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Syed Musa Alhabshi (2002) For conventional financial institutions, the interest income is the major component in reporting the financial performance, for Islamic banking the main funding activities that need to be reported is the interest – free transactions in contracts which based on Shariah. Next the paper discussed about the issues of financial performance measurement as well as profit distribution policy for Islamic financial institutions, adoption of conceptual analysis in the performance measurement based on existing conventional accounting assumptions and principles and evaluate it from the Islamic perspectives. The conventional loan perspective from contractual analysis, relevance of cost of funds for Islamic financial institutions and the profit distribution policy used to reduce the information asymmetry among users is highlighted. In addition the measurement of capital and income, evaluation of cash and accrual basis accounting and specifies the need for reconciliation is emphasized and discussed at the last part of the journal. Lastly, in order to ensure an adequate performance measurement and proper distribution of policy the comprehensive framework is suggested.

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Syed Musa Alhabshi (2002), Belkaoui (1993), Conventional perspective consisting three categories of income, they are accounting, economic and business income, they are varying in the aspects of assumptions on time period, uncertainty and the cost of nature. Syed Musa Alhabshi (2002) The relevant and reliability information for measuring the performance of an institution is depend on the economic decision making or reporting accountability which will influence the reporting functions. Syed Musa Alhabshi (2002) both reporting functions are important in conventional financial institutions by addressing the economic financial reality in decision making process and reporting past performance, the accounting information that facilitates the dual reporting role of financial institutions may produce reliable information for the reporting users. Syed Musa Alhabshi (2002) Otherwise Islamic financial institutions also promotes the dual-reporting role in their accounting information but in the Islamic financial institutions the rational decision making and reporting accountability are subject to the norms and values of the Shariah which the function includes the ultimate accountability to Allah s.w.t.

Syed Musa Alhabshi (2002) In conventional reporting that are conservatism which applies the assets at lower than cost or net realizable value basis in their financial reporting but in Islamic financing, the net realizable value or cash equivalent value is the scale of measurement in preparing their financial statement. Besides Syed Musa Alhabshi (2002) Islamic financing do not take into account the revaluation of asset that are either due to the impairment or any favorable economic condition. In conventional distribution principle, the declaration of dividend is at the sense of propriety of the Board本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。