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Islamic financial institutions (IFIs) have been developing not only in Islamic countries or countries with a predominantly Muslim population, but also emerged in countries where Muslim is minority. Maurer (2002) refers to this development as a worldwide phenomenon centred in Malaysia, Indonesia, the United States, Great Britain, and the Arabian Peninsula.
The paper explores available texts and literature mainly from international journals and textbooks. Employing the Ibn Khaldun perspective, this study analyses two determinants i.e. institutional setting that may be suitable in the context of the United Kingdom, and accounting needs in the case of Indonesia.
2.1.1 Determinants of International Accounting Standards Adoption in the UK
2.1.2 Determinants of International Accounting Standards Adoption in Indonesia
2.1.3 Islamic values
2.4 Development of Islamic Finance
2.3 History of Accounting Standards Development in Indonesia
2.5 Theoretical Perspective
A qualitative methodology using an exploratory approach is employed in this study. Social exploratory research "seeks to find out how people get along in the setting under question, what meanings they give to their actions, and what issues concern them. The goal is to learn 'what is going on here?' and to investigate social phenomena without explicit expectations" (Schutt, 2001). This research adopts qualitative-narrative method for exploring the available texts and literatures.
Most of accounting historians agreed that accounting as a practice grew due to the existence partnership in business transactions Littleton, 1933 in Bedford and Ziegler (1975). On the other hand, partnerships exist due to normal rapid growth of the business and cannot be claimed as the beginning of accounting. In history, the people of Babylon, ancient Egypt, Greek and Roman, had initiated, practiced and developed a kind of financial transaction recording system (Edwards, 1960).
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