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of Directors and based on the shareholding members otherwise in Islamic financing the distribution involved a Erabah contracts between the bank, the depositors and the equity holders that only realized profit can distribute to the investment account holders. However, Syed Musa Alhabshi (2002) conventional financial institutions treats the depositors earn interest as an expense while there are significant difference in Islamic financial institutions that treat the depositors earn as a distribution instant of an expenses.

Besides the Islamic accounting emphasized on the cash basis rather than accruals basis this is because the profit that appear in cash basic represent the net operating cash flow which enable the Islamic to directly distributed the cash to the Zakat rather than accrual basis that they should first contributed the own money before they received the cash from somebody. Syed Musa Alhabshi (2002) In the Islamic transactions principles only the income that realized in cash can be distributed to the investment account holder which result in optimal cash flow management whereas the profit that are accruals is treat as the stability of capital that result in financial capital maintenance.

Conclusions

The equity holders is recommended to facilitates the accrual basis of accounting as it is a useful device in evaluating the performance measurement of the entity as whole, in addition the additional information that provided by the cash flow statement is useful for the dividend distribution and share valuation especially for the cash distribution to Zakat. The accrual basis is important to the financial institution for performance measurement because it allow the entities to provide a full disclosure financial reporting of all liabilities and provisions.

The relevance of IFRSs to less developed economies: challenges and opportunities, Saudi Arabia as a case study

Introduction

This researchers emphasize on the adoption of IFRS in an emerging country which is also the country which using Islamic rules in its national legislation. The researchers found that it is benefit for the country to adopt the IFRS rather than establishing by their own national standard. There are differences in IFRS and the Shariah – based rules that the conflict arises when the Saudi Arabic using the accounting reporting methods that are not permitted in the Islamic rules and influences the Islamic accounting regulations practices this is because the Islamic accounting practices is prohibited the business involvement with gambling, interest and speculation. It seems that the Saudi Arabic is proposed not to facilitates the IFRS in their reporting because the user’s needs is more emphasized on the religious and cultural especially the Islamic rules.

Main content

The Saudi Arabic that support the adoption of Sha-riah rules has make a conflicts that involving the interest in their course of transactions and they refuse to admit it but treat the interest as for charity or namely “special commission” in the financial statement. In fact, the bank in Saudi should work completely its business operatio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。