Accounting Practice Of Zakat, Infaq, and Shodaqoh In Indonesia

          Zakat , infaq , and shodaqoh ( ZIS ) is part of the charity in the context of Muslim society . Zakat is obligatory part of every Muslim who is able , as well as being elements of the Pillars of Islam , while Infaq and shodaqoh is a form of slave's love to the pleasure of Allah SWT has given him . So a servant willing to set aside a portion of his property for the benefit of good faith in order to help others and fight Islamic propaganda .Zakat is required in the 9th Hijri , while shodaqoh nature in year 2 Hijri . But the scholars of hadith have looked zakat required before the 9th Hijri year when Maulana Abdul Hasan said after the pilgrimage and alms are required over a period of five years thereafter .
        Before obliged , zakat is voluntary and there are no specific regulations or laws . Regulations regarding zakat expenditure above appeared in the 9th Hijri when Islam has sturdy base , rapidly
expanded the territory and people flocked to Islam . Rules established by the system include the collection of zakat , the goods are subject to zakat , zakat boundaries and percentage rate of zakat for different goods . The charities, not a job that requires time and its employees are not given official salary , but they get paid from the Zakat funds . Until finally the time of the Prophet , charity becomes the main income for the State ( Sudarsono , 2003: 235 ) .
        In Indonesia , the management has arranged ZIS Law No. 38 Year 1999 on Zakat Management . This law regulates the business organization Zakat ( OPZ ) which may be operating in Indonesia . OPZ mentioned in the law is the Agency Zakat ( BAZ ) and the Institute Amil Zakat ( LAZ ) . BAZ is an institution of zakat collection and utilization of funds set up by the government from the central to the local level whereas OPZ LAZ is established upon governmental organizations .

In the development of more advanced and dynamic LAZ compared BAZ even LAZ form can be developed in a variety of community groups such as takmir mosques , zakat management foundations , and the Zakat collector Units ( UPZ ) that exist in every company that is trying to organize the collection of zakat directors or employees .BAZ and LAZ developments in Indonesia needs to be followed by the process of accountability and transparency publikyang both by promoting the motivation to implement the mandate of the people . The government has set about the process of reporting to the BAZ and LAZ by Ministerial Decree No. 373 Years of Religion on the implementation of Law No. 38 Year 1999 on Zakat Management Article 31 which read:Agency Zakat ( BAZ ) and the Institute Amil Zakat ( LAZ ) provide an annual report to the execution of their duties in accordance with its level peerintah no later than 3 ( three ) months after the end of the year .Even in one of the conditions of establishment LAZ is stated in Article 22 of the Decree of the Minister of Religious Affairs stated that in order to get permission from the government , the financial statements for the last 2 years LAZ must be audited by a public accountant . Furthermore , the financial statements LAZ central and provincial levels must be willing to be audited by a public accountant and surveyed at any time by a team from the Department of Religion .In the process of financial reporting during the BAZ and LAZ up with the Decree of the Minister of Religious Affairs issued , OPZ not have the financial accounting standards so that there is a difference between the financial statements of the institution to institution . OPZ innovative enough then use SFAS No. 45 on Financial Reporting Nonprofits .

Nevertheless , the use of SFAS not able to fully address the problems of financial accounting standards for OPZ . Until finally in 2005 , the Forum seeks to formulate guidelines Zakat Accounting for Zakat Management Organisation ( PA - OPZ ) .Not to mention had been widely disseminated and applied , FOZ has entered into collaboration with the Indonesian Institute of Accountants to prepare GAAP Zakat in 2007 . Finally in 2008 , IAI has completed ED SFAS No. 109 , Accounting for Zakat is officially applied to the preparation and presentation of financial statements of entities zakat per 1 January 2009 .Discussion of charity accounting , infaq and shodaqoh in this chapter will be directed in accordance with which it has been prepared by the Indonesian Institute of Accountants . Nevertheless , this chapter discussion distinguishes between charity accounting and accounting infaq and shodaqoh given the differences in characteristics between the treatment and the nature of the collection and utilization of zakat, infaq , and shodaqoh .

I. MANAGEMENT CONCEPTS ZAKAT

Zakat is one of the pillars of Islam , and became one of the key elements for the enforcement of Islamic law . Therefore , the law of zakat is obligatory ( fard ) upon every Muslim who has fulfilled certain conditions . Zakat is included in the category of worship ( such as prayer , pilgrimage , and fasting ) that has been set in detail and patent based on the Quran and Sunnah , as well as a social charity and humanity that can be developed in accordance with the development of mankind .Various charity :

1 . Zakat nafs ( soul ) , also called tithes

2 . Zakat Maal ( wealth )According language ( lughat ) , property is desirable everything once in a while by a man to own, use and store . According syar'a property is anything that can be owned ( controlled ) and can be used ( utilized ) by ghalibnya ( prevalent ) . Something can be called by maal ( wealth ) if it meets two conditions , namely :

1 . Can be owned , stored , collected , controlled

2 . Benefits can be taken in accordance with ghalibnya . Such as houses, cars , livestock , agricultural produce , money , gold , silver , and so forth. Zakat Disbursement Class of persons eligible to receive zakat called mustahiq . This is described in detail in a letter At Tawbah : 60 as follows :" Verily alms - charity that , just for poor people , poor people , board - board zakat , the Muslim convert who persuaded him , for ( freeing ) slaves , those in debt , for the way of Allah and for their who was on his way , as a statute that required God , and Allah is Knower, Wise .

"An accountant OPZ need to determine the allocation of zakat funds in order to make the recording process is done in accordance with the provisions of the Shariah. In particular the allocation of funds for amyl , because it is the right asnaf for zakat , then the allocation of the funds necessary to pay attention to proportion amyl allowed . Say in accordance with the provisions of sharia , right amyl reach eighth part ( 12.5 % ) of asnaf others . However , the allocation of that needs to be matched with performance comparable to distribution rights received amyl . Improved performance in the amil zakat funds in accordance with the provisions of sharia will increase public confidence in the OPZ .Eight categories of zakat recipients should not be exactly the same in the receiving part . There are several things to consider in the process of distribution and utilization of Zakat funds among others :

First : amil zakat needs to prioritize the distribution and utilization of Zakat funds around domicile OPZ so much focus and muzakki can participate and oversee the implementation of the distribution of zakat funds .

Second : amil zakat need to identify environmental and social issues around the domicile OPZ , so as to formulate priority amil zakat recipients class where most memebutuhkan .

Third : amil zakat mustahiq need to put the needs of consumptive than productive sectors .

That is , the tendency of some amil zakat zakat funds to productive sectors , it is not entirely to be distributed in the form of consumptive utilization produktf for the sector has not met with quite well . One reason is that corroborate that zakat is a right mustahiq in order to meet their consumption needs so that the distribution in the form of productive effort mustahiq empowerment can only be done with the consent and in accordance with mustahiq capabilities .

II . MANAGEMENT CONCEPTS INFAQDAN shodaqoh

         Infaq and shodaqoh term often used simultaneously in some discussions , such as the discussion of the management of Zakat funds , Infaq , and shodaqoh ( ZIS ) so that the term Zakat Board , Infaq , and shodaqoh ( BAZIS ) and the Institute Amil Zakat , Infaq , and shodaqoh ( LAZIS ) . Though the term is used only in the concept amil zakat fund management . Nevertheless , the practice of zakat management has been so popular in Indonesia so as if zakat is no different from one another .The previous section discussed the basic concepts of charity and its management , the next section will discuss about Infaq and shodaqoh . Infaq a property ( material ) disunnahkan to be issued with a number and an unspecified time . Distribution is not specified recipient . While shodaqoh is non-material assets disunnahkan to do , for example: a smile , get rid of the rock / spikes middle of the road , and so forth . Understanding Infaq shodaqoh actually the same as understanding , as well as law and its provisions . However, if infaq relating to the material , shodaqoh has a wider meaning , concerning things that are non- material . In accounting , it is still possible to calculate infaq shodaqoh while not easy to do precise calculations because it is the provision of non-material assets .Some verses of Al - Quran and Hadith that explains about infaq and shodaqoh , among others :1 . Surat Al- Baqarah : 195" And spend ( of your substance ) in the way of Allah, and do your own hands into destruction , and do good , for Allah loves those who do good . "1 . Surat Al- Baqarah : 215" They were asked about what they spend . Answer : " What are the treasure that you spend must be given to the mother - father , kinsfolk , orphans , the poor and those who were on their way . " And what are the good things you b UAT , then surely Allah Maha knows it . "1 . Sura Tauba : 35" On a heated gold perakitu in Hell , then burned her forehead , stomach and back them ( and say ) to them : " This is your possession that you keep for yourself , then feel it now ( the result of ) what you save it . "1 . Sura Tauba : 104" They not know that Allah accepts repentance from His servants and receives charity, and that Allah is Oft repentance , Most Merciful ? "1 . Surat Al- An `am : 141" And he who made gardens and trellises are not trellises , palm trees , plants are an assortment of fruit , olives and pomegranates similar ( shape and color ) and not equal ( taste ) , eat of the fruit ( a variety like that ) if he bears fruit, and pay their due on harvest day ( with dishodaqohkan to the poor ), and do not exaggerate . He does not love the extravagant . "1 . Hadith Muslim History" Muslim, Abu Dhar , the Prophet declared that if it is not capable of reading the treasure bershodaqoh with beads, reciting Takbir , tahmid , tahlil , sexual intercourse , and conduct activities enjoining evil is shodaqoh "If someone has to tithe but still have excess property , it is recommended once for berinfaq and bershodaqoh . Some virtues Infaq and shodaqoh mentioned in the Qur'an as follows:1 . The main characteristic of the cautious ( Surat Al- Baqarah and Al 'Imran 3 : 134 )2 . Characteristics earnest believer of his faith ( Al- Anfal : 3-4 )3 . Feature believer expect lasting advantage ( Al Fatir : 29 )4 . Berinfaq to double the reward from Allah ( Al Baqarah : 262 )Fund Management and shodaqoh InfaqIn management, fund Infaq particular , OPZIS ( Zakat Fund Management Organization , Infaq , and shodaqoh ) separating the zakat funds with the aim of separating the source and use of funds so that the trust of the community can be submitted in accordance with the provisions of the Shariah. The financial statements are prepared to provide financial management information infaq least provide information about the source of funds infaq obtained and where the distribution of funds infaq done .In practice , if OPZIS receive shodaqoh in kind , then OPZIS need to conduct an assessment of the real price of goods supplied along could be known with certainty that the goods are then quantified with a nominal value included in the financial statements . Not infrequently , a infaq funds when used to cover operations OPZIS amil zakat due to limited funds , but under certain conditions necessary operating funds to conduct certain activities relating to the collection and disbursement activities ZIS . In this context , the use of funds for operational purposes allowed infaq extent not contrary to the provisions of the Shariah.In the recording process , cash management and shodaqoh infaq use fund accounting system as well as the zakat funds . The financial statements are presented among other things: First , the source of funds and shodaqoh infaq both material and non-material . For non-material shodaqoh as someone who gives shodaqoh 1 gram of gold , it is necessary to be quantified by reference to the market price of gold at the time of granting the shodaqoh . The emphasis of this type of fund known infaq of intent or purpose ZIS donors that fund managers need to ask donors about the purpose of the fund is given , even less so donors pledged that the funds allocated infaq given for specific purposes ( muqayyadah ) eg infaq for the poor or for children's education orphans . Surely ZIS managers need to specify the source in detail so that the public also know about the source of funds obtained by OPZIS . Sometimes ZIS fund manager also receives funding from donors who are not willing to be identified , it is certainly needs to be appreciated as an effort to avoid riya ( like exhibiting kindness to others ) . However , fund managers should strive as much as possible ZIS confirmation of the identity of the donor . At least that identity is only used for internal control and is not for publication . This is an attempt by the management to improve accountability institutions ZIS .Second , the distribution of funds report presents information infaq and shodaqoh utilization and utilization of funds and shodaqoh infaq . Because it is more flexible than zakat funds , then the funds can be focused to infaq interests are not part of the utilization of zakat funds such as the use of TPA education teachers who are committed to developing educational institutions . At the same time , higher priority zakat for the poor so that the utilization of funds can be made more innovative infaq . Another example , the use of funds for investment infaq productive sector for the benefit of the institutional development combined with productive endowments . However , fund managers need to prioritize donor infaq with muqayyadah contract ( mandate to deliver on the sector designated by the donor ) . Third , the fund balance condition report with conclusions infaq end surplus or deficit . This information provides an overview of the effectiveness and efficiency of fund managers and shodaqoh infaq in the collection and distribution of funds and shodaqoh infaq .

III . ZAKAT ACCOUNTING AND donation / ALMS ( ZIS )
           Indonesian Institute of Accountants has compiled Exposure Draft ( ED ) of SFAS 109 , Accounting for Zakat and Infak / Charity as part of the consummation of the transaction management of zakat and donation / charity in Islamic Financial Institutions . In general , all commercial and non-profit LKS have transaction management zakat and donation / charity both of individuals within the entity or outside the entity mandated to special LKS.Secara , worksheets that have the competence to administer zakat Zakat is a form of business organization Agency Zakat ( BAZ ) , Institute Amil Zakat ( LAZ ) , and the Zakat collector unit .In the design of SFAS 109 ED ever devised by the IAI as a step towards the preparation of SFAS through which there is a proposal that the scope of the application of GAAP and Infak Zakat / Alms is zakat payer entity , the entity manager ( amil ) , and recipient entity charity . In there is a problem when the zakat payer entity proposed as one of the sections that follow SFAS because essentially companies ( entities ) are not obliged to pay zakat . Subjects who have an obligation to pay zakat only single individual that the Indonesian Ulema Council ( MUI ) refuse to issue a fatwa that essentially the company must issue a proposed charity as ever IAI . Finally ED SFAS 109 , Accounting for Zakat and Infak / Alms alone or in other words just for Zakat Organization business entities alone while the expected payer and recipient entity referred to in SFAS 101 , Presentation of Financial Statements Sharia .ED SFAS 109 was issued by IAI on February 26, 2008 and disseminated to the public to get feedback and input for improvement of SFAS. This section will describe the ED SFAS 109 are then simulated to be expected to be obtained picture of the implementation and impact of the application of SFAS against presentation and disclosure .ED SFAS 109 , Accounting for Zakat and Infak / Alms , that funds managed by OPZIS is zakat , donation / charity , fund non- kosher , and amyl funds under SFAS ED is the fourth type of funds necessary records specifically and separately by resource mobilization and allocation . Here's an overview ED SFAS Zakat and Infak / Alms issued by IAI :1 . ScopeSFAS is to receive and distribute the amil zakat and donation / charity . Amil who receive and distribute zakat and donation / charity , hereinafter referred to as " amil " , an organization that formation zakat is intended to collect and distribute zakat and donation / charity .GAAP does not apply to entities that receive and distribute sharia charity and donation / charity , but not the main activity . The entity referred to SFAS 101 : Presentation of Financial Statements Sharia .1 . Specific definitions• Amil Zakat is the entity manager or the formation and inaugural governed by legislation that is intended to collect and distribute zakat , donation / charity .• Funds are part amil amil zakat and donation of funds / charity and other funds by the grantor intended for amyl . Funds are used for the management of amil amil .• Fund donation / charity is part nonamil upon receipt of donation / charity .• Zakat Fund is part nonamil for receiving zakat• Infak / alms is possessions voluntarily given by the owner , whether the designation is restricted ( specified ) and are not restricted .• mustahiq is the person or entity who is entitled to receive zakat• Muzakki is sharia Muslim individual who is required to pay ( discharge ) charity .• Nisab is the minimum mandatory property is gathered .• Zakat is a treasure that must be issued by muzakki in accordance with the provisions of sharia to be given to those who deserve it ( mustahiq ) .1 . characteristicsZakat is an Islamic obligation must be submitted by muzakki to mustahiq either through direct or amyl . Provisions regarding the requirements set Nisab Zakat , haul ( both periodic and non diperiodik ) , tariff zakat ( Qadar ) , and designation .Donation / charity is a voluntary donation , either specified or unspecified allotment by giving donation / charity .Zakat and infak / alms received by alms should be managed in accordance with Islamic principles and good governance .1 . Recognition and Measurement Zakat2 . Early recognitionZakat is recognized when cash or other assets received . While alms received from muzakki recognized as an increase to fund charity :1 . If the amount of the cash received2 . If, in the form of non-cash fair value of the noncash assets .The determination of the fair value of non-cash assets received using market prices . If the market price is not available , then it can use other methods of determining the appropriate fair value set forth in SFAS relevant .Zakat funds received are recognized as part amil amil and funds for the charity for nonamil section .Determination of the amount or percentage for each section is determined by amyl mustahiq in accordance with Islamic principles and policies amyl .If muzaki mustahiq determine who should receive distribution through amil zakat alms received the assets entirely recognized as zakat funds . If the above services are amyl get ujrah / fee is recognized as an increase to fund the amil .1 . Measurements After Initial RecognitionIf there is a non-cash asset impairment charity , the amount of loss incurred should be treated as a deduction or deduction of zakat funds amyl depends on the cause of the loss .The decrease in value is recognized as an asset charity :1 . Deduction of zakat, the event was not caused by the negligence of amyl2 . Loss and deduction of funds amyl , if caused by the negligence of amyl .
1 . Distribution of ZakatZakat is distributed to mustahiq recognized as a deduction of Zakat funds :1 . Amount delivered , if in the form of cash2 . Carrying amount , if in the form of non-cash assets3 . Recognition and Measurement Infak / Alms4 . Early recognitionInfak / received is recognized as a charity donation fund / charity bound or not bound in accordance with the purpose of giving donation / charity for :1 . The amount received , if in the form of cash2 . Fair value , if in the form of noncashThe determination of the fair value of non-cash assets received using the market price for the noncash assets . If the market price is not available , then it can use other methods of determining the appropriate fair value set forth in SFAS relevant .Donation / charity received are recognized as part amil amil funds and fund donation / charity donation for reception / alms .Determination of the number or percentage of the receiver part for donation / charity determined by amyl accordance with Islamic principles and policies amyl .1 . Measurements After Initial RecognitionDonation / charity which can be either cash or non-cash assets . Noncash assets can be either current assets or non-current .Non-current assets received by alms and mandated to be managed valued at fair value is recognized as the acceptance and non-current assets donation / charity . Depreciation of these assets is treated as a reduction of funds donation / charity bound when the use or management of the assets has been determined by the giver .Amil may also receive non-cash assets that are intended by the giver to be distributed . Such assets are recognized as current assets . These assets may include consumables , such as food , or assets that have a long economic life , such as ambulances .Noncash current assets valued at acquisition value while non-cash non-current assets valued at fair value in accordance with SFAS relevant . Asset impairment donation / charity is not well recognized as :1 . Deduction donation fund / charity , the event was not caused by the negligence of amyl .2 . Loss and deduction of funds amyl , if caused by the negligence of amyl .In the case of amyl accept donation / charity in the form of assets ( non-cash ) is not well managed by amil , the asset must be assessed in accordance with the relevant GAAP .Fund donation / charity before it can be managed in a distributed temporary period to obtain optimal results . The results of the management of funds are recognized as an increase to fund donation / charity .1 . Channeling Infak / AlmsChanneling funds donation / charity donation funds are recognized as a reduction / alms for :1 . Amount delivered , if in the form of cash2 . Carrying value of the assets given , if in the form of non-cash assets .Channeling donation / charity to another amyl is the distribution that reduces the fund donation / charity throughout amyl will not accept return of assets donation / charity that channeled .Channeling donation / charity to the final recipient in the revolving fund scheme is recorded as a receivable donation / charity and not reduce the rolling donation fund / charity .1 . Recognition and Measurement Fund Non- HalalReceipt of funds nonhalal are all receipts from activities that are not in accordance with Islamic principles , among others, receipt of interest income or interest derived from conventional banks . Receipt of funds nonhalal generally occur in emergency situations or conditions that are not sharia as desired by the entity in principle prohibited .Nonhalal receipt of funds is recognized as nonhalal funds , separate from the zakat fund , fund donation / charity and fund amyl . Nonhalal assets distributed in accordance with sharia .1 . Presentation and Disclosure and Infak Zakat / AlmsAmil zakat present , funds donation / charity , amyl funds , and funds nonhalal separately in ( statement of financial position ) .alms
            Amil must disclose the following matters relating to the transaction zakat , but not on :
1 . Zakat distribution policies , such as setting priorities distribution , and receiver .
2 . Division between policy and funding amyl nonamil over zakat funds , such as the percentage of the division , reason , and policy consistency .
3 . The method to determine the fair value used for non-cash assets in the form of zakat .
4 . Details of the distribution of zakat funds that include the amount of load management and the amount of funds received directly mustahiq , and
5 . Special ties between amyl and mustahiq which include :
6 . The nature of a special relationship
7 . The number and type of assets distributed
8 . Percentage of assets that are distributed over a period of total distributionInfak / Alms

Amil must disclose the following matters relating to the transaction donation / charity , but limited to:

a) Method of determining fair value is used for reception unfak / alms in the form of non-cash assets ;
b ) the division between policy and fund of funds amyl nonamil for receiving donation / charity , such as the percentage of the distribution , reasons , policy consistency ;
c ) the distribution policy donation / charity , such as setting priorities distribution , and receiver ;
d ) The existence of funds donation / charity that channeled indirectly but managed first, if there is , then it must be disclosed amount and percentage of total revenues donation / charity during the reporting period and the reasons ;
e ) The results obtained from the management of the letter referred to in disclosed separately ;
f ) Use of funds donation / charity be reserved for assets under management are entitled , if any , the number and percentage of all the funds donation / charity during the reporting period and the reasons
g ) Details of the disbursement of funds donation / charity which includes the management fee and the amount of funds received by the receiver donation / charity;
h ) Details of funds donation / charity based on its formation , bound and not bound , and a special relationship between the recipient amyl donation / charity which includes :
( i ) The nature of a special relationship ;
( ii ) The number and types of assets are distributed , and
( iii ) Percentage of assets that are distributed over the period of the total portfolio .During the making of the above disclosure , amyl revealed the following :
a) The existence of nonhalal funds , if any , disclosed on the policy on the acceptance and disbursement of funds , and a number of reasons , and
b ) Performance for receiving and channeling amil zakat funds and funds donation / charity .h . Components of Financial Statementscomponents of the complete financial statements of amyl consists of :
1 ) Balance sheet ( statement of financial position ) ;
2 ) Statements of changes in funding ; 's
3 ) Statements of changes in assets under management ;
4 ) Statement of cash flows , and5 )

Notes to the financial statements .i . ED Evaluation of SFAS 109Some things to consider as a matter of evaluation in the ED and SFAS Infak Zakat / Alms are as follows :
1 ) ED AND donation SFAS Zakat / Alms has been in line with Law No. 38 of 1999 on the management of Zakat , Infaq , and shodaqoh ( OPZIS ) just so that the setting is more focused and clear .
2 ) The funds Amil yet fully regulated accumulation and distribution . SFAS ED is only marginally explain the source of funds is from the amil zakat and donation / charity that is taken in accordance with the terms and obligations of sharia amyl . Section needs to be revised to add the role of the Sharia Supervisory Board ( DPS ) which is attached to each worksheet as one character . Pertimnbangan DPS in determining which parts amil zakat funds taken from the I infaq / alms meerupakan something important to do as one way of ensuring that amyl not unilaterally determine , using local parts and infaq zakah / alms .
3 ) SFAS ED has not mengkomodasi possibility of other funds managed by OPZIS as has been done by several National LAZ like DD AP , PKPU , Rumah Zakat Indonesia , and the Foundation for Social Wallet Al Fala ( YDSF ) is a kind of humanitarian aid , education funds , and other types of funds that are programmed by each institution . Although sharia funds can be categorized as Zakat funds or Infaq , however, to consider the existence of additional practice so that the recognition and measurement of accounting clearer
.4 ) ED Spak is not possible to accommodate the possibility of inter- fund transfers for example sebagiandana zakat funds transferred to infaq / charity because certain conditions are considered an emergency or just to sementarawaktu which will then be immediately returned . SFAS ED should be expressly set about the permissibility or not the fund transfer process so clearly atatus practice which is still carried by some OPZ in an emergency .
5 ) Components of financial statements should be separation for each type of fund balance for example zakat funds , balance funds donation / charity , statement of changes in fund infaq / alms , statement of changes in fund infaq / charity , and so even though in the end the merger of the financial statements .