Journal of Islamic Banking and Finance

Accounting Treatment of Zakah: Additional Evidence from AAOIFI
Dr. Adel Mohammed Sarea

Abstract
This paper focuses on the accounting treatment of Zakah according to the requirements of AAOIFI FAS 9 (Financial Accounting Standard No. 9). The purpose of the release of AAOIFI FAS (No. 9) is to standardize the recognitions, measurements and disclosures of Zakah in the financial reporting. The objective of this paper is to highlight the usefulness of applying FAS (No.9).However, reviewing the requirements of AAOIFI (FAS 9) may serve as a guideline that may reflect the recognitions, measurements and disclosures of financial reporting and become a useful tool to meet the various needs of IFIs. Thus, the paper concludes that, applying the AAOIFI accounting standards for Islamic Financial Institutions are the best choice for increasing the investments and investor's confidence among Muslim societies as well as increase the amount of Zakah collections.

Full Text: PDF