The objective of the paper is to discuss the role of financial ratios as a tool of prediction of delisted companies. The following Financial Rasio are used: Earning per share, Equity per sahre, Closing price, Price eaming ratio, Price to book value, Debt to equity ratio, Current ratio, Net profit Margin and Retum on Asset. Sampel consists of 36 financial statements of delisted companies 1995 to 2002 and 45 fincial statements of isted companies at Jakarta Stock Exchange in 2002. The Statistical model used discrimant analysis with significantrate of a 5%. Debt to equity ratio and Net profitmargin are themosts listing and delisting companies. The validity of this model to predict the listed and delisted companies is 79,2%. ntratios that distinguish between.

"Even Egypt, Malaysia, Pakistan and other countries have established and experienced in Islamic bank earlier than of Indonesia, history and development of Islamic bank in Indonesia is unique and spectacular. Even Indonesia is the most populous Muslim country the first Islamic bank was established in 1992 under strong support of Presiden Soeharto. Then other two banks were established (Bank Syariah Mandiri in 1999 and Bank Syariah Mega Indonesia 2004. Bank Indonesia as the indonesia's central bank has opended the door to conventional bank to open their syariah unit Islamic banks among others: BRI, BNI, BII, Danamon, IFI, Permata, Bukopin, BTN, Niaga, bank DKI dan bank Jabar. Market share of Islamic bank in Indonesia in 2006 was 1,52 %. The paper stuies how An Islamic bank provide service and what the perception of customers on 7 dimensions of service quality: "voluntere, employee competence, security, retiability, emphaly, responsiveness and tangible. Using survey method and field study the study shows that satisfactory was in bank information, service employees, syariah implementation, emphaty and responsiveness. Customers put high expectation on implimentation of syariah, reliability, product variations e.g ATM, deposits, educational deposit, Islamic card, employee's knowledge on bank products, service and uniform.

This chapter tries to find that how to reduce transaction cost in corporate governance by subjecting it institutionally to ethics and values of interactive and consensual decision making with transparency gained from participation between managers and shareholders/stakeholders and the community at large. This is an epistemological problem in Islamic approach to corporate governance. This chapter brings these out in technical language and methodology. An analytical epistemological and comparative study between mainstream and Islamic conceptions in corporate governance is used to develop the idea mentioned above. The analytical model used is of an ethico-economic general equilibrium type with learning variables. This chapter conveys an original idea that has not been taken up elsewhere. It reflects the systems approach to the study of behavior in corporate setting within the epistemology of systemic unity of knowledge.

The advance in almost all aspects of technologies has changed almost all of our daily life and put our world in a different situation compared to that of situation 20 years ago. Economy, management, accounting, and decision science have also affected by such changes. The effect is enormous. If we do not have any effort to respond this change it will affect the future of our discipline and community. The paper discusses this phe-nomena and how those changes affect accounting, and the response of accounting profession, education program on those changes.Keywords: cyberspace, accounting, information, decision making

The Conceptual framework for presentation of financial statement of Islamic bank and Accounting standards for Islamic banking have been formulated by Indonesian Asso-ciation of Accountants (cooperated with Bank Indonesia, Indonesia central bank.. The standards are called PSAK (Pemyataan Standard Akuntansi Keuangan). The frame-work and the standards, mainly, has refered to the MOIFI standard for Islamic bank-ing. This paper discusses the the content of the those two promulgations (MOIFI and PSAK) and also criticizes the lack of lawhid" concept in those two. The author argues that those two standards still based on the conventional accounting philosophy in which the capitalist interest is mainly the focus of the information disclosure. Keywords: Islamic accounting, accounting standard, Islamic banking, Indonesian accounting standard (PSAK)

Islamic Accounting is a new phenomenon. The emerging educated people from Islamic society produces a new machhe to revisit Islamic heredty in social, political, economics and business knowledge. The domination of capitalist accounting has influenced our social, political, economics as well as our accounting system. The discussion of Islamic Accounting has been started either by Non-Muslim scholar or Muslim Scholar At least there are three Ihews evlaining the form of Islamic Accounting: Islamic accounting based on Alguran, based on Islamic history applied by ''daulah Islamiyatf (Muslim govemment) and based on reconstruction from capitalist accounting system. Those three views will be discussed in this paper. Hai orang orang yang beriman masuklah kamu ke dalam Islam keseluruhan dan jangan kamu turut langkah Iangkah syaitan. Sesungguhnya syetan itu musuh nyata bagimu (Albaqarah 208) We are like a big fish that has been pulled from the water and is flopping wildly to find its way back in (Lester Thurow, 1996 The Future ofCapitalism)

Zakat is a part of a personal muslim responsibility, it is the third of uarkanul Islam". The development of business entity affects the map, types, and characteristics of business, then affects also the map of zakat dues. During the period of the Prophet Muhammad, the type of business was different from the type of business today. There is no a specific Quranic ayah or hadist determines the company zakat rate. Mostly the rate of zakat based on economic activities rather than on an entity. In that case we have a problem how to calculate a company zakat. This study will discuss how some companies which daim as a syariah companies calculate their entity zakat. This issue becomes more important after the government implement the Zakat Act (UU) No 38/ 1998. Keywords: Islamic Fiqih, Zakat, Islamic accounting, Islamic organaization.

The prologue is our starting premise. The Qur’an (2: 275) declares, “As for those who devour interest, they behave as the one whom Satan has confounded with his touch. Seized in this state they say: ‘Trade is but a kind of interest’, even though Allah has made trade lawful, and interest unlawful”. Keynes (1930, p. 368) picked up such wisdom of the inverse relationship between trade and interest and wrote, “The strenuous purposeful moneymakers may carry all of us along with them into the lap of economic abundance. But it will be those peoples, who can keep alive, and cultivate into a fuller perfection, the art of life itself and do not sell themselves for the means of life, who will be able to enjoy the abundance when it comes.” Such are the messages of moral highness and wisdom picked up in this paper. The fundamental point here is to establish the fact that the only way of phasing out interest rate from Islamic activities is to understand and implement the formalism of the inverse relationship that permanently exists between trade in the good things of life and the rate of interest as the impediment to the free flow of resources into such tradable activities. The central bank and commercial banks and fi nancial intermediaries as practitioners must understand this organic relational concept of intellection in relation to money and the real economy. The monetary system and the real economy with the financial instruments between would thus be shown to formalize the intellection paradigm – which indeed is a truly scientific revolution. The result is replacement of the fractional reserve requirement monetary system by the 100 per cent reserve requirement monetary system backed by the gold standard. Likewise, the organic relationships of such a monetary arrangement including its monetary policy and transmission mechanism would structurally change the nature of markets and its institutional relations and individual preferences. The result at the end will be a phased down interest rate regime into a trade-related one by the rise of the tradable relationships that are generated. The foundational methodology that enters this kind of organically relational worldview with the episteme of unity of knowledge (the divine law in Islam) provides the functional ontology of the socially and morally constructed money, production and real economy circular causation. It models the legitimacy of trade as the resource mobilization instrument, while rejecting interest as the permanent impediment of resource mobilization. Keywords: Monetary economics, Islamic economics and finance, Islamic political economy and world-system, social economics, ethics and economics.

PurposeThe purpose of this paper is to explore whether any discrepancy exists between the corporate social activities disclosed in the annual reports of Islamic banks and the corporate social responsibility (CSR) disclosure index which has been developed based on the Islamic business ethics framework.Design/methodology/approachThis paper reports on a survey of annual reports of seven Islamic banks using the method of content analysis to measure the volume of CSR disclosure.FindingsThe results show the overall mean CSR disclosure index of one Islamic bank out of seven to be above average and the issues of CSR are not of major concern for most Islamic banks.Research limitations/implicationsCSR disclosure in the Islamic banks is experimental and could be explored in greater depth in future studies.Practical implicationsThe findings have important implications for academics and researchers, as they pave the ways for further investigation. The results also have important implication for Accounting and Auditing Organisation for Islamic Financial Institutions in developing a CSR reporting standard if Islamic banks are to enhance their image and reputation globally, as well as to remain competitive.Originality/valueThe paper contributes to the growing debate on CSR in ethical perspective and key underlying issues associated with the emergence of new disclosure practices for Islamic financial institutions. Through this paper, new visibilities explored, and competing dilemmas opened up.

Purpose – The purpose of this paper is to address the following question: how do we derive a systemic understanding of community, business and microenterprise linkages in the light of the cardinal episteme of Islamic belief, Tawhid?

Purpose – The purpose of this paper is to formalize a general equilibrium circular causation relationship model in the Islamic economic framework between wealth tax (Zakat), Islamic bank and the real economy.Design/methodology/approach – Mathematical modeling along with explanation.Findings – The integrative interrelationships can be formalized only under the assumption of unity of knowledge as derived from the foundation of oneness of the divine law (shari’ah) according to the Qur’an, Prophetic traditions (Sunnah) and social discourse.Research limitations/implications – A future work would be to empirically estimate the general equilibrium model.Practical implications – A guidance to Islamic banks on the constructive utilization of Zakat fund for productive transformation in the real economy.Originality/value – A general equilibrium model guided by the episteme of oneness of the divine law at work, hence unity of knowledge at work in real problems of ethics and economics according to the Islamic worldview.

Purpose - The purpose of this paper is to formalize a general equilibrium circular causation relationship model in the Islamic economic framework between wealth tax (Zakat), Islamic bank and the real economy.Design/methodology/approach - Mathematical modeling along with explanation.Findings - The integrative interrelationships can be formalized only under the assumption of unity of knowledge as derived from the foundation of oneness of the divine law (shari'ah) according to the Qur'an, Prophetic traditions (Sunnah) and social discourse.Research limitations/implications - A future work would be to empirically estimate the general equilibrium model.Practical implications - A guidance to Islamic banks on the constructive utilization of Zakat fund for productive transformation in the real economy.Originality/value - A general equilibrium model guided by the episteme of oneness of the divine law at work, hence unity of knowledge at work in real problems of ethics and economics according to the Islamic worldview.

PurposeThe purpose of this paper is to explain how to reduce transaction cost in corporate governance by subjecting it institutionally to ethics and values of interactive and consensual decision making with transparency gained from participation between managers and shareholders/stakeholders and the community at large. This is an epistemological problem in the Islamic approach to corporate governance. The paper brings these out in technical language and methodology.Design/methodology/approachAn analytical epistemological and comparative study between mainstream and Islamic conceptions in corporate governance is used to develop the idea mentioned above. The analytical model used is of an ethico‐economic general equilibrium type with learning variables.FindingsThe Islamic theory of corporate governance under the rubric of its epistemology of unity of knowledge treated within a systems approach is found to reduce transaction cost and produce better management decisions.Research limitations/implicationsThe paper is mostly theoretical in nature but carries quantitative facts on the limitations of existing corporate governance practice at the accountancy level in the global scene.Practical implicationsThe adoption of institutional modes to generate interactive, integrative and evolutionary frameworks of corporate decision making is derived from the content of the paper. Recent global incidents with WorldCom and Enron are cited to show how corporate governance has failed as an effective means of reducing the immense transaction costs that were engendered by the failure of these mega corporations.Originality/valueThe paper conveys an original idea that has not been taken up elsewhere. It reflects the systems approach to the study of behavior in a corporate setting within the epistemology of systemic unity of knowledge. Besides, in the Islamic comparison that the paper undertakes in contradistinction to the mainstream approach, the methodology of systemic unity of knowledge conveys an altogether new way of studying corporate governance in the related new institutional framework.

This study discusses the differences between Book Value and Market Value of Indonesian Com­pany listed in .1SE focuses on banking industry which sample total 11 banks. The data was collected from financial reports of those banks published in the Indonesian Capital Market Directory of 1998­2002. The objective of the study was to test the differences between book value and market value of banks' shares using Tobin Q-Ratio model. Then, micro aspects are represented by EPS, LDR and ETA and macro aspects are represented by inflation and interest rate were examined how much those variables influence book value and market value. The study found that there was a difference between book value and market value. Average Q-Ratio Indonesian banking industry during 1999-2002 respectively was 1.72, 1.27, 0.92, 1.10 and 1.25. The highest and the lowest 0 ratio during 4 years in average was achieved by FT Bank CIC International Tbk 4,14 and PT Bank Pan Indonesia Tbk 0.27 respectively. Then, the correlation between independent and dependent variables using SPSS version 10 has been tested and found that micro aspect only influences 45.8% to book value and 61.7% to market value. EPS has more significant role in influencing book value and market value. Macro aspect has a minimum role in influencing. The limitation of this study is due to limitation of sample, period and ratio tested. Future research could be done in having more sample periods and ratios. Keywords: Measurement, Valuation, Book Value, Market Value, Financial Ratio, micro and macro aspects.

The epistemological foundation of unity of knowledge is used to formulate a system-model of participatory socioeconomic development. The micro-properties of such a participatory development approach are deeply ethical in nature. In order to bring out the endogenous role of ethics derived from the moral law in reference to the epistemic foundation, and thereby explain their impact on the socioeconomic development experience, the methods of topological space and topological mappings are found to be appropriate for formalizing the complex nature of participatory dynamics. They emerge in the midst of institutional and organic interaction, integration, and evolution. The application of topological methods to participatory socioeconomic development thus opens up a field that is rarely used by mathematical economists. In this sense this article is an original contribution to the area of ethical development theory and its topological explanation and application.

PurposeTo explore the outer reaches of buying, selling, property rights in an Islamic context.Design/methodology/approachPhilosophical, applying legal analysis, critique to the work of Richard Epstein.FindingsThat there are no exceptions to the general rule that, under full free enterprise, anything must be allowed to be purchased, sold or given away.Research limitations/implicationsTo attain a system of laissez‐faire capitalism, the law should be changed so as to recognize voluntary slave contracts.Practical implicationsThere would be very few or none in an advanced wealthy society. However, there might be some in the underdeveloped world.Originality/valueIt advances one's knowledge of the marketplace, law and contracts.

The paper studies how far the understanding of students on ten accounting terrminologies e.i.: (1) cost, (2) expense, (3) revenue, (4) income (5) inventory, (6) gain, (7) loss, (8) depreciation, (9) retained earning, and 10) going concern. The study is conducted in a private university on each department: accounting, management and economics on the academic year 2003/2004. The respondents were in the sixth or seventh semester, intake, 2001, 2000, 1999 and before. Samples of 150 are selected by using convenience probability sampling. F test and ANOVA, Turkey test and Bonferroni were used in every level and propose. The tudy shows that the understanding of the student on those terminologies are vary. The percentage of student's understand correctly the terminologies are (1) cost, 35%, (2) expense, 13% (3) revenue, 37% (4) i come, 30% (5) inventory, 65% (6) gain, 36% (7) loss, 29% (8) depreciation, 25% (9) retained earning, 49% and (10) going concern, 19%.keywords: accounting education, student understanding, accounting terminology.

In a capitalist system, an annual report that includes financial statement is assumed to provide sound information concerning a given company. The annual report offers a background to a company, its financial position, operational results, and its performance. According to radical economics, a financial statement serves the interests of capitalists (Belkaoui, 1984). Annual reports are also value free and are not concerned with issues such as justice or ethics. Indeed, current trends in accounting have raised some questions concerning the paradigm of traditional accounting theory and especially its bias its bias concerning capitalist interests. The emergence of Employee Reporting, Value Added Accounting, Socio‐Economic Accounting, and Environmental Accounting, to name just a few, is evidences of the shortcomings of the capitalistic accounting system in establishing both just and fair principles among company stakeholders. This has therefore led to a demand for a new approach towards accounting disclosure including among others things: a clear account of how a company treats its employees, society, the environment, and the beliefs of employee’s. Even tough the standard formulated by AAOIFI (1998) based on capitalistic accounting, are still in a theoretical stage of development they can be used as a starting point that may help lead to an improved set of disclosure criteria that can be used by an Islamic bank or organization. This paper will discuss the empirical evidence derived from one such Islamic organization. Bank Muamalat Indonesia, has compiled information using capitalistic accounting standards so as to clarify its financial position and results of operations to stakeholders. It is hypothesized though, that the current disclosure system employed gives no indication of justness or fairness and so is incompatible with Islamic value. The paper argues Muslim researcher sold aim to move from utilizing capitalistic practice primarily concerned with the disclosure of financial indicators and towards a system that also consider justice, fairness, and ethical practices.

Karl Marx adalah salah satu figur yang sangat banyak menyoroti bahaya kapitalisme, dia juga tidak luput menyoroti Akuntansi Kapitalisme. Yang terakhir ini dianggapnya sebagai bagian atau pilar dari sistem ekonomi kapitalis yang mengutamakan kepentingan kapitalis yaitu pemilik modal atau mereka yang kaya. Tulisan ini mencoba menganalisis peran akuntansi ini dalam suatu sistem ekonomi dan khususnya peran akuntansi islam dalam mendorong implementasi ekonomi syariah. Tulisan ini akan memulai pembahasan terhadap fenomena resistensi terhadap sistem ekonomi kapitalis, kemudian peluang dan ciri sistem ekonomi islam dan pada bagian akhir akan membahas fungsi dan peran akuntansi islam dalam mendorong maupun menjamin berjalannya sistem ekonomi syariah itu sendiri.