Comparative Study of Judicial and Legal Indicators of Financial Entities in Islamic Law

Abstract

In comparison to the International Accounting Standards Board's (IASB) conceptual framework for financial reporting, the article compares the conceptual framework of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) for financial reporting of Islamic financial institutions. The study's goal is to conduct a thorough analysis of the AAOIFI's conceptual framework for Islamic financial institutions' financial reporting in comparison to the IASB's conceptual framework. Using comparison, collation, analysis, and synthesis techniques as well as logical and systematic approaches, the authors were able to distinguish between the two documents' differences that reveal the conceptual framework of financial reporting. The main contentious issue, according to the analysis of the scientific problem of the AAOIFI conceptual framework for financial reporting in the Islamic accounting model, is the integration of Islamic accounting standards with national accounting and reporting systems. The absence of publications on the comparison of financial reporting prepared in accordance with Islamic principles and IFRS in Russian significantly complicates the promotion of this discussion. The article also compares and contrasts the regulatory documents that control the theoretical foundation of financial reporting for Islamic and conventional economic systems. The authors drew several conclusions from the findings. First, it is established that the development of conceptual frameworks for both IASB and AAOIFI has the same objective of boosting user confidence in financial reporting. Second, it is made clear that the conceptual framework for financial reporting based on Islamic principles differs significantly from the conceptual framework for IASB financial reporting as a result of the incorporation of Shariah (Islamic law). The article also investigates how Shariah regulations are incorporated into the AAOIFI Conceptual Framework for Financial Reporting by Islamic Financial Institutions. In order to secure the status of Islamic financial institutions, define specific terms, consolidate the goals of financial accounting and reporting, introduce requirements for the nature of operations and transactions of Islamic financial institutions, and broaden the quality characteristics of information in accordance with Shariah, the following methods were identified: proclaiming the priority of Shariah norms, establishing the powers of the Central Shariah Council, securing the status of Islamic financial institutions, The study's findings are contrasted with previous research on the subject that has been published.