DOI: 10.5176/2251-1997_AF15.28
Authors: Noor Romy Rahwani, Manik Mutiara Sadewa & Andriani
Abstract:
Background – The Indonesia Stock Exchange (IDX) has mandated all publicly listed companies (including Islamic Entities) to submit their financial statement in eXtensible Business Reporting Language (XBRL) format. The IDX has developed its XBRL taxonomy called the IDX taxonomy which provides the listed companies with XBRL taxonomy containing financial statement elements complied with Indonesian Accounting Standard (PSAK). Problem – Unfortunately, the IDX taxonomy does not provide some components of financial statement needed by Islamic Entities i.e. the Statement of Sources and Uses of Zakat Funds (SUZF), and the Statement of Sources and Uses of Qardhul Hasan Funds (SUQHF). These statements are important as they are part of Islamic Social Reporting (ISR) which represents social responsibility disclosure related to sharia (Islamic law). However, although these reports are important and even mandated by the PSAK No. 101, almost all entities whose stocks are listed in the Indonesia Sharia Stock Index (ISSI) do not disclose and present the reports. Purpose – The research aims to solve the problem by developing XBRL extension of the IDX taxonomy. This extension provides XBRL taxonomy containing elements of financial statement components which were not accommodated by the IDX taxonomy. Methodology - As an applied research, the paper demonstrates technically how to develop taxonomy extension called Sharia XBRL Taxonomy Extension (SXTE). This extension was particularly designed for one of the IDX taxonomy’s entry points called Financial and Sharia. This extension accommodated statements of SUQHF and SUZF mandated by PSAK No. 101. This extension had been discussed and disseminated to the IDX. Practical implications – There are two possible scenarios recommended by the research for accommodating the ISR via XBRL i.e. (1) In the case that the IDX taxonomy has not yet accommodated the ISR, then the Islamic entities may utilize voluntarily the SXTE extension developed through the research or they may develop the similar one. (2) By adding the taxonomy elements needed for the Statements of SUQHF and SUZF directly into the IDX taxonomy (not via an extension), the IDX would indirectly mandate the Islamic entities to disclose and present their sources and uses of non halal income and zakat funds. The effort of both scenarios would then help them boost their sharia compliance.
Keywords: eXtensible Business Reporting Language (XBRL), Sharia Compliance, Indonesian Stock Exchange (IDX)
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