anthropological approach must always refer to the six pillars of Islamic faith. We can
refer to the sirah rasul as a diachronic analysis of how the great prophet Muhammad PBUH
configured the spiritual-social-economic-political society, which can be equated as an applied
anthropology. The hijrah from Makkah to Madinah was a social and cultural re-orientation, in
addition to its purpose to maintain and protect aqidah and spread Islam. The trading nature of
Makkah creates a competitive and harsh environment that makes it difficult to spread Islam.
By contrast, the main activities of the city of Madinah are farming, trading and mining. The
hijrah is a declaration of the re-creation of human’s fitrah, or the return of humans’ true nature
from self to the welfare of society. The prophet accomplished this by establishing the Nabawi
Mosque as the centre of all activities (parliamentary, state administration, armed forces,
education, dakwah and baitul maal) (Mulawarman, 2011a, p. 162). The integration of a religious
symbol (the mosque) and all activities indicated the inseparability of the transcendent and the
profane. This is a statement of integrity, not secularism.
This integration shows not only that it is a huge mistake to apply or even force the same
“faith” on different areas with different cultures (forced kulturkreis) but also that without
guiding values, a society will be shaped into a secularised society. This transformation has
been proven by several anthropological studies. In China, Inoue et al. (2012) find that
modernisation has created inequality in Hainan Island. Specific studies of Islam have also
been conducted in several regions. Yong (2012, p. 161) finds that in Far South Thailand,
“[. . .] the more modern (Westernised) a society becomes, the more its religious tradition
declines”. The West has created an image in which Muslims are equated as terrorists, and
this view, if supported by authority, helps reduce religious practices to advance towards
modern (Western) civilisation. Similarly, an anthropological Islamic study in Chechnya
(Raubisko, 2009) finds that diverse Islamic practices that are very much related to the local
JIABR tradition cannot be simply changed to follow the ruling regime. Practices of all types
9,4 (including accounting practices) will live in the heart (faith) of a culture as its cultural core.
Thus, even if normative accounting is used instead of positive accounting, this normative
accounting arising from Indonesian culture will differ from that developed in the USA or
Europe[20]. IAA will help identify kulturkreiss and construct accounting that is rooted in
different cultures rather than solely developed from Western diffusionism. Consequently,
640 IAA is a constructivist methodology that would realise civilisation, acknowledging
differences without denoting superiority of one over the other, yet unified in Islam. This has
been revealed in the Quran:
O mankind,
indeed We have created you from male and female and
made you peoples and tribes that you may know one another.
Indeed, the most noble of you in the sight of Allah is the most righteous of you.
Indeed, Allah is Knowing and Acquainted.
Al Hujuurat (49, ayat 13)
When this is achieved, Islamic Anthropology will help realise an Islamic epicentrum society
(Figure 2) that maintains and appreciate differences in culture yet follows Islamic regulations.
The present society is now either at area IV, in which cultures have been forced to be uniform to
form postmodern kulturkreiss through free information flow, or area III, in which cultures can still
be classified as modern, socialist, communist or Islamic societies. Only very few cultures remain
untouched (Area II). If secular anthropology is used, then the study is directed to the formation of
cultures from primitive society towards the modern (Western) society, such as studies conducted
by Edward Taylor, Lewis Morgan, and James Frazer. Secular Orientalist anthropology will move
the study towards the outer circle or simply along the layer of the circle.
By contrast, Islamic Anthropology opposes cultural core/superiority of culture, and hence
all cultures are respected. However, Islam should always be present to drive changes to ensure
that society develops according to Islamic values without losing its indigenous identity.
Because it can be used to transform society, Islamic Anthropology is an applied anthropology
and can also be used in any discipline, including accounting. Hence, we propose IAA.

Figure 2.
Islamic anthropology
as a constructivist
approach
IAA will also implicate research and education processes. In terms of research and construction Islamic
of (Islamic) accounting, it must be realised that Islamic accounting should revisit its Accounting
fundamental ontology of the human nature. It seems that separation between God and the
world has become the genetic material of the West. Historically, it can be noted that separation-
Anthropology
integration/detachment-attachment has occurred since the Greek era. The Greeks first believed
that knowledge is bios-theoretikos. Theorus or the monks became the source of knowledge at
that time. However, with the emergence of Greek Philosophy by Plato and Aristotle, separation
occurred as rationalism and empiricism became the basis of knowledge (Hardiman, 2012). 641
According to this philosophy, the former religion was in fact paganism that was simply
attached to knowledge and hence easily removed. History repeated itself as Catholicism spread
to the Roman empire and led to the emergence of the Magisterium (the centre of authoritative
power of the church). Again, religion was re-attached to knowledge and society but was soon
removed during the Enlightenment, starting with the death of Galileo Galilei. Kamayanti (2011)
sees this reoccurrence as a process of remarriage and redivorce between religion and
knowledge. With respect to Islam, which carries the human nature concept of abdullah (God’s
servant) and khalifatullah (God’s representative), the West is inclined to approve only the
khalifatullah concept, because of its original nature of separation from God, and uses this
concept to legitimise capitalism. IAA as a guided anthropology based on Islamic values
represents a key to return human nature to that willed by God.
The fitrah nature of humans, in contrast to the Western gene pool (Weber, 1930), should be the
fundamental reason to develop accounting. Accounting should revisit other theories besides the
Entity Theory (which is filled with the faith of “self-interest”), such as Shariah Enterprise Theory.
Conventional accounting based on Entity Theory produces the following accounting equations:
Assets ¼ Liabilities þ Equity (1)
Income ¼ Revenue  Expense (2)
These equations reflect the faith of self-interest, as profit as the bottom line [equation (2)] is
the purpose of a business as supported by accounting. An income statement is an
accounting practice that is a consequence of Entity Theory. Accounting for the PLS system,
therefore, retains a similar concept. Assets as the accumulation of wealth [equation (1)] also
become the gist of conventional accounting, which reflects capitalism.
However, if IAA is used, a unique relationship between the Quran and contextual Islamic
accounting implementation can be abstracted and reconstructed. For example, by using
Shariah Enterprise Theory and the application of the Maisyah-Rizq-Maal trilogy
(Mulawarman, 2011a) using abdullah and khalifatullah fil ardh as human nature, unique
accounting practices would result. Mulawarman’s (2011a, 2011b) study in three Islamic
schools in Indonesia (Sarekat Islam, Nadhlatul Ulama and Muhammadiyah) finds that
accounting reports should finally be in the form of a Shariah Cash Flow Statement based on
maisyah, a Shariah Value Added Statement based on rizq and a Shariah Balance Sheet
based on maal, with compliance and creativity accounts as representations of abdullah and
khalifatullah fil ardh, respectively.
Finally, it is imperative that accounting education incorporate anthropology as a course,
using an Islamic and not a secular approach. IAA is not only a technique or analysis tool. It is
a paradigm. The best way to transform paradigm is through education. By creating
awareness that local wisdom must be raised, learnt and appreciated, and by arousing
spiritual-religious consciousness, accounting has begun to assume new forms. These forms
represent a stock of accounting alternatives that may not yet be applicable but serve as a
potential science with the spirit of Islam. Especially in Indonesia, the growth of
JIABR multiparadigm accounting triggered by one of the largest universities in Indonesia,
9,4 Universitas Brawijaya, has been acknowledged as its own unique school (www.mami.or.id).
However, if IAA is pursued, studies must focus not only on raising localities in accounting
but also on discussing and constructing accounting closely tied to local wisdom and needs, as
well as transforming society towards an Islamic society with universal Islamic values but a
specific culture.
642
Conclusion
The problem of modernisation lies in the newfound faith of self-interest. In accounting, self-
interest is embedded in accounting theories such as Positive Accounting Theory, Entity
Theory and Agency Theory. This self-interest is not in line with the collective interest of the
ummah, and thus accounting has become a tool to support neoliberal society.
Shariah accounting and conventional accounting education have been geared for the world
capital market and thus will not solve the problems of modernity. Recognising that anthropology
is the key to produce a map of society in which accounting practices are designed under the
guidance of the Quran and hadist as normative sources to confirm synchronic-diachronic Islamic
practices, IAA is proposed. This can only be accomplished if accounting is not fixated on
technical discussion only but also moves towards ontological discussion. To further affirm and
ensure the continuous transformation of society towards the Islamic Epicentrum Society,
accounting education should incorporate Islamic Anthropology as a course.
Finally, the very fundamental key of Islamic Anthropology and all of its anthropological
derivatives (whether accounting, economics or any other discipline) is the recognition of
cultural cores under tauhid. The Islamic values are universal but will never attempt to
reduce cultural cores; as stated in the last sermon of prophet Muhammad PBUH, all colours
are equal except taqwa. Wallahu ‘alam bishawab.
Today have I perfected your religious law for you,
and have bestowed upon you the full measure of My blessings,
and willed that self-surrender unto Me shall be your religion.
Al Maidah (5, ayat 3).
All mankind is from Adam and Eve,
An-Arab has no superiority over non-Arab,
Nor a non-Arab has no superiority over an Arab,
Also white has no superiority over black
Nor black has any superiority over white
Except by piety (taqwa) and good action
Learn that every Muslim is a brother to every Muslim
and that the Muslims constitute one brotherhood.
Nothing shall be legitimate to a Muslim which belongs to a fellow Muslim
unless it was given freely and willingly.
Do not, therefore, do injustice to yourselves
(The Last Sermon, Prophet Muhammad PBUH)
Notes Islamic
1. Since the era of Plato and Aristotle, there has been a philosophical battle about the paganistic Accounting
view of spirit and nature. The battle is between religion as an embedded faith (faith that becomes Anthropology
the true source of knowledge) and attached faith (faith that is simply attached and hence can be
easily removed). Weber (1930, p. 35) claims capitalism as a Western-inherited nature that is
“genetically” passed down from one generation to another, as he could not find a similar trait of
capitalism in the East (China and India). He further claims that the Protestant ethic underlies the
spirit of capitalism and that accounting has been articulated to give rise to capitalism by 643
rationalising economic action (Christie et al., 2004). By contrast, Sombart argues that it was the
Jews who were best able to use modern accounting to accumulate wealth. Sombart’s thesis
depicts accounting as having a “Jewish spirit” (Funnell, 2001).
2. Furthermore, in 1999, AAOIFI even published a statement on the Purpose & Calculation of the
Capital Adequacy Ratio (CAR) for Islamic Banks based on the CAR proposed by the Bank of
International Settlements as set out in the Basel Accords. At the very least, this CAR adoption
may arouse questions about the purpose of Shariah banking. The Basel Accords published by
the Basel Committee on Banking Supervision are a risk-management tool to help investors and
financial institutions protect their wealth. These regulations are imbued with the capitalist mind-
set of accumulating investor wealth. This is not to say that risk management is not needed by
Islamic banks and financial institutions. As Gambling and Karim (1991, p. 123) elucidate,
adherence to Shariah principles would enhance one’s sensitivity to risk investment; on the
contrary, an overemphasis on material return in policy decisions has proven many times to
be counterproductive because of the lack of interaction between companies and society over the
longer period. However, the direct unfiltered adoption of the CAR suggests that the interest being
protected is the interest of financial stakeholders (banks, insurance as financial institutions)
backed up by accounting firms.
3. This can be explained under the theory of public choice from the Virginia School as proposed by
James Buchanan and Gordon Tullock in their Calculus of Consent (1962). They explicate that
every rational choice model of politics is a market-oriented research agenda. Economic analysis is
seen as a tool for explaining all aspects of life, not just a narrow professional activity. Every
public decision represents equilibrium, and no decision or its consequence can ever be wrong
because it is made through rational thinking. The decision is also viewed to be a consensual
agreement with the public.
4. QS 49:13.
5. “All mankind is from Adam and Eve, an Arab has no superiority over a non-Arab nor a non-
Arab has any superiority over an Arab; Learn that every Muslim is a brother to every Muslim
and that the Muslims constitute one brotherhood. Nothing shall be legitimate to a Muslim which
belongs to a fellow Muslim unless it was given freely and willingly. Do not, therefore, do injustice
to yourselves”.
6. The cultural core is the main idea of cultural ecology, which states that indigenous knowledge
(cultural beliefs and practices) is used to maintain the long-term sustainability of natural
resources and to protect those who are most vulnerable (Birx, 2011, p. 451).
7. The nature of accounting has been debated (Sterling, 1975; Stamp, 1981). Sterling (1975) states
that accounting is, in fact, a natural science, but because accounting is approached as a social
science, it cannot solve modernity problems. He further refers to a common definition of
accounting as an art in which a practitioner of the accounting art is confronted by a host of
uncertainties if he is a truth seeker. There are no natural laws of accounting that he can use, only
conventions validated by experience. According to Sterling (1975), there are two misconceptions
in this definition. First, uncertainties would cause a tendency to see different approaches to
accounting, leading to its “artistic” nature. Second, conventions imply that accounting is
practiced under subjective decisions made by people. He further proposes to change this
JIABR paradigm and uses rule-based accounting (measurement instead of allocation) with a natural
science approach to confirm that accounting is really a natural science!
9,4
8. This development is in line with Auguste Comte’s evolution as written in his books “Cours de
Philosophie Positive (1842)” and “Systeme de Politique Positive” (1851). He believed the religion of
humanity achieved at the peak of positivism as a key success factor in self-happiness to
construct the social order. From Comte’s final frontiers of Positivism, we can state that positivism
diminishes the Protestant and Jewish values attached to accounting. Accounting has become
644 soulless/religionless neoliberalism with beliefs in the rational market, empiricism and flow of
capital. These are values that are temporary, moral-free and oppose eternal values. The faith of
accounting has been transformed to happiness/lust/self-interest.
9. The University of Berkeley was the first of many universities to accept Indonesian students,
mainly accounting lecturers from local universities.
10. Indoctrination, according to Moore (1966, p. 396), can be described as a “[. . .] one-sided or biased
presentation of a debatable issue, a presentation designed to assure a favorable outcome for a
predetermined point of view”.
11. The nation’s GDP consists of 80 per cent income from small and micro enterprises (SMEs), while
the capital market is dominated by “only” 460 family-owned companies. According to the Ministry
of Cooperatives and SMEs, there were 55 million SMEs in 2010, or 99 per cent of all of the nation’s
corporations. The GDP of SMEs reached 56 per cent in 2010, with employment of approximately
99.4 or 97 per cent of all employment, according to the Ministry of Cooperatives and SMEs. Recent
data from the ministry shows that in the year 2014-2016 the number of SMEs is more than 57.9
million units and still holds 99 per cent of all nations’ cooperations.
12. The first members of the Berkeley Mafia were Subroto, Emil Salim, Widjodjo Nitisastro, Ali
Wardhana and J.B. Sumarlin. They held routine discussions on Saturday nights at The
University of California. The Berkeley Mafia were technocrats who received scholarships from
the Ford Foundation to pursue Western education to fill lecturer vacancies formerly held by the
Dutch and those who followed similar ideas. After completing their studies, they were assigned
to teach the army and were also actively involved in a political movement through Universitas
Indonesia to ally against Soekarno, the first President of Indonesia, to achieve a liberal state.
Therefore, they were close to the army, in which Radius Prawiro once acted as the highest
military officer of the People’s Army/TRI, the military governor of Yogyakarta, and later one of
the governors of the IMF and ADB (Mallarangeng, 2004, pp. 45-47).
13. The white crocodile is a symbol of the mimicry of white-skinned people by dark-skinned people
(Asia) and refers to superficial mimicry of only the outer layer/skin.
14. Beaver (1987), the president of the American Accounting Association clearly stated that
accounting should be separated from religious values: “long-standing and highly cherished
tradition of separation of church and state”.
15. The emergence of Shariah accounting in Indonesia was first triggered by a University of
Wollongong graduate.
16. Kulturkreis, a term proposed by Graebner (a German historicist and linguist), is essentially
elements of culture that are similar and can be found in different (geographical) areas. By
mapping similarities of cultures in different areas, cultural diffusion can be analysed
(Koentjaraningrat, 1987, pp. 112-113). However, IFRS is the application of forced kulturkreis in
the form of international accounting standards with very little regard to local culture.
17. “[. . .] growth would provide the resources to raise the incomes of the poor. The thesis that growth
was necessary to finance public services was the crux of John Kenneth Galbraith’s The Affluent
Society.” (Bell, 1978, p. 80)
18. This speech was made at the international conference “IFRS Dynamics 2013 and Beyond” (6-7
March 2013), JW Mariott, Jakarta.
19. Al Attas (1981, pp. 21-23) defines secularism in three forms: disenchantment with nature, Islamic
desacralisation of politics and deconsecration of values. Accounting
20. Collison et al. (2010) elucidate that Anglo-American accounting has now evolved to support Anthropology
welfare capitalism. Their findings show that developed countries that practice Anglo-American
accounting experience an increase in the child mortality rate, obesity and unequal income
distribution. Thus, Anglo-American accounting would not enhance the non-capitalistic ideology
of Indonesia, which encompasses various local cultures and wisdom. 645

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criticism on IAS 41 and IPSAS 27 on agriculture”, Proceeding of The Annual International
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Rosenau, P.M. (1992), Post-Modernism and the Social Science: Insight, Inroads and Intrusions, Princeton
University Press, New Jersey.

Corresponding author
Ari Kamayanti can be contacted at: ari.kamayanti@polinema.ac.id

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