The accounting measurement and disclosure requirements in Islamic banks : the case of Murabahah and Mudarabah

This research has three main purposes. First, it discusses the differences between the conventional and the Islamic perspectives of accounting in terms of the accounting definition, objectives, principles, rules, measurements and disclosure requirements. Second, it discusses and formulates the accounting measurements and the disclosure requirements, which should be applied in Islamic banks for Murabahah and Mudarabah operations.Third, to provide insight into the current practice of these measures and requirements, the study reports the results of a survey which aims at identifying the gap between the suggested measures and requirements and the current practice of the Dubai Islamic Bank and the Jordan Islamic Bank. The analysis reveals that there are differences between the conventional and the Islamic perspectives of accounting. It also indicates the need for specific accounting measures for Murabahah and Mudarabah operations as well as the need to disclose more information about these operations and their accounting measurement methods in an Islamic bank's annual reports as well as in other disclosures.Finally, the direction for future research on Islamic banks operations and their accounting measurement problems are presente