Nowadays, Islamic accounting is greatly discussed between the academician and professional personnel that have already did some research about the differences between conventional and Islamic accounting. Therefore, we can identify the differences with the article written by them. For example, Mohd Ibrahim (2001), Baydoun and Willett (2000), Toshikazu Hayashi and so forth. Thus, in their articles they have stated that there are several differences that can be spotted between both types of accounting are the method accounting report, orientation and law practiced, and lastly the disclosure. Below is the table of differences between both accounting.
From the table above, the first difference between both conventional and Islamic accounting is that the method of account reporting where the conventional account reporting is derived in the method of secularism where the practitioner will ignores the important element which consist with the religion. Besides that, under the secularism, people may "no longer need God or religion. Therefore, the economic behaviour was only restricted by man-made laws", this statement stated in the article by Mohd Ibrahim (2001). Thus, this is the opposite of Islamic accounting where it strictly complies with the religious and comply with Shariah principles as stated by our Prophet Muhammad pbuh which have been practised by many professional parties from accounting and banking institution where the apply the concept of Islamic accounting policy in their working environment.
Thus, the case of adopting secularism by the conventional accounting will make the personal that practises conventional accounting becoming more attracted to personnel accountability or self-interest as stated by Mohd Ibrahim (2001) and this will lead us to the second difference which is the orientation practiced by both account. In real life situation, we can see that individual-orientation is commonly related to conventional accounting which personnel’s...
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