THE NATURE OF ISLAMIC ACCOUNTING AND ITS ROLE TODAY
DOI:
https://doi.org/10.60078/2026-vol1-iss1-pp313-322Abstract
The article explores the nature of Islamic accounting and highlights its
significance in the contemporary financial sector. It examines this concept by first addressing the
fundamental question of what constitutes traditional accounting. A comparative analysis is
conducted between the functions of conventional and Islamic accounting systems. Particular
emphasis is placed on key financial statements, namely the balance sheet and the income statement. The study also clarifies the principles for reporting the assets of unrestricted account holders and the revenues associated with them. Additionally, several definitions of Islamic accounting are reviewed and discussed. The article concludes by underscoring the key functional differences between Islamic and conventional accounting.
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