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1 – 3 of 3Umar Habibu Umar and Junaidu Muhammad Kurawa
The purpose of this paper is to discuss the inheritance of a business from the Islamic accounting perspective.
Abstract
Purpose
The purpose of this paper is to discuss the inheritance of a business from the Islamic accounting perspective.
Design/methodology/approach
The paper adapts the relevant provisions of conventional accounting standards and practices that conform to Sharīʿah (Islamic law). In addition, the provisions of the Islamic accounting standard for musharakah (AAOIFI’s FAS No. 4) found to be relevant are also adapted.
Findings
The study shows that the assets of an inherited business should be measured at their fair values and that liabilities and legacies must be deducted therefrom with the view to arriving at the equity (or residue). The equity is then distributed among the heirs based on the sharing ratio established according to the Noble Qurʾān, the Sunnah (the Prophet’s way) and Muslim jurists’ views. Therefore, the inherited business becomes a family business as each heir is admitted into it. By extension, Islam emphasizes that the business should remain a going concern to generate income to sustain the welfare of the heirs.
Research limitations/implications
The discussion of the paper is limited to the inheritance of a business and its going concern in line with the Sharīʿah.
Practical implications
Special attention should be paid to the inherited business to ensure not only its continuity to generate income for the heirs but also that each heir gets a correct share of the equity of the business as regulated by the Sharīʿah.
Originality/value
This study links Islamic inheritance to the going concern of the business, which from all indications has not been given full consideration by previous studies.
Details
Keywords
This study explores the benefits of business financial inclusion from the Islamic perspective in Nigeria by selecting Kano state as a case study.
Abstract
Purpose
This study explores the benefits of business financial inclusion from the Islamic perspective in Nigeria by selecting Kano state as a case study.
Design/methodology/approach
Primary data were generated through semi-structured interviews with experts who comprised professional accountants/consultants and experienced traders. Thematic analysis was applied to examine the data collected. In addition, observations were made in some selected stores and shops to complement the interview results.
Findings
The study finds that the benefits of business financial inclusion include recordkeeping improvement, reduction of the risks of bad debts, reduction of the risks associated with cash, enhancing business zakāh for poverty alleviation, sales improvement and business growth, getting supports from government and other development organizations and the provision of employment opportunities.
Research limitations/implications
This study is purely qualitative, and, as such, it has some limitations in terms of generalization.
Practical implications
The practical implication of this study is that the use of electronic payment methods, especially point of sales, enhances the business financial inclusion, which consequently maximizes their wealth and contributes to the reduction of poverty to the barest minimum in the society.
Social implications
The social implication of the findings is that businesses that are financially included are in a better position to discharge religious, philanthropic and other benevolent activities, such as zakāh, qard hasan, waqf and sadaqah, for the welfare of the ummah.
Originality/value
The study points out the benefits of financial inclusion not only to businesses but also to other members of the society at large.
Details