Accounting Resources Allocation (Mudarabah-Bailment of Capital-, Investment and Possession Acquired by Renting) in Islamic Banking

The difference between methods of resource allocation in usury and usury-free banking necessitates developing a different system of accounting, while existing accountancy of our country's banks is not so much different from that of conventional banks. The present paper seeks to review the problems of accounting resource allocation in some contracts and compacts (Mudarabah, investment and possession acquired by renting) in Islamic banking. A library survey, an in-depth interview, and polling the pundits of accountancy are used to gather the data which are analyzed by a descriptive-analytical method. The surveys conducted in this research indicate that common accounting model and financial reporting in Iran's banking do not enjoy necessary capabilities to meet the user's need and legal requirements governing usury-free banking activities, account keeping, and reporting benefit or loss based on real effects of function resulted from partnership contracts. This method separates the Mudarabah contract and direct investment from their nature.