Abstract

Islamic accounting represents a distinctive paradigm within the broader field of accounting that aligns financial reporting and management practices with the principles of Shariah law. This framework is not merely a financial reporting tool but also a socio-ethical system emphasizing equity transparency and social responsibility. Unlike conventional accounting Islamic accounting integrates religious and ethical directives including prohibition of interest (riba) avoidance of uncertainty (gharar) and ensuring fairness in financial transactions. With the global rise of Islamic finance understanding Islamic accounting has become crucial for organizations operating in Muslim-majority economies as well as multinational corporations seeking Shariah-compliant investment and reporting practices. This research paper investigates the theoretical foundations principles and methodologies underpinning Islamic accounting and compares them with conventional accounting systems to highlight unique feat