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Article
Publication date: 27 September 2011

Hairul Suhaimi Nahar and Hisham Yaacob

The concept of accountability has long been argued in the academic and public policy debate to have been contextually ingrained in the technical processes of accounting…

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3668

Abstract

Purpose

The concept of accountability has long been argued in the academic and public policy debate to have been contextually ingrained in the technical processes of accounting and reporting. Both processes provide lenses through which the extent of managerial accountability in the corporate context could be objectively examined. The sacred religion of Islam as a social order with a complete code of life classifies accountability as being dual; in line with the duality concept in life – in this temporal world and eternal hereafter, necessitating for accountability concept in accounting and reporting from the Islamic worldview to transcend beyond the point of worldly objectives. Parallel to this line of reasoning, the purpose of this paper is to undertake a preliminary empirical investigation with respect to accounting, reporting and accountability practices of a Malaysian cash awqaf (Islamic endowment) management institution over a six‐year period, from 2000 to 2005.

Design/methodology/approach

The paper uses triangulation research approach, consisting of case study method and archival documentation review and analysis.

Findings

The preliminary findings indicate that, while the root of accountability in the management, accounting and reporting practices seems to exist in the awqaf entity studied, significant improvements remain necessary to ensure accountability could be continuously enhanced and uphold.

Originality/value

Debating accountability concept in the context of management, accounting and reporting as practiced by faith‐based institution of awqaf from the Islamic perspective inevitably directs this study to highlight the notion of Islamic accounting and reporting commonly and extensively discussed in the realm of Islamic finance and banking. The study's conjecture is that, by debunking the myth of Islamic accounting and reporting as only serving the acute domain of transactions reflecting the Islamic financial products in banking environment, it helps to reshape, broaden and emphasize the all encompassing relevance of Islamic accounting and reporting to that of not‐for‐profits, religiously grounded entities such as awqaf institutions. The study further contributes to the accountability and financial reporting literature in Islamic not‐for‐profit organizations by studying the importance of sound accounting practices and reporting transparency in ensuring accountability.

Details

Journal of Islamic Accounting and Business Research, vol. 2 no. 2
Type: Research Article
ISSN: 1759-0817

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Article
Publication date: 8 January 2018

Mohammad Abdullah

This paper attempts to contextualise the potential role of waqf (plural; awqaf, Islamic perpetual trust) in the contemporary world, particularly, in the developmental…

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2695

Abstract

Purpose

This paper attempts to contextualise the potential role of waqf (plural; awqaf, Islamic perpetual trust) in the contemporary world, particularly, in the developmental arena. The purpose of this paper is to provide a framework for awqaf to maintain its convergence with some of the fundamental goals of the SDGs which are also congruent with the maqasid al-shariah (the higher objectives of shariah).

Design/methodology/approach

This paper is based on a desk-based research, and it adopts the qualitative research paradigm for the analysis of the available literature.

Findings

This paper finds that most of the 17 developmental goals of the SDGs comfortably match with the long-term objectives of shariah and there is good scope for the stakeholders of awqaf to develop waqf-based development plan in line with the framework of SDGs. Additionally, it finds that the global awqaf enjoy sufficient financial capacity to help muslim majority countries to realise some of the most relevant and urgent maqasid-oriented SDGs in a timely manner.

Research limitations/implications

The scope of this paper is limited to analyse the potential role of global awqaf in realising some of the most urgent maqasid-based development objectives in congruence with SDGs. For the purpose of maintaining the coherence in the focus of the study, this paper does not undertake any comparison between the waqf and other forms of endowments/charities in fulfilling the similar objectives.

Practical implications

This paper provides a framework for maqasid-oriented waqf-based development plan followed by provision of some critical recommendations on how the global awqaf can potentially spearhead the initiative of Islamic charities in realising the maqasid-oriented SDGs among muslim majority countries.

Originality/value

This paper adds original value to the available literature on the potential of waqf in the arena of development. The paper analyses the role of waqf in achieving the most urgent maqasid-based SDGs, and thus, it fills the existing gap of a systematic research on the possible collaboration of global awqaf and SDGs.

Details

International Journal of Social Economics, vol. 45 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

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Article
Publication date: 12 April 2013

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171

Abstract

Details

Journal of Islamic Accounting and Business Research, vol. 4 no. 1
Type: Research Article
ISSN: 1759-0817

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Article
Publication date: 1 November 2011

Hidayatul Ihsan and Shahul Hameed Hj. Mohamed Ibrahim

The purpose of this study is to examine accounting and management practices in two Indonesian awqaf institutions. It intends to seek evidence with regard to how mutawallis

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4761

Abstract

Purpose

The purpose of this study is to examine accounting and management practices in two Indonesian awqaf institutions. It intends to seek evidence with regard to how mutawallis discharge their accountability.

Design/methodology/approach

Two case studies were undertaken on two awqaf institutions in Indonesia, i.e. ABC and XYZ waqf foundations. Data were collected through various methods, i.e. interviews, document reviews and direct observations.

Findings

The findings show that ABC shows more efficient management and greater transparency and accountability than XYZ due to the presence of Islamically committed professionals in the former, despite the better accounting information system and more “academically” qualified personnel in the latter.

Research limitations/implications

This study only concentrates on two Indonesian awqaf institutions.

Practical implications

This study is expected to contribute to the improvement of waqf administration.

Originality/value

The paper is the first attempt to address accounting issues in awqaf institutions, particularly in Indonesia.

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Article
Publication date: 10 August 2015

Hisham Yaacob, Saerah Petra, Azimah Sumardi and Hairul Suhaimi Nahar

The purpose of this paper is to review, understand and document the contemporary waqf-S management, financial accounting and reporting practices and to understand relevant…

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1399

Abstract

Purpose

The purpose of this paper is to review, understand and document the contemporary waqf-S management, financial accounting and reporting practices and to understand relevant drivers behind the current accountability culture in waqf-S, aiming at exploring the intertwined nature of accounting, reporting and the religion of Islam. The accountability literature has been relatively scant on the role played by accounting and reporting in not-for-profit, religious-based organizations and its implications for accountability discourse. Three accountability drivers of regulatory, stakeholders and religious image are tested. It is interesting to research how management, accounting and reporting are being practiced in an Islamic organization setting in a non-Islamic country.

Design/methodology/approach

Consistent with the established research objectives, this study adopts the qualitative research approach of a single case study research involving semi-structured interviews and archival documentation review and analyses. Sample is chosen using purposive sampling to suit the research objectives.

Findings

The paper finds that waqf-S is a very successful awqaf manager. The administration and management are carried out in the most effective manner with comprehensive rules, guidelines and procedures. The awqaf financial reporting and management are impressive as annual financial reports are published on time and available for the public online. The paper proposes three lenses to examine the accountability drivers of waqf-S: Regulatory, Stakeholders and Religious image of Islamic organization and, it turns out that all three are equally important in driving the organization accountability practices.

Research limitations/implications

The sample is an Islamic organization in a non-Islamic country; therefore, the results are unique and may not be generalised to organizations in Islamic nations, as it will be a different setting with different variables. Secondly, the paper only focuses on awqaf financial accounting, awqaf reporting and investigating the driving factors for the institution’s accountability culture.

Practical implications

This paper is important as it shows that the management and administration of awqaf, which has been plague by mismanagement, embezzlements and lack of talents, can be improved and managed systematically, although there is a clear evidence of the lack of capable or talented human resources. It is compensated by the significant use of technology.

Originality/value

Focusing on a single awqaf institution (waqf-S) operating in a non-Islamic Southeast Asian country, our analysis allows us to observe the influence of multiple factors influencing its organizational wide accountability policy. We consider this as a contribution to the literature, as it generates knowledge on how management, accounting and reporting are being devised as strategic tools in the institution’s accountability policy framework, beyond the normal office management, financial data recording and disclosure per se. Multiple factors drive the structured and transparent reporting by waqf-S, transcending beyond the traditional financial accounting and reporting boundary of meeting regulatory requirements; it reaches the concerned while ensuring that the necessary accountability towards stakeholders is observed and upheld.

Details

Humanomics, vol. 31 no. 3
Type: Research Article
ISSN: 0828-8666

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Article
Publication date: 8 July 2019

Mohammad Abdullah

This paper aims to compare and contrast the concept, mechanism and functions of the two socio-economic institutions, i.e. waqf (Islamic trust) and English trust. It…

Abstract

Purpose

This paper aims to compare and contrast the concept, mechanism and functions of the two socio-economic institutions, i.e. waqf (Islamic trust) and English trust. It endeavours to juxtapose the salient features of waqf and trust with an objective to examine the nature of similarities and dissimilarities between the two institutions.

Design/methodology/approach

This paper applies the socio-legal research methodology and uses qualitative paradigm to analyse the literature. The paper is based on a desk-based research.

Findings

This paper finds that there is nothing intrinsically rigid in the jurisprudential paradigm of waqf which might impinge upon either the efficiency or effectiveness of the waqf vis-à-vis trust. The main findings of the paper are encapsulated in underlining certain Shariah principles which essentially hold waqf from transforming into a trust-like secular institution.

Research limitations/implications

This paper compares the jurisprudential underpinnings and conceptual frameworks of waqf and trust, and it does not evaluate their efficiency or effectiveness in empirical terms. The underlying socio-economic efficiency and impacts of the two institutions can be examined empirically in separate comparative case studies.

Practical implications

This paper examines and critically analyses the different socio-economic implications that waqf and trust entail for the societies in which they function. This analysis is important for the policy recommendations towards protecting the religious identity of waqf while re-structuring its models.

Originality/value

The main contribution of the paper is encapsulated in the critical analysis of how the paradigms of the two institutions, i.e. waqf and trust, which appear similar in form but differ in the substance, are shaped and governed.

Details

Journal of Islamic Accounting and Business Research, vol. 10 no. 4
Type: Research Article
ISSN: 1759-0817

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Article
Publication date: 28 January 2020

Nori Yani Abu Talib, Radziah Abdul Latiff and Aini Aman

This paper aims to improve the understanding of the institutional pressures that shape the intention to adopt waqf accounting and reporting. The study seeks to answer two…

Abstract

Purpose

This paper aims to improve the understanding of the institutional pressures that shape the intention to adopt waqf accounting and reporting. The study seeks to answer two research questions as follows: what are the challenges in the adoption of waqf accounting and reporting in waqf institutions; and how do institutional pressures influence the adoption of waqf reporting in Malaysia. Drawing on the work of DiMaggio and Powell and Scott of institutional theory, this paper provides empirical evidence of institutional pressures on the adoption of waqf reporting in Malaysia and the challenges faced in adopting waqf accounting and reporting.

Design/methodology/approach

This study uses qualitative research method with an explanatory case study approach. Data are collected through semi-structured interviews with the accountants of State Islamic Religious Council and Customs of Terengganu, an informal conversation with the Deputy Director of Accountant Generals Department of Malaysia and document reviews, mainly the Malaysian Accounting Standard Board Research paper.

Findings

The findings show that coercive pressure such as government regulation contributes to challenges in the adoption of waqf accounting and reporting. Normative pressures contribute to challenges in formulating standardised waqf accounting and reporting, whereas mimetic pressure contributes to challenges in the comparability of the waqf accounting and reporting among the state Islamic religious councils in Malaysia. In the efforts towards the standardisation of waqf accounting and reporting practice, a similarity of the process of the standard implementation or the institutional isomorphism of the State Islamic Religious Council in Terengganu is strongly influenced from the result of the mandate of its Board members and Fatwa council members (coercive isomorphism and religion logic) and minor influence from the normative isomorphism (the result of the participants’ education and profession) as well as the result of imitating other State of Islamic Religious Councils (SIRCs) because of the ambiguity of the process or certain practice.

Research limitations/implications

The study contributes to the knowledge by extending institutional theory and the possible role of religion logic in Islamic perspective to organisational behaviour and accounting development in SIRCs. This study is limited to the understanding of the challenges in the adoption of waqf accounting and reporting but could also be applicable to the adoption of other accounting standards or regulations.

Practical implications

This paper offers key implications for research, in improving the understanding of contextual factors and decision to adopt waqf accounting and reporting. The standard setter needs to be aware of the influence of contextual factors that shape decision towards standardisation of accounting and reporting for waqf.

Originality/value

The interplay of institutional pressures and implications of religion logic provides an interesting approach to understanding the waqf institutions’ intention to adopt accounting and reporting for waqf.

Details

Journal of Islamic Accounting and Business Research, vol. 11 no. 2
Type: Research Article
ISSN: 1759-0817

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Article
Publication date: 7 August 2017

Rose Abdullah and Abdul Ghafar Ismail

The purpose of this paper is to explore two main aspects of waqf: the characteristics of waqf property and the management of waqf. This paper also discusses the governance…

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1208

Abstract

Purpose

The purpose of this paper is to explore two main aspects of waqf: the characteristics of waqf property and the management of waqf. This paper also discusses the governance of waqf management as a source of funds for Islamic microfinance institutions (MFIs).

Design/methodology/approach

This research uses content analysis method to examine various literatures that discuss the concept and management of waqf.

Findings

The characteristics of cash waqf such as permanence, irrevocability and perpetuity differentiate waqf from other type of donations. Therefore, cash waqf-based Islamic microfinance needs to be sustainable. Good corporate governance is vital to ensure the sustainability. As the donors of cash waqf do not aim to make financial profit, waqf-based Islamic MFIs will be able to provide low-cost capital to the poor entrepreneurs. Furthermore, to ensure the perpetuity of the waqf, it is suggested that only revenue from the waqf property should be used for microfinance fund.

Social implications

The cash waqf-based Islamic microfinance will help the micro entrepreneurs to get low-cost capital without collateral. At the same time, public can donate any amount they afford to contribute to cash waqf.

Originality/value

The creation of a cash waqf-based Islamic MFI must observe the issues of agency conflicts and the right of stakeholders to a transparent management. This paper emphasizes the importance of good governance in managing the waqf property as a source of fund for Islamic MFIs.

Details

International Journal of Social Economics, vol. 44 no. 8
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 16 November 2020

Muhammad Usman and Asmak Ab Rahman

This paper aims to study waqf practice in Pakistan with regard to its utilisation in funding for higher educational institutions (HEIs) and investigates waqf raising, waqf

Abstract

Purpose

This paper aims to study waqf practice in Pakistan with regard to its utilisation in funding for higher educational institutions (HEIs) and investigates waqf raising, waqf management and waqf income utilisation.

Design/methodology/approach

The paper is based on the views of 11 participants who are actively involved in the waqf, its raising, management and income utilisation, and is divided into three subcategories: personnel of higher educational waqf institution, personnel of waqf regulatory bodies and Shari’ah and legal experts as well as archival records, documents and library sources.

Findings

In Pakistan, both public and private awqaf are existing, but the role of private awqaf is greater in higher education funding. However, due to lack of legal supervision private awqaf is considered as a part of the not-for-profit sector and legitimately registered as a society, foundation, trust or a private limited company. Waqf in Pakistan is more focusing on internal financial sources and waqf income. In terms of waqf management, they have firm guidelines for investing in real estate, the Islamic financial sector and various halal businesses. Waqf uses the income for developmental and operational expenditure, and supports academic activities for students and staff. Waqfs are also supporting some other HEIs and research agencies. Thus, it can be revealed that a waqf can cater a sufficient amount for funding higher educational institutions.

Research limitations/implications

In Pakistan, both public and private awqaf are equally serving society in different sectors, but the role of private awqaf is much greater in funding higher education. Nevertheless, the government treats private awqaf as a part of not-for-profit sector in the absence of a specific legal framework and registers such organisations as society, foundation, trust or private limited company. The waqf in Pakistan mostly relies on internal financial resources and income from waqf assets. As the waqf managers have over the time evolved firm guidelines for investment in real estate, Islamic financial sector and various other halal businesses, and utilisation of waqf income on developmental and operational expenditures, academic activities of students and educational staff, other HEIs and research agencies, it can be proved that the waqf can potentially generate sufficient amount for funding HEIs.

Practical implications

The study presents the waqf as a social finance institution and the best alternative fiscal instrument for funding works of public good, including higher education, with the help of three selected waqf cases. Hence, the paper’s findings offer some generalisations, both for the ummah at large and Pakistan.

Social implications

The paper makes several policy recommendations for policymakers, legislators and academicians, especially the government. As an Islamic social finance institution, the waqf can help finance higher education anywhere around the world in view of the fact that most countries grapple with huge fiscal deficits and are hence financially constrained to meet growing needs of HEIs.

Originality/value

The study confirms that the waqf can be an alternative source for funding higher education institutions whether it is managed by the government or is privately controlled.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 14 no. 2
Type: Research Article
ISSN: 1753-8394

Keywords

Content available
Article
Publication date: 4 August 2020

Mohammad Abdullah

This paper aims to analyse the Sharīʿah premises of waqf (Islamic endowment), followed by dilating on the nature of argumentation among the classical jurists on its rules…

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1112

Abstract

Purpose

This paper aims to analyse the Sharīʿah premises of waqf (Islamic endowment), followed by dilating on the nature of argumentation among the classical jurists on its rules and principles. The paper critically analyses the edifice of the applied juristic analogy of different early jurists in deriving various waqf doctrines. The objective of analysing the jurisprudential framework of waqf in its classical mould is to conceptualise the methods, mechanism and nature of juristic analogies in deriving the waqf principles. This analysis is critical to understand the scope of jurisprudential flexibility in modern awqāf.

Design/methodology/approach

The paper is an outcome of a library-based research. It uses the classical jurisprudential treatises of waqf with an aim to analyse the Sharīʿah basis of the institution, the premises of its key principles and the applied juristic analogy to derive the same. The paper covers the classical waqf books and treatises from the four Sunni schools of jurisprudence and uses a textual analysis method.

Findings

The paper finds that in its initial phase, the conceptual framework of waqf was not unanimously agreed by all jurists, rather its Sharīʿah permissibility remained critically disputed among them for a while. Though, the opinion of those jurists who approved the Sharīʿah-validity of waqf was to prevail in the later stage, disagreement persisted with reference to its necessary features and defining criteria. It is found that in the classical waqf literature, two most disputed aspects of waqf jurisprudence constituted the requirements for completion of a waqf and its ownership status.

Research limitations/implications

This study neither covers the historical contribution of waqf among the Muslim societies nor touches on the empirical aspects of modern waqf. Rather, the focus of the study is limited to analysing the classical jurisprudential discourse of waqf and distillation process of its rulings.

Practical implications

The objective of analysing the classical juristic discourse of waqf is to underline the premises of classical juristic analogy in determining the framework of fiqh al-awqāf (jurisprudence of waqf) in its classical permutations and to learn how to adopt a similar approach for deduction of new waqf rulings.

Originality/value

This paper adds original value to the body of waqf literature for analysing the classical waqf rulings distillation process along with examining the methods and mechanism of juristic analogy.

Details

ISRA International Journal of Islamic Finance, vol. 12 no. 2
Type: Research Article
ISSN: 0128-1976

Keywords

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