SHARIAH ACCOUNTING

THE WEAKNESSES OF MODERN ACCOUNTING AND WHAT ARE THEIR IMPACTS ON HUMAN BEHAVIOUR

Fara Laynds Lamborghini 0910233039 Ayu Chandra Dewi 0910233127 Anindya Yunita Adharina 0910233126

Modern Accounting Cardiac of modern financial accounting is on entry bookkeeping system. This system involves making at least two entries for every transaction: a debit in one account, and a corresponding credit in another account. Sum of all debits should always equal the sum of all credits. This will make it easier to check for errors. This method is known first used in medieval Europe, although some argue that the way this has been used since ancient Greece. Critics say that the standard accounting practice has not changed much since the first. Accounting reforms in various forms always occur in each generation to maintain the relevance of accounting to capital assets or production capacity. However, this does not change the basic principles of accounting, which is expected to not depend on the economic impact that way. Modern accounting has come along so much from twenty years ago. Accountants use to do everything by hand. To imagine all the work that was put into journaling and spread sheets not to mention calculating by hand. Accountants still have many responsibilities regardless of how technology has improved. Companies now have software and hardware and other technology, etc. Accounting is easier and less time consuming.

Weaknesses of Modern Accounting Accounting is a determinant of an ideology that dominates. Because of an information business, accounting is designed in such a way as to meet the interests of the parties "ruler" in a context where ideology is located. When accounting is used on the basis of socialist society will have implications for the accounting value of collectivism, egalitarianism and counter-hierarchical strata. Vice versa, the accounting will be affected by the values of individualistic, egocentric and logosentris when he applied in the context of a capitalistic society. This is the fundamental character of accounting. That he was greatly influenced by the social environment where it resides, although at the same time can also change the accounting environment. Currently the mainstream ideology of capitalism is the control of all lines of modern human life. By following the above logic flow, we can ensure that the accounting used in the coverage of today's business world is a product of the ideology of capitalism is greedy, greedy, and greedy. This statement is further justified when we got to see the reality of the accounting information is only intended for the capital owners (Shareholders). While other parties who have contributed to the company's performance and then marginalized by the science of modern accounting. The arrogance of mainstream accounting is increasingly becoming recognized only when the private cost and benefit as an expense (expense) and income (revenue). This certainly implies a loss of concern for the company towards the cost of externalities arising from day-to-day operations such as, the cost of environmental damage caused by waste disposal, pollution and so on. By circles in part, the theories of mainstream accounting have always been considered free value (value free). It is very ignorant of the fact of scientific construct buildings that actually were seized by the values of subjectivity. This perspective (perspective of value-free science) arises because of an assumption that objective reality is a free and separate out the human self. As a result of this way of looking like (read: perspective) negated the facts about human beings who are socially active can construct the reality of life. This view is often termed the physical realism. Physical realism is only suitable for use in the context of exact sciences. Because of the

ontology object of this science can indeed be measured, analyzed, described objectively by scientists. Unlike the case with the accounting, which is one branch of social science, which requires an understanding of a social phenomenon that was behind the theoretical building? Because an accountant could never leave the value in nature, experience, community values and so forth. In addition, the researched reality is the reality that is not free nilai.Karena reality was constructed through a process of social interaction. And most are not less important to note that the methodology used in constructing the theory of mainstream accounting is a methodology that requirement with a value. Good subject, object and methodology in the science of accounting is never free of values. Because it is positivistic, scientific mainstream accounting dwell only on providing quantitative information. This restriction will only impoverish the quality of accounting information. For give a complete picture of a company then needed another type of information that cannot afford given the quantitative information. Therein lays the importance of qualitative information which if synergized to increase the usability of a financial statement. Because of its secular, mainstream science of accounting is very far from the warmth of religious values. As a result, people become alienated with identity and its creator. Because of awareness of users of accounting information is limited to the material aspect of consciousness that is mortal. Mainstream accounting only exploit the human desire for material acquisition through orientation to profit maximization. This is the veil of consciousness penghijab interlinked between God and man. The man has forgotten the purpose and objectives of its creation in the world. The tool has been used as a destination. Theres no difference between the current human with animals that only live to eat. This is the real face of modern accounting, a science without god.

The Impact of Modern Day Accounting Systems Accounting and bookkeeping haven't always been particularly easy to accomplish. In the past, before there was mechanized bookkeeping, keeping track of financial transactions, and their ultimate effect on a business, was a matter of sorting transactions into the proper category and recording them by hand into paper ledgers, using specialized paper to physically emulate the TAccount concept. One of the many challenges facing small and medium business owners is the ability to maintain accurate financial records. This is due to their primary focus being on the operations of the business, leaving little time to ensure that all their transactions have been properly and accurately recorded. In the past, a large company needed a big roomful of accounting clerks to prepare the accounting records manually - and that's a LOT of wages. Using modern computerized software, the same job can be performed by a much smaller group of people, saving a small fortune in wages expense. Another plus is that modern accounting systems make it easier to operate under a 'perpetual' inventory system - the inventory numbers on the books more closely match the inventory that is actually on hand (theoretically). That's what all those bar codes and item scanners are all about. Modern accounting systems fulfill the basic accounting needs while offering increased accuracy in tracking trends, enabling collaboration and giving quick access to data. Computerized solutions offer the traditional transaction processing, classification of data and reporting while simultaneously increasing the range of inputs to give a clearer and more comprehensive picture of the financial health of a company.

Egoism of modern accounting in general is reflected in the accounting concept of equity that was followed, namely the entity theory. In this theory, the income becomes very important information for the owners as disclosed below Thurs: "For the entity theory, emphasis is made on the determination of income, and therefore the income statement is more important than the balance sheet. Emphasis on income has two reasons: (1) equity holders have an interest primarily to income, because this number shows the results of their investments in that period, and (2) the company will exist when generating profits (1990, 307-8) ". In the view of this theory, the company will exist if he is able to create income. And this income devoted solely to the shareholders (the concept of income for stockholders). Explicitly, in this case, Kam (1990, 315) says that "the traditional accounting income is a measure of the wealth created for the benefit of the stockholders." Earmark income solely to the shareholders is a form view that is loaded with value of egoism. Egoism of modern accounting is, Reasonableness, in the context of capitalism. However, we also realize that capitalism contributes very destructive in economic life, political and even cultural community (in addition to other positive contributions). Capitalism cannot escape the discourse of discourse on property rights theory revolves around the beginning of the debate between the views of property rights as human rights or the rights of the artificial. Locke was the first to put forward a defense of property with an infinite number as the natural right of individuals, even earlier than the form of government as well as superior of that government (Macpherson 1989, 19-35). Many people who express a general defense against a limited form of government, but the major reforms undertaken by Locke is the legitimacy of the issue as far as things that need to be done to protect the property indefinitely. In his opinion, since the beginning of civilized society to protect their private property, then it is impossible to a civilized society this requires seizing some property of a person except as necessary to protect the property as an institution and government-for example through taxes to maintain law and government, whose power is law is a power delegated by all civilized societies, which thus can never have the right to interfere with one's own accountability beyond what is needed to protect property. Locke's theory that underlies the theory of Adam Smith talked about private property rights both in terms of a narrow or a wider (Keraf 1997, 69-74). In a narrow sense, personal property refers to property or possession of certain objects. And for Locke, property rights are considered as human rights. In a larger sense, private property rights covering all human rights, which means also include the right to life, liberty and property? So for Locke, private property not only involves external goods, but also what was to become part of one's personal. Locke moved from a highly prioritizes absoluteness of property rights, along Bentham can be found the notion of ownership that further strengthens the drive to the accumulation of wealth (Macpherson 1989, 49-72). Bentham basing all rights to the property and the rights of the government on the principle of utility or greatest happiness is measured by the amount of pain exceeds the pleasure, a distinctive position for supporters of Utilitarianism. For Bentham, owned by none other of the foundation is hoping to gain certain advantages from object which is owned as a result of the presence of a relationship to it. The influence of some of the above ideas is evident in the form of modern accounting, in particular-Profit and Loss Statements (Income Statement), Statement of Retained Earnings (Retained Earnings Statement) and Balance (Balance Sheet). In the Income Statement report information that is preferred is income. Then the accumulated income is presented in the Consolidated Statements of Retained which basically presents the accumulation of profits from the company since its inception to the

current period financial reports. Later in the Balance will also be seen in that tells the sub Equity Shares Outstanding and successfully accumulated earnings. In order pragmatics, this form of influencing the behavior of its users. For instance, to see how much the level of return obtained by the company, then an accounting information users will see the figures income and total assets or total investment (return on investment). Figures obtained from the formula for return on investment this will affect the decision to be taken. This shows clearly how accounting information affects its users.