Fundamental Islamic values to business activities.
Islamic Accounting hopes that Islamic organizations abide by the principles of the Shari’ah or Islamic Law in its business activities. There is a prohibition of interest-based income or expense in the business activities according to the Islamic accounting. In Islamic accounting, the profit determination is more important. In the reporting of financial statement according to Islamic accounting, the reporting must be holistic. Its mean that both financial and non-financial business activities must be measured and reported in the statement to avoid any ambiguity.
Ash-Shura principle known as consultation and it was practiced and promoted by Prophet Muhammad personally. It’s about individual consult with other before making any decision. It is necessary to select employees with the suitable knowledge and experience in the field of employment. According to him, it is advisable to assign the employees to his companions who were known to be competent and capable of discharging their obligations.
In Islamic accounting, the date of occurrence of the transaction is very important and it is based on the principle of Al-Haol known as periodicity. According to this principle an income was not subject to zakat unless it had been in the possession of the owner for 12 calendar months. The other important value is self-control. It is belief that Allah is watching all acts and thoughts of mankind. That is why the transaction of the trade must be properly record and report. Self-control will enhance the accountability of the individual.
The need for Islamic Accounting
Islamic accounting will enable stakeholders of an entity to ensure that the entity is continuously operating within the bounds of the Islamic Shari’ah. Islamic accounting also is needed because the needs to maintain proper accounting records and prepare adequate reports as required by the Quran. It also will establish a mechanism to ensure...
...Statement of Comprehensive income is a financial report that changes in equity of a business enterprise during a period transaction and other events and circumstance from non-owner sources. It is different from typical income statement which reflects profits and losses and may omit changes in net assets (IFRS.org, 2009). The general purpose of the statement of comprehensive income is to provide information about the companys financial position, performance and cash flow that is useful for economic decision-making by a range of user such as owners who did no managing the business, potential owners, lenders and creditors. These users are not in the position to have a report tailor to their information needs. There are two ways in presenting the total comprehensive income for a period. It is either by in a single statement of comprehensive income or in two statements of comprehensive income. In a single statement of comprehensive income, it present all items of income and expense recognised in the period. While a two statement include an income statement which include all items of income and recognised in the period except those that are recognised in total comprehensive income outside of profit and loss as required and a statement of comprehensive income. Profit or loss also known as net income is used as a basis for the measurement of performance of the company. It can also be used to measure return on investment (ROI) or earnings per share....
Accounting in Bangladesh
In Bangladesh, the profession of accountancy developed during the British colonial period. Today it is represented by two professional bodies, the Institute of Cost & Management Accountants of Bangladesh (ICMAB) and the Institute of Chartered Accountants of Bangladesh (ICAB).
Chartered Accountants complete their training in practicing firms and specialize in financial accounting, financial audit and tax. CMAs receive particular training in cost audit, management audit and management accounting, as well as general accounting and taxation. Both the ICMAB and ICAB are under the administrative control of the Ministry of Commerce. The Government of Bangladesh considers both type of professional accountants equal in respect of employment in government services.
The Generally Accepted Accounting Principles (GAAP) in Bangladesh is based upon standards set by the ICAB, which has stated its intention to adopt International Financial Reporting Standards. As of 2001, 23 such standards had already been adopted, and listed companies are required to use IFRS.
Different Branches of Accounting:
1.Financial accounting: Limits its activities in recording business transaction and determining financial results and position.
2. Cost Accounting: Takes the responsibility of...
...Strategic Research Project for Amazon.com
Strategic Research Project for Amazon.com
Business Policy and Strategy
December 3, 2012
Strategic Research Project for Amazon.com
This paper provides strategic research for Amazon.com, starting with the vision and mission statements and an external assessment of the competitive forces using the Porter Five Forces model. Also included in this research is an evaluation of the intensive strategies used by Amazon in the areas of market penetration, market and product development. Additionally, a SWOT Analysis is provided with the recommended five-year corporate strategy.
Strategic Research Project for Amazon.com
Amazon. com, an internet merchandise selling giant founded by Jeff Bezos, opened its virtual doors to its online store in July 1995. The company was incorporated in 1994 in the state of Washington and reincorporated in 1996 in Delaware. The Company's principal corporate offices are located in Seattle, Washington. Amazon.com completed its initial public offering in May 1997, and its common stock is listed on the Nasdaq Global Select Market under the symbol AMZN. (Amazon.comFAQ)
Mission and Vision Statement
The mission/vision statement of the company is very simple and direct “Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover...
... M2: Analyse the performance of a business using suitable ratios
Gross profit margin
Dessi-Designs Result :
Q1. Definition of Ratio
Gross profit margin is the difference between revenue and cost before accounting for certain other costs. Generally, it is calculated as the selling price of an item, less the cost of goods sold then multiplied by 100.
Q2. What result would your aunty and uncle want from this ratio?
The result they would want a high percentage because the higher the percentage the better it would be for the business, 60% means that for every £1 of sales they are given 60p gross profit.
Q3. With the result that your aunty and uncle got, why did they get it and what does this mean for their business (e.g. is this good or poor performance and why)
Compared to to the industry average Dessi designs performed well but not as good as the industry averages because their gross profit margin was 65%. This shows that the revenue of sales is at a steady speed and the cost of sales are much lower.
Q4. What financial decisions can your aunty and uncle make from their result? (e.g. whether to continue in business or whether to expand)
With these results they can decide to expand because they have made a high profit and they can use the profit to make further investments in the business for example they can open more stores in different locations. The...
...Intro to Business & Technology
Professor: Dave Trafton
The United States has several laws that are intended to further fair, balanced, and competitive businesspractices. Do you think that such laws are effective? If so, why? If not, why not? Be sure to provide evidence to support your position one way or the other.
The United States has several laws that are intended to further fair, balanced, and competitive businesspractices. These laws are typically effective as control measures to ensure fair businesspractices are followed. Determining the success or failure of specific legislation or regulations can be relative to what angle you are looking from. With these anti-trust laws we are insured safeness from unreasonable trade, price discrimination, and unfair and anti-competitive businesspractices.
I feel anytime new laws or regulations are introduced there is initial skepticism about their purpose and the impact they will have even when the laws that are enacted that are intended to promote fair and competitive businesspractices. Although people may not realize it, as a consumer, antitrust laws affect their daily life in a variety of ways.
In 1890, Congress enacted the Sherman Antitrust Act, a law designed to restore competition and free enterprise by breaking up monopolies. The Act of July 2,...
2nd Semester 2012/2013
Short Essay Assignment
Please answer all the questions below.
The assignment should not less than 3 pages and not exceed 10 pages including references.
The differences between Islamicaccounting and conventional can be seen in the context of the basis differentiation which is: (1) objective of providing information, (2) the type of the information that is identified, how it is measured, recorded and communicated, (3) users of the information, (4) Antecedent and Legislations for Reporting, (5) Accountability, (6) Foundation.
Based on all of the basis differentiation, briefly discuss any five (5) of the differences between Islamicaccounting and conventional accounting.
State four (4) objectives of financial accounting and six (6) objectives of financial reports developed and established by AAOIFI.
The Eminent Management University
A PRIMA - FACIE CASE FOR ISLAMICACCOUNTING
• Purpose Accounting : To permit informed decision which will enable scare resources to be allocated efficient to achieved ‘social welfare’.
|Islamic |Conversational |
|To achieve socio – |To meet needs of |
|economic & religions|‘capitalist’ |
|objective of Islamic|economy. |
|Institution & | |
|Muslims Users. | |
|Provide holistic |Provide materialist|
|information |profit-focused info|
| |information |
|Eg : Islamic Bank, |Not meet socio |
|Tabung Haji |economic objective.|
• Karim (1995) – Not just technical.
• More requiring whole new areas of performance measurement.
RELIGION & ACCTG. – AN EXPLOSIVE MIX ?
Problem: Additional of any religious adjective may compromise the objectivity of the discipline.
Stage 1 : what is worldview behind conversational acctg.?
• In a centrally planned, there is lack of profit motive.
• B/sheet & P/L does not make sense in economic system.
• Acctg. Profession never developed in the communist countries.
• Acctg. Is not obj, neutral & value free as it is potrayed to be.
Stage 2 : prob of epistemology – nature & source of knowledge.
• Enlightenment – science has gained adv &...
...Businesspractices in an Islamic country are likely to differ a lot from businesspractices in Canada. The impact of God is tremendous in Islamic countries, so that Muslim is regulated by a variety of religious principles and moral conducts in their social and economic activities. In this sense, Canadian people may not get used to the ritual nature of everyday life in Islamic countries.
For example, orthodox Muslim ritual requires prayer five times a day. As a result, business people should be aware that the business meetings might be postponed when Muslim participants engage in their daily prayer ritual. Furthermore, when doing business in Islamic countries, the consumption of either pig meat or alcohol is perceived to be violation of Islamic ritual, so the failure of business may occur.
On the other hand, in the Islamic view of the world, humans are part of a collective in which the wealthy and successful have obligations to help the disadvantaged. With a culture emphasising on compassion, when an Islamicbusiness is experiencing financial difficulties, it is inappropriate for debt holders to put on pressure to the business. Nevertheless, in Canadian business world, business people are responsible for...