A Conceptual Framework for Measuring and Disclosing Digital Assets in Islamic Financial Institutions: A Maqasid al-Shariah Approach and Alignment with IAS/IFRS Standards

Abstract

This study addresses a central accounting issue arising from the absence of an integrated model for the measurement and disclosure of digital assets in Islamic financial institutions, amid the fragmented treatment adopted by IAS/IFRS on the one hand and the absence of a specialized accounting standard for digital assets within the AAOIFI accounting framework on the other. The study is based on the premise that digital assets do not constitute a homogeneous accounting category and that their appropriate accounting treatment should be derived from their economic and legal nature and the purpose for which they are held. Using a descriptive-analytical approach supported by deductive reasoning, comparative analysis, and a Maqasid al-Shariah-based approach, the study examines the full accounting decision-making sequence, from the characteristics of the asset to classification, recognition, initial and subsequent measurement, presentation, and disclosure. It then compares the requirements of IAS/IFRS with those of the AAOIFI conceptual framework through an analytical matrix and incorporates a Maqasid-based dimension that links the preservation of wealth, justice, and transparency to the quality of disclosure. The study concludes with a five-dimensional conceptual model that links asset characteristics with accounting treatment quality, disclosure quality, standard-setting alignment, and Maqasid al-Shariah alignment, ultimately aiming to improve the quality of accounting information on digital assets. The proposed model is theoretical in nature and provides a basis for future empirical studies that may statistically test its relationships.