Islamic financial system dare not emerge differently yet from global financial system applied in many countries. It is displayed in the financial system practiced in various Islamic countries. For instance, the financial system of several Muslim countries has not entirely followed Islamic finance system.
It was stated by Prof. Abdul Rahim Abdul Rahman from University Sains Islam Malaysia (USIM) in an International Conference on Accounting and Finance – Universitas Muhammadiyah Yogyakarta 2015 (ICAF UMY 2015). The theme was “Challenge of the Adoption of International Financial Reporting Standards (IFRS) in South East Asia”. The event took place in Meeting Hall of A.R. Fachruddin B UMY on Wednesday (18/03).
Abdul Rahim uttered that an aspect hampered the fully implementation of Islamic financial system is that Muslims are trapped in globalization agenda. He argued that globalization agenda brought enormous impacts on Muslims in developing countries. For one reason, the developing countries had not possessed internationally political power.
“Besides global agenda is immense for us as developing country, it is essential to realizing that we are lack of Islamic knowledge since the applied agenda of Islamic financial institute only focuses on business agenda,” he conveyed.
Abdul asserted that many Muslim communities agreed with the implementation of Islamic financial standard. Nevertheless, if applied, only several countries followed the system and most countries did not employ it. He expressed that a few Islamic countries were willing to follow such as Jordan and Bahrain.
“Saudi Arabia does not entirely follow anymore because the country relies on developed countries so that we achieve any system given by global world to Islamic financial system. Thus, I think that it is necessary to educate Islamic knowledge and bravery to reveal the Islamic truth,” he elucidated.
Abdullah added that the effect of IFRS on accounting and Islamic financial institution report dealt with the influence of religion on the financial report. He took an instance that religion could affect how people carry out a business or make financial decision. Another example was that Islam prevents account receivable financing and forbids bank interest. It is on Islamic financial institution regulated by Islam. It is different from the goal of Western financial system which the financial system report is allowed to account receivable financing and interest. The system has been the interest of community globally.
