Accounting Treatment for Ijarah and Ijarah MuntahiaBittamleek in Sudanese Islamic Banks

• Published in: Turkish journal of computer and mathematics education Vol. 12; no. 3; pp. 776 - 781
• Main Author: Et.al, Azam Abdelhakeem Khalid
• Format: Journal Article
• Language: English
• Published: 11.04.2021
• ISSN: 1309-4653; 1309-4653
• DOI: 10.17762/turcomat.v12i3.784

Purpose – This paper aims to review and analyze the concept of Ijarah and Ijarah MuntahiaBittamleek (IMB)in Sudanese Islamic banks. Design/methodology/approach-The researchers followed descriptive analytical methodology and Inductive method in conducting this study as well as the comparative method to compare FAS No.8 to IAS 17 concerning the accounting treatments. Also,the applied method was used for the practical side of the study based upon the financial reports in the Sudanese Islamic banks. Findings -The study found that the main difference between two standards is that FAS No.8 focuses on the legal aspect of the financial transactions while IAS 17 focuses on theaspect of economy.The study also found that the Sudanese Islamic Banks were committed to apply FAS No.8 in regard to accounting measurement, but were not committed to apply FAS No.8 in regard to recognition, presentation and disclosure in the financial reports. Practical implication – The paper contributes to the Sudanese Islamic Banks to apply the FAS No.8 with regard to recognition and accounting disclosure. Originality/value –This research is the pioneerin analyzing the concept of Ijarah and Ijarah MuntahiaBittamleek (IMB) in Sudanese Islamic banks.