Waqf has been in existence for more than 1400 years. Prophet Muhammad
(s.a.w) is the pioneer of waqf.
Waqf is said to be a recurring
sadaqah, backed by some
ayat of the
Qur‘an and
ahadith of the Prophet
(s.a.w). After the fall of Uthmaniah
Khilafah, this institution was plagued by mismanagement and embezzlement of its properties by irresponsible
mutawallis and government. This study was embarked to further understand the contemporary waqf
practices especially in Malaysian environment. Where applicable, the results will be compared to the Statement of Recommended Practice (SORP) issued by Charities Commission in the U.K to govern all charities. In Malaysia, the State Islamic Religious Council (SIRC) is the sole trustee of all waqf. The Federal Territory SIRC is chosen as the sample for this study. This study also argued that the current waqf accounting practices are not in line with the aspiration of Islamic accounting where its objectives is different as compared with Conventional accounting. As this study is exploratory in nature, case study method is used because it will give more reliable results and suited the objective of the research. Though the research utilized qualitative approach, some quantitative approach is still applicable. Primary data are
collected through documentation review, interview, and observation. Secondary data is collected from existing documents and reports. It was found that the Federal Territory SIRC was not accounting for the waqf assets. It also needs a lot of improvements especially in the waqf assets management, development and investment. This study has also proposed some policy recommendations in order to help the SIRC improved on their accountability and transparency on waqf practices.