Exploratory study of the impact of profit equalisation reserve guidelines on islamic banks' taxable income /
Due to many criticisms on the accounting treatment for profit equalisation reserve (PER), Bank Negara Malaysia has issued a new 'Profit Equalisation Reserve Guidelines' for Islamic banks and financial institutions in Malaysia. Previously apportionment of the PER for both raabul mal and mud...
Saved in:
| Main Author: | |
|---|---|
| Format: | Thesis |
| Language: | English |
| Published: |
Kuala Lumpur :
Institute of Islamic Banking and Finance, International Islamic University Malaysia,
2014
|
| Subjects: | |
| Online Access: | Click here to view 1st 24 pages of the thesis. Members can view fulltext at the specified PCs in the library. |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| LEADER | 034640000a22003130004500 | ||
|---|---|---|---|
| 008 | 150102t2014 my a g m 000 0 eng d | ||
| 040 | |a UIAM |b eng | ||
| 041 | |a eng | ||
| 043 | |a a-my--- | ||
| 050 | |a HG3300.6 A6 | ||
| 100 | 0 | |a Noriza Esa |9 71345 | |
| 245 | 1 | |a Exploratory study of the impact of profit equalisation reserve guidelines on islamic banks' taxable income / |c by Noriza Esa | |
| 260 | |a Kuala Lumpur : |b Institute of Islamic Banking and Finance, International Islamic University Malaysia, |c 2014 | ||
| 300 | |a x, 75 leaves : |b ill. ; |c 30cm. | ||
| 336 | |2 rdacontent | ||
| 337 | |2 rdamedia | ||
| 338 | |2 rdacarrier | ||
| 502 | |a Thesis (MIIBF)--International Islamic University Malaysia, 2014. | ||
| 504 | |a Includes bibliographical references (leaves 64-69). | ||
| 520 | |a Due to many criticisms on the accounting treatment for profit equalisation reserve (PER), Bank Negara Malaysia has issued a new 'Profit Equalisation Reserve Guidelines' for Islamic banks and financial institutions in Malaysia. Previously apportionment of the PER for both raabul mal and mudharib are expensed in the profit and loss account. In the new PER Guidelines, only the rabbul mal's portion is expensed in the profit and loss account while the mudharib's portion is reflected in the statement of changes in equity. The new accounting treatment is affecting the profit and loss account and will increase the profit before tax for the Islamic banks. Therefore, this paper explores the implication on tax that may result from the new PER accounting treatment. This paper analyses the annual reports of Islamic banks in Malaysia to determine the change in PER disclosure before and after the implementation of the new guidelines on PER. This paper observes changes in accounting disclosure in the financial report of some Islamic banks beginning from year 2012. Consequently, interviews with the relevant officers of the Lembaga Hasil Dalam Negeri Malaysia (Inland Revenue Board of Malaysia - IRBM) are conducted to gain inputs on the impact of the new PER Guidelines on taxation. The interviews revealed that PER affected Islamic banks' taxable income even before the new Guidelines are implemented. After the new PER Guidelines have been introduced, tax only affected the rabbul mal's portion. As a result, adjustments to the taxable income of the Islamic banks are made prior and after the implementation of the new PER Guidelines, and this increases their tax payable. The findings also reveal that not all expenses that follow the statutory directives are allowable in the perspective of taxation. Keywords: Profit Equalisation Reserve, Mudharabah, Taxation | ||
| 655 | 7 | |a Theses, IIUM local | |
| 690 | |a Dissertations, Academic |x Institute of Islamic Banking and Finance. |z IIUM | ||
| 710 | 2 | |a International Islamic University Malaysia. |b Institute of Islamic Banking and Finance. | |
| 856 | 4 | |u http://studentrepo.iium.edu.my/handle/123456789/2134 |z Click here to view 1st 24 pages of the thesis. Members can view fulltext at the specified PCs in the library. | |
| 900 | |a sbh-zhmn-hm | ||
| 942 | |2 lcc |n 0 | ||
| 999 | |c 436724 |d 468743 | ||
| 952 | |0 0 |6 T HG 003300.6 A6 N841E 2014 |7 0 |8 THESES |9 760149 |a IIUM |b IIUM |c MULTIMEDIA |g 0.00 |o t HG 3300.6 A6 N841E 2014 |p 11100337854 |r 2017-11-01 |t 1 |v 0.00 |y THESIS | ||
| 952 | |0 0 |6 TS CDF HG 3300.6 A6 N841E 2014 |7 0 |8 THESES |9 853018 |a IIUM |b IIUM |c MULTIMEDIA |g 0.00 |o ts cdf HG 3300.6 A6 N841E 2014 |p 00011284729 |r 2017-10-27 |t 1 |v 0.00 |y THESISDIG | ||