SESSION 6#

Construction Methodology of Shariah Accounting: Part III

SHARIAH ETHICAL VALUES UTILISED AS BASIS OF CONSTRUCTING SHARIAH ACCOUNTING

Members of Group: Fara Laynds Lamborghini (0910.233.023) Anindya Yunita Adharina (0910.233.126) Ayu Chandra Dewi (0910.233.127)

Normatively Islamic Accounting purpose financial statements can be formulated as a combination of aspects that are materialistic and spiritualistic; blend "material" and "spirit". The basic objective of financial statements that are Islamic Accounting "matter" is for the provision of information (accounting), while that is "spirit" is to accountability (cf. baydoun and Willet 1994). Matter and "spirit" is different, but both can not be separated. In the discourse of philosophical idealism, "spirit" is considered more enduring than the "matter". Accountability much more substantial position, or a "soul", or become the basis of "ethics", rather than providing information. Accountability an Islamic Accounting spirituality, without accountability, Islamic Accounting became an instrument "dead" which mechanism we find, as happened in modern accounting. Humans as if binding contract with God, man was assigned to spread the blessings / wealth (in the form of economic, social, spiritual, political, and others) on another human being (stakeholders) and natural (natural environment). Human tasks that are mundane task. The task involves the creation and deployment of mercy to other human and natural environment in the form of business activity. Islamic accounting is basically an instrument of accountability that are used by management hello to God (vertical accountability), stakeholders, and natural (horizontal accountability). This thinking has two implications. First, Islamic Accounting must be constructed in such a way based on ethical values (in this case is the ethics of Sharia) so that the "form" Islamic Accounting (and the consequences of accounting information is presented) to be more fair; not biased, as we find in modern accounting favor of the capitalists (and creditors) and won the masculine values. Second, business practices and management accounting undertaken should also be based on Islamic ethical values. The other side of Islamic Accounting is the provision of information - as the embodiment of "matter". Provision of information, in fact a logical consequence of the existence of accountability. Accountability (with the basic ethical values of sharia) became the spirit that underlies the form of accounting and information accounting. The form and accounting information with the spirit of Islamic ethics is used for decision making by the parties concerned.

Because the forms and accounting information is based on Islamic ethics, then the decisions taken will also contain Islamic values, and consequently, created reality is the reality of islamic nuanced.

Character of Islamic Accounting Financial Report

Modern accounting has a distinctive character that was in him, namely the character of egoistic, materialistic, and quantitative. Three properties need not be eliminated, but instead incorporated or integrated in dynamic interaction and harmonious with other properties. For example, combined with the altruistic nature egoistic, materialistic nature mated with spiritualistic, and the quantitative nature of the qualitative properties.

Egoistic-altruistic
Modern accounting has egoistic nature, nature is seen in the income statement in the report where the peak of the information presented is net income (profit) loss tau (loss). The shareholders have a great interest to return to be obtained, so basically income statement is intended to provide information on the shareholder rather than on the other. Clearly the nature egoistiknya, due solely addressed to the shareholder which incidentally is the owner of the company. In the balance sheet there is also a selfish nature, particularly on the equity side. The information is presented within equity shareholders as well as information about information about the property or rights it has, does not belong to anyone else but the property of sharehoders. While revenues and expenses that are not presented publicly at all. The fundamental reason why the public cost and benfits are not reported in financial statements is essentially based on the difficulty of identification, measurement and assessment. Therefore, to create life is happy, then accounting is ideally not just present the private costs and benefits, but also public costs and benefits. So that will have a considerable impact in the form of Islamic accounting financial statements.

Materialistic-spiritualistic
In modern accounting, materialistic nature evident in the financial statements, all the elements of modern accounting financial statements only provide information about the activities of the company that is material and is measured in units (money) or simply present the material reality. Islamic Accounting Financial Report aims to provide accounting information, while being spiritual is to provide media accountability. With this combination, Accounting for Islamic financial reporting purposes to be more balanced and fair.

Quantitative-qualitative
The third quality of a modern accounting is quantitative. By its nature, the modern accounting only recognizes and presents finally information that quantitative nature only. Quantitative information will tend to direct the user of this information to also think quantitatively, and further economic decisions with qualitative calculations alone. Though no decisions are rarely successful businesses based on qualitative considerations. This shows that the qualitative aspects in the business is also very important and should not be overlooked.