Rules for Calculating Profit in Financial Transactions - Appendix B (The Shariah Basis for the Standard)

Transcription

1. Shari ’ah Standard No (47): Rules for Calculating Profit in Financial Transactions Appendix (B) The Shari’ah Basis for the Standard ■ The basis for not stipulating a maximum profit limit is the Quranic Verse: {“…except it be a trade amongst you, by mutual consent”}. consent”} (2) This ruling is also confirmed by Resolution No. (46) 5/8 of the Islamic Fiqh Academy, which states: “There is no fixed specific profit rate that traders are bound by.” ■ The basis for the permissibility of increased profit/price in a deferred/ credit sale is the Quranic Verse: {“Allah has permitted sale”}(3) as referring to the deferred sale in order for the comparison between it and interest, which also involves an increase, to be valid. Accounting Standard No. (20) has been issued on deferred sales. ■ The basis for the permissibility of using different rates in Mudarabah transactions is because such a provision does not disrupt the sharing of profits by all parties. (2) [Al-Nisa` (The Women): 29]. (3) [Al-Baqarah (The Cow): 275] 1144