Rules of procedure for recording murabaha transactions of financial organizations
Year: 2024
Type: article
Abstract: In this article the equity, profit and loss distribution relationships in equity-based financing in financial institutions are discussed. The characteristics of each financial instrument are reflected based on the requirements of Islam and Islamic economics. In particular, the tool of the murabaha is described, which is one of the Islamic financial services, and the features of its reflection in accounting. Advantages and disadvantages of murabaha compared to other financial instruments are highlighted, as well as described features of this document, rules of procedure. Analyzed payment methods in the transaction murabaha, the characteristics of each of them. Based on examples, the types of approaches that a financial institution uses to account for murabaha financing are shown. Particular attention is paid to the recognition methods based on the gross ratio and constant profit level, which are the most common methods, the characteristics of financial statements based on these methods are highlighted, and a table of fees for each method is presented. Also, the similarities and differences between the murabaha instrument and the financial instruments offered by traditional financial institutions are shown. At the end of the article conclusions are drawn about the advantages of using the tool of a murabaha.
Author: Batirova, Nilufar Sherkulovna
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7214909649