Section Article

An Emerging Dimension of Accounting: Islamic Accounting
Author(s): Pari Chopra

Abstract
Islamic Accounting has emerged as a distinct and growing dimension of financial reporting and corporate governance reflecting the principles of Shariah law ethical finance and social responsibility. Unlike conventional accounting systems Islamic Accounting emphasizes compliance with religious tenets prohibition of interest (Riba) risk-sharing transparency and accountability in financial reporting. This study examines the conceptual framework practices and adoption trends of Islamic Accounting focusing on research conducted between 2018 and 2020. Utilizing secondary data from peer-reviewed journals Shariah-compliant financial reports institutional studies and regulatory publications the research investigates the awareness adoption and practical implementation of Islamic Accounting in various economic sectors. The findings reveal increasing recognition of Islamic Accounting standards (IAS) and growing adoption in banking finance and corporate governance particularly in Muslim-majority regions and firms seeking ethical investment frameworks. Key factors influencing adoption include regulatory compliance stakeholder expectations cultural alignment and perceived financial and ethical benefits. Furthermore the study highlights challenges such as limited standardization lack of trained professionals and integration with conventional accounting systems. By analyzing trends challenges and operational frameworks this research provides insights into the evolution of Islamic Accounting as a credible ethical and globally relevant accounting practice contributing to both academic discourse and practical implementation strategies in emerging financial markets.