Abstract
This study aimed to identify the accounting treatments of revenue according to the international accounting standard (IAS) No. 18 and to compare it with the accounting treatments of deferred sale according to the Islamic accounting standard No. 20. The descriptive approach has been applied in this study by reviewing literature, books, and international and Islamic standards that dealt with the study subject. Accordingly, a non-hypothesis has been established; there is no difference in the accounting treatment of revenue in accordance with IAS. No.18 and the revenue resulting from the deferred sale operation in accordance with Islamic Accounting Standard No.20. The hypothesis has been tested through extracting the most important rules of registration by creating a comparative summarizing table. The study reached several conclusions among which: there is no significant difference in the accounting treatment of both standards, both standards apply the accrual principle to confirm revenues and profits in revenue operations, revenue is measured by the fair value of both standards, and both standards have emphasized the importance of disclosure in the followed accounting methods related to revenue. The researcher recommended several recommendations, the most important was the importance of integrating more than one standard of the Islamic standards that are related to achieving revenue in order to be in line with international standards, since there is a great similarity in terms of agreement on the application of the accrual principle and measuring revenues by the fair value and accounting treatment, on the other hand, difference only occurred in accounts naming
ATEF AQEEL AL–BAWAB. (2018) Accounting Treatment of International Accounting Standard No. 18 Revenue Compared to the Islamic Accounting Standard No. 20 Deferred Sale A Comparative Study, International Review of Management and Business Research, Volume 7, Issue 1.
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