This site is solely dedicated to publish my writing, mostly on the topic of Islamic finance. Some of the articles were written as partial fulfillment for completing the Chartered Islamic Finance Professional (CIFP) certifications and for the Ph.D in Islamic Finance that I am currently undertake. Interested parties, including reporter/press or students, may reproduce or quote materials published provided that the credit has to be given to my blog (arzim.blogspot.com). Comments must be accompanied by names or pseudonyms. Anonymous postings and those containing profanities and obscenities will be rejected.
Sunday, January 17, 2010
Wednesday, January 6, 2010
- During the same year, the mudharib bought another consignment of goods at $120,000 and sold it for $130,000.
- Profit is allocated between the Islamic bank and the mudharib at the ratio of 70% to 30% respectively.
- Historical cost
- Fair value
5 provisions made by Malaysia Accounting Standards Board (MASB I -1) to enhance the usefulness of presentation and disclosure of financial statement and accounting related information by Islamic banks and conventional banks that are involved in Islamic Banking Scheme in Malaysia [ (MASB I – 1) had been abolished ]
Tuesday, January 5, 2010
THE RATIONALE FOR THE INTRODUCTION AND APPLICATION OF RELEVANT FINANCIAL REPORTING, ACCOUNTING, AUDITING AND GOVERNANCE STANDARDS FOR ISLAMIC FINANCIAL INSTITUTIONS
Monday, January 4, 2010
‘Uruf or custom in summary is the matter on which a community of people agrees in the course of their daily life. Custom is also a common usage to refer to specific actions that are repeatedly performed by individuals and communities. Maliki fiqh and Hanafi fiqh makes use of custom and considers it a legal principle in respect of matters about which there is no definitive actions. Apparently, Maliki fiqh has an even deeper respect for ‘Urf because Malikis put public interest and general benefit as the foundation in the fiqh study to come with the decisions. Malikis even abandon analogy when customs opposes it. The Malikis claims that ‘uruf specifies the general and qualifies the unqualified. On the other hand, Hanafis claim that ‘uruf makes the general specific, qualifies the unqualified, Similar to Malikis, Hanafis are also put custom is put ahead of anology. Shafi’ites takes custom into consideration when there is no text. Because people are subject to it and do it by way of familiarity and habit, thus, the said custom is acted on when there is nothing in the custom contrary to a text or is not suggested by it. This project paper is an attempt to explain the ‘Uruf in details.
Sunday, January 3, 2010
The application of bay’ al-‘inah (sale and repurchase back) and bay’ al-dayn (sale of debts) is making the Islamic financial industry lost its identity. The issues are serious to the Islamic financial market movement, as it is not about minor details of religious practices (furuq) but sadly dealing with the fundamental (usul) of religion. This time it is riba or usury. Its application in Islamic financial market is partly caused by the lack of knowledge in riba that is both definite and decisive. For this reason, it is critical to put things straight and get to the basics again. This paper endeavours to give a thorough analysis between the Sale of Goods and the Sale of Debts. Only by appreciating the differences between both sales in the eyes of Shariah would only then one can appreciate the distinctions. Compliance to or otherwise to the principles of Shariah is one the agenda of this paper entitled “Sale of Goods and Sale of Debts - A Comparative Analysis From The Perspective of Shariah” which speaks for itself. Some of the issues will be discussed in general while some issues will be analysed in detail.