Financial Reporting Of Islamic Bank In The Light Of Shariah: A Conceptual Framework
Keywords:Financial reporting, Islamic bank, Shariah compliance, Shariah committee
This paper intent to examine the function of the financial reporting, in enhancing the Shariah compliance of the Islamic financial transactions and the role of the Shariah committee in the Islamic bank in giving the assurance of Shariah compliance of the financial reporting. These would enhance the integration of the financial reporting of the Islamic bank and Shariah compliance. However, how Shariah compliance is conveyed in financial reporting received scant attentions in academia. This study uses literature as the study method. This is a conceptual paper describing the link between financial reporting on the Islamic financial transactions and Shariah compliance. The conclusion of this study shows that the knowledge in finance and accounting and experience of the Shariah committee enhances the financial reporting to be aligned with the Shariah. Therefore, it could increase the confidence of the stakeholders. As such, this study might be of interest to top management in Islamic banking, industry players, Shariah committee and regulators.
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