Ibrahim Kamal Abd Rahman, Normah Omar and Zubaidah Zainal Abidin
In exploring the management accouting practices of companies in Malaysia, two categories of companies were chosen: Malaysian‐owned and Multinational corporations (MNCs). The…
Abstract
In exploring the management accouting practices of companies in Malaysia, two categories of companies were chosen: Malaysian‐owned and Multinational corporations (MNCs). The majority of the companies selected were either manufacturing‐based or service‐based. To asess the level of management accounting applications in these organizations, Akira’s “Four‐Phase” model was adopted. While a “drifting phase” connotes an extremely low level of application, the “integrated phase” on the other hand deliberately uses the latest management accounting approaches for strategic purposes. Management accounting techniques surveyed include the applications of traditional methods such as Standard Costing, Budgeting and Cost‐Volume‐Profit (CVP) and other integrated approaches such as Just‐in‐Time (JIT), Activity‐Based‐Costing (ABC), Benchmarking and Target Costing.
Details
Keywords
Norashikin Kamarudin, Zubaidah Zainal Abidin and Malcolm Smith
Audit helps both shareholders and stakeholders to make informed decisions about future directions, based on how the company is performing. The issue of audit exemption among small…
Abstract
Purpose
Audit helps both shareholders and stakeholders to make informed decisions about future directions, based on how the company is performing. The issue of audit exemption among small companies has been addressed in studies in the UK, Australia and Singapore, together with several others, while Malaysia still legally obligates all companies, irrespective of their size, to be audited annually. The purpose of this exploratory study is to explore the factors associated with a push for audit exemption among small to medium‐sized enterprises (SMEs) in Malaysia.
Design/methodology/approach
A survey of SMEs in Malaysia's Klang Valley is conducted to examine their perceptions of audit value, audit burden and audit costs, and their implications for the acceptance of the current audit provisions.
Findings
After follow‐ups the survey yields a response rate of 83 percent, with 360 valid responses received. The results indicate that all three factors have a significant relationship with the level of acceptance of audit exemption. Their preferred audit exemption threshold is also presented.
Research limitations/implications
The results from this study provide useful information for policy makers, auditors and directors of small companies in regards to audit exemption.
Originality/value
The results of the study provide new information for policy makers, auditors and directors of small companies, with implications for future regulation on audit exemption.
Details
Keywords
Muhammad Usman and Asmak Ab Rahman
This paper aims to highlight the importance of waqf in financing higher educational institutions (HEIs) and its potential as an alternative source of generating additional funds…
Abstract
Purpose
This paper aims to highlight the importance of waqf in financing higher educational institutions (HEIs) and its potential as an alternative source of generating additional funds for the HEIs, and discourses on waqf practice, fundraising, waqf management and utilisation of waqf income for the development of higher education in Malaysia.
Design/methodology/approach
This paper is based on the information gathered through interviews with 12 participants who are actively engaged in waqf in different capacities. The participants can easily be classified into three expert groups; personnel of waqf-based universities, personnel of the respective State Islamic Religious Councils (SIRCs) and waqf practitioners. In addition, archival records, relevant documents and library sources have been used in the research.
Findings
The study learnt that waqf in Malaysia is centralised and exclusively controlled by the SIRCs, which are, as a rule, sole trustees of all categories of awqaf in the respective states; hence, any form of private trusteeship is considered illegal. It is a prerequisite for the establishment of a waqf fund to obtain permission from the respective SIRCs, and bring it under the purview of the council prior to setting up a waqf. The ministry of higher education has taken some initiatives to encourage HEIs to use waqf as an alternative source of generating funds. Subsequently, numerous public universities have set up waqf funds and developed a comprehensive mechanism for raising the fund through traditional and modern methods and technologies. A major chunk of the waqf funds is collected in the form of cash, but the amount falls short of reaching critical mass to enable the waqf to become self-sustaining. The study found that the universities also involved themselves in various social welfare programmes, especially in health care, and some income-generating projects besides seeking support from the waqf fund for their academic and educational activities.
Practical implications
The paper brings out the fact that waqf offers the best features as an alternative fiscal instrument to finance projects of public good, including higher education at three selected waqf-based universities in Malaysia.
Social implications
The study’s findings will be helpful to the ummah in general and Malaysia in particular. It can help policymakers, legislators and academicians in formulating new strategies for the common good and sensitize the countries facing a huge fiscal deficit and lack of development to the viability and potential of waqf as a catalyst for progress and economic activity.
Originality/value
The paper shares the experience of Malaysia’s waqf-based universities, waqf fundraising, management and income utilisation. It accentuates the fact that waqf can help finance academic activities at universities and sheds light on some useful examples of waqf-based universities founded in earlier periods of Islamic civilisation.
Details
Keywords
Suhaili Alma'amun, Mohd Khairy Kamarudin, Wan Nadiah Wan Mohd Nasir, Nasrul Hisyam Nor Muhamad and Riayati Ahmad
This research aims to examine and compare differences in waṣiyyah wājibah (obligatory bequest) (WW) practices in Malaysia and Indonesia.
Abstract
Purpose
This research aims to examine and compare differences in waṣiyyah wājibah (obligatory bequest) (WW) practices in Malaysia and Indonesia.
Design/methodology/approach
This is an exploratory qualitative research, employing a thematic analysis approach. Six Muslim Wills (State) Enactments [Enakmen Wasiat Orang Islam (Negeri)] in Malaysia, Islamic Law Compilation (Kompilasi Hukum Islam) in Indonesia, two fatwas (ruling in religious matters) and one court case from each country are analysed. Data is collected from official government websites and other reliable search engines.
Findings
First, the findings show that the WW practice in both countries is similar regarding the quantum of the beneficiaries' entitlement. However, the practice varies between both countries in terms of the types of beneficiaries and how the bequest is distributed. Second, this study shows the potential of WW as an estate planning instrument to complement the existing instruments in each country, especially when addressing family members who are not entitled to succeed by farāʾiḍ (Islamic inheritance law).
Practical implications
The provision of relevant laws and regulations regarding WW needs to be formulated to guarantee the well-being of dependants. The differences in practice between the two countries can be a guideline to expand the WW scope and context to other Muslim countries.
Originality/value
This study is the first attempt to compare WW between two Muslim-majority countries focusing on relevant laws, court cases and regulations.
Details
Keywords
Noor Azimah Ghazali, Ibrahim Sipan, Mohammad Tahir Sabit Haji Mohammad and Muhammad Arif Ab Aziz
This paper aims to propose a new framework for the management of a waqf land registration system in Malaysia that is compliant with Islamic law and the Malaysian legal system. The…
Abstract
Purpose
This paper aims to propose a new framework for the management of a waqf land registration system in Malaysia that is compliant with Islamic law and the Malaysian legal system. The study sought to answer the following two research questions: what are the issues of the waqf land registration system and how to solve the issues of waqf land registration in Malaysia.
Design/methodology/approach
This study used a qualitative research method by using content analysis, legal investigation and doctrinal research. Data were collected through semi-structured interviews with lawyers, academicians and executive officers from the Department of Land and Mines, the State Islamic Religious Council and reviewed documents mainly from the Department of Waqf, Zakat and Hajj Malaysia.
Findings
A new framework for the management of waqf land registration in Malaysia was identified, which was developed based on current waqf issues such as problematic registration methods, lengthy and complicated procedures, interference in the jurisdiction of the civil court and idle waqf land. The framework overcame the flaw of the previous waqf land registration system in Malaysia.
Originality/value
The new framework will provide solutions to the current registration system within the National Land Code, 1965, which will secure property in the future.