The factors affecting the adherence of Islamic accounting standards AAOIFI in Jordan

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Abstract

The aim of this paper is to knowledge the problems faced by Islamic banks in Jordan towards the adherence to AAOIFI accounting standards. And to study the problems faced with adherence to AAOIFI accounting standards, a meticulous market survey was conducted from banking (employees of the financial department) in Islamic banks in Jordan – their number 4 – banks. A structured questionnaire was designed and distributed in person among respondents – their number 80 – employees in the financial departments. We are found towards adherence to AAOIFI accounting standards. Internal and external problems are found to adherence Islamic banks to AAOIFI accounting standards. The sample is limited to Islamic banks in Jordan. This is necessitated by the lack of adaptation elsewhere. Also, there is little research in Jordan on adherence to AAOIFI accounting standards developed by this body. This paper, along with the previous study, helps to address this gap.

Keywords: AAOIFI, Accounting Standards, Problems, Islam, Banks, Central Bank of Jordan, Securities Commission

Authors’ individual contribution: Conceptualization – M.H.A.; Methodology – A.I.N.; Resources – A.I.N.; Data Curation – N.S.M.T.; Writing – Original Draft – M.H.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M480, D02, G21

Received: 03.11.2020
Accepted: 11.12.2020
Published online: 16.12.2020

How to cite this paper: Alqaraleh, M. H., Thuneibat, N. S. M., & Nour, A. I. (2020). The factors affecting the adherence of Islamic accounting standards AAOIFI in Jordan. Journal of Governance & Regulation, 9(4), 69-75. https://doi.org/10.22495/jgrv9i4art6