Critical Study the Application of the Principle of Profit Sharing in Syirkah Mudharabah and Musyarakah in Islamic Banking

The existence of a syari'ah bank in accordance with shari'ah principles has answered some of the problems of the banking system in accordance with the wishes of the Muslims. In practice, there arose suspicion and dissatisfaction from customers of the Syari'ah Bank which had not fully implemented the Shari'ah principles. The application of accounting to Syari'ah banking institutions currently still faces obstacles caused by internal and external factors. This study aims to find out whether the principle of profit sharing has been applied in the preparation of financial statements as the basis for profit sharing in syirkah mudharabah and musyarakah. The research methods used in this study are qualitative methods with critical theory. The study was conducted on the application of the profit sharing system applied to financing with the Mudharabah and Musyarakah contract in Islamic financial institutions. The results of the research show that the concept of profit sharing that is applied is revenue sharing, the use of revenue sharing method is based on the existence of the principle of conservatism applied in Islamic financial institutions     Keywords: Syari'ah Bank, profit sharing, Quality of Financial Statements, Musyarakah, Mudharabah