Record Details

FINANCIAL PERFORMANCE MEASUREMENT AND DISTRIBUTION POLICY OF ISLAMIC FINANCIAL INSTITUTIONS

International Journal of Economics, Management and Accounting

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Field Value
 
Title FINANCIAL PERFORMANCE MEASUREMENT AND DISTRIBUTION POLICY OF ISLAMIC FINANCIAL INSTITUTIONS
 
Creator Alhabshi, Syed Musa
 
Description This paper addresses the issues of financial performance measurement and proposes the need for a profit sharing distribution policy of Islamic financial institutions. A conceptual analysis of the integral concepts of performance measurement, such as income, capital and cost of funds, is done in view of the existing accounting assumptions and principles. The importance of profit-sharing ratio and the diversity of financing contracts explained in this paper affirms the need for a more comprehensive analysis of the financial performance of Islamic financial institutions. A portfolio return model of Islamic financing contracts is proposed for the financial institutions. A profit distribution policy that states and discloses the manner of profit determination and distribution between the Islamic financial institution and the investment depositors is proposed. The policy is expected to reduce information asymmetry in meeting investment account holders' expectations. Both the accrual and cash aspects of performance measurement and distribution policy are discussed in this paper.JEL classification: G20, G31, M40, Z12Key words: Financial reporting, Performance measurement, Islamic financial institutions
 
Publisher Kulliyyah of Economics and Management Sciences
 
Date 2013-02-27
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/76
 
Source International Journal of Economics, Management and Accounting; Vol 10 No 1 (2002)
2462-1420
 
Language eng
 
Relation http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/76/59