Management Accountant Tasks

18-7-2019 | IslamWeb

Question:

Is being a management accountant in a permissible business but which indulges in interest bearing borrowings permissible? Understand that recording of interest has a vast meaning. Examples include recording at the issuance stage, that is, when the loan is disbursed which is usually done by the lender. My question, however, is on posting those entries in an existing accounting system by a management accountant who was not a party to the transaction.

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Answer:

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.

We do not have the whole picture regarding the tasks that are carried out by a management accountant and the extent of his influence in the management's dealings with usury-based loans. Generally speaking, we are of the view that it is permissible for the Muslim to work in commercial institutions whose activities are Islamically lawful but may engage in some usury-based loans. This is with the condition that he is not directly or intentionally involved in any usury-based contracts or help others engage in them, as Allah The Almighty Says (what means): {...And cooperate in righteousness and piety, but do not cooperate in sin and aggression...} [Quran 5:2]

Allah Knows best.