Meta Analysis on Direction of Accounting Standards for Islamic Financial Institution: Case Studies in United Kingdom and Indonesia

Murniati Mukhlisin, Muhammad Syafii Antonio


This paper is to analyse determinants that influence implementation of accounting standards for Islamic financial institutions. It’s done by examining the history of accounting standards and two different contexts as applied to Islamic financial institutions in the United Kingdom and Indonesia. The paper adopts meta-analysis method by exploring available texts and literature with the goal to learn 'what is going on here?' and to investigate social phenomena without explicit expectations. Employing the Ibn Khaldun perspective, this study analyses two determinants i.e. institutional setting that may be suitable in the context of the United Kingdom, and accounting needs in the case of Indonesia. The research shows the determinants are well fitted with interdisciplinary characters of Ibn Khaldun model of civilization.

DOI: 10.15408/aiq.v10i1.5676



meta-analysis; accounting standards; Ibn Khaldun; Islamic financial institutions


AAOIFI. (2010). Accounting, Auditing and Governance Standards for Islamic Financial Institutions. Bahrain: Accounting and Auditing Organisation for Islamic Financial Institutions.

ACCA. (2010). Harmonising Financial Reporting of Islamic Finance. Retrieved from Association of Chartered Certified Accountants website:

Adnan, M. A., & F. Furywardhana. (2009). Evaluasi Non Performing Loan (NPL) Pinjaman Qardhul Hasan: Studi Kasus di BNI Syariah Cabang Yogyakarta (The Evaluation of Non Performing Loan in Qardhul Hasan Financing: Case Study at BNI Sharia Branch of Yogyakarta). Jurnal Akuntansi & Auditing Indonesia. 10(2): 155-171.

Alatas, S. F. (2006). Ibn Khaldūn and Contemporary Sociology. International Sociology. 21(6): 782-795.

AOSSG. (2012). Research Paper; Financial Reporting Issues Relating to Islamic Finance: AOSSG.

ASB. (2012). About the ASB. Retrieved from

Ball, R. (2006). International Financial Reporting Standards (IFRS): Pros and Cons for Investors. Accounting and business research. 36 (sup1): 5-27. doi:10.1080/00014788.2006.9730040

Barth, M. E., W.R. Landsman., & M.H. Lang. (2008). International Accounting Standards and Accounting Quality. Journal of Accounting Research. 46(3): 467-498. doi:10.1111/j.1475-679X.2008.00287.x

Bedford, N. M., & R.E. Ziegler. (1975). The Contributions of AC Littleton to Accounting Thought and Practice. The Accounting Review. 50(3): 435-443.

Benston, G. J., M. Bromwich., R.E. Litan., & A. Wagenhofer. (2011). Worldwide Financial Reporting: the Development and Future of Accounting Standards. OUP Catalogue.

BLME. (2012). Annual Reports and Accounts. Retrieved from

Briston, R. (1978). The Evolution of Accounting in Developing Countries. International Journal of Accounting Education and Research. 14(1): 105-120.

Cahyati, A. D. (2011). Peluang Manajemen Laba Pasca Konvergensi IFRS: Sebuah Tinjauan Teoritis dan Empiris (Opprtunity of Earning Management Post IFRS Convergence: A Theoretical and Empirical Survey). Jurnal F. Ekonomi: JRAK. 2(1): 1-7

Chamisa, E. E. (2000). The Relevance and Observance of the IASC Standards in Developing Countries and the Particular Case of Zimbabwe. The International Journal of Accounting. 35(2): 267-286.

Chapra, U. (2008). Muslim Civilization; The Causes of Decline and the Need to Reform. United Kingdom: The Islamic Foundation.

Cohen-Committee. (1947). Report of the Cohen Committee on Company Law Amendment: abstract of the discussion. Journal of the Institute of Actuaries. 73: 20-36.

Cooke, T. E., & R. Wallace. (1990). Financial Disclosure Regulation and Its Environment: A Review and Further Analysis. Journal of Accounting and Public Policy. 9(2): 79-110.

Day, R. G. (2000). UK Accounting Regulation: An Historical Perspective School of Finance & Law Working Paper Series (Vol. 20): Bournemouth University.

Dewi, D. R. (2011). Faktor-Faktor yang Mempengaruhi Profitabilitas Bank Syariah di Indonesia (The Factors that Determine Islamic Banking Profitability in Indonesia). (Unpublished Bachelor Thesis). Semarang: Universitas Diponegoro.

Dhaouadi, M. (1990). Ibn Khaldun: the Founding Father of Eastern Sociology. International Sociology. 5(3): 319-335.

Dick, H. W. (2002). The Emergence of a National Economy: An Economic History of Indonesia, 1800-2000. Hawaii: University of Hawaii Press.

Doupnik, T. S., & S.B. Salter. (1995). External Environment, Culture, and Accounting Practices: A Preliminary Test of a General Model of International Accounting Development. International journal of Accounting. 30 (3): 189-207.

Easterby-Smith, M., R. Thorpe., & P.R. Jackson. (2008). Management Research (3rd ed.). London: SAGE Publications Ltd.

Edwards, J. D. (1960). Early Bookkeeping and its Development into Accounting. Business History Review. 34(04): 446-458.

Effendy, B. (2005). Islamic Economic Institutions in Indonesia: A Religio-political Perspective. In K. S. Nathan & M. H. Kamali (Eds.), Islam in Southeast Asia: Political, Social and Strategic Challenges for the 21st Century (pp. 64). Singapore: Institute of Southeast Asian Studies.

Elliot, B., & J. Elliot. (2007). Financial Accounting and Reporting (11th ed.). England: Pearson Education Limited.

Enan, M. A. (1941). Ibn Khaldûn: His life and work (S. M. Asyraf, Trans.). Lahore: Bengal Art Press.

Errico, L., & M. Farahbaksh. (1998). Islamic Banking-Issues in Prudential Regulations and Supervision. New York: International Monetary Fund.

FSA. (2007). Islamic Finance in the UK: Regulation and Challenges. Retrieved from

Ghazanfar, S. M., & A.A. Islahi. (1990). Economic Thought of an Arab Scholastic: Abu Hamid al-Ghazali (AH 450–505/AD 1058–1111). History of Political Economy. 22(2): 381-403.

Giddens, A. (1973). Capitalism and modern social theory: An analysis of the writings of Marx, Durkheim and Max Weber. Cambridge: Cambridge University Press.

GIFR. (2012). Global Islamic Finance Report. Retrieved from

GIFR. (2015). Global Islamic Finance Report. Retrieved from

Haniffa, R. (2011). Improving Transparency and Fostering Credibility by Harmonising the Best Practices. Paper presented at the Morality & Finance Conference, Markfield, Leicester, United Kingdom.

Haniffa, R., & M. Hudaib. (2002). A Theoritical Framework for The Development of The Islamic Perspective of Accounting. Accounting, Commerce and Finance. The Islamic Perspective Journal. 6(1&2): 1-71.

Haniffa, R., & M. Hudaib. (2007). Exploring the Ethical Identity of Islamic Banks via Communication in Annual Reports. Journal of Business Ethics. 76(1): 97-116.

Hayashi, T. (1989). On Islamic Accounting: Its Future Impact on Western Accounting. Japan: Institute of Middle Eastern Studies, International University of Japan.

Ibrahim, S. H. M. (2007). IFRS vs AAOIFI: The Clash of Standards? Munich Personal RePEc Archive, Paper No. 12539.

Ibrahim, S. H. M., & R. Yaya. (2005). The Emerging Issues on The Objectives and Characteristics of Islamic Accounting for Islamic Business Organizations. Malaysian Accounting Review. 4(1): 75-92.

Karim, R. A. A. (2001). International Accounting Harmonization, Banking Regulation, and Islamic Banks. The International Journal of Accounting. 36(2): 169-193.

Laughlin, R. (1995). Methodological Themes, Empirical Research in Accounting: Alternative Approaches and a Case for 'Middle-range' Thinking. Accounting, Auditing & Accountability Journal. 8(1): 63-87.

Maali, B., & C. Napier. (2010). Accounting, Religion and Organisational Culture: the Creation of Jordan Islamic Bank. Journal of Islamic Accounting and Business Research. 1(2): 92-113.

Marrero, J., & T. Brinker. (2007). Are Accounting Standards Uniform? Recognizing Cultural Differences Underlying Global Accounting Standards. Journal of Financial Service Professionals. 61(1): 16-24.

Maurer, B. (2002). Anthropological and Accounting Knowledge in Islamic banking and Finance: Rethinking Critical Accounts. Journal of the Royal Anthropological Institute. 8(4): 645-667.

Meek, G. K., C.B. Roberts., & S.J. Gray. (1995). Factors Influencing Voluntary Annual Report Disclosures by US, UK and Continental European Multinational Corporations. Journal of International Business Studies. 26 (3): 555-572.

Mukhlisin, M., M. Hudaib., & T. Azid. (2015). The Need for Shariah Harmonization in Financial Reporting Standardization; the case of Indonesia. International Journal of Islamic and Middle Eastern Finance and Management. 8(4): 455-471.

Napier, C. (2009). Defining Islamic Accounting: Current Issues, Past Roots. Accounting History. 14(1-2): 121-144.

Newman, I., & C.R. Benz. (1998). Qualitative-quantitative Research Methodology: Exploring the Interactive Continuum. Illinois: SIU Press.

Nobes, C. (1983). A Judgemental International Classification of Financial Reporting Activities. Journal of Business Finance & Accounting. 10(1): 1-19.

Nobes, C., & R. Parker. (2012). Comparative International Accounting (12 ed.). Essex: Pearson Education Limited.

Perera, H., & N. Baydoun. (2007). Convergence with International Financial Reporting Standards: The Case of Indonesia. Advances in International Accounting. 20(1): 201-224. doi:

Rosser, A. (2009). The Political Economy of Accounting Reform in Developing Countries-The Case of Indonesia. Western Australia: Asia Research Centre.

Sarea, A. M., & M.M. Hanefah. (2013). The Need of Accounting Standards for Islamic Financial Institutions: Evidence from AAOIFI. Journal of Islamic Accounting and Business Research. 4(1): 64-76.

Schutt, R. K. (2001). Investigating the Social World (5th ed.). London: Sage.

Suardikha, I. (2012). Kuasa Universitas dan Profesi Akuntan dalam Pengembangan Profesi Akuntansi (Authority of University and Profesional Accountant in Professional Development of Accounting). Buletin Studi Ekonomi. 17(2): 99-225.

Sudarwan, M., & T.J. Fogarty. (1996). Culture and Accounting in Indonesia: An Empirical Examination. The International Journal of Accounting. 31(4): 463-481.

Tafsir. (2012). Tafsir Ibn Kathir Retrieved from Ibn Kathir/011 Hud.htm

Tarca, A. (2004). International Convergence of Accounting Practices: Choosing between IAS and US GAAP. Journal of International Financial Management & Accounting. 15(1): 60-91.

Vinnicombe, T. (2010). AAOIFI Reporting Standards: Measuring Compliance. Advances in Accounting. 26(1): 55-65.

Vinnicombe, T. (2012). A Study of Compliance with AAOIFI Accounting Standards by Islamic Banks in Bahrain. Journal of Islamic Accounting and Business Research. 3(2): 78-98.

Wan Abdullah, W. A., M. Percy., & J. Stewart. (2011). Corporate Social Responsibility in Islamic Banks: A Study of Shari’ah Supervisory Board Disclosures and Zakat Disclosures in Malaysian and Indonesian Islamic banks. Paper presented at the 2011 AFAANZ Conference.

Weis, W. L., & D.E. Tinius. (1991). Luca Pacioli: Accounting’s Renaissance Man’. Management Accounting. 73(1): 54-56.

Zeghal, D., & K. Mhedhbi. (2006). An Analysis of the Factors Affecting the Adoption of International Accounting Standards by Developing Countries. The International Journal of Accounting. 41(4): 373-386.

Full Text: PDF

DOI: 10.15408/aiq.v10i1.5676


  • There are currently no refbacks.