Quest Journals Journal of Research in Business and Management Volume 9 ~ Issue 12 (2021) pp: 30-36 ISSN(Online):2347-3002 www.questjournals.org *Corresponding Author: Supandi Rahman, 2 Rifadli D. Kadir, 3 Hendra Dukalang 30 | Page Research Paper Recording and Reporting Of ZAKAT Funds: Implementation of PSAK 109 1 Supandi Rahman 2 Rifadli D. Kadir 3 Hendra Dukalang 1, 2,3 (Faculty of Islamic Economics and Business, IAIN Sultan Amai Gorontalo, Indonesia) ABSTRACT: This study aims to analyze the implementation of PSAK 109 in the financial statements of BAZNAS in Gorontalo Regency. The researchers collected documentation and interviewed 36 respondents involve 4 respondents from BAZNAS management, 11 respondents from Gorontalo Regency employees in charge as UPZ (Zakat Collection Unit) officers, and a survey of 21 respondents of individual zakat payer or Muzakki at BAZNAS in Gorontalo Regency. This study is a descriptive qualitative research using the application of Nvivo 11. The results show that aspects of recognition, measurement, distribution, and disclosure of zakat funds, as well as infaq/alms funds at BAZNAS Gorontalo Regency are not in accordance with PSAK 109 standards. Similar with the case of presentation and disbursement of non-halal funds as well as the separation of the recording of the sources of other BAZNAS receipts, financial statements are prepared only to provide information on cash inflows and cash outflows by calling them reports of cash receipts and disbursements. KEYWORDS: BAZNAS Financial Reporting; PSAK 109; Zakat; Infaq; Sadaqah Received 28 Nov, 2021; Revised 10 Dec, 2021; Accepted 12 Dec, 2021 © The author(s) 2021. Published with open access at www.questjournals.org I. INTRODUCTION The requirement for accountability and transparency in Zakat institution is a mandatory as regulated in Law Number 23 of 2011 related to Zakat Management. Chapter 29 Paragraph 1st stated "BAZNAS in Regency/City area are required to submit the reports of the management of zakat, infaq, sadaqah, and other religious social funds to the Provincial BAZNAS and local governments on a regular basis". This constitutional basis is a strong provision that in the management of zakat funds, financial reports as a form of accountability are something that is compulsory. Even though it has been effective since January 1, 2009, the application of PSAK 109 has not been massively applied to zakat institution. A research conducted by Istutik (2013) taking place in 5 zakat Institution in Malang City shows the results that the content of financial reports from 5 amil zakat institutions in Malang City does not reflect the implementation of PSAK 109. The enthusiasm of Zata manager for financial accountability has not been equipped with a proper understanding of PSAK109 . A similar conclusion also found in the research lead by Nikmatuniayah and Marliyati (2015) on 7 zakat institutions in the city of Semarang, which found that most LAZs had not presented financial reports according to PSAK 109. In addition, the conclusions of the research conducted by Ritonga (2017) who found that BAZNAS North Sumatra has not yet fully implemented the use of PSAK No.109. Research conducted by Sartika, et al. (2017) found the same thing that the Baznas in the city of Manado has not applied yet the Statement of Financial Accounting Standards No. 109 Regarding Accounting for Zakat, Infaq/sadaqa. Preparation of financial reports for Baznas Mando still using the form of receiving and distribution reports. The latest study on the application of PSAK 109 to zakat institution is a study conducted by Ohoirenan and Fitria (2020) in Baznas at Tual City, they found that the financial reporting of zakat, infaq/sadaqa at BAZNAS of Tual City had not fully implemented PSAK 109. Refer to several empirical studies above, researchers intent to discover the activities of recording of zakat funds in Baznas in the regency of Gorontalo, whether it corresponds with PSAK 109 on accounting of zakat, and infaq/sadaqa or not. To find out, the researcher collected documentation and interviewed 36 respondents; consisting of 4 respondents from BAZNAS, 11 respondents from Gorontalo Regency employees