Islamic Accounting Journal

Bridging Faith and Technology: Digital Transformation of MSME Financial Transparency Through Islamic Values

Isna Ayulestari, Hana Dhayan — Mon, 19 Jan 2026 00:00:00 +0000

Objective & object: This study examined the role of digital technology in enhancing financial transparency of Micro, Small, and Medium Enterprises based on Islamic values in Indonesia during 2024.

Methods: An exploratory qualitative approach was employed through semi-structured interviews with six MSME owners from various sectors. Data were collected regarding their experiences with digital financial management and Islamic principles implementation, then analyzed thematically to identify patterns and challenges.

Results & Conclusions: All respondents had adopted digital technologies ranging from basic spreadsheets to integrated applications, with sophistication levels correlating to business scale. Strong awareness of Islamic principles including honesty, trustworthiness, justice, and prohibition of usury was demonstrated, with three respondents reporting instances where they sacrificed profits to maintain compliance. Main challenges identified included limited digital literacy, high implementation costs, data security concerns, and scarcity of compliant technological solutions. Digital technology significantly enhanced financial transparency through automated recording, real-time reporting, and improved accountability.

Limitations: The study was limited to six MSMEs in Indonesia, potentially affecting generalizability across different contexts and larger sample sizes.

Implications: Findings suggest practical need for government support in developing affordable Islamic financial platforms and providing faith-based digital training. Future research should explore larger samples and specific technological solutions for Islamic compliance.

Keywords: Digital transformation, financial transparency, Islamic values, MSME, Sharia compliance

Harmony of Spirituality and Professionalism: Behavioral Accounting in the Perspective of Tri Hita Karana

Ida Ayu Nirma Prameswari, Ni Made Sintya Surya Dewi, Desak Made Mya Yudia Sari — Thu, 29 Jan 2026 00:00:00 +0000

Objective & object:

This research aims to understand how the cultural philosophy of Tri Hita Karana (THK) is implemented in shaping professional behavior and work ethics at BCR Consulting, a tax consulting firm in Denpasar, Bali. The object of this study focuses on the application of the values of Parahyangan, Pawongan, and Palemahan within the organization's activities during the 2025 research period.

Methods:

This study employed a qualitative approach to gain an in-depth understanding of the implementation of Tri Hita Karana values and their relationship with professionalism in the context of behavioral accounting at BCR Consulting. Data were collected through in-depth interviews, document studies, and literature reviews, involving eight informants, comprising one leader and seven employees. Data analysis was conducted through the established qualitative process of data reduction, data display, and conclusion drawing.

Results & Conclusions:

The research demonstrates that Tri Hita Karana values are genuinely and thoroughly integrated into the company’s work culture. Parahyangan fosters spiritual awareness and moral integrity; Pawongan strengthens social relationships and teamwork; and Palemahan cultivates a harmonious and productive work environment. Collectively, these three elements establish a critical balance between technical professionalism and ethical responsibility.

Limitations:

This research is confined to a single location and a limited number of informants, which means the findings cannot be broadly generalized.

Implications:

The results provide a valuable direction for developing an ethical and professional behavior system rooted in local cultural values. Furthermore, these findings serve as a foundation for future research concerning the interplay between spirituality and behavioral accounting

Analysis of The Impact of IFRS Adoption on Value Relevance: A Structured Literature Review Approach

Achmad Farid Dedyansyah, Evi Dwi Kartikasari, Irma Indira — Sat, 31 Jan 2026 00:00:00 +0000

Objective & object:

This study aims to analyze and synthesize previous research findings regarding the adoption of the International Financial Reporting Standards (IFRS) on value relevance in improving the quality of accounting information of companies across countries. The object of this study consists of international scholarly articles discussing the relationship between IFRS adoption and value relevance, published between 2011 and 2022.

Methods:

In this research, a SLR methodology is taken into consideration by applying a systematic process for the identification, selection, and analysis of rest relevant studies. The selection criteria are related to the journal field, the year of the publication, the country sample, and the methodological approach. The empirical analysis is segregation by region Europe, Asia, Africa, America, and Oceania and regression based methodologies dominate

Results & Conclusions:

The results suggest that the positive effect of IFRS adoption on value relevance is pronounced in those countries in Europe and America which have adopted full IFRS. To the contrary, in most developing countries in Asia and Africa, the effects are weak due to the poor reporting infrastructure and the underdeveloped system of financial governance.

Limitations:

The limitation of this study is that the years of literature are limited and only English article are included, sensing that may be missing other relevant original studies in other languages.

Implications:

The findings of this study are directly useful to the regulators and accounting standard setters as a scientific support to validate and reinforce the adoption of IFRS as an international financial reporting standard.

Analysis Of Potential Income Manipulation Using Beneish M-Score Model

Defel Septian, Khairunnisa, Aril Indrawan, Muhammad Irsa Suryaputra — Fri, 23 Jan 2026 00:00:00 +0000

Objective & object: This research aims to analyze the potential for earnings manipulation in insurance sector companies listed on the Indonesia Stock Exchange (IDX) using the Beneish M-Score Model. The research variables include the eight Beneish financial ratios, namely Days Sales in Receivables Index (DSRI), Gross Margin Index (GMI), Asset Quality Index (AQI), Sales Growth Index (SGI), Sales, General and Administrative Expenses Index (SGAI), Leverage Index (LVGI), dan Total Accruals to Total Assets (TATA) of annual financial reports of insurance companies.

Methods: This research uses a descriptive quantitative approach with secondary data for the period 2022–2024. Data analysis techniques were carried out by calculating the Beneish M-Score to identify indications of earnings manipulation, where an M-Score value of > –2.22 indicates potential manipulation.

Results & Conclusions: Results show that some insurance companies, such as JMAS, MREI, TUGU, ABDA, and ASRM, have M-Score values above the threshold, which indicates potential earnings manipulation. The trend in the last three years shows a general increase in M-Score values, especially in the 2023–2024 period. This research supporting the hypothesis that there are indications of earnings manipulation practices in the Indonesian insurance sector. These findings strengthen agency theory and emphasize the importance of supervision and the implementation of effective corporate governance to maintain the integrity of financial reporting.

Limitations: Beneish M-Score model relies solely on financial ratios from the company's annual reports, thus not taking into account qualitative factors such as changes in management policy, internal audit practices, or the influence of corporate governance. Non-use of cross-sector comparisons, which could help to see if similar practices occur in other industries with different regulatory and economic pressures.

Implications: This study strengthens agency theory and the literature on earnings management, particularly within the highly regulated financial sector such as insurance. The findings indicate that despite stringent regulatory oversight, earnings manipulation remains a possibility. This contributes to the development of earnings manipulation detection models in the financial services sector, especially through the quantitative analysis of the Beneish M-Score. Furthermore, it serves as a critical reminder to enhance the effectiveness of financial statement oversight and auditing.