International Journal of Business and Economy e-ISSN: 2682-8359 | Vol. 1, No. 2, 13-19, 2019 http://myjms.mohe.gov.my/index.php/ijbec 13 Copyright © 2019 ACADEMIA INDUSTRY NETWORKS-All rights reserved ACADEMIA INDUSTRY NETWORKS ACCOUNTING RECOGNITION FROM ISLAMIC PERSPECTIVE Muhammad Syahir Abdul Wahab 1* , Ku Nor Izah Ku Ismail 2 , Chek Derashid 3 , Fathiyyah Abu Bakar 4 , Norfaiezah Sawandi 5 and Suhaimi Ishak 6 1 2 3 4 5 6 Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Malaysia *Corresponding author: syahir@uum.edu.my Accepted: 15 September 2019 | Published: 15 October 2019 Abstract: This research aims to identify the fundamental principles of accounting recognition from Islamic perspective. The research data was collected through several interview sessions with Islamic scholars who have vast experience and knowledge on Islamic business and fiqh mualamat. The research findings indicated that five fundamental principles derived from the interview sessions. The principles are avoidance of Riba, Gharar, Maysir, Haram and Ghalat. Theoretical and practical implications of the paper as well as suggestions for future research were also discussed. Keywords: islamic principles, accounting recognition, riba, gharar, maysir, haram, ghalat 1. Introduction Over the past decades, Islamic accounting has received a greater attention from various parties such as accounting standards-setting bodies, Islamic institutions, business corporations and researchers (Haniffa and Hudaib, 2007; Muhamad Sori, 2017; Toseef Azid, 2018; Wardani and Sari, 2018). Such attention indicates that Islamic accounting is significant topic that is widely discussed and researched in the current business and economic contexts (Alazzani, Wan-Hussin, and Jones, 2017; Susela, Hooper and Davey; 2006). It also reflects a strong aspiration to ensure current accounting practices are in accordance with Islamic teachings and traditions (Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) (2015); Muhamad Sori, 2017). Generally, accounting is a process of providing useful financial information for users to make rational decisions and judgments (Khoramin, 2012; Scott, 2015). Islamic accounting as a branch of accounting, focuses on objectives and functions in achieving moral and practical goals consistent with Sharia principles (Baydoun and Willett, 2000; Khoramin, 2012). Accounting either conventional or Islamic normally involves three main issues, namely, recognition, measurement and disclosure. This research focuses on recognition issue from Islamic perspective since it relates to timing issue which is an important element of accrual accounting (Bergmann, 2009). In addition, recognition is the turning point whether elements of financial statement such as asset, liability, revenue, expense and equity are recorded into an entity accounting system and disclosed on the financial statements and notes (Bergmann, 2009). Scholars also argue that there are conflicts of Islamic accounting and conventional accounting that required further research