QUESTION : IN RELATION TO THE THREE CRITERIA (THE OBJECTIVE, THE TYPE OF INFORMATION AND THE USERS OF THE INFORMATION),

DISCUSS THE DIFFERENCES BETWEEN ISLAMIC AND CONVENTIONAL ACCOUNTING.

THE OBJECTIVE OF PROVIDING INFORMATION.

Islamic Accounting

Hopes to enable users to ensure that Islamic organizations (business/governm ent) abide by the principles of the Shariah or Islamic Law.

Aims to efficiently allocate resources available to their most efficient and profitable users by providing information efficiency in the market

Conventional Accounting

THE TYPE OF INFORMATION.

Islamic Accounting

Identify socioeconomic and religious events and transactions: Prohibition of interest-based Profit determination is important

Concentrate on identifying economic events and transactions.

Conventional Accounting

THE USERS OF THE INFORMATION.

Islamic Accounting
Serves the whole gamut of stakeholders recognized by the corporate report. Not to serve each group own interest but society as a whole. Ensure corporations accountable for their actions, must comply with Shariah principles. Focus more on shareholders and creditors. (those who provide the funds) Dismiss the whole range of stakeholders by the term and other. Serving an elite group of financiers individual satisfaction.

Conventional Accounting