Evaluation of the Implementation of ISAK No. 335 in the Reporting of Islamic Educational Foundations

Abstract

Since the enactment of Interpretation of Financial Accounting Standards (ISAK) No. 335 on January 1, 2024, nonprofit entities, including Islamic education foundations, have been required to adjust their financial reporting practices from PSAK 45 to the new standard, which is more aligned with PSAK 1. However, the specific characteristics of Islamic education foundations, which manage community funds, waqf funds, and government funding, present challenges in transitioning to this standard. This study aimed to evaluate the implementation of ISAK No. 335 in the financial reporting of Islamic education foundations and identify the obstacles encountered during the implementation process. This study employed a library research method by analyzing relevant scientific articles, books, and regulations published between 2020 and 2025. The collected data were qualitatively synthesized to obtain a comprehensive understanding of implementation trends. The findings indicated that the implementation of ISAK No. 335 in Islamic education foundations remained in a transitional stage, with varying levels of compliance. The main challenges included limited human resource competence in nonprofit accounting, difficulties in classifying net assets (with restrictions and without restrictions), and limitations in accounting information systems. Nevertheless, the application of ISAK No. 335 was found to improve the transparency and accountability of foundations in the eyes of donors and government stakeholders. Synergy among regulators, academics, and foundation administrators is needed through technical training and the provision of digital reporting tools to accelerate compliance with applicable accounting standards.