The main objective of the study is to do an analysis on the accounting standards of Islamic countries; in this case, I will compare the Iran with the international accounting standards.    The study found that there is an existence of differences between the accounting standards internationalization and the accounting standards of I ran.   The markets of Iran have been in substantially had the property that’s about their balance sheet.           

Keywords: accounting, financial accounting standards, accounting standards.


The accounting  and examining Association for Islamic budgetary foundations (AAOIFI) has taken the right activity to create accounting , evaluating, administration, morals, and Shari’ah gauges for Islamic Financial Institutions (IFIs). The AAOIFI gauges serve as a rule that may mirror the one of a kind attributes of IFIs and turn into a suitable device to meet the different needs of IFIs. Right now, one the significant difficulties confronting Islamic Financial Institutions (IFSs) lies in the planning of money related proclamations under various accounting  guidelines and which may result in the issue of likeness, dependability, and consistency level’s estimation (Biondi & Qiusheng Zhang 2010).

This has, in any case, brought about a warmed verbal confrontation among researchers that has until now meant the developing existing writing is encompassing the translation of the level of consistency with the Islamic accounting principles. This paper, subsequently, talks about the Islamic accounting benchmarks through a survey of the writing. The confirmation evaluated proposes that the need for the Islamic accounting guidelines to fill the hole in the Organization of Islamic Conference (OIC) nations. This paper finishes up with different suggestions for future research, the most vital of which is the requirement for future studies to be done to execute the Islamic accounting guidelines, for example, the AAOIFI accounting measures. The present paper, along these lines, adds to a superior comprehension and adequacy of the Islamic accounting benchmarks, such the AAOIFI.

Accounting benchmarks are real models for monetary reporting and are the fundamental wellspring of sound accounting principles (GAAP). Accounting rules show how trades and distinctive occasions have to be measured, seen, displayed and revealed in monetary clarifications. The main idea of the standards is to give cash related data to monetary pros, banks, moneylenders, benefactors and others that are profitable in settling on decisions about offering resources for the substance.   

In Canada, accounting   rules for all materials outside the general open segment are issued by the Accounting Standards Board. The AcSB has gotten a handle on International Financial Reporting Standards (IFRSs) as the accounting   good benchmarks by direct tried and true attempts. Private endeavors and not wage driven affiliations can utilize self-sufficiently made models for those substances or IFRSs. Isolate accounting   benchmarks exist for annuity driving forces. Accounting   benchmarks got by the AcSB (counting IFRSs) are passed on the CPA Canada Handbook – Accounting (Biondi & Qiusheng Zhang 2010). 

The CPA Canada Public Sector Accounting Handbook is the essential wellspring of GAAP for general society part. The Canada Business Corporations Act and current associations and securities order in principle oblige associations to arrange cash related explanations for their shareholders according to GAAP as set out in the CPA Canada Handbook – Accounting . Another sanctioning applies to budgetary organizations and certain diverse sorts of reporting    substance.  

Accounting   Standards for fiscal reporting by Islamic cash related foundations must be made in light of the fact that sometimes Islamic budgetary establishments encounter accounting   issues in view of existing accounting   gages, for instance, IFRSs or neighborhood GAAP being created in the light of traditional organizations, customary item structures, and might be seen to be inadequate to represent and report Islamic money related exchanges.   

Accounting norms determine when and how financial occasions are to be perceived, measured and showed. Outer substances, for example, banks, financial specialists, and administrative organizations depend on accounting models to guarantee significant and precise data is given about the element. Accounting norms identify with all parts of an item’s accounts including resources, liabilities, income, consumptions and value. Particular cases of an accounting standard in corporate income acknowledgment, resource characterization, reasonable techniques for devaluation, what is viewed as depreciable, rent arrangements and remarkable share estimation.  

Shari’a consistent exchanges that watch the forbiddance on charging interest might not have parallels in traditional financing and in this way; there might be critical accounting suggestions. In like manner, the Islamic bank industry is under significant weight to redesign sharpening and improve peril organization structures and secure money related experts.      

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is an Islamic general self-choice non-for-preferred standpoint corporate body that gets ready accounting, investigating, association, morals and Sharia’a guidelines for Islamic money related establishments and the business. It was built up in 1991 and has so far issued a total of 88 rules covering the territories Sharia’a, accounting, inspecting, morals, and administration for Islamic money related organizations.

In the conjunction of the rise of globalization, the trade between multinational companies, countries and the increase of financial centers importance in the likes of the New York stock exchange and London stock exchange, the accounting standards platform has been a platform highly sought after (Biondi & Qiusheng Zhang 2010).

Research background in Iran

In the comparison of the standards, the research which was done in Iran was compared in two groups/categories; the first being based on the importance or ambiguity of various standards, in which was the central area for the researcher to study and criticized them (like for instance   statement liquidity, Iran standards compared to the international standards). The second group of the survey was on examining and reviewing of the present study and the rules of the same category.               

From the study, we can note that the difference that exists between the current study and other studies did previously is only the period.   The last research study that was done in Iran to exam the accounting standards and the international accounting standards in the Iran does date back to 2004, and this is the time in which the number of the criteria formulated were less than 25 in Iran. New standards have been expressed lately with some being revised.             

Research Background outside Iran

Much has been done in the efforts of comparing the accounting standards in the Muslim countries like Iran, Israel, and other nations. In the current world, we get to understand that the sustainability of the organization has been known to be one concept as attracts much attention. For the companies to be able to remain in the trading competition scene, they have to draw the satisfaction of the customers.   Since the eighties, the banks and the non-banking institutions of finance in the Islamic countries, they have been going through a challenge of financing various economy sectors, and this is the mode which does not contravene sheriah injunctions with regards to Riba .      

The Islamic banks are said to use Murabaha mode so as to be able to promote Riba fee transactions. In this case, it’s good to note that the level at which they use the   Murabaha does vary from bank to the other.  Muharaba is a sort of offer. Perfect method of financing as indicated by Shariah would be Mudarabah or Musharakah. Be that as it may, in the point of view of the current monetary set up there are sure common sense troubles in utilizing Mudarabah and Musharakah instruments as a part of each kind of financing. Along these lines, the contemporary Shariah specialists have underscored on Murabaha mostly as an exchanging method of exchange yet in the modern setting, the utilization of    Murabaha subject to specific conditions on conceded installment premise has been permitted as an acceptable mode.           

The second imperative point is that the Murabaha exchange does not appear by just supplanting “enthusiasm “by the words “benefit” or “increase.” Unless necessary conditions as set around    Shariah are completely watched, a Murabaha is not legitimate. Indeed, it is the recognition of these circumstances, which can draw a clear line of refinement between the enthusiasm bearing credit and an exchanging exchange of Murabaha  . On the off chance that any of these conditions is not met, the exchange stops to be Murabaha  as indicated by Shariah.      

Therefore, the development of the Islamic Accounting Standards is crucially underpinned by the theoretical requirements of the    Shariah Law. Further theoretical principles which can also be used to explain the development of the Islamic Accounting Standard are the public interest theory and the stakeholder theory in accounting.   

The Islamic banks are based on the same principles which are used in the Islamic teachings and Islamic business principles, and these Islamic banks are covered by the laws of Shariah, also known as the Shariah laws (J. Irvine 2010). The main reason to adopt Islamic Accounting Standards for the Islamic banks is that of the principle that the Islamic banking will have to follow strict Islamic Shariah rules. The Islamic banks are not a new concept, and these Islamic banks are now widely spread all over the world especially in the Islamic countries. There are more than 150 banking institutions and banks, and these Islamic banking institutions work all around the world, and these are not limited to the Islamic countries or the Muslim countries. In the year 1993, it was      

Estimated that the total assets which are under the control of these Islamic banks are around US $ 60 billion and this figure will increase up to the US $ 100 billion. One of these principles is to avoid dealing with interest transaction in all form of business transactions. The main features of the applicability of   Shariah principles which are followed by the Islamic banks are as follow (Cortese, 2010): Category of principles 

  • Number of principles
  • Country specific principles.

Category of Shariah principles:

The principles of Shariah used by the Islamic banks can be categorized into four areas: Profit and loss sharing, Fees based system, Free services, and Ancillary principles. There are 14 principles within the category of these four principles which are applied by the Islamic banks in their day to day operations. The IBB Bank of Bahrain and DIB Bank of United Arab Emirates have the least number of principles of the Shariah. These principles are universally used by all the Islamic banks no matter in whatever country they have their operations (Cortese, C. L. & H. J. Irvine 2010). Further, the principles in this part are divided into three elements which are as follow: 

  • The fees which are based on the markup
  • The fees which are based on commission, and
  • The fees which are based on the service provided by the banks.

Factors which led to the development of the IASs

Islamic norms underscore prevention of Riba and consistency with Zakah. These tenets are hard to oversee inside the normal accounting structure and should be executed in an Islamic accounting system. The change of the Islamic accounting standard is moreover immovably identified with the headway of Islamic world both monetarily and politically. The importance of the Middle Eastern Countries has extended in the world’s saving perspective as the Islamic region’s duty to the aggregate people is more than 25%, and there are 10 Muslim countries among 18 Oil making countries that give 40 % of the total oil era.

This ascent of the Middle East Asian economies in the late 90s fueled the need of an alternate accounting models structure for Islamic countries. Regardless of the way that Islam doesn’t arrange a specific kind of accounting, it weighs on the need of fitting in with develop Islamic feelings (Carroll, N. 2003). The Islamic decide that scold Riba  (prevention of affirmation or portion of premiums) and such extraordinary practices were the vital clarifications for the change of a couple sparing cash and operations rules as for accounting  meds and disclosure requirements in IFIs (International budgetary associations) like World Bank, International Monetary Fund et cetera (Carroll, N. 2003).   

Key Players

The development of Islamic accounting standards only became possible due to the collaborative attitude of many parties involved. Islamic communities, Islamic financial institutions, AAOIFI were some of the key players involved in the development of the Islamic Accounting Standards. For that matter, the contribution of International Accounting Standards Board (IASB), International Accounting Standards (IAS) and International Financing Reporting Standards (IFRS) cannot be ignored for if these authorities were not there, there would have been no reason for the development of Islamic accounting standards (Chesley, G. 1986).

The Islamic accounting standards came only in existence to mend the loopholes of these already established accounting standards and customize them according to the stipulations set by Islamic Shariah Law (Chesley, G. 1986). There were also significant supporters of the development of Islamic Accounting Standards; the Kingdom of Bahrain was the main authority figure behind the launching of Islamic accounting standards. Later there was support from governments and financial experts from countries like Jordon, Lebanon, Syria, Pakistan, Sudan, Malaysia and Indonesia (Carroll, N. 2003).

Conclusion &Discussion

This study considered the speculation that there are noteworthy contrasts between the three gatherings The assessment and triple their judgments about the prevalence of Iranian accounting   models The International Accounting  Standard demonstrates that the computed X2 56.538of the sum equivalent to the benchmark level of 99% which is equivalent to 20/09 Larger is the distinction between the gatherings is profoundly critical and affirmed look into This implies three gatherings have altogether different perspectives of the Iranian standard.

Specialists say the same in regards to the hypothesis of social judgments (Chesley, G) to be impacted by various variables and the precise way of the models and its impact on the administer of law, accounting   in absolute examples of high differences speaks at the end of the day, if judged to be of a similar social measures could likewise It is reliable with the judgments this prevents them the status from claiming research comes about Compared to similar principles of social equity and the requirement for more consideration has been Expected Viewpoint by point comes about saw with every one of the specialists and experts dynamic around there It is comprehended and utilized for future arranging.    

 At last, the general conclusion which can be made of the exploration is that the circumstance of directions and social, social, and even financial situation for every nation requires the enactment of particular gauges an alternate translation of comprehensive models and these issues applies to Iran. The thoughts of the asked bunches consider the principles utilized as a part of Iran as preferable and higher over the universal models, obviously with a little change, however, individual mishandle and social judgments are not denied, but rather the need of speculation and more consideration and further study is felt (Carroll, N. 2003).