J-ISCAN: Journal of Islamic Accounting Research

SHARIA FINTECH: PIONEERING THE EVOLUTION OF ISLAMIC FINANCIAL SYSTEMS IN INDONESIA

Muslina Muslina, Husna Hayati, Heny Rofizar — Sun, 30 Jun 2024 00:00:00 +0000

Indonesia is confronted with major challenges in its efforts to foster collaboration with fintech in order to navigate the free market era. The continuity of a sharia financial institution's business is at risk if it fails to adapt to the flow of information and technology, which will make it challenging to compete in a free market. A literature study is conducted by analyzing a variety of secondary data from OJK publications, Fintech websites, AFSI websites, and supporting articles on the results of the study. The data was subsequently analyzed using a descriptive qualitative approach to actualize an array of viewpoints regarding the role of fintech in the development of the sharia financial institution system. The results of this study's search indicate that sharia financial institutions have enrolled in the Indonesian Sharia Fintech Association (AFSI). However, some institutions continue to employ conventional methods in their operations, such as microfinance institutions, which have significant potential but have not yet integrated IT into their products and have not established a partnership with sharia fintech.

THE FINANCIAL FRAMEWORK OF MUSYARAKAH: INSIGHTS FROM BMT BERINGHARJO'S ACCOUNTING PRACTICES

Erni Marwasari, Annisa Fithria — Sun, 30 Jun 2024 00:00:00 +0000

Baitul Maal wat Tamwil (BMT), also known as a sharia financial institution, is experiencing a rapid development. As a Microfinance Institution (LKM), BMT operates according to Islamic principles by driving productive economic businesses that promote middle to lower class entrepreneurs, with a focus on independence and self-sufficiency. The aim of this study is to analyze the implementation, determination of profit-sharing ratios, and accounting treatment of revenue from musyarakah-based profit-sharing financing at BMT Beringharjo KC Kauman Yogyakarta, along with its compliance with PSAK 106. This research adopts a qualitative approach with a descriptive method. The data employed in this study comprise both primary and secondary data, collected through interview and documentation techniques. The findings of this study reveal that the profit-sharing ratio is established by distributing profits in a non-proportional manner with respect to the contributed capital, in accordance with the capacity of partners/members. The applied accounting treatment, evaluated based on characteristics, recognition, measurement, presentation, and disclosure, conforms to PSAK 106.

MURABAHAH PROVISION: THE KEY TO CLIENT-ORIENTED BUSINESS STRATEGIES AT BMT EL-MUHSIN

Sun, 30 Jun 2024 00:00:00 +0000

The research objective of this paper is to examine the impact of murabahah financing and entrepreneurial spirit on the income of Baitul Mal wa Tamwil El-Muhsin customers. This quantitative study comprises two independent variables and one dependent variable. There are 1,085 customers in the population. The Cochran formula was employed to implement stratified random sampling. A total of 196 customers were chosen as samples. The data collection technique employs a questionnaire, while the data analysis technique on the impact of financing and entrepreneurial spirit on customer income employs path analysis. The F test results indicated that the entrepreneurs of BMT el-Muhsin Hall have a substantial impact on their souls, with a F count of 17,664. Despite the fact that the coefficient of the financing route has a significant partial influence on the soul of entrepreneurs at BMT el-muhsin Hall (T count = 4,203), the hypothesis is acceptable. Structural analysis 2 demonstrated that the revenue of BMT el-Muhsin Hall customers was significantly impacted by the financing of mortgages and the spirit of entrepreneurship, with a value of 73.10%. Although the analysis of the murabahah financing route has a partial influence of 69.00% on the soul of entrepreneurs and the coefficient of the spirit of enterprises has a significant influence on the income of the entrepreneur of 11.30%, thus, the hypothesis is accepted.

THE ANALYSIS OF FACTORS INFLUENCING THE PERFORMANCE OF REGIONAL GOVERNMENT APPARATUSES OF BANDA ACEH

Fitri Yunina, Surna Lastri, Maya Agustina, Friska Yani — Sun, 30 Jun 2024 00:00:00 +0000

The phenomenon that occurred in 2017 based on the BPK's Opinion on the Financial Report of the Banda Aceh City Government was Fair Without Exception or "Reasonable Without Exception", however, the BPK found that there were weaknesses in the internal control system in the preparation of the Banda Aceh City Government's financial reports, including: inventory management is not yet fully adequate; management of fixed assets is not yet fully capable; and the management of grants and social assistance is not yet fully capable. The aim of this research is to analyze the factors that influence the performance of Banda Aceh City Regional Work Units. This research is causative associative quantitative research. The data collection technique uses questionnaire data by distributing questionnaires to Banda Aceh City the performance of regional apparatuses with a population of 92 employees in the Goods/Services Management and Accounting Sectors. Testing was carried out using multiple linear regression analysis methods. The results of the research show that understanding the regional financial accounting system, regional financial administration and management of regional property have an influence both simultaneously and partially on the performance of regional apparatuses of Banda Aceh.

THE IMPLEMENTATION OF INTERNATIONAL FINANCIAL FOR REPORTING STANDARDS (IFRS) ON NET INCOME OF PUBLIC COMPANIES IN INDONESIA

Mariana Mariana, Laisa Liza — Sun, 30 Jun 2024 00:00:00 +0000

Adoption of IFRS (International Financial Reporting Standards) is considered as a solution to increase credibility and transparency in financial reporting and strengthen the global financial architecture. Adjustments from IFRS to Financial Accounting Standards (SAK) in Indonesia are carried out by the Financial Accounting Standards Board (DSAK). This research aims to assess the importance of profit value after IFRS implementation in non-financial companies listed on the Indonesia Stock Exchange. Data from 2018-2022 (after IFRS adoption) and 2006-2008 (before IFRS adoption) were analyzed. The variables used include earnings relevance, measured by share price, changes in earnings, earnings per share, and book value of equity. The paired sample T-test in SPSS version 25 was used for analysis. The research results show an increase in the relevance of earnings after the adoption of IFRS. Although there is no significant difference in stock prices before and after IFRS adoption, there is an average decline after IFRS adoption. However, significant differences in changes in earnings, earnings per share, and book value of equity were identified, reflecting the impact of IFRS adoption on earnings relevance.