Cover Image

The practice of reporting Shariah non-compliant income in the annual financial report of Islamic commercial banks in Malaysia

Bank Negara Malaysia (BNM) had introduced a policy document of Financial Reporting for Islamic Banking Institutions, which came into effect on 1st January 2018. This policy aimed to facilitate the assessment of Islamic financial institutions’ financial positions, performance, and Shariah complianc...

Full description

Saved in:
Bibliographic Details
Main Authors: Nabilah Mat Nor,, Mohd Fuad Md Sawari,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2020
Online Access:http://journalarticle.ukm.my/15861/1/40751-130126-1-SM.pdf
http://journalarticle.ukm.my/15861/
http://ejournal.ukm.my/islamiyyat/issue/view/1281
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-ukm.journal.15861
record_format eprints
spelling my-ukm.journal.158612020-11-23T15:05:24Z http://journalarticle.ukm.my/15861/ The practice of reporting Shariah non-compliant income in the annual financial report of Islamic commercial banks in Malaysia Nabilah Mat Nor, Mohd Fuad Md Sawari, Bank Negara Malaysia (BNM) had introduced a policy document of Financial Reporting for Islamic Banking Institutions, which came into effect on 1st January 2018. This policy aimed to facilitate the assessment of Islamic financial institutions’ financial positions, performance, and Shariah compliance. However, the disclosure of Shariah committee report of a few Islamic banks may not have fulfilled the standard specified by BNM in terms of reporting the Shariah non-compliance incomes in their annual financial reports. This study therefore aims to investigate the extent of the application of BNM policy document for Islamic banks, with special focus on the practice of Islamic commercial banks in reporting Shariah non-compliant incomes in their annual financial reports. The qualitative method is adopted as the main research methodology of this study in order to gain information from the banks’ annual financial reports, as well as related research in the field. The findings show that nine out of sixteen Islamic commercial banks in Malaysia have fulfilled the standard provided by Bank Negara in reporting Shariah non-compliant incomes with complete detail in their annual financial reports. However, the remainder of the Islamic commercial banks did not properly disclose their Shariah non-compliant incomes in their report. This research would contribute to the practitioners of Islamic Commercial Banks in terms of providing transparent information with regards to business and financial dealings. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/15861/1/40751-130126-1-SM.pdf Nabilah Mat Nor, and Mohd Fuad Md Sawari, (2020) The practice of reporting Shariah non-compliant income in the annual financial report of Islamic commercial banks in Malaysia. Islamiyyat : Jurnal Antarabangsa Pengajian Islam; International Journal of Islamic Studies, 42 (1). pp. 93-102. ISSN 0216-5636 http://ejournal.ukm.my/islamiyyat/issue/view/1281
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description Bank Negara Malaysia (BNM) had introduced a policy document of Financial Reporting for Islamic Banking Institutions, which came into effect on 1st January 2018. This policy aimed to facilitate the assessment of Islamic financial institutions’ financial positions, performance, and Shariah compliance. However, the disclosure of Shariah committee report of a few Islamic banks may not have fulfilled the standard specified by BNM in terms of reporting the Shariah non-compliance incomes in their annual financial reports. This study therefore aims to investigate the extent of the application of BNM policy document for Islamic banks, with special focus on the practice of Islamic commercial banks in reporting Shariah non-compliant incomes in their annual financial reports. The qualitative method is adopted as the main research methodology of this study in order to gain information from the banks’ annual financial reports, as well as related research in the field. The findings show that nine out of sixteen Islamic commercial banks in Malaysia have fulfilled the standard provided by Bank Negara in reporting Shariah non-compliant incomes with complete detail in their annual financial reports. However, the remainder of the Islamic commercial banks did not properly disclose their Shariah non-compliant incomes in their report. This research would contribute to the practitioners of Islamic Commercial Banks in terms of providing transparent information with regards to business and financial dealings.
format Article
author Nabilah Mat Nor,
Mohd Fuad Md Sawari,
spellingShingle Nabilah Mat Nor,
Mohd Fuad Md Sawari,
The practice of reporting Shariah non-compliant income in the annual financial report of Islamic commercial banks in Malaysia
author_facet Nabilah Mat Nor,
Mohd Fuad Md Sawari,
author_sort Nabilah Mat Nor,
title The practice of reporting Shariah non-compliant income in the annual financial report of Islamic commercial banks in Malaysia
title_short The practice of reporting Shariah non-compliant income in the annual financial report of Islamic commercial banks in Malaysia
title_full The practice of reporting Shariah non-compliant income in the annual financial report of Islamic commercial banks in Malaysia
title_fullStr The practice of reporting Shariah non-compliant income in the annual financial report of Islamic commercial banks in Malaysia
title_full_unstemmed The practice of reporting Shariah non-compliant income in the annual financial report of Islamic commercial banks in Malaysia
title_sort practice of reporting shariah non-compliant income in the annual financial report of islamic commercial banks in malaysia
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2020
url http://journalarticle.ukm.my/15861/1/40751-130126-1-SM.pdf
http://journalarticle.ukm.my/15861/
http://ejournal.ukm.my/islamiyyat/issue/view/1281
_version_ 1684654312330887168
score 13.211869

Similar Items