IPN Journal of Research and Practice in Public Sector Accounting and Management
Assets are an integral component within each institution including MAIN as a responsible institut... more Assets are an integral component within each institution including MAIN as a responsible institution for WZB assets in Malaysia. However, previous studies conducted on the accounting practices of State Islamic Religious Councils (MAIN) in Malaysia only focused on the aspect of disclosure. Studies on recognition and measurement of assets are very limited. Apart from being transparent for MAIN in exposing all information pertaining to the assets of waqf, zakat, or baitulmal (WZB) based on the Islamic accounting perspective, it is also very important for MAIN to take a serious look at how these assets are recognized as well as measured in the financial statements from an Islamic perspective. Therefore, the main objective of this study is to review the current practice of MAIN in recognizing and measuring WZB’s assets and identifying the challenges or issues arising from MAIN long-standing practice of accounting. More important is whether this practice is in line with the shariah. Overa...
IPN Journal of Research and Practice in Public Sector Accounting and Management
The absence of a specific standard for zakat accounting has led to the inconsistency of zakat acc... more The absence of a specific standard for zakat accounting has led to the inconsistency of zakat accounting practices by zakat administrators in Malaysia. Zakat administrators are alleged to have transparency issues in the zakat-related administrative affairs. The purpose of this article is to examine the accounting practices for the collection and distribution of zakat by the State Islamic Religious Council (SIRC). In turn, this article discusses accounting practices that aligned with generally accepted accounting conventions and comply with the Syariah requirements, which then be the basis for the development of zakat accounting standards. Data collection was conducted through analysis of the SIRC financial statements of 2016 and focus group discussions with officials of zakat administration and the accountants. The study found that all the selected SIRCs adopt fund accounting. They use cash accounting in the event of zakat transactions. Zakat collection is the revenue for the Zakat ...
Journal of Economic Cooperation and Development, 2017
This study is undertaken to determine the ability of Waqf institutions toward influencing Waqif’s... more This study is undertaken to determine the ability of Waqf institutions toward influencing Waqif’s trust and commitment. The stakeholder trust model for Waqf institution proposed by Hasan & Siraj (2017) was empirically tested with a sample of fifty-four Waqifs of public Waqf institution in Bangladesh. Results from Structural Equation Modeling (SEM) using Smart PLS 3.0 provided statistical validity of the model. Among the three components of board attributes, only board integrity has a statistically non-significant impact on Waqif’s Trust. While board opportunism negatively affects trust, communication and accountability are found to have a positive association with Waqif’s trust. Trust is also found to have a positive impact on commitment. The established model does not consider social, economic and psychological dimensions that might determine Waqif’s trust and commitment toward public Waqf institutions. Results provided by the study will allow policy makers to focus on key issues that facilitate in developing trust and commitment between Waqif and Waqf institution. This study is the first to empirically test the commitment-trust theory in the context of Waqf operating in a South-East Asian country using Structural Equation Modelling technique.
Journal of Emerging Economies and Islamic Research, 2016
Bangladesh is coping with the problem of poverty since its independence. Recent success stories o... more Bangladesh is coping with the problem of poverty since its independence. Recent success stories of the country in alleviating poverty have been the outcome of the efforts of several public and private initiatives. As a Muslimmajority country, Bangladesh is yet to incorporate Islamic vehicles of poverty reduction in the national development strategies. Waqf has been sidelined as a mere charity even though it has historical success in producing continuous income and thus reducing poverty levels in the Muslim countries. This paper is divided into three sections. In the first part, it provides a historical overview of Waqf in Bangladesh followed by a brief description of Waqf institutions that are responsible for managing Waqf in Bangladesh. The final section discusses contemporary issues that are affecting the efficient management of Waqf funds towards making its mark in alleviating poverty from Bangladesh. In describing various problems, issues concerning governance and information di...
Journal of Economic Cooperation and Development, 2017
This study is undertaken to determine the ability of Waqf institutions toward influencing Waqif’s... more This study is undertaken to determine the ability of Waqf institutions toward influencing Waqif’s trust and commitment. The stakeholder trust model for Waqf institution proposed by Hasan & Siraj (2017) was empirically tested with a sample of fifty-four Waqifs of public Waqf institution in Bangladesh. Results from Structural Equation Modeling (SEM) using Smart PLS 3.0 provided statistical validity of the model. Among the three components of board attributes, only board integrity has a statistically non-significant impact on Waqif’s Trust. While board opportunism negatively affects trust, communication and accountability are found to have a positive association with Waqif’s trust. Trust is also found to have a positive impact on commitment. The established model does not consider social, economic and psychological dimensions that might determine Waqif’s trust and commitment toward public Waqf institutions. Results provided by the study will allow policy makers to focus on key issues t...
Keunikan ciri-ciri dana baitulmal, zakat dan wakaf (lepas ini dinyatakan sebagai BZW) jelas memer... more Keunikan ciri-ciri dana baitulmal, zakat dan wakaf (lepas ini dinyatakan sebagai BZW) jelas memerlukan piawaian perakaunan khusus, yang berlandaskan tuntutan Syariah. Ketidakwujudan piawaian perakaunan seragam yang dapat memenuhi tuntutan Syariah untuk diguna pakai untuk tujuan perakaunan BZW ialah punca utama kepada permasalahan ketelusan pelaporan dana yang menjadi kritikan sehingga kini. Kesedaran ini telah membawa kepada keperluan satu kajian penting ke arah pembangunan Piawaian Perakaunan Islam (PPI) bagi BZW di Malaysia. Kajian ini dilaksanakan oleh Jabatan Akauntan Negara Malaysia (JANM) melalui Institut Perakaunan Negara (IPN) bersama tiga buah universiti awam iaitu Universiti Utara Malaysia (UUM), Universiti Kebangsaan Malaysia (UKM) dan Universiti Islam Antarabangsa Malaysia (UIAM). Berikut adalah cadangan untuk pembangunan piawaian tersebut
The objective of this paper is to investigate the factors affecting the readiness (in terms of ch... more The objective of this paper is to investigate the factors affecting the readiness (in terms of change commitment and change efficacy) of the public universities in Malaysia to implement revenue diversification strategies. Based on the Weiner’s (2009) theory of organisational readiness for change, this study uses a questionnaire survey of senior administrators of public universities in Malaysia. A total of 69 completed questionnaires were received. Multiple regression and correlation were used to examine the factors affecting readiness to implement revenue diversification strategies. The results reveal that change valence positively influences change commitment and change efficacy. In addition, task knowledge and resource availability have significant positive impact on change efficacy and change commitment respectively. This is among the first studies to provide empirical evidence of factors influencing the readiness of universities to adopt revenue diversification strategies to att...
Manuscript type: Research paper.Research aim: This study aims to identify the persuasive strategi... more Manuscript type: Research paper.Research aim: This study aims to identify the persuasive strategiesapplied by Bangladeshi companies in disclosing poverty related corporatesocial responsibility (CSR) activities in their annual reports.Design/ Methodology/ Approach: This study applies the discourseanalysis as an approach in exploring the narratives of Bangladeshicompanies’ annual reports. It specifically focuses on the three classificationsof Aristotle’s rhetoric while explanations are also drawnfrom the impression management theory.Research findings: This study concludes that the disclosures of theBangladeshi companies’ CSR activities are rhetorical in nature. Theanalysis suggests that these companies try to portray themselves aspro-social and helpful towards the poor.Theoretical contribution/ Originality: Rather than focusing on‘what’ was disclosed (which is the objective of most prior studieson CSR reporting in Bangladesh), this study highlights ‘how’ thedisclosure was done. This s...
Journal of Accounting & Organizational Change, 2018
Purpose The purpose of this paper is to examine factors influencing the readiness of public secto... more Purpose The purpose of this paper is to examine factors influencing the readiness of public sector accountants to implement the accrual accounting system in the Malaysian Federal Government. The readiness was measured in terms change commitment and change efficacy. Design/methodology/approach The study uses a questionnaire survey that comprises three factors (change valence, task knowledge and task availability) in predicting readiness to implement the accrual accounting system. Multiple regressions were performed on a total of 165 usable responses received. Findings The results reveal that change valence, task knowledge and task availability are significant and positively influence the change efficacy of the Federal Government to implement accrual accounting in Malaysia. However, only change valance is a positively significant factor in influencing change commitment. Originality/value This study is important as it contributes not only by adding to the scant literature assessing the...
Journal of Applied Research in Higher Education, 2019
Purpose The purpose of this paper is to explore the extent of revenue diversification of selected... more Purpose The purpose of this paper is to explore the extent of revenue diversification of selected Malaysian public higher learning institutions (HLIs) and the perceptions of senior officers of Malaysian public HLIs on matters related to revenue diversification. Design/methodology/approach The study analyses data from the HLIs’ financial statements to compute the Hirschman-Herfindahl Index (HHI) for revenue diversification and a perception survey with senior officers of the Malaysian public HLIs. Findings The results suggest that while a majority of the Malaysian public HLIs were still dependent largely on government funding, the more established and larger HLIs had a slightly more diversified revenue structure. The survey suggested that overall the senior officers were receptive to the need for revenue diversification. Research limitations/implications The paper is largely based on a perception survey. Future work should utilise in-depth interviews and/or focus groups and a more in-...
International Journal of Educational Management, 2018
Purpose The purpose of this paper is twofold: first, to elicit perceptions of senior officers on ... more Purpose The purpose of this paper is twofold: first, to elicit perceptions of senior officers on the overall financial sustainability of their institutions; and, second, to examine senior officers’ perceptions on important revenue diversification and cost management practices. Design/methodology/approach The study employed a questionnaire survey with senior academic and administrative staff of the 20 public universities in Malaysia. In total, 275 questionnaires were distributed and 69 were returned, yielding a response rate of 25.09 per cent. Descriptive statistics were used to analyse the general perceptions of the survey respondents on public university financial sustainability issues. Findings The study suggests that respondents are receptive of the financial sustainability challenges faced by their institutions. Respondents agree that increasing tuition fees may not be a feasible revenue enhancement strategy for public universities. Instead, all respondents agree that full utili...
IPN Journal of Research and Practice in Public Sector Accounting and Management
This article reviews literature on accounting and reporting for waqf, zakat and baitul mal (WZB).... more This article reviews literature on accounting and reporting for waqf, zakat and baitul mal (WZB). Given that WZB are under the purview of the State Islamic Religious Councils (SIRCs), the structure of the administrative machinery of Islamic affairs is discussed and how this gives rise to the unique demarcation in powers and authority on policies pertaining to Islam between the Federal and state governments is clarified. The notion of accountability as is generally understood in the West is elaborated and subsequently compared with the concept of accountability from Islam’s perspective. Prior studies on waqf and zakat examining the accounting and reporting aspects were reviewed. Issues suchaspoordocumentation and record keeping, absence of sound accounting system, limited disclosure on the level and types of information, absence of separate financial statements are some of the pertinent findings of such studies. The paper also raises important questions about the validity of the curr...
IPN Journal of Research and Practice in Public Sector Accounting and Management
Assets are an integral component within each institution including MAIN as a responsible institut... more Assets are an integral component within each institution including MAIN as a responsible institution for WZB assets in Malaysia. However, previous studies conducted on the accounting practices of State Islamic Religious Councils (MAIN) in Malaysia only focused on the aspect of disclosure. Studies on recognition and measurement of assets are very limited. Apart from being transparent for MAIN in exposing all information pertaining to the assets of waqf, zakat, or baitulmal (WZB) based on the Islamic accounting perspective, it is also very important for MAIN to take a serious look at how these assets are recognized as well as measured in the financial statements from an Islamic perspective. Therefore, the main objective of this study is to review the current practice of MAIN in recognizing and measuring WZB’s assets and identifying the challenges or issues arising from MAIN long-standing practice of accounting. More important is whether this practice is in line with the shariah. Overa...
IPN Journal of Research and Practice in Public Sector Accounting and Management
The absence of a specific standard for zakat accounting has led to the inconsistency of zakat acc... more The absence of a specific standard for zakat accounting has led to the inconsistency of zakat accounting practices by zakat administrators in Malaysia. Zakat administrators are alleged to have transparency issues in the zakat-related administrative affairs. The purpose of this article is to examine the accounting practices for the collection and distribution of zakat by the State Islamic Religious Council (SIRC). In turn, this article discusses accounting practices that aligned with generally accepted accounting conventions and comply with the Syariah requirements, which then be the basis for the development of zakat accounting standards. Data collection was conducted through analysis of the SIRC financial statements of 2016 and focus group discussions with officials of zakat administration and the accountants. The study found that all the selected SIRCs adopt fund accounting. They use cash accounting in the event of zakat transactions. Zakat collection is the revenue for the Zakat ...
Journal of Economic Cooperation and Development, 2017
This study is undertaken to determine the ability of Waqf institutions toward influencing Waqif’s... more This study is undertaken to determine the ability of Waqf institutions toward influencing Waqif’s trust and commitment. The stakeholder trust model for Waqf institution proposed by Hasan & Siraj (2017) was empirically tested with a sample of fifty-four Waqifs of public Waqf institution in Bangladesh. Results from Structural Equation Modeling (SEM) using Smart PLS 3.0 provided statistical validity of the model. Among the three components of board attributes, only board integrity has a statistically non-significant impact on Waqif’s Trust. While board opportunism negatively affects trust, communication and accountability are found to have a positive association with Waqif’s trust. Trust is also found to have a positive impact on commitment. The established model does not consider social, economic and psychological dimensions that might determine Waqif’s trust and commitment toward public Waqf institutions. Results provided by the study will allow policy makers to focus on key issues that facilitate in developing trust and commitment between Waqif and Waqf institution. This study is the first to empirically test the commitment-trust theory in the context of Waqf operating in a South-East Asian country using Structural Equation Modelling technique.
Journal of Emerging Economies and Islamic Research, 2016
Bangladesh is coping with the problem of poverty since its independence. Recent success stories o... more Bangladesh is coping with the problem of poverty since its independence. Recent success stories of the country in alleviating poverty have been the outcome of the efforts of several public and private initiatives. As a Muslimmajority country, Bangladesh is yet to incorporate Islamic vehicles of poverty reduction in the national development strategies. Waqf has been sidelined as a mere charity even though it has historical success in producing continuous income and thus reducing poverty levels in the Muslim countries. This paper is divided into three sections. In the first part, it provides a historical overview of Waqf in Bangladesh followed by a brief description of Waqf institutions that are responsible for managing Waqf in Bangladesh. The final section discusses contemporary issues that are affecting the efficient management of Waqf funds towards making its mark in alleviating poverty from Bangladesh. In describing various problems, issues concerning governance and information di...
Journal of Economic Cooperation and Development, 2017
This study is undertaken to determine the ability of Waqf institutions toward influencing Waqif’s... more This study is undertaken to determine the ability of Waqf institutions toward influencing Waqif’s trust and commitment. The stakeholder trust model for Waqf institution proposed by Hasan & Siraj (2017) was empirically tested with a sample of fifty-four Waqifs of public Waqf institution in Bangladesh. Results from Structural Equation Modeling (SEM) using Smart PLS 3.0 provided statistical validity of the model. Among the three components of board attributes, only board integrity has a statistically non-significant impact on Waqif’s Trust. While board opportunism negatively affects trust, communication and accountability are found to have a positive association with Waqif’s trust. Trust is also found to have a positive impact on commitment. The established model does not consider social, economic and psychological dimensions that might determine Waqif’s trust and commitment toward public Waqf institutions. Results provided by the study will allow policy makers to focus on key issues t...
Keunikan ciri-ciri dana baitulmal, zakat dan wakaf (lepas ini dinyatakan sebagai BZW) jelas memer... more Keunikan ciri-ciri dana baitulmal, zakat dan wakaf (lepas ini dinyatakan sebagai BZW) jelas memerlukan piawaian perakaunan khusus, yang berlandaskan tuntutan Syariah. Ketidakwujudan piawaian perakaunan seragam yang dapat memenuhi tuntutan Syariah untuk diguna pakai untuk tujuan perakaunan BZW ialah punca utama kepada permasalahan ketelusan pelaporan dana yang menjadi kritikan sehingga kini. Kesedaran ini telah membawa kepada keperluan satu kajian penting ke arah pembangunan Piawaian Perakaunan Islam (PPI) bagi BZW di Malaysia. Kajian ini dilaksanakan oleh Jabatan Akauntan Negara Malaysia (JANM) melalui Institut Perakaunan Negara (IPN) bersama tiga buah universiti awam iaitu Universiti Utara Malaysia (UUM), Universiti Kebangsaan Malaysia (UKM) dan Universiti Islam Antarabangsa Malaysia (UIAM). Berikut adalah cadangan untuk pembangunan piawaian tersebut
The objective of this paper is to investigate the factors affecting the readiness (in terms of ch... more The objective of this paper is to investigate the factors affecting the readiness (in terms of change commitment and change efficacy) of the public universities in Malaysia to implement revenue diversification strategies. Based on the Weiner’s (2009) theory of organisational readiness for change, this study uses a questionnaire survey of senior administrators of public universities in Malaysia. A total of 69 completed questionnaires were received. Multiple regression and correlation were used to examine the factors affecting readiness to implement revenue diversification strategies. The results reveal that change valence positively influences change commitment and change efficacy. In addition, task knowledge and resource availability have significant positive impact on change efficacy and change commitment respectively. This is among the first studies to provide empirical evidence of factors influencing the readiness of universities to adopt revenue diversification strategies to att...
Manuscript type: Research paper.Research aim: This study aims to identify the persuasive strategi... more Manuscript type: Research paper.Research aim: This study aims to identify the persuasive strategiesapplied by Bangladeshi companies in disclosing poverty related corporatesocial responsibility (CSR) activities in their annual reports.Design/ Methodology/ Approach: This study applies the discourseanalysis as an approach in exploring the narratives of Bangladeshicompanies’ annual reports. It specifically focuses on the three classificationsof Aristotle’s rhetoric while explanations are also drawnfrom the impression management theory.Research findings: This study concludes that the disclosures of theBangladeshi companies’ CSR activities are rhetorical in nature. Theanalysis suggests that these companies try to portray themselves aspro-social and helpful towards the poor.Theoretical contribution/ Originality: Rather than focusing on‘what’ was disclosed (which is the objective of most prior studieson CSR reporting in Bangladesh), this study highlights ‘how’ thedisclosure was done. This s...
Journal of Accounting & Organizational Change, 2018
Purpose The purpose of this paper is to examine factors influencing the readiness of public secto... more Purpose The purpose of this paper is to examine factors influencing the readiness of public sector accountants to implement the accrual accounting system in the Malaysian Federal Government. The readiness was measured in terms change commitment and change efficacy. Design/methodology/approach The study uses a questionnaire survey that comprises three factors (change valence, task knowledge and task availability) in predicting readiness to implement the accrual accounting system. Multiple regressions were performed on a total of 165 usable responses received. Findings The results reveal that change valence, task knowledge and task availability are significant and positively influence the change efficacy of the Federal Government to implement accrual accounting in Malaysia. However, only change valance is a positively significant factor in influencing change commitment. Originality/value This study is important as it contributes not only by adding to the scant literature assessing the...
Journal of Applied Research in Higher Education, 2019
Purpose The purpose of this paper is to explore the extent of revenue diversification of selected... more Purpose The purpose of this paper is to explore the extent of revenue diversification of selected Malaysian public higher learning institutions (HLIs) and the perceptions of senior officers of Malaysian public HLIs on matters related to revenue diversification. Design/methodology/approach The study analyses data from the HLIs’ financial statements to compute the Hirschman-Herfindahl Index (HHI) for revenue diversification and a perception survey with senior officers of the Malaysian public HLIs. Findings The results suggest that while a majority of the Malaysian public HLIs were still dependent largely on government funding, the more established and larger HLIs had a slightly more diversified revenue structure. The survey suggested that overall the senior officers were receptive to the need for revenue diversification. Research limitations/implications The paper is largely based on a perception survey. Future work should utilise in-depth interviews and/or focus groups and a more in-...
International Journal of Educational Management, 2018
Purpose The purpose of this paper is twofold: first, to elicit perceptions of senior officers on ... more Purpose The purpose of this paper is twofold: first, to elicit perceptions of senior officers on the overall financial sustainability of their institutions; and, second, to examine senior officers’ perceptions on important revenue diversification and cost management practices. Design/methodology/approach The study employed a questionnaire survey with senior academic and administrative staff of the 20 public universities in Malaysia. In total, 275 questionnaires were distributed and 69 were returned, yielding a response rate of 25.09 per cent. Descriptive statistics were used to analyse the general perceptions of the survey respondents on public university financial sustainability issues. Findings The study suggests that respondents are receptive of the financial sustainability challenges faced by their institutions. Respondents agree that increasing tuition fees may not be a feasible revenue enhancement strategy for public universities. Instead, all respondents agree that full utili...
IPN Journal of Research and Practice in Public Sector Accounting and Management
This article reviews literature on accounting and reporting for waqf, zakat and baitul mal (WZB).... more This article reviews literature on accounting and reporting for waqf, zakat and baitul mal (WZB). Given that WZB are under the purview of the State Islamic Religious Councils (SIRCs), the structure of the administrative machinery of Islamic affairs is discussed and how this gives rise to the unique demarcation in powers and authority on policies pertaining to Islam between the Federal and state governments is clarified. The notion of accountability as is generally understood in the West is elaborated and subsequently compared with the concept of accountability from Islam’s perspective. Prior studies on waqf and zakat examining the accounting and reporting aspects were reviewed. Issues suchaspoordocumentation and record keeping, absence of sound accounting system, limited disclosure on the level and types of information, absence of separate financial statements are some of the pertinent findings of such studies. The paper also raises important questions about the validity of the curr...
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