This research is meant to explain the home ownership financing mechanism by applying the murabahah contract at Bank Syariah Mandiri Surabaya and its accounting treatment whether all the record keeping which is conducted by the bank has in appropriate with the PSAK No. 102 which regulates the murabahah contract. The descriptive qualitative method is used as the analysis technique in this research as well as the case study approach by performing survey, interview and documentation. The result of this research is the mechanism and the accounting treatment of home ownership financing by applying the murabahah contract at Bank Syariah Mandiri Surabaya generally has in appropriate with the statement of financial accounting standards No. 102 about Murabahah Accounting which regulates the recognition, the measurement, and the presentation from the beginning to the end of the murabahah contract. Bank Syariah Mandiri Surabaya has explained to the bank customer of the murabahah asset acquisition price as well as the margin which becomes the bank profit as the sales. This matter has in appropriate with the Islamic principles which are the principle of justice, mandate, partnership, and transparency.Keywords: Syariah Bank, Murabahah Contract, and the PSAK No. 102.