FINANCIAL REPORTING FOR STEWARDSHIP: EVIDENCE FROM CONVENTIONAL VERSUS ISLAMIC PERSPECTIVES

Abstract

The aim of this study is to investigate the evidence of Stewardship for financial reporting from the conventional and Islamic accounting practices. This study hits the two basic issues. Firstly, whether the Stewardship should be considered as a separate objective of financial reporting and secondly, whether Stewardship should be considered as a primary objective of financial reporting or not. After detailed discussion from the conventional and Islamic perspective of financial reporting, this study concludes that Stewardship should be considered as separate objective because Stewardship has major implication for the qualitative characteristics of financial reporting. Further, this study demonstrates that Stewardship should be considered as primary objective of financial reporting rather than decision usefulness. The study offers guidelines for financial report preparation that include information about financial reports from an Islamic perspective, how to incorporate an Islamic perspective into financial reporting, and additional literature to help future researchers delve deeper into this topic.