Calculation, distribution and disclosure of zakat in Malaysian Islamic Banks

الملخص EN

Zakat information in annual reports is one of the main attributes that differs Islamic banks from conventional banks.

thus, this study focuses on the zakat information that can be found in Islamic banks financial statements in comparison to the available standards.

reporting standards and guidelines from Bnm, Aaoifi, Jawhar and MASB were used by these banks as guidelines in calculating, distributing and reporting zakat.

due to the absence of standardized accounting standard, certain zakat information was not found in the financial statements.

compared to previous literatures, Islamic banks are moving towards increasing their zakat information disclosure.

based on the analysis of selected Islamic banks’ annual reports, this study concludes by suggesting establishment of standardized zakat distribution framework for Islamic banks.