Exploring IFRS in Islamic finance: a bibliometric and coding analysis of emerging topics and perspectives

What is it about?

Islamic finance, which adheres to ethical principles from the Quran and avoids interest and speculative investments, is becoming more popular worldwide. This paper examines how well International Financial Reporting Standards (IFRS) are used globally to attract investors and align with Islamic finance practices. Our study analyzed over 200 journal articles to understand how IFRS can be implemented in Islamic finance contexts. We discovered key areas where IFRS standards may need adjustments to comply with Islamic principles, such as reporting financial transactions that do not involve interest. The paper identifies three major topics for future research: general principles of IFRS in Islamic finance, compatibility of IFRS with Islamic charitable giving (Zakat), and the alignment of IFRS with specific Islamic financial contracts like Murabaha and Takaful insurance. Our findings can help refine how financial transactions are reported in Islamic finance, contributing to its growth and integration into the global financial system.

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