On Islamic Accounting: Its Future Impact On Western Accounting/Muhammad Akram Khan Introduction and review

In chapter two, the author introduces the basic concept of Islamic accounting. The author examines the controversy of whether zakat should be treated as a cost or as part of the appropriation account in a mudtirabah arrangement. The last chapter summaries the debate and concludes that western accounting should make use of the Islamic accounting concept· s of responding to the needs of a society rather than a business. But the reader does not find what he expects for, with the exception of one major observation about the scope of accounting in the Islamic and western frameworks, there is little on the differences between the two concepts. In chapter three, Hayashi introduces the concept of zakat calculation in Saudi Arabia along with its underlying accounting principles. However, the author gets bogged down in the discussion on treating zakat as a cost of part of the divisible profit In a mudiirabah business.