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Table 1 Job title of respondents in this study

Job title Number of Interviews

Sharia-compliant companies
Executive 2
Senior Management 4*
Professional users of annual reports
Analyst 2
Compliance officers 2
Institutional sales manager 1
Fund manager 1
Sharia Advisor 1
Total 13
Note: * Two of these interviews were conducted through email correspondences
Table 2 Number of companies based on the respondents in this study
Industry Number of companies Producers of annual reports Oil, Gas and Consumable Fuels 2
Transportation and Logistics 1 Engineering and Construction Services 2 Professional users of
annual reports Asset Management 3 Sharia Advisory 1 9
Table 3 Interview guide
Group List of questions Producers of annual reports 1. What are normally the Sharia disclosures
that you report in the
annual reports? 2. Where is the best location for these Sharia disclosures in the
annual reports? 3. What are your motivations to disclose Sharia disclosures in your
company's annual reports? Professional users of annual
1. How do you select Sharia-compliant stocks for investment? 2. What parts of the annual report
is important to you? 3. When looking into Sharia-compliant companies, do you look for
additional or different items as in your answers to question 2?
Table 4 Types of accounting and non-accounting disclosures, segregated into the required,
expected and desired aspects, prepared by Sharia-compliant companies and observed by
professional users

Type of disclosures
Sharia-compliant companies Professional users
Avoiding interest-bearing transactions Avoiding excessive risks and uncertainty Excluding
haram elements such as pork, gambling, liquor-related activities
Avoiding interest-bearing transactions, excluding haram Accounting
elements, such as pork, gambling, liquor-related activities (not disclosed)
Sharia-compliant stock declaration
Non-accounting Accounting - Fair dealings with stakeholders - Desired
Accounting - Non-accounting
Contribute to social-impact projects
Table 5 The practices of Sharia-compliant Companies in disclosing Required, Expected and
Desired aspects in their annual reports, further divided into accounting and non-accounting
related disclosures
Required items Expected and Desired items
Accounting Non-accounting Accounting Non-accounting
Yes, disclosed Yes but not disclosed - Disclosed as part of CSR
Table 6 Summary of observations by professional users on the Required aspects (accountingrelated disclosures) of the practices of Sharia-compliant companies
Specific ratios prescribed by Securities Commission Malaysia (SCM)
Breakdown of revenue
Yes Yes

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This was confirmed through our interview with the Sharia division of the Islamic Capital Market,
Securities Commission of Malaysia. Any additional information that they require for the screening
purposes, which are not available in the annual report are made through correspondences with the
company in question. 2
Ahkam is the plural of Hukm, which means command. Ullah et al. (2014: 221) said:
'Ahkam are ... Islamic commandments derived from four main sources, namely (i) The Quran, (ii) the
prophetic traditions, (iii) Ijma, the consensus of Islamic scholars and (iv) Qiyas, that is solving emerging
issues by finding their analogies in the first three sources'. 3
Qur'an is the Holy Book in Islam containing the words of God delivered. 4
Hadith is the recorded actions and sayings of Prophet Muhammad. 5
Ijtihad is the Islamic scholars' efforts to derive and formulate Sharia from Qur'an and Hadith(Widiyanti
2012; Derigs and Marzban 2008). This ijtihad can either be in the form of ijma' (consensus) or qiyas
(analogy) rulings. However, diversity in the rulings exists, particularly marked by the four major Islamic
schools of thought from scholars of Hanifah, Malik, Al-Shafie and Hanbali. 6
Ethical Identity Index (EII) was developed by (Haniffa and Hudaib 2007) to assess Islamic values being
disclosed in the annual reports of Islamic banks and contains eight dimensions: A) Vision & Mission
Statement; B) Board of Director & Top Management; C) Product; D) Zakah, Charity & Benevolent Loans;
E) Employees; F) Debtors; G) Community; and H) Sharia Supervisory Board. We adapted this index for
Sharia-compliant companies. Some of the items were omitted when applying this index to ShariaCompliant companies, including Dimension F (Debtors), and H (Sharia Supervisory Board) as they were
not applicable to Malaysian Sharia-compliant companies.