Naturally, investment activities in capital market follow the development of Sharia banking and Sharia insurance industry, which are constantly growing. However, the excess liquidity from the two sectors, raises the need for other investment products based on Sharia principles. This encourages the development of sharia investment products in the capital market.
So far, several investment instruments in Sharia capital market sector that have been growing are the Islamic bonds (Sukuk), sharia stocks, sharia mutual funds, and sharia asset-backed securities. Subsequently, in relation to the development of these Sharia-based capital market activities, there are several indentified issues which come up as a discussion material. Those issues include: the regulatory framework, compliance and adherence to sharia principles, product variety, transactional cost factor, the development of the capability of market players, investors education, and knowledge sharing among jurisdictions.
Bapepam-LK has attempted to overcome these issues by issuing several regulations which are related to the sharia principles, i.e Rule Number IX.A.13 regarding Sharia Securities Issuance and IX.A.14 regarding Contract which is Used in the Issuance of Sharia Securities and II.K.1 regarding Criteria and Issuance of Sharia Securities List. Subsequently, to further encourage the development of sharia securities products, assessment and review on the aspects of human resource empowerment and information disclosure have been conducted.
One of the studies relating to the disclosure of information is the study on accounting standards in the Sharia Capital Market. This study focuses on the review of the information regarding Sukuk in the financial statements submitted by the Sukuk Issuer. This study is important considering as of today, there is no provision for Sukuk accounting standards issued by international institutions, namely Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), as well as The Indonesian Institute of Accountant. Moreover, there are differences in the presentation and disclosure of Sukuk in the Issuer's financial statements.
This study is expected to provide input on how to present Sukuk and clarify things that need to be disclosed in the financial statements of the Sukuk Issuer. For the uniformity of Sukuk information in the financial statements, it is recommended to create a regulation regarding the presentation and disclosure guidelines for Sukuk in the financial statements of the Issuer. This regulation is expected to encourage the development of sukuk products in Indonesia and to make sukuk more competitive to the conventional products. This will result in more vibrant market condition, and so investors have plenty of investment option in Indonesia Capital Market.
Source: http://www.bapepam.go.id/syariah/eng/publication/research/Study-Sharia-Accounting-Standards.html
