MASB Technical Release i -1 Accounting for Zakat on Business
ASSESSMENT OF ZAKAT
Determination of Zakat Base
Measurement of Assets and Liabilities for Zakat
A Explanations of Terms Used
BASIS FOR CONCLUSIONS
MASB Technical Release i-1 Accounting for Zakat on Business (TR i-1) is set out in paragraphs 1-19 and Appendix A. All paragraphs have equal authority. Paragraphs in bold type state the main principles. Terms defined in Appendix A are in italics the first time they appear in TR i-1. TR i-1 should be read in the context of its objective and the Basis for Conclusions, the Foreword to MASB Standards and Other Technical Pronouncements, and the Proposed Framework for the Preparation and Presentation of Financial Statements. MASB 1 Presentation of Financial Statements and FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.
It should be noted that TR i-1 deals only with financial reporting issues related to zakat on business. An entity shall refer to the relevant State Islamic Religious Council or its relevant zakat authorities for any issues relating to zakat on business, e.g. zakat chargeability of an entity, calculation of zakat, determination of zakat base, and zakat eligibility of assets and liabilities. Decisions made by an entity should be subject to conclusion reached with the relevant zakat authorities.
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