Reconstructing asset recognition through the principle of public interest: an Islamic value-based accounting framework for socio-economic institutions
Reconstructing asset recognition through the principle of public interest: an Islamic value-based accounting framework for socio-economic institutions

Summary/Abstract: This study develops a Sharia-based accounting framework grounded in the principle of Maslahah Mursalah (public interest) to recognize tangible and intangible assets in Islamic boarding schools (pesantren). Employing a qualitative approach with in-depth interviews, it identifies a critical gap in conventional standards (such as Statement of Financial Accounting Standards for nonprofit organizations in Indonesia) in Indonesia, which fail to capture essential intangible assets such as community trust, the spiritual legitimacy of leaders (kiai), and social capital. The proposed framework redefines asset recognition criteria to incorporate these spiritual and social dimensions. It further introduces context-sensitive measurement approaches and holistic disclosure principles. This reorientation shifts financial reporting beyond mere economic focus, strengthening ethical accountability and transparency while aligning it with the religious and social mission of Islamic institutions. The framework contributes a value-laden paradigm for accounting in Islamic faith-based organizations.

• Details
• Contents