THE EMERGING ISSUES ON THE OBJECTIVES AND CHARACTERISTICS OF ISLAMIC ACCOUNTING FOR ISLAMIC BUSINESS ORGANIZATIONS AND ITS IMPACT ON INDONESIA ISLAMIC ACCOUNTING DEVELOPMENT
Abstract
Research on Islamic accounting is still at an exploratory stage; its pioners try to develop a theoretical framework for Islamic accounting using various methodologies. In common with the development of conventional accounting, the search is on for the objectivesand characteristic of Islamic accounting as a foundation on which to lay its principles, conventions, rules and standards. Hameed and Yaya;s study found that the development of Islamic accounting can be classified into deducative, inductive or 'ibaha, and hybrid approaches. Their evaluation has shown that the hybrid approach as promising as compared to other approaches. However, in this further study on its applicatipn in Indonesia, the use of ibaha approach is more dominant than otehrs in developing Islamic accounting standards. Meanwhile the use of hybrid approach in Indonesia is not in the context of the development of islamic accounting.