The Origin and Evolution of Sufism

The early Sufis believed that there were two dimensions to the revelations received by the Prophet, words of the Qur’an in their appearance, and the divine inspiration in his heart. This divinely inspired knowledge in the heart, Sufis claim, was gifted to only a chosen few, who contemplated and longedfor nearness with the creator. The early Sufis also laid emphasis on one of the basic tenets of Islam i. e. ihsan. Ihsan is that level of devotion where the devotee is completely absorbed in the worship of God. The ultimate aim of the Sufis is to raise the level of ihsan to experience the presence ofGod. Since the Last Prophet (s. a. w.) was paragon of virtues including ihsan, it was assumed that Sufism or Tasawwuf originatedfrom the Prophet himself. This paper aims to focus on the point of origin of tasawwuf, on the one hand and the need for its revival, on the other.

Impact of Adopting Accounting & Auditing Organization for Islamic Financial Institutions Aaoifi Accounting Standards on Financial Reporting of Pakistani Islamic Banks

Islamic banking sector has witnessed enormous expansion in last few decades with wide range of contra products to conventional banking in compliance with Shariah regulations. Islamic banking while providing arrangements to abolish the Riba factor, it faces certain other challenges as well. A distinct system with distinct accounting standards should endorse financial reporting quality of Islamic banks. Islamic banking success relies on financial health, stakeholders’ trust as well as observance of Shariah doctrine. Rapid expansion of Islamic banking industry has necessitated development of accounting standards to meet Shariah requirements. The present study covered various dynamics of AAOIFI accounting standards by conducting a meticulous market survey through structured questionnaire by using convenience sampling procedure from banking professionals, external auditors, regulators and academia. Descriptive statistics techniques were used with factor analysis, chi square, t-test, and cross tabulations for acute analysis and extracting evocative results. The study identified importance of financial statements and need of Islamic accounting standards for Pakistani Islamic banks. The study identified potential problems by using different accounting standards for financial reporting. Awareness to AAOIFI accounting standards was also made part of the study along with respondents’ preference towards different accounting standards. The study highlighted the dire need for harmonization of accounting standards for Pakistani Islamic banks. Factors affecting adoption of AAOIFI accounting standards are part of the study with intention to provide grounds for elucidation and future research work. The study also encompassed the obstacles in adoption of AAOIFI accounting standards by Pakistani Islamic banks. The study revealed the prominence of AAOIFI accounting standards for standardization and reliability of financial reporting. The study classifies certain financial reporting characteristics that AAOIFI accounting standards can augment in terms of credibility, consistency, comparability and clarity. The study revealed the vital role of regulatory bodies in bringing harmony and comparability of financial statements among Islamic banks. The study suggested that reliance on these standards will edify the merits associated with its implementation to all stakeholders. The study offered implications for theory, policy and practice as well as directions for future research. Keywords: AAOIFI Accounting Standards, Comparability, Consistency, Credibility, Financial Reporting, Harmonization, Islamic Banks, Riba, Standardization