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(PDF) Islamic Banking: Concept and Methodology

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Added on  2021-01-02

(PDF) Islamic Banking: Concept and Methodology

   Added on 2021-01-02

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Islamic Banking AndFinance (Case Study OfAn Islamic Bank)
(PDF) Islamic Banking: Concept and Methodology_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................11. The extent of disclosure of information in the annual reports of the Islamic banks:...............12. Way the annual report of the Islamic Bank same or different when compared with theannual report of a conventional bank:..........................................................................................23. Financial analysis of KFH an Islamic Bank and comparison of performance withconventional bank HSBC, UK:....................................................................................................5CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
(PDF) Islamic Banking: Concept and Methodology_2
INTRODUCTIONIslamic banking is also known as non interest banking which is based upon the law ofSharia and guided by Islamic economics. Some of its modes includes different aspects such asMudarabah, Wadiah, Musharaka, Murabahah abd Ijara. In such type of financial systemgovernment does not charge any interest and tax but the citizens and organisations have to payZakat to the legal bodies of country (Abedifar, 2015). Finance related transaction under thissystem are slight different from ethical investing. This project report is mainly based uponIslamic accounting. Two different organisations are being compared on the basis of theiraccounting systems under this assignment. One of them is Bank of Kuwait and another one isHSBC. Along with this various other topics such as disclosure of information in annual reports,difference between reporting system of Islamic and conventional banks etc. are being discussedin this report.TASK1. The extent of disclosure of information in the annual reports of the Islamic banks:Disclosure are essential part of annual report because disclosure provided in annual reportassist in defining the main objectives of matter stated in report and acts as a supporting elementfor data or information. In the context of annual report of Islamic Banks disclosures are made bybanks from the perspective of stakeholders. In order to determine extent of disclosure ofinformation in annual reports of Islamic bank first step is Identification; In annual reportdisclosure are made as per their level of importance and seriousness of matter. For this banksidentify information and their level to provide disclosures and sequence. Second stepis ;Clarification of items and categorizing items into VD and RD: Here VD represents voluntaryitems and RD represents regulated items (Arshad, Yusoff and Tahir, 2016). Banks withmaximum numbers of items considered as based index. Disclosures are compulsory for regulateditems where as disclosure for voluntary items are not compulsory. RD s are disclosure that arenecessary because of imposition of government regulations where as VD s are made for betterrepresentation of any signifiant matter. Bank classify all disclosure requirement as RD and VD.Third and last step is providing specific and relevant information in under disclosure. Anygeneral information disclosed in annual report irritates users of annual report. 1
(PDF) Islamic Banking: Concept and Methodology_3

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