ISSN: 2225-8329
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Islamic wealth management is significant to ensure the heirs may survive after losing their loved ones. Therefore, zurri waqf is one of the instruments which can be implement to ensure the perpetual of the family’s equity. For instance, if the zurri waqf asset is a land, it could be developed to be an impactful asset than can generate revenues which can be distributed among the heirs. For that matter, the trustee appointed is accountable to the management of zurri waqf which consists of accounting as well. In Malaysia, zurri waqf have been implemented in few states and the heirs are still available for the revenue’s distribution. However, a specific standard has yet to be developed in the context of zurri waqf in Malaysia. Hence, this paper aims to examine the reporting of zurri waqf in Malaysia and to suggest the minimum reporting item of zurri waqf in the annual report. Qualitative data analysis which referring to content analysis and semi-structured interviews was adopted for the methodology. Sample involves 4 SIRCs annual report which involve in zurri waqf management and duration covered is 5 years which is from the year 2014-2018. Meanwhile, the respondents consist of 5 respondents which comprise heads of waqf units and accountant from 4 SIRC. The paper found that there are inconsistencies on the accounting treatment among 3 SIRCs in recognition and disclosure in zurri waqf reporting though the practices have been in place for centuries. The current disclosure needs to be improved. In addition, the zurri waqf implementation in Malaysia is not proactive yet and there is a lacking in reporting aspects. Nonetheless, the significance of reporting shall be prioritize given the Quran narration and relevant accounting theories related to accountability and justice to the stakeholders. The findings are preliminary and highlight the issue of current zurri waqf accounting practices in SIRCs. Therefore, it requires meticulous follow-up to form a complete picture of zurri waqf reporting that would assist administrators to improve their policies toward better quality disclosure in order to convince the public to participate in zurri waqf which qualifies as a property planning instrument. Having said that, future research is recommended to develop practical accounting treatments which suit the nature of zurri waqf as well as compliance with current accounting standards.
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In-Text Citation: (Sanusi et al., 2021)
To Cite this Article: Sanusi, S. W. S. A., Salleh, M. F. M., & Yaacob, S. E. (2021). Zurri Waqf Reporting: Preliminary Findings on Reporting Practices. International Journal of Academic Research in Accounting Finance and Management Sciences, 11(3), 235–255.
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