The National Board of Zakat (BAZNAS) is an official institution formed by the government based on Republic of Indonesia's Presidential Decree No. 8 of 2001 which has the duty and function of collecting and distributing zakat, infaq and alms (ZIS) in the national level. Besides the collection and distribution, BAZNAS forms several program institutions (Lembaga Program). With the existence of program institutions, there is a change in the system of recording and reporting on zakat transactions received and disbursement.

The current transformation of the National Board of Zakat requires consequences for the financial reporting of BAZNAS, which previously only accommodates internal transactions, now it has required to be able to accommodate transactions from external institutions, namely the Amil Zakat Institution throughout Indonesia.

Apart from that, the debate about zakat in the form of services provided by muzaki is becoming another polemic. The current PSAK 109 which regulates accounting on zakat does not fully explain the method of recording and reporting on zakat practically. In accordance with the Sharia Accounting rules and fatwa regarding the receipt of zakat, Zakat is only valid in sharia if the zakat funds have been received in cash or the service has been completed.

Therefore, the Revision Study on PSAK 109 needs to be done, especially related to the system of recording and reporting of Zakat Funds in zakat institutions under the coordination of the BAZNAS in order to carry out the distribution of Zakat Funds.

In the first phase of this study, the Center of Strategic Studies of BAZNAS (Puskas BAZNAS) has conducted a Focus Group Discussion by inviting several speakers from the National Sharia Board of Indonesian Ulama Council (DSN-MUI) and The National Committee for Sharia Finance (KNKS) to be participated in this event. The FGD was held on Monday, April 8, 2019 at the BAZNAS office and produced various inputs for this study.