THE SUITABILITY OF CONVENTIONAL ACCOUNTING FOR ISLAMIC ORGANIZATIONS AND THE NATURE OF ISLAMIC ACCOUNTING: Perception of Moslem Accounting Academicians In Java

Abstract

The objective of this study is to examine the perception of Moslem Accounting Academician* Java on the suitability of conventional accounting for Moslem users and Islamic organizations, asweDit the objectives and characteristics of Islamic accounting. The questionnaires returned were 115 and 103 of this was usable. A non-parametric test of median was conducted using MINITAB 13 to testae hypotheses. The results showed that Moslem accounting academicians in Java believe that !sink - organizations should follow Shari'ah principles and promote social welfare rather than concentrate on profits. There also seems to be a favourable response to the need for Islamic accounting. Most of Opt participants agree with the accountability objective Of Islamic accounting and support the integrative and'- holistic nature of Islamic accounting information. Key words: conventional accounting, Islamic accounting, Islamic corporate reporting, objectives and characteristics of Islamic accounting