Islamic Accounting & Financial Reporting Assignment

Islamic Accounting & Financial reportage - Assignment ExampleThe risks towards ones life, wealth and health are growing as poem of incidents and thefts are growing in each parts of the world but these threats are more gruelling in the case of Islamic countries where terrorism and unlawfulness is rising all the time (Lapidus, 1996). The whole idea freighter Islamic Takaful insurance is to legalize and Islamize the nonion of insurance (Maysami & Williams, 2006). The conceptual framework of Takaful insurance is not a new one because Prophet Mohammad had implemented it fourteen centuries ago. However, the featured concept is based on mutual cooperation of all the policyholders (Wahab, Lewis, & Hassan, 2007). The funds are gathered and then deserving policyholder is paid by all some others so that he or she can get through a rough time. The responsibility of each policyholder to pay the suffering partner is found to be stemming from ethics and pityingity. No legal measures are inte rpreted in order to bind policyholders to help each other. The Islamic teachings promote charity and genuine cephalalgia for others and the emphasis on the need to assist those Muslims who are going through rough times improver manifold in Islamic teachings and Quran. The policyholders usually do not help those partners who did not help them in the difficult period of life and it is also considered totally acceptable by Muslim Scholars as human relations are based on rule of reciprocity. The Takaful insurance challenges the presence of interest which according to teachings of Islam promotes ontogeny and social inequality in the society. Moreover, it is imperative to note that Takaful insurance is not a very healthy tool of moneymaking right now and therefore, the companies engaged in this business have to get themselves ensured with other conventional service providers in order to remain afloat in the industry. Additionally, most of the Muslim capitalists do not consider the not ion of Takaful insurance viable in nature because according to them, it ignores