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Islamic accounting is a branch of accounting that complies with the principles of Islamic law (Sharia). It is also known as Shariah-compliant or ethical accounting. Islamic accounting aims to promote transparency and accountability in financial reporting, while discouraging activities that are considered unethical or harmful according to Sharia law.
The main principles of Islamic accounting include fairness, reciprocity, risk sharing, and avoidance of Riba (usury). Fairness requires that financial transactions should be conducted in a way that is just and equitable for all parties involved. Reciprocity means that business contracts should be based on mutual benefit and not on exploitation. Risk sharing requires that businesses share the risks and rewards of their ventures fairly. And finally, avoidance of Riba means that businesses should not charge interest on loans or engage in other activities that are seen as usurious.

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