Concept of Islamic Leadership in Syed Muhammad Naquib Al-Attas’s Philosophy

Islamic leadership is defined as a divine trust (amanah) from Allah, based on the Tauhidic paradigm of oneness of Allah that is focusing to serve HIM as HIS servant, while at the same time be the servant of Allah, perform the role of Khalefah (vicegerent) of Allah fully adheres to the Sunnah central to Islamic personality, characteristics and aklaq (Islamic moral and ethical) that was exemplified by the prophet (s.a.w), leading followers to the organization goals and to the straight path of the success in the Hereafter. It is based on this adopted definition that the paper tries to look into the notion from perspective of a Malaysian Muslim Philosopher to the core, Syed Muhammad Naquib Al-Attas, who believes in delivering amanah given to him, and at the same time perform the role of vicegerent of Allah. He suggests that lack of good leaders or rise of unqualified and false ones is one of the major problems of Ummah. Content analysis approach is engaged on both primary and secondary data collected. That is to say, it is a qualitative research in nature. The finding shows that the basis of Al-Attas’s concept of leadership is entrenched in Al-Qur’an and the tradition of the prophet in addition to his deep understanding on the Islamic Sciences such as Islamic theology, philosophy, and metaphysis and so on.

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