<p align="center"> </p><p align="center"><strong>ABSTRACT</strong></p><p>Islamic banks give customer a new experience in enjoying banking products or services using profit sharing system instead of interest rate system. Various product agreements are provided, including partnership contract services. As an example of a partnership contract is Musharaka Mutanaqisah contract which has been implemented by Bank BNI Syariah.</p><p>This study aims to find out how the accounting treatment for Musharaka Mutanaqisah contract on home ownership product provided in Bank BNI Syariah, called BNI iB Hasanah. The research method used in this research is qualitative approach. The type of data sources are primary and secondary data and have been collected using research stages including interviews, observation, and documentation. The analysis and conclusion taken by comparing Musharaka Mutanaqisah contract implemented in Bank BNI Syariah with the existing PSAK 106.</p><p>Based on the observation conducted in this research, author concludes that from the step of its accounting treatment consisting: asset recognition which namely as musharaka investment is recognized when cash or non-cash has been paid to active partners. Moreover, the measurement conducted when musharaka financing given in cash is measured by the amount of money given. Furthermore musharaka investment presented by cash or non-cash assets submitted to active partners. Finally the disclosures, that has contents the musharaka business main agreement, such as the portion of funds, the distribution of business profits, musharaka business activities and others. As a result, the accounting treatment carried out by Bank BNI Syariah is still in accordance with PSAK 106 concerning the Musharaka Agreement.</p>