Towards an analysis of the robustness of the zakatable base in the face of accounting representations

Abstract

This study explores a relatively unstructured issue in the literature on Zakat accounting: the ability of the Zakat base to remain stable when economic conditions remain constant, despite variations in its presentation in financial accounting. Previous research has largely demonstrated the discrepancies in recognition, classification, measurement, and presentation between general accounting rules and those specific to Zakat. It has also shown that the treatment of receivables, inventories, payables, investments, or financial instruments can generate significant discrepancies in the calculated amount. More recent work proposes models aimed at improving the determination of the Zakat base or aligning accounting treatments with Sharia principles. However, these contributions do not yet allow for a systematic determination of whether current adjustment mechanisms effectively neutralize the effects resulting from different accounting representations of the same economic reality. This article aims to define the discrepancies between traditional accounting and zakat, and to explain their origins: recognition, classification, measurement, the timing of their recording, and to whom they are economically attributed. Methodologically, this study adopts a Design Science Research (DSR) approach to develop and evaluate a model designed to address the question of whether the zakatable base remains stable despite variations in accounting treatments.

Classification JEL: M41

Paper type: Proposal for a Research Program