"Contrary to the prevailing view that considers Islamic accounting merely a modern variation of Western-centric frameworks, historical evidence suggests that this system emerged spontaneously within the heart of Islamic civilization. This study adopts a broad approach to examine the evolution of Islamic accounting as a financial-ethical institution and its potential in addressing global financial crises. The primary objective of this study is to elucidate the historical trajectory of accounting development, identify contemporary epistemological constraints, and assess the field’s role in promoting ethical finance and sustainability.

Utilizing a qualitative methodology and employing tools such as historical analysis, hermeneutic interpretation, and discourse analysis, the study examines data collected from classical administrative documents, jurisprudential texts, Hisbah (market oversight) regulations, and modern standards (such as AAOIFI and PSAK Syariah). The research findings indicate that accounting practices began during the Prophetic era, were strengthened during the Rashidun Caliphate (particularly within the structure of the Bayt al-Mal), and gained official status during the Abbasid era through ethical oversight and market regulation mechanisms.

In the contemporary context, the results reveal a structural dependence of Islamic accounting on Western models, alongside challenges arising from digital transformations. However, the research demonstrates that by operationalizing Maqasid al-Shariah (objectives of Islamic law) within reporting systems, Islamic accounting can serve as a catalyst for achieving sustainability goals and Environmental, Social, and Governance (ESG) indicators. Ultimately, this study emphasizes the necessity of epistemological reconstruction, the development of Shariah governance in the digital space, and the integration of sustainability concepts."