The objective of this paper is to examine Mudharabah and Musharakah from the accounting perspecti... more The objective of this paper is to examine Mudharabah and Musharakah from the accounting perspective by refereeing to AAOIFI, IFRS and MFRS. As well as reviewing all annual reports of Islamic banks in Malaysia in terms of the use of Mudharabah and Musharakah also from accounting perspective. In order to achieve this objective, interview has been conducted, related papers has been reviewed, and annual reports of all Islamic in Malaysia has been reviewed as well.In this research found that, the use of Mudharabah and Musharaka are not popular among the Islamic banks in Malaysia due to the high risk and thus, the percentage is much less compare to other investments. Because of protection tools, Mudarabah-based account is similar to conventional deposits which they classified as liabilities, though Shariah prohibits assurance of return of principal to the investor, however, obligation arises from regulatory in order to maintain stable markets. The present study suggests that extra efforts...
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