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The purpose of this paper is to investigate the techniques used by Islamic financial institutions (IFIs) to shift conventional instruments to Shariah-compliant instruments. The paper additionally aims to explore the effect of these techniques on financial reporting.

The study recognized two techniques used by the IFI: the combination of contracts which compartmentalizes the economic transaction into a series of linked sub-transactions, and the inclusion of donation (Tabarru) in commercial contracts. The paper also reviews the accounting treatment according to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and compares it to the concepts adopted by the traditional financial reporting framework concepts (especially substance over form concept).

With regard to the combination of contracts technique, the major accounting challenge is whether the substance over form concept is considered. Mixed results are found: in some products, the economic substance is presented in the financial reports, while in other cases, the legal form of the contract is reported. This ambiguity may hinder the faithful representation of financial statements. The Tabarru contract is used to justify the risk-shifting practices by Islamic banks. The accounting effects of such contracts may result in failure to recognize assets or liabilities in the financial reports, earnings management and incomplete financial information for the users of the financial reports.

This study is a response to the call raised by the consultative group established by the International Accounting Standards Board. It provides an additional insight into the accounting treatments for a combination of contracts and Tabarru contracts. It also contrasts the accounting treatments, as stipulated by the AAOIFI, with the conventional accounting frameworks.

The purpose of this paper is to examine the accounting treatment for mudarabah contract and its implications on the reliability and fairness of the financial statements. In addition, the paper also aims to explore the effect of provisions and reserves on profit allocation among unrestricted investment account holders (UIAHS).

This study reviews the accounting treatment for mudarabah contract as stated in the Accounting Standards for Islamic Financial Institutions issued by the AAOIFI and compares it with other financial reporting frameworks, especially the IFRS.

The paper finds that presenting UIAHS in a separate category in the financial position statement (balance sheet), without reclassifying the assets in the financial position statement to reflect the assets attributable to UIAHS, suggests undue bias in the financial statements. This contradicts the concepts of full disclosure and true and fair view of the financial statements. The paper also reveals that reserves may result in profit misallocation among UIAHS. Additionally, there is an overlap between provisions and reserves, which may affect the reliability and fairness of the financial statements. It is also revealed that reserves presented under the UIAHS section could not be readily understandable since investors have no right to these reserves. The paper further finds that using a donation contract in business may result in diverting wealth from the less wealthy to the wealthier.

The paper criticizes the AAOIFI treatment for UIAHS and suggests an extension to this treatment by presenting assets attributable to UIAHS in order to enhance disclosure. Additionally, it questions the applicability of using donation (Tabarru) contract in transactions with profit‐making substance.

Islamic banks use Mudarabah contract to replace the interest-bearing deposits with profit-sharing investment accounts. The purpose of this paper is to explore the challenges and problems associated with the employment of Mudarabah contract by Islamic banks.

The study critically analyzes the Mudarabah contract used by Islamic banks. It reviews the evolution of the contract from its traditional type to more complicated types such as compound, unrestricted, commingled and continuous Mudarabah. The paper investigates the problems that have emerged from implementing such types in current business settings.

The paper proves that implementing the Mudarabah contract by banks imposes several problems among which are the following: difficulty in the determination of total profit resulting from Mudarabah and in allocating this profit to the multiple parties involved in Mudarabah; usage of reserves to cater against future losses may undermine the concept of Mudarabah profit-loss sharing and lead to earnings management; corporate governance is also a major problem in Mudarabah contract, as the depositors are exposed to risks but have no governance rights; and Mudarabah may also lessen the fair presentation of financial reporting.

The paper examines the evolving Mudarabah contract and its implementation challenges, based on available literature (no empirical analysis was conducted).

The implications are significant for the future development of Islamic contracts and Islamic accounting treatments.

Many studies explored the Mudarabah contract from a Shariah or law perspective. However, this paper investigates the Mudarabah contract with a focus on the implication on accounting and financial reporting because of the lack of studies in this area. Furthermore, it demonstrates the persistent flaws in the Mudarabah contract, and it proposes a new model for mobilizing funds, i.e. mutual fund.

This paper aims to provide an essential framework for establishing Shariah-compliant deposit insurance scheme, by reviewing the Shariah provisions concerning the available approaches for deposit guarantee, types of deposits in Islamic financial institutions and the permissible party to incur the cost of this guarantee.

This paper reviews the Fiqh rules and principles approved by the well-known Islamic Fiqh references, as well as the resolutions of International Islamic Fiqh Academy (IIFA) and Shariah standards issued by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and presents these resolutions and judgments in a modern applicable way.

This paper recommends that the Islamic scheme for deposit insurance should be established based on Takaful insurance principle, and this scheme must adopt fund segregation principle to comply with Shariah provisions for guarantee permissibility.

The paper bridges the gap between theory and practice by highlighting how the proposed model can be initiated in practice, thus, it can influence public policy in countries with Islamic banking system.

This paper represents a significant contribution toward the establishment of a consensual Shariah-compliant Islamic deposit insurance model.

This paper aims to know the legal nature of the court’s discretionary power in business contract revocation.

Following the normative method that analyzes legislation using secondary data consisting of primary, secondary and tertiary legal materials, this research was conducted during the period November, 2023 – February, 2024. Moreover, studies that addressed the legal nature of the court’s discretionary power in business contract revocation and published since 2000 were included. The focus was made upon the business contract’s retroactive effect in relation to the Court’s discretionary power.

From the initial 312 studies reviewed, 20 met the inclusion criteria. The business contract's retroactive effect in relation to the Court’s discretionary power has been considered by the relatively small number of studies included in the review. Researchers from different countries explored the phenomenon, using different approaches to explore the topic. However, none of these researchers has examined the phenomenon in the Jordanian Context.

This research is unique, as it examines the legal nature of the court’s discretionary power in business contract revocation, which has not been investigated in the Jordanian context. The previous researches on business contract revocation have addressed laws other than the Jordanian law.

This research will be a guide for the Jordanian legislation to draft a business contract law that regulates the court's interference in cases of business contract revocation and clearly specify its role in this regard.

This research will increase the Jordanian people's awareness of the legal nature of court in cases of business contract revocation. Moreover, it will make them familiar with the current laws so that they will legally deal with cases of this kind.

It is very important to conduct this research to review the papers and laws related to business contract revocation in Jordan since this issue has not been investigated.

This paper aims to systematically review the existing studies for Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards which include different tracks of researches and then identify the gaps to propose opportunities for future research.

By adopting a systematic literature review approach, 46 papers that were published between 2000 and 2020 from 23 journals concerned with AAOIFI were selected for review and analysis.

The authors combine electronic searches to identify relevant studies using keywords such as “AAOIFI” or and “Islamic standards.” In light of the existing studies’ limitations, this paper derives and summarizes five leading future research tracks: identifies the research gaps in AAOIFI and then suggests that AAOIFI still requires more empirical analyses; identifies the alternative analytical methods as meta-analysis; identifies additional measurements for macro and microeconomics factors; identifies recent tracks as corresponding to Covid-19 pandemic; and future studies should consider the role of central banks and positive criticism for AAOIFI.

This analysis address the literature gaps on measuring compliance, determinants and consequences of AAOIFI adoption as this study serves as a guide for the researchers, regulators and Islamic financial institutions in research associated with this area. The findings would support AAOIFI, regulators and related authorities across jurisdictions with suggestions on improving the current AAOIFI practices.

This literature review is a historical record and guidance for researchers who seek to examine and explore several questions about AAOIFI. To the best of the authors’ knowledge, this is the first paper that applies systematic literature review over AAOIFI research field.

Service development and outsourcing are growing trends in humanitarian logistics (HL). Humanitarian organizations (HOs) have developed specialized units to perform logistics activities on behalf of other aid organizations, as a commercial logistics service provider (LSP) would do. The purpose of this paper is to explore the characteristics of HOs acting as LSPs and the differences with their commercial counterparts.

This research uses a two-level content analysis of 149 annual reports from 50 local and international HOs, performed with the help of qualitative data analysis software. First, a manifest content analysis identified the number of occurrences of logistics-related words and later, a latent content analysis studies the use in context of such words to characterize the nature of HOs as LSPs.

Evidence shows that some international HOs – in some cases through specialized logistics units – perform the same activities as commercial LSPs, providing similar services. However, due to the characteristics of the humanitarian context, HOs acting as LSPs can offer a wider range of value-added and dedicated services to clients (other HOs) than commercial LSPs.

Exploring the activities performed by HOs on behalf of other aid organizations and characterizing them as service providers constitutes a first attempt to grasp the unique features of these particular humanitarian LSPs. The results open the discussion about the services HOs offer, thus contributing to theory development in HL.

The identification of HOs acting as LSPs introduces a new actor to the humanitarian network, which the authors refer to as humanitarian service provider (HSP). This supposes two main managerial implications. First, the results support the idea of seeing servitization as a competitive difference, having a substantial impact on the way HOs build their strategies and achieve competitive advantage. Second, HSPs can push their commercial equivalents to identify new activities or services to offer and maintain their competitive advantage with regard to the newcomers.

This paper furthers the discussion on the concept of HSPs and demonstrates its uniqueness, thus contributing to the ever-growing body of knowledge of HL research.

The purpose of this study is to critically analyze the Financial Compensation Funds being accumulated by Islamic Banks of Bangladesh in credit-based transactions. In this connection, due to the evolved liquidity crisis amidst the COVID-19, industry opinions are observed that suggest including the compensations or the donation funds directly into the bank's income account. But the Sharīʿah does not permit it. Such alternative proposals of using compensation or donation fund during crises are scrutinized under Sharīʿah principles to come to a logical conclusion.

The approach followed in the study is textual and discourse analysis through descriptions of ideal Sharīʿah-compliant methods for handling late payment of credit and comparison with the industry practices.

It is observed that there are conceptual gaps in the industry as is reflected in the Islamic Banking Guideline of Bangladesh. The funds collected from the debtor due to late payment are named as compensation (Ta‘wīḍ) whereas the nature of the transaction is a donation (Tabarru'). The misconception can lead to various Sharīʿah non-compliant activities later with the funds. The proposals brought out in the industry to use such compensation/donation funds during a crisis are a consequence of this. The proposals of using such funds for banks' purposes in any situation are not supported by Sharīʿah principles and are against the Islamic banking philosophy.

The study is very relevant to the current crisis of COVID-19 in the domestic Islamic Banking Industry and also instrumental for the future guidance to stick to the Sharīʿah principles in managing compensation or donation funds by the Islamic Banks.

This article seeks to propose a defined set of Sharīʿah standards and guidelines for the charity account in order to provide clear guidance to Islamic financial institutions (IFIs) and eventually create a standardised practice in the management of the charity account by IFIs worldwide.

This article is based on a literature review regarding the origin and concept of the charity account for IFIs. It makes reference to various primary Sharīʿah sources and contemporary Sharīʿah standards pertaining to impermissible income as it relates to the charity account. It also analyses secondary sources of reference, in particular research papers and case studies on the same subject matter.

This article proposes relevant Sharīʿah standards required for the better functioning and standardisation of the charity account application by IFIs.

This article will help IFIs, standard-setting bodies and regulators to develop a defined charity account framework. It also addresses the gaps discussed in past research and case studies that have not been resolved to date, particularly on the determination and management of charity accounts at the level of IFIs.

The charity account will be better controlled and thus eliminating potential reputational issues arising from collecting and disbursing commitment to donate amounts (CDA).

The charity account distribution will be better managed and thus of more benefit to the society and recipients.

This article promotes the idea of standardisation in the practices of charity accounts, especially in terms of sources and disbursement.

The purpose of this paper is to determine whether there is any fundamental difference in the meaning of contract in these two legal systems by analysing some of the essential principles of contract particularly parties’ agreement and consideration.

This paper seeks to investigate the degree of equivalency of the term contract and its Islamic law counterpart “Aqd”. To implement this task, it applies some comparative law techniques to examine certain contractual elements under common law and Islamic law.

The argument that “contract” and “Aqd” are not equivalent is superficial, and it is not well-supported by concrete evidence. The examples used to build this argument are merely limited exceptions to the general principles of contract, and some of them even exist under both legal systems in a similar manner such as “deed” and “Hibah”.

The paper is of interest to legal practitioners and professionals working in cross-cultural or international contexts, as understanding points of conformity and disconformity between “contract” and “Aqd” can help in multiple ways. These may include negotiating international transactions, contract drafting and dispute-resolution processes involving parties from Western and Islamic law-based jurisdictions. It may also aid policymaking and lawmaking processes aiming to harmonize contract principles across different jurisdictions.

The research paper is important for public attitude, as understanding similarities and differences between “contract” and “Aqd” fosters mutual respect, tolerance and cooperation between individuals and communities adhering to different legal systems.

There is a common belief that the term “contract” substantially differs from “Aqd”, and it is by no means safe to presume that every “Aqd” qualifies as a contract. The current research introduces a new point view on the degree of conceptual equivalency of the two terms by showing resemblances in aspects relating to some contractual elements which have always been viewed as an area of divergence rather than convergence.