Part A
As accounting standards globalise, the standard setting bodies face the challenge of accommodating the Islamic prohibition on interest, and other aspects of Sharia law, into money making.
There are two contrasting views on how to account for Islamic financial transactions.
a) A separate set of Islamic accounting standards is required; or
b) International Financial Reporting Standards can be applied to Islamic financial transactions.
The differing approaches to accounting for Islamic financial transactions can be generally attributed to opposing views on two main points of contention.
a) The acceptability of reflecting a time value of money in reporting an Islamic financial transaction; and
b) The conventional approach of recognising and measuring the economic substance of a transaction, rather than its legal form.
Discuss
Part B
In the Australian accounting sphere the concept of due process is applied within the institutional arrangements for regulating financial reporting and falls particularly within the promulgation of accounting standards.
a) What is due process.
b) Is there a difference in due process in law and the due process as applied within the accounting standard setting regime
c) What is procedural due process and substantive due process. Is there a difference and if so what is it.