TY - JOUR
T1 - COMPANY ZAKAT ASSESSMENT METHODS IN SELECTED JURISDICTIONS
AU - Siswantoro, Dodik
AU - Nurzaman, Mohamad Soleh
AU - Nurhayati, Sri
AU - Munandar, Agus
AU - Ismail, Abdul Ghafar
AU - Alhabshi, Syed Musa Bin Syed Jaafar
N1 - Funding Information:
Acknowledgements: The researchers would like to thank the Ministry of Research, Technology, and Higher Education of the Republic of Indonesia which funded this research.
Publisher Copyright:
© 2022 The Authors.
PY - 2022
Y1 - 2022
N2 - The paper aims to analyze the consistency and suitable method of company zakat calculation by evaluating the financial reports of companies in the countries: Saudi Arabia, Kuwait, and Malaysia. A previous study shows that the misconception on company zakat implicates a recognition and measurement (Adnan & Bakar, 2009). Then, this study describes that the consistency analysis is reviewed by comparing the preferred method in each country and the method that is currently applied by the company, while the suitable method is assessed by exploring all the possible zakat calculation methods that can be employed by the companies. This study discloses company zakat in the financial statements and its available common calculation methods. Descriptive data from financial companies disclosing company zakat in Saudi Arabia, Kuwait, and Malaysia are used. Accordingly, the proposed method would be used in the simulation calculation. Zakat can be based on final, calculated from its net income and non-final basis, calculated from working capital. The result shows that some countries have different yet similar calculation methods. The zakat companies should have a standardized method for calculation that can be reviewed by an external party. The study is relevant for the countries adopting company zakat in practice.
AB - The paper aims to analyze the consistency and suitable method of company zakat calculation by evaluating the financial reports of companies in the countries: Saudi Arabia, Kuwait, and Malaysia. A previous study shows that the misconception on company zakat implicates a recognition and measurement (Adnan & Bakar, 2009). Then, this study describes that the consistency analysis is reviewed by comparing the preferred method in each country and the method that is currently applied by the company, while the suitable method is assessed by exploring all the possible zakat calculation methods that can be employed by the companies. This study discloses company zakat in the financial statements and its available common calculation methods. Descriptive data from financial companies disclosing company zakat in Saudi Arabia, Kuwait, and Malaysia are used. Accordingly, the proposed method would be used in the simulation calculation. Zakat can be based on final, calculated from its net income and non-final basis, calculated from working capital. The result shows that some countries have different yet similar calculation methods. The zakat companies should have a standardized method for calculation that can be reviewed by an external party. The study is relevant for the countries adopting company zakat in practice.
KW - Company Zakat
KW - Income
KW - Method
KW - Working Capital
UR - http://www.scopus.com/inward/record.url?scp=85134005272&partnerID=8YFLogxK
U2 - 10.22495/jgrv11i2siart7
DO - 10.22495/jgrv11i2siart7
M3 - Article
AN - SCOPUS:85134005272
SN - 2220-9352
VL - 11
SP - 286
EP - 292
JO - Journal of Governance and Regulation
JF - Journal of Governance and Regulation
IS - 2 Special issue
ER -