The Implementation of the Islamic Accounting Standard for Zakah, Infaq, and Shadaqah (ZIS) in Indonesia

This article explores a tool utilized by Zakat Management Organizations (OPZ) to establish an effective zakat governance system. Transparency and accountability in zakat management, including the administration of infaq/shadaqahh, are key components of good zakat governance. As administrators of ZIS funds, OPZs place significant emphasis on transparency and accountability to foster public trust. Enhanced transparency and accountability in ZIS management would increase confidence of public to pay their ZIS in formal OPZ. This will also encourage greater awareness, compliance, and voluntary contributions from Muzakki (donators). Formal OPZs, such as BAZNAS and LAZ, benefit from heightened public trust, which in turn promotes greater participation in ZIS distribution. Implementing a robust accounting and financial reporting system is instrumental in achieving transparency and accountability within OPZs. Compliance with recognized accounting standards, such as Statement of Financial Accounting Standards 109 (PSAK 109) issued by the Indonesian Institute of Accountants (IAI), ensures uniformity, comparability, and accuracy in ZIS accounting practices. PSAK No. 109 serves as a guideline for OPZs in the recognition, measurement, presentation, and disclosure of ZIS transactions.