Islamic Accounting – its Principles & Comparison with Conventional Accounting


Islamic Accounting

The accountants who have been brought up with the knowledge that accounting is a technical, value-free and objective discipline. And, it is hard to accept when the same idea is connected with some religious principles, such as accounting in Islam. As a matter of fact, Islamic society operates under different principles and assumptions. While operating a business, they have the role of stewardship toward society. Similarly, guidelines of the Shariah also have defined duties towards employees, customers and competitors. That is why, objectives of Islamic accounting are different from those of conventional accounting. Here are the two main reasons:

  • Islamic banks deal within a Shariah framework. As a result, the nature of their transactions is different from that of conventional banks.
  • The users of the information generated by Islamic financial institutions have different needs from the users of the information published by conventional institutions.
Islamic accounting
accounting in Islam



Takaful Meaning, Principles and its Comparison with Conventional Insurance

Unforeseen events and emergencies can happen to anyone. It can lead to the loss of a loved one or some prized possessions. Humans have always been planning for their future. In order to protect ourselves from such situation and assure that we will get some financial support, we buy insurance. There are different types of insurance policies but the one known in Islam is Takaful or Shariah Insurance. Takaful meaning is providing guarantee in an Islamic way.


Takaful Definition:

It is a type of insurance system in Islam that is based on the laws of Sharia or Islamic principles. It is a system in which money is pooled and invested. It is a mutual risk transfer arrangement in which both parties will share the profit and loss equally. Here we have everything you need to know about it.

Principles of Takaful in Islam:

The main ideology of Takaful is to bear other person’s burden and there is no profit in this system. Some of the important principles of takaful are as follows:

  • For the common good the policyholders will corporate with each other.
  • The contribution of the policyholders is considered donations.
  • To help those who need assistance, all their policyholders will pay their share.
  • The liabilities are shared according to the pooling system of the community and losses are divided.
  • According to compensation and subscription, there is no uncertainty.


Islamic Investment Funds and Islamic Mutual Funds – Principals & Comparison

Islamic Investment Funds and Islamic Mutual Funds

When you want to invest in a proper manner, you have to do all you can in order to figure out the right Islamic investment funds that will suit your needs. While there are many challenges to overcome, the reality is rather simple. All you have to do is to help the Islamic community grow and one of the best ways you can use to achieve such a result is to focus on the Islamic investment funds and Islamic mutual funds. These allow you to invest in dedicated companies in the Islamic world that actually need those funds needed to survive.

islamic mutual funds

Is there a difference between the Islamic investment funds and the Islamic mutual funds?

The prime difference here is that the Islamic mutual funds allow multiple investors to work together in order to complete this task. This is rather impressive and it can bring in front some very nice results. However, if you want to invest on your own and not split any profits, the Islamic investment funds should be right up your alley. You do have the Shariah compliant investment funds and the Shariah compliant mutual funds that you can use here. The idea is to find the ones that suit your needs and results can indeed be great in the end, that’s for sure!

How are they different from conventional funds?

Conventional mutual funds and the investment funds tend to be focused on just about any type of investment. You don’t have any particular things that will stop you. The idea is that you can invest in anything you want and get the profits fast and easy. It sounds great, but if you want to help the local community, this will not be for you. This is why the Islamic investment funds and the Islamic mutual funds are very popular. They can help you get the right value and experience all the time, which in the end will work to your own advantage. Definitely worth your time and the outcome can be a very good one.

Plus, the great thing is that you can invest in the local community and help Islamic companies grow. This is very important, because there are many companies which are in dire need of help and you are the best one to provide that help to them at all times!

Why the demand of these funds is growing worldwide?

As you know, there are many Islamic communities all over the globe. With help from this type of investment funds, you get to eliminate the hassle and focus on what really matters. You have the unique opportunity to deliver the financial influx that Islamic companies need. All you need to do is to access the Shariah compliant investment funds and the Shariah compliant mutual funds. Do that, focus on results and the experience can be second to none for sure!

Should you consider investing in these funds?

So, don’t hesitate and start investing in the Islamic investment funds as fast as possible. Just consider that, focus on value and you will be able to help the local community grow very fast. This is very important and it provides you with a great set of benefits in this regard. If you want to learn more about Islamic banking and financial system, you may choose to study diploma in Islamic banking – an internationally recognized professional development program. This program comprises of well-structured Islamic finance and Islamic banking courses.


Why Become a Certified Islamic Banker to Increase Career Prospects?

How to Increase Career Prospects in Islamic Finance Profession?

Islamic Banking sector is distinctive and a popular area of finance that has become a force to be reckoned with in the international forum. According to the World Bank report for future Islamic Banking competitiveness predictions, there is a good chance that in the next twenty years, Islamic Banking will top the charts as the world’s leading system of finance and banking. The industry faces a growth rate of 15-20% per annum and we all know what that means, more resources and better opportunities for Certified Islamic Bankers. Many study programs, for example Certified Islamic Banker is designed for finance professionals, and it may be achieved online by studying Islamic banking courses and Islamic finance courses.

certified islamic banker

What is Islamic Finance?

Well, that’s easy. The world has evolved in several ways in the past hundred years and as the economic structures of different countries grow complex day by day, many interested in attaining their place in the decision-making arena of banking and finance are facing a unique market that has risen out of religious contexts. Islamic Finance is a system that covers the area of banking and finance based on the Muslim Shariah Law. This law discourages the payment of interest upon loans and therefore adding a whole new dimension to Banking.

Why is becoming a Certified Islamic Banker a promising idea?

According to ratings by Standard and Poor’s, the total number of assets in the possession of Shariah compliant institutions amount to $4 trillion. That is a number worth looking at for many professionals in the field who would like to take an interest in learning more about Islamic Finance. This system’s impressive performance in the past recessionary periods has also lead to Western Banks opening their own Islamic windows. Adding to this, Islamic banking is equity based, sustainable and an environmentally and socially responsible way of financing. The best part is, it’s not only restricted to Muslims but people from all walks of life.

What are the Qualifications needed?

A global qualification has been established from both a Shariah and technical perspective that provides the one’s seeking job security in the market to not face any unnecessary problems. One can study the Islamic finance courses online and it could be completed in three to four months. This leads to them being awarded with a Certified Islamic Finance Expert (CIFE) and Certified Islamic Banker (CIB) certifications. Islamic banking courses can be learned online by AIMS, who have made it easier for anyone wanting to go in the field.

“Takaful, pension funds, wealth and fund management – this is the future for Islamic Finance”, said Haris Ahmed, director of Academy for International Moderns Studies (AIMS). Many of the options given to us now include the option to focus our energy on choosing to become Certified Islamic Banker as the prospects in the future for the industry are rapidly growing and with a good conscience. Socially acceptable and fundamentally monitored by sacred law, Islamic Finance is creating better career prospects in the world we live in as we speak.

Islamic Economic System and Its Characteristics

The fundamentals of the Islamic economic system start with the differences it has with the capitalistic, communistic, socialistic, and other mixed types of economic engines that have existed over the past centuries. Islamic economics incorporates at least seven major characteristics that in some ways mirror their capitalistic and socialistic counterparts, but are still unique and vibrant to the economic system of Islam.

The system itself consists of organizations, institutions, and social values that exemplify the production, exchange, and consumption of goods and services. Those who follow Islam are encouraged to lead a life of material gain in a way that it shows respect for others, makes their place secure in the world, and provides a source of happiness for their families.

2017-09-19 Blog Islamic-economic-system

Certified Islamic Finance Expert (CIFE) – Online Islamic Banking Courses

Certified Islamic Finance Expert

Or CIFE from AIMS is a globally recognized and career oriented Islamic finance certificate. It is ideal for job seekers, and a best choice of professionals looking for promotion or a switch.

This Islamic finance qualification keeps a good balance between theoretical studies and practical experience. CIFE comprises five Islamic banking courses and Islamic finance courses, which are offered through an online and self paced learning system.

Top 3 Islamic Banking Courses

These days Islamic Banking is seeing a surge in its popularity as people recognize its true importance. There are lots of courses one can take to be a certified Islamic finance expert. However, with the number of courses available, one has to wonder which one is the best. So, let’s compare some of the courses which are most popular and try to establish which Islamic banking courses are most worth your time and money: 

1. Ease of Learning

​When you set out to gain a certification, you need to look at the time you will have to invest in it. This means the time you will spend studying, doing assignments and giving exams. While all Islamic Finance Courses are distance learning based, there are some which give you a better learning opportunity than the other ones. The CIMA certificate for Islamic Finance gives candidates course material which they have to study on their own. The institute of Islamic Banking and Insurance is a little better since along with course material, they also assign tutors who are there from time to time to answer your questions and record your milestones. While AIMS has interactive online lectures as well as 24/7 support available from seasoned professionals. Ethica has no experts on board but provides study guides to candidates.

2. Curriculum

The curriculum for the Islamic Finance Courses by CIMA is only in the form of study guides and supplementary material; this means that there are other textbooks which have to be referred to and same is the case with Ethica. The Islamic Finance Courses by the Islamic Institute of Bank and Insurance is not as extensive as it should be as the course barely touches all of the things which a certified Islamic finance professional should know about. While AIMS provides all of the course material as well as having a faculty available at all times for students’ questions.

3. Recognition

One of the most important things to consider when getting any sort of certification is to know about the recognition of the certificate. With Islamic Banking Courses or Islamic Finance Courses, you need to make sure that the degree you are getting is worth something. CIMA and IIBI are accredited worldwide. The Ethica is a fairly new institute and does not have enough recognition. And AIMS has been doling out certifications for more than a decade, is a registered learning provider and  hence their degree are a solid investment

4. Cost

The course by CIMA costs GBP 990-1000 depending on the course you teach and only provides study guides apart from attempts to appear for an exam. The course by Islamic Institute of Bank and Insurance costs GBP 525 but there are extra charges for extensions. The degree by AIMS costs a flat GBP 695 and covers everything from registration, to course material to academic support. And Ethica charges USD 1800 for the entire course.

5. Experts and Academics

Distance learning courses have the downside of students having to study themselves. While CIMA provides no expert help who you can send queries to, AIMS and Islamic Institute of Bank and Insurance have experts on board to ask your questions. Islamic Institute of Bank and Insurance has experts who are available at sometimes while with AIMS, the experts are always available. Ethica can only connect you with alumni and does not have actual teachers. 


​Hence, when looked at all across the spectrum, the best place to get study Islamic finance courses is AIMS; with their competitive pricing, 24/7 expert support, comprehensive course material and more. 

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