ICAB

MEMBERS CONFERENCE
Harmonization of Financial Reporting and
Audit Practices Bangladesh Perspective
Anwaruddin Chowdhury fca

Contents

Page

01. Executive Summary

01

02. Preamble

03

03. The IAS/IFRS and The ISA The Global Accounting/Reporting and Auditing
Codes for Harmonization of Financial Reporting and Audit practices

06

04. International Standards Setting Process / Bodies

08

05. Harmonization of Accounting and Financial Reporting Practices

10

06. Harmonization of Auditing Practices

12

07. Harmonization of Public Sector Accounting & Auditing Practices

14

08. Role of SAFA/CAPA in Regional Harmonization

17

09. Institutional, Legal Regulatory Frameworks in Bangladesh

18

10. Adoption Status of IAS/IFRS and ISA in Bangladesh

18

11. Challenges / Limitations of Harmonization

20

12. Opportunities / Prospects of Harmonization

21

13. Policy Issues and Recommendations

22

14. The Way Forward

24

15. Conclusion / Epilogue

24

Appendices

26

Abbreviations

29

References

30

01. EXECUTIVE SUMMARY

As we stand on the threshold of the second decade of the new Millennium, in the wake of 9/11 (nine
eleven) and the Wests so called war on terror on the political front; the corporate frauds in the early
decade and now confronting the implications of the Global Financial Crisis (GFC) and the Eurozone
Debt Crisis (the worst economic recession in history), together with environmental issues like global
warming - Bangladesh has demonstrated remarkable resilience and proactive responses to these
diverse global challenges- warranting concerted global actions in this progressively evolving scenario,
and provoking well-focused and politically sensitized debates, summits and conferences.
The simmering Global Financial Crisis (GFC) of 2008-10 and prevailing Eurozone Debt Crisis (EDC)
of 2011-12, impacting the financial markets and the economies of so many countries around the
world, have highlighted the critical nature of financial reporting for proper functioning of markets and
the importance of achieving a single set of high quality accounting/ reporting standards. The G-20
Summit in Pittsburg in November 09, declared the GFC as a global problem which required a
common strategic approach for devising a global solution. The Summit leaders underscored the need
for convergence onto a uniform set of high quality globally harmonized, independent accounting and
financial reporting standards. The Summit accentuated on the critical role of Accountants for
restoration of market confidence and recovery of the global economy. Albeit the reference was to
private sector financial reporting and audit based on the IAS/IFRS and the ISA respectively, the
substance of the Declaration is equally significant for public sector accounting and auditing. Hence,
this Conference imparts the added dimension of deliberating on issues of harmonization of public
sector accounting and audit practices through implementation of IPSAS and ISSAIs.
The GFC and EDC have significantly impacted the minds of standard setters and the proponents of
Harmonization of Financial Reporting and Audit Practices (HFR&AP). The Crises have indicated the
critical importance of accounting and audit harmonization for proper functioning of markets and the
necessity of achieving a single set of high quality accounting and auditing standards. The Pittsburg
Summit also urged upon the standard setters to reduce the complexity of Reporting for Financial
Instruments as a measure for safeguarding recurrence of such financial meltdown.
Global investors and corporations desire regulations to converge onto a Global IAS/IFRS code for
financial reporting and ISA code for credible audit practices. Such convergence represents a major
challenge having significant consequences for the corporate environment (particularly banking and
investment) and the professional services in Bangladesh, regionally and globally.
The IOSCO is the apex body of all securities and exchange commissions worldwide. It serves as the
global regulatory body for all stock exchanges engaged in cross-border listing of securities. The
IOSCO endorsed IASB Core Standards provide mutually acceptable IAS/IFRS for use in multinational
securities listing and other international offerings. Stock Exchanges would allow foreign users to
present Financial Statements (FS) in accordance with the IAS/IFRS and implement audit based on
ISA. Bangladeshi quoted companies aspiring to obtain foreign listing, must ensure conformity with
IAS/IFRS in the preparation and presentation of their financial statements and with ISA in the conduct
of and reporting on the audit of their financial statements.
The EU convergence onto the IAS/IFRS has already taken place effective from January 2005. The
standard setters and users are now anxiously looking forward to the convergence of US FASB issued
GAAP with the IASB issued IAS/IFRS in the foreseeable future. This will bring the entire world within
the ambit of IAS/IFRS for accounting/ financial reporting purposes and IOSCO endorsement for crossborder listing of securities on global stock markets. Hence, Bangladeshi IAS/ IFRS compliant
companies will then be able to obtain listing of their securities in foreign stock exchanges (be it in
Singapore, London, Frankfurt or even New York). A wonderful thought?
Harmonization of Financial Reporting refers to the process of standardized convergence through
overcoming inconsistencies and narrowing differences in accounting principles and treatment
(recognition and measurement) and presentation (disclosure) of items in Financial Statements.
Harmonization of Audit refers to the process of standardized convergence through overcoming
inconsistencies and narrowing differences in conducting the audit (methodology application) and
reporting on the audit of Financial Statements (audit report). HFR&AP ensures greater accountability
of management decisions and credible transparency of reported financial information - thereby
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enhancing good governance in corporate sectors and providing reliable information to user groups
(stakeholders) for decision making purposes.
The legal responsibility for the preparation of Financial Reports (FR) is that of company management.
The auditors responsibility is to express an honest objective independent, expert professional opinion
on the truth and fairness of the financial information based on the audit performance. The legal,
regulatory framework for financial reporting and audit of corporate entities in Bangladesh is governed
by the Companies Act 1994, Securities Exchange Rules (SER) 1987 and other statutes, like Bank
Company Act 1991. The professional responsibilities and conduct of Chartered Accountants are
governed by the Bangladesh Chartered Accountants Bye-laws 1973. The enforceability for
implementation of the accounting and auditing standards adopted by the ICAB need to emanate from
these sources.
The Companies Act 1994 does not contain any provision for mandatory observance of the adopted
IAS/IFRS and ISA in practice. Since 1997 all listed entities are mandatorily required to ensure
compliance with the provisions of all applicable IAS/IFRS, in the preparation and presentation of their
financial statements. Similarly, auditors of all listed entities are required to ensure compliance with the
provisions of all applicable ISA, in the conduct of and reporting on the audit of financial information of
listed entities. Hence the IAS/IFRS and ISA (duly adopted by ICAB as BAS/BFRS and BSA
respectively), presently have a legally enforceable implementation status only for all listed companies,
and are otherwise applied as indicative of good standard accounting and auditing practices.
As we have entered the new Millennium, with more intense competition and increased trade and
services liberalization resulting from globalization of economies, it is now time for the accounting
profession to assess its strengths and weaknesses, opportunities and threats, from national, regional
and global perspectives. In todays world, while the Governments may act as enablers and facilitators
and the private sector, as the engine for corporate growth, the Profession must also play its role as a
catalyst for transparent financial reporting and credible audit, through Harmonization of Financial
Reporting and Audit Practices (HFR&AP), as a means for market development, increased investment
and economic growth. It is important to ensure that the political will, governance structure and the
functional environment be it legal, regulatory, fiscal, financial or administrative - must be supportive
to facilitate pro-business, pro-investment national professional and economic growth.
The impact of globalization has imposed subtle governmental, societal and ethical pressures,
particularly on the accounting profession, to regulate itself prudently with due diligence, accountability
and transparency. As signatory to the GATS/WTO Document, Bangladesh is required to comply with
the relevant WTO regulations in trade, financial and professional services. The emerging globalized
scenario dominated by the WTO regime poses challenges and offers opportunities for the
profession. Strengthening the professional accountancy services has therefore become a sine-quonon for the countrys effective participation in the economic globalization process. Hence, HFR&AP is
a major challenge having significant global consequences for the profession, the business and
investment environment. It represents an essential national imperative to support Bangladeshs
economic growth process.
The ICAB, as the Bangladesh custodian of IAS/IFRS and the ISA, continue to exercises relentless
efforts focused on developing awareness, credibility and quality assurance in financial reporting and
auditing practices, ensuring the highest standards of knowledge, technical skills, professional
competence, independence and ethics. The ICAB as the national professional accountancy body was
established under PO-2 of 1973 to regulate the accountancy profession in Bangladesh. Being a
member of the IFAC, it has taken significant strides for full adoption of the IAS/IFRS and ISA and
their application by the reporting entities and auditors thereof. The ICAB are fully compliant with the
IFACs Statement of Membership Obligations (SMOs); including implementation of the IES, IAS/IFRS,
ISA, IPSAS, Quality Assurance, CPD and Code of Ethics. Therefore there is no need whatsoever for a
superimposed regulatory oversight body like the FRC through enactment of FRA ?
The ICAB organised National Awards for Best Published Accounts and Report, as a distinct annual
event, is a manifestation of the Institutes recognition (accolades) for transparent, high quality financial
reporting and presentation of meaningful disclosures, catering to the needs of diverse stakeholder
groups. The awards competition inspires harmonization of best national, regional and global Financial
Reporting (FR), Corporate Governance (CG) and Audit Practices (AP) reflecting adherence to legal,
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regulatory requirements and compliance with the accounting/ reporting standards, codes and
practices. The Awards competition serves as a catalyst for transparent financial reporting and
enhancing the level of harmonization in accounting and auditing practices through adequate,
appropriate application of the Standards - reflecting greater accountability of corporate management
and credible transparency of published, financial information. This ensures rendition of credible
financial reports, enabling the corporate environment to be more congenial and competitive to local
and foreign direct investment, capital market development, industrialization and exports and thereby
contribute towards the economic growth of Bangladesh.
Knowledge is reckoned as the cutting edge of this millennium. Economic growth in the context of
global challenges depends on application of knowledge (and technological skills) through appropriate
professional competence. Admittedly, the HFR&AP may not be a "panacea" for overcoming all
economic ills prevailing in the financial reporting and auditing systems in the country, yet it would be a
pragmatic step towards attempting to restore financial discipline, through more objective disclosure of
information and more credible reporting. The essential purpose for implementation of the IAS/IFRS
and the ISA, as a means for harmonization of accounting and audit practices, would be to set the
foundations of high quality, sound financial reporting, corporate governance and auditing practices.
Application of the harmonized standards would positively help achieve the qualitative characteristics
that are necessary to reflect a set of globally comparable true and fair view credible financial
statements of corporate and other entities.
Time has now come for appropriate authorities to take cognizance of the practical usefulness of such
standardized harmonization, for ensuring adequate levels of accountability in management decisions
and credible transparency of reported financial information for all stakeholders and the public at large.
This would make the business and financial environment more congenial to Foreign, NRB and local
investment, capital markets and overall economic growth of the country, and thereby help overcome
one of the major global challenges facing the country
With the above considerations in perspective, this evenings Members Conference on HFR&AP is
both timely and topical. The Conference is a manifestation of ICABs proactive initiative and firm
commitment to serving the public interest and adding value to the economic growth of the region. It is
envisaged to serve as an effective forum of interaction among Government planners and decision
makers, donor agencies, regulators, business leaders and professional experts in the accounting
fraternity. This would also reflect upon ICABs dedication to contribute towards the accountancy
profession, investment, capital market and financial sector development and the overall economic
growth of Bangladesh. The Conference is also envisaged to catalyze Government recognition to
effect necessary changes for implementing robust public sector financial management, ensuring high
quality financial reporting and credible auditing systems, catering to the needs of diverse public
stakeholder groups.
The basic objective of this Paper is to review the status and address the issues relating HFR&AP
essentially in private sector entities. Public Sector Accounting and Auditing Practices have been
discussed in Chapter 07 of this Paper. This Conference will evaluate the present Challenges and aim
at formulating Strategies (policy issues and recommendations) for effective HFR&AP as well as future
strengthening of public sector financial management and reporting, in accordance with the best
regional and global practices. There are debatable, futuristic and pluralistic connotations in the subject
and the field of discussion is so vast that one can hardly do justice to its magnanimity in a limited page
technical Paper, endeavouring to synthesize the Bangladesh Perspectives of HFR&AP and PSFM
02. PREAMBLE / INTRODUCTION
Bangladesh Economic Scenario Recent GDP Growth and Macro-Economic Stability

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Bangladesh has made significant strides in its economic sector performance since 1971. It recorded
6.7 % GDP growth fiscal in 2010-11 and 6.2% in 2011-12. Bangladesh is considered as a
developing economy, which has recorded GDP growth above 5% during the last several years.
Microcredit has been a major driver of economic development in Bangladesh. Although over 60
% of the population is employed in the agriculture sector, about 70 % of exports revenues are
derived from the readymade garments industry. The biggest obstacles to sustainable
development in Bangladesh are overpopulation, poor infrastructure, corruption, political instability
and a slow implementation of economic reforms. GDP growth for the current 2011-12 is expected
to exceed 6%, although inflation is spiralling and investment declining. At present, the countrys
foreign exchange reserves exceed US $ 11 billion and remittances amount to about US $ 14
billion. There has been significant improvement in the balance of payments- essentially from
major policy improvements like monitoring policy correction, exports recovery, declining imports
and remarkable performance of remittances.
Sustainability of the enabling environment for growth performance in FY12-13 is a challenging task
considering the growing downside risks. The capital (securities) market has been a significant
downward trend with Dhaka Stock Exchange market capitalization having declined drastically from
about US $ 47 billion in 2009 to US $ 24 billion present. There is a credit crunch in the economy and
the Government is borrowing heavily from the banking sector to finance its public expenditure and
annual development programmes. Foreign and domestic investment in the economy is also on a
downward trend. Despite the apparent negativities, Bangladeshs macro-economic stability is
satisfactory and the countrys economic management has been applauded by the donor communities.
Bangladesh is presently termed as one of the next 11 emerging economies worldwide. Bangladesh
economy has demonstrated tremendous resilience to the GFC, as manifested by its relatively
satisfactory garments export, foreign remittances, macro-economic stability and overall GDP position.
However, the economy is now being negatively impacted by percolating effects of the aggravating
Eurozone Crisis.
Global Economic Scenario
Its Impact on Harmonization of Financial Reporting and Audit Practices
Davos World Economic Forum 2013 Cautious Optimism? Downside Risks of Euro Debt Crisis.
The globalization of economies poses challenges both for the developed and developing world.
Bangladesh itself confronts a multitude of global challenges (internal and external) which need to be
addressed by concerned authorities - ranging from such issues as corruption, bureaucracy and
governance on the one hand to poverty alleviation and employment generation on the other. These
challenges also encompass Government responses to the impact of such globalization forces as
unification of economies and establishment of trading blocks; acquisition and mergers of corporate
entities into conglomerates; phenomenal advancement in information, communication technologies;
innovative solutions for electronic business transformation and mobile wallet applications; banking
sector technological automation for payments/settlement and electronic funds transfer; financial
inclusion and digitalization of the country; and HFR&AP as a vehicle for investment, industrialization,
capital market development and overall economic growth of the country. Changes in legal regulatory
frameworks, implementation of corporate governance and CSR, sustainability and integrated reporting
practices also warrant considerations.
In the light of colossal corporate frauds in the US - caused by the Enron, WorldCom and Q West
scandals, followed by Parmalat in Europe, in the early part of this millennium, (and Satcom
Computers in India in recent years), revealing the collusive involvement (through corporate
governance and internal control failures) and consequential collapse of such leading global
professional practices like Arthur Andersons, have greatly shattered the credible reflection of the
profession. The transparency and credibility of accounting and audit functions were called to question
and raised scepticism about the professions ability to serve the public interest? Hence, it has become
absolutely imperative for the profession to regain stakeholder confidence and credibility to serve the
public interest.
The global economic scenario has been devastated by the prevailing global financial meltdown,
economic downturn and the worst recession in living memory - triggered by sub-prime mortgage,
excessively leveraged lending and marketing of derivatives and other hybrid, innovative financial
instruments, essentially in the USA and Europe. The crisis resulted primarily from loose regulatory
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controls (US SEC / UK FSA and their European counterparts) and unbridled deregulations, which
warranted state interventions. Initiated in the American and European financial sector and capital
markets in 2008, the GFC has escalated throughout the developed and developing countries and
plunged the world economy into the deepest recession in history. National Governments (like USA,
UK, Germany and Japan), together with international financial institutions (like the WB and IMF) have
taken prompt measures to bail-out the affected institutions and economies. Hopefully the worst impact
is over and the global economic recovery has commenced.
Economic Growth - percentage change in country/region annual GDP

The IMF has predicted that the Global Economy may experience the slowest growth rates since
recession as Eurozone poses downside risk in 2012-13. There is real risk that the Euro Debt Crisis
may lead to an even sharper drop in real economic activity, having a ripple effect on the global
economy and escalating downwards to about 1% in 2012.
The events of the GFC and EDC have highlighted the need for economies all round the world to have
access to reliable financial information as a precondition for the restoration of confidence in the global
marketplace. This is a need that Accountants are uniquely prepared to meet, whether as preparers or
auditors of financial statements, as business advisers or indeed as regulators. The standard setters
and accounting professionals firmly believe that well presented financial reports act as a sine-quonon to the proper functioning of a market economy. The financial crisis has clearly demonstrated that
it is indeed a global problem that demands a global solution. The crisis has highlighted the critical
nature of financial reporting to the functioning of markets and the importance of achieving a single set
of harmonized high quality accounting standards. The G20 Pittsburg Summit - convened for devising
a common approach to overcome the impact of the crisis/ recession- has emphasized on the need for
convergence towards a single set of high quality, global independent accounting/reporting
standards. It also urged the standard setters to reduce the complexities of standards relating to
financial instruments, as a measure for safeguarding recurrence of such financial meltdown.
The resultant global scenario has also intensified the need for effective HFR&AP and ensuring
implementation of Corporate Governance practices. In that backdrop, todays Members Conference
reflects the global shift towards the IAS/IFRS and the ISA frontiers, aimed at enhancing corporate
accountability and reliable transparency of published financial information. This Conference manifests
the professions determination to address market issues through catalyzing high quality financial
reporting and credible audit practices; ensuring adequate levels of quality assurance through
knowledgeability, technical skills, professional competence, independence and ethics, and ensuring
due monitoring thereof. The practical adoption and application IAS/IFRS and the ISA/IAPS in the
financial statements and audit of corporate entities are widely discussed, professional issuesconcerning their global recognition, acceptability and implementation in the preparation and
presentation of financial reports and audit thereof. The IAS/IFRS, together with the ISA/IAPS have
emerged as topical issue of discussion at capital market and investment forums and seminars.
The Accounting profession in the SAARC region has been under substantial pressure from the donor
agencies and multilateral financial institutions like the World Bank and ADB to ensure compliance with
the accounting and disclosure requirements of IAS/IFRS in the financial statements of reporting
entities and to conduct their independent audit in accordance with the requirements of ISA/IAPS. The
resultant comparability achieved through harmonization of financial reporting and audit practices,
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would impact a positive dimension to the presentation and audit of published financial information, in
line with current international practices. This would induce greater accountability of corporate
management (decisions) and credible transparency of reported financial information. HFR&AP,
through implementation of IAS/IFRS and the ISA/IAPS, therefore represents a major global challenge
facing the financial and corporate environment.
As a signatory to the GATS/WTO Document, the Government may be required to provide market
access to the financial and professional services sectors which, under the banner of reciprocity would
require the home country to provide equal facilitation to all foreign service renderers just as much as it
provides to its own service renderers. Hence, the countrys financial and corporate sectors and the
professional (accountancy) services need to be adequately strengthened and versatilized to maintain
their competitive edge in facing the emerging challenges competently and utilizing the opportunities
beneficially for the economic development of Bangladesh.
03. THE IAS/IFRS AND THE ISA THE GLOBAL ACCOUNTING/REPORTING AND AUDIT CODES
FOR HARMONIZATION OF FINANCIAL REPORTING AND AUDIT PRACTICES
Moving to IAS/IFRS Rationale of the Argument
There are irresistible global pressures, affecting the Bangladesh economy, which warrant the
Accountancy Profession to implement standardization of accountancy practices through
implementation of IAS/IFRS. These factors encompass inter-alia:

Addressing the impact of recent Eurozone Debt Crisis - economic recession (2011-2012)
The consequential impact of Global Financial Crisis - economic recession (2008-10)
The corporate frauds/IC failures of the early decade of this millennium (2001-03)
The ASEAN financial crisis of the late nineties (1997-98)
Global shift from state controlled to market economy
Global economic de-regulation and trade liberalization (since80s)
Increasing role of the private sector as the engine of growth
Worldwide market proliferation by multinational companies
Impact of WTO / GATS on trade and services sectors
Mutual recognition of accountancy qualification and cross-border practices
The possibility of imposition of an oversight/regulatory body (FRCB)
Intense competition from within and outside the profession
Increased Governmental, societal and ethical pressures
Increased stakeholder and societal expectations/ meeting the public interest
Increased knowledge, greater demands and changes in client attitudes
Coping with phenomenal transformation in ICT services affecting business
Inconceivable technological advancement in internet and smart phone services
Mobile Banking and Financial Inclusion services.
Recent banking/ financial sector frauds (scams) in Bangladesh.

Accounting has always been acknowledged as the lingua franca of business. It is a service activity
aimed at providing relevant, reliable, qualitative comparable financial information for a variety of user
groups. The application of IAS/IFRS renders high quality financial information that satisfies the
qualitative characteristics of understandability, relevance, reliability and comparability. Application of
IAS/IFRS would thereby benefit issuers and stakeholders by providing large pools of foreign capital at
lesser cost. Similarly the application of ISA (for private sector) and IPSAS (for public sector) entities
lends greater credibility to the audit function to different stakeholder groups for reliance in investment
and other market decisions.
Standardization of accountancy practices through harmonization of financial reporting is a distinctly
identifiable phenomenon intricately linked to the process of globalization of the world economy. The
global harmonization of financial reporting practices was highlighted by James D. Wolfensohn,
President of the WB in his message to the World Congress of Accountants meeting in Paris in 1997.
In a world that is growing more and more like a single economic household, it makes no sense to be
specking in different voices,. We urgently need a unified global language of business. One could
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argue that this unified language of business is the standardization accounting practices through
application of the IAS/IFRS. Hence the language of business has moved to a specific frontier that of
the IAS/IFRS dimension.
There is a clear and growing demand around the world for global, high quality accounting standards
that give transparency and comparability. This demand has been intensified in recent years by
massive increases in cross border trade and investment. Increased impetus has come from the need
for reliable financial information in developing and transitional countries. Application of International
Standards are also mandated / desired by the WB, ADB, EU/EC, UN agencies and other development
partners on borrowers and recipients of foreign aid and technical assistance.
The first Ministerial meeting of the WTO held in Singapore in December 1996 had identified
Accountancy as the most internationalized and the most important service sector for promoting transborder flow of funds. Good financial reports promote investor confidence, facilitate the flow of
investment funds and thereby encourage economic growth. Financial Reporting as the language of
business has now taken a specific dimension- that of the IAS/IFRS, and by process of analogy for
audit purposes- that of the ISA/IAPS. The implementation of GATS/ WTO Document presupposes
global harmonization of financial reporting and audit practices for facilitating mutual recognition of
accountancy qualification and cross-border practice of accountancy.
The IAS/IFRS are now being professionally acknowledged as the sole, harmonized globally
recognized business language. This acknowledgement has been strengthened by effective support
from IOSCO, WTO, UN organizations and the G20 Summit Declaration 2009. The growing
international support for IASBs standard setting, as reflected by IOSCO endorsement has
incentivized national standard setters to bring their compliance requirements in line with those of the
IAS/IFRS, facilitating global harmonization of financial reporting practices. Towards the end of the last
millennium- the USA, Japan and Canada were the three major, deviant global economies which would
not accept IOSCO endorsed IAS/IFRS as the financial reporting framework for cross-border listing of
securities. These three markets mandated conversion of aspirant companies financial statements into
US GAAP for obtaining listing on their stock exchanges. Presently both Canada and Japan defacto
permits listing of securities based on IAS/IFRS compliant financial statements.
The Daimler Benz (Mercedes car manufacturer) was one of the earlier European companies, which
had switched over from German national standards to IAS based accounting in mid 90s, resulting in
an upturn in its share prices on the stock exchanges. This was followed by more and more European
companies, multinationals and financial institutions switching over and applying the IAS/IFRS as the
basis for preparation of their FS including Deutsch Bank, UBS, Hanile Bank, Anglo American Corp,
Moulinex and Nestle. These entities firmly believed that IAS/IFRS based financial reporting would
bring greater transparency, furnish additional information and simplify international comparisons. This
in turn would reflect positively upon their share prices and investment potentials. An increasing
number of emerging markets use the IAS/IFRS as national accounting standards or as the basis for
such requirements. Russia, China, India, Brazil, Korea Malaysia and Singapore, are among the
countries which were virtually using IAS/IFRS as national standards and/or as the basis for equivalent
national standards. HFR&AP enables multinational companies to obtain multiple listings in stock
exchanges of different countries with less additional costs and regulatory compliance adjustments to
their financial statements. Increased convergence of national standards through adoption of IAS/IFRS
and the ISA would ensure improved management control and promote good corporate governance
practices in the country.
The EU convergence onto the IAS/IFRS has already taken place effective from January 2005 and
the American convergence is now envisaged in the foreseeable future? There has been
convergence onto IFRS (First Time Application) as the mandatory basis for preparation and
presentation of FS by corporate entities throughout the EU effective from 1 January 2005 (FEEFederation of European Accountants). The standard setters, particularly the IASB, corporate
stakeholders and other users of financial reports are now anxiously looking forward towards the
convergence of the US FASB issued GAAP with the IASB issued IAS/IFRS. This will bring the entire
world within the ambit of IAS/IFRS for financial reporting purposes and IOSCO endorsement for
cross-border listing of securities on global stock markets. Hence, Bangladeshi IAS/ IFRS compliant
companies will be able to obtain listing of their securities in foreign stock exchanges (Singapore,
London or Frankfurt) or even NYSE?
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In the light of the above discussion, it is apparent that the IAS/IFRS have emerged as the Global
Accounting Code for Harmonization of Financial Reporting Practices worldwide. In view of the
interrelationship of the audit attestation function for credibility of true and fair view financial
statements to all stakeholders and user groups, (including existing shareholders, potential investors,
lenders, the government and donor agencies). It is apparent that, by process of analogy, the ISA have
also emerged as the global audit code for harmonization of auditing practices worldwide.
Role of IOSCO in Harmonization of Financial Reporting
Accounting Standards diverge worldwide because they reflect different histories, market practices and
legislation. The internationalization of financial markets had highlighted the need to narrow the gap
between investment activities (international) and accounting rules (domestic) in nature. The IOSCO is
the apex body of all securities and exchange commissions worldwide. It therefore serves as the global
regulatory body for all stock exchanges engaged in cross-border listing of securities. The Securities &
Exchange Commission (SEC) Bangladesh, along with other regional Securities Regulators, is
members of the IOSCO. The FS of Bangladeshi quoted corporate aspiring for foreign listing must
ensure conformity with applicable IAS/IFRS.
The growing international support for IASB and IOSCOs endorsement have further increased the
incentives for national standard setters (professional bodies) in the SAARC region to bring their
requirements in line with the IAS/IFRS. The IOSCO endorsed IASB Core Standards provide mutually
acceptable IAS/IFRS for use in multinational securities listing and other international offerings. Stock
Exchanges allow foreign entities to present FS in accordance with the IAS/IFRS. The endorsement of
IASB core standards by IOSCO, has given impetus for acceptance of the IAS/IFRS for cross-border
capital raising and listing purposes in all global markets. Financial Statements prepared in accordance
with the IAS/IFRS financial reporting framework are accepted as reliable, transparent and user
oriented, thereby giving the necessary encouragement and impetus to cross-border companies will
also be able to obtain multiple listings in stock exchanges of different countries with less additional
costs and regulatory compliance adjustments to their financial statements. Harmonization in financial
reporting practice thereby facilitates the economic globalization process through a unified business
language the IAS/IFRS dimension.
Role of WTO and UNCTAD in Financial Reporting Harmonization
The WTO is the legal and institutional framework for the multilateral trading system. It acts as the
monitoring agency for the General Agreement on Tariffs and Trade (GATT) and the General
Agreement or Trade in Services (GATS). Following intense lobbying by the IFAC, the Trade Ministers
representing the WTO countries including Bangladesh, issued a Declaration at the WTO Ministerial
Meeting in Singapore in December 1996, encouraging the successful completion of the international
standards in the accountancy sector by the IFAC, IASC (now IASB) and IOSCO. The WTO has issued
a Statement of Intent supporting the work of the IFAC and the IASB, which has greatly bolstered the
acceptability of the IAS/IFRS as standardized accounting language for harmonization of financial
reporting practices.
The UNCTAD International Standards on Accounting and Reporting (ISAR) Inter-Governmental Working
Group of Experts endorsement of the IAS/IFRS framework have provided further impetus to the global
financial reporting standardization process. The ISAR also serves as a quasi standard-setting body,
which has mentored Guidelines for SME Reporting, Corporate Governance and C S R practices.
04. INTERNATIONAL STANDARDS SETTING PROCESS / BODIES
Accounting
_________________
IASB
(Steering Comm)
(Exposure Drafts)

Auditing
_________________
IFAC
(IAASB)
(Discussion Drafts)

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IFRS
(formerly IAS)

ISA
(and IAPS)

IFRS- Standard Setting Process

The IASB is responsible for the conception, development and promulgation of definitive accounting
and financial reporting standards, meant for mandatory application, in global jurisdictions (wherever
adopted), known as the International Financial Reporting Standards (IFRS). These standards,
previously issued by the IASC, were designated as the IAS. The IFRS standard setting process
entails conceiving of an accounting/ reporting topic of current economic or professional importance
(like Accounting for SMEs) and developing and Exposure Draft (ED) for public comment by a Steering
Committee (SC). The ED is then circulated among relevant stakeholders - including the professional
bodies and big firms, regulatory agencies, the financial and corporate sectors (multinationals/chamber
bodies), the academia and other institutions- inviting reviews, comments and criticisms within a
stipulated date (usually 90-120 days). The public feedback is then considered, reviewed and
assessed by the SC in the light of given circumstances and modifications made to the proposed ED if
deemed appropriate. The final document is then issued in the form of a definitive pronouncement
designated as an IFRS. The Standard prescribes compliance, in all material respects, with all its
requirements, in the preparation and presentation of FS. Any deviation from the prescribed
compliance requirements (as to accounting treatment and/or disclosures) needs to be explained and
quantified wherever possible. The IFRS may be a general purpose Standard or intended for specific
purpose application. It may relate to accounting treatment, which connotes recognition and
measurement, or it may be a disclosure oriented standard, essentially concerned with presentation of
items on the FS. The IAS continues to be concurrently enforceable, unless otherwise withdrawn,
replaced or superceded by an IFRS.
ISA- Standard Setting Process
The International Auditing and Assurance Standards Board (IAASB) of the IFAC is responsible for the
conception, development and issuance of definitive auditing standards, meant for mandatory
application, in global jurisdictions, (wherever adopted), known as the International Standards on
Auditing (ISA). The IAASB also issues International Audit Practice Statements (IAPS) in a similar
manner, focused on professional acceptance and implementation. The ISA standard setting process
entails conceiving of an auditing topic of current economic or professional importance (like Going
Concern) and developing a Discussion Draft (DD) for public comment. The DD is then circulated
among relevant stakeholders - including the professional bodies and big firms, regulatory agencies,
the financial and corporate sectors (multinationals/chamber bodies), the academia and other
institutions- inviting reviews, comments and criticisms within a stipulated date (usually 90-120 days).
The public feedback is then considered, reviewed and assessed by the IAASB in the light of given
circumstances and modifications may be made to the proposed DD if deemed appropriate. The final
document is then issued in the form of a definitive pronouncement designated as an ISA. The
Standard prescribes compliance, in all material respects, with all its requirements, in conducting the
audit or reporting on the audit of general purpose (or special purpose) financial statements. Any
deviation from compliance with the prescribed audit requirements needs to be adequately explained
and justified. The ISA may relate to the conduct of an audit - methodology oriented standard (like audit
quality assurance/ evidence) or a reporting standard (audit opinion).
International Accounting Standards Board (IASB)
The London based IASB began operations in 2001, as a successor to the International Accounting
Standards Committee (IASC) formed in 1973. The IASB is committed to developing, in the public
interest, a single set of high quality, global accounting standards that require transparent and
comparable information in general purpose financial statements. In pursuit of this Objective, the IASB
9|Page

cooperates with national accounting standard-setters to achieve convergence in accounting and

financial reporting standards. This is line with the (now defunct) IASCs broad Objective to formulate
and publish in the public interest accounting standards to be observed in the preparation and
presentation of financial statements and to promote their harmonization through their worldwide
acceptance and observance. The IASB Conceptual Framework (adopted in 2001) sets out the
concepts that underlie the Preparation and Presentation of Financial Statements based on IFRS. The
Framework serves as a guide to external users for resolving accounting/ reporting issues that are not
addressed directly in a Standard. Moreover, in the absence IAS/IFRS or a SIC/IFRIC that may
specifically apply to transactions, management must use its judgment in development and applying an
accounting policy that results in relevant and reliable information.
The International Federation of Accountants (IFAC)
The New York based IFAC, formed in 1977, is the apex global organization for the accountancy
profession. The Mission of the IFAC is the development and enhancement of a worldwide
accountancy profession, able to provide services of consistently high quality in the public interest. Its
broad objective is the development and enhancement of a coordinated, global accountancy
profession with harmonized standards. IFACs strategy is to strengthen the worldwide accountancy
profession and contribute to the development of strong international economies by establishing and
promoting adherence to high-quality professional standards, furthering the international convergence
of such standards and speaking out on public interest issues where the profession's expertise is most
relevant. As the global organization for the accountancy profession, IFAC is committed to protecting
the public interest by developing high-quality international standards, promoting strong ethical values,
encouraging quality practice, and supporting the development of all sectors of the profession around
the world. IFAC is presently comprised of 173 members and associates in 129 countries and
jurisdictions, representing over 2.5 million accountants, employed in public practice, industry and
commerce, government, and academia. Members are required to support IFAC mission and
programs; demonstrate compliance with the statements of membership obligations (SMOs); be
financially and operationally viable and haven appropriate governance structures; make financial
contributions and meet the other criteria described in the membership application process the IFAC
constitution and the IFAC Bye-Laws.
The International Auditing and Assurance Standards Board (IAASB) of the IFAC serves the
public interest by: setting, independently and under its own authority, high-quality International
Standards on Auditing (ISA) and assurance standards, and facilitating the convergence of national
and international auditing and assurance standards. This contributes to enhanced quality and
uniformity of practice in these areas throughout the world, and strengthened public confidence in
financial reporting. At present, the IAASB efforts are strategically focused on three areas to achieve its
objective - Development of standards; Monitoring and facilitating adoption of those standards; and
Responding to concerns about the implementation of the standards by activities designed to improve
the consistency with which they are applied in practice. The IAASB's pronouncements govern audit,
review, other assurance, and quality control and related services engagements that are conducted in
accordance with international standards. The IAASB's clarified International Standards on Auditing
(ISAs) are now effective and auditors worldwide are adopting and implementing these standards. The
IAASB recognizes that the implementation of its standards is as important as their development and
has committed to a number of activities to facilitate effective implementation.
05. HARMONIZATION OF ACCOUNTING AND FINANCIAL REPORTING PRACTICES
General Considerations
Accounting refers to the series of tasks in an entity by which transactions are processed as a means
of maintaining financial records. It is concerned with the recognition, calculation, classification,
posting, summarization and reporting on transactions. Financial Reporting refers to the manner of
presentation of financial information of an entity in the form of Financial Statements. Financial
Reporting is concerned with the accounting treatment (encompassing recognition and measurement
of the effects of financial transactions) and the presentation or disclosure of information regarding
items contained in the Financial Statements.

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Financial Statements reflect a structured financial representation of the financial position of and
transactions undertaken by an entity during a particular period of time. A complete set of Financial
Statements includes the following components:
a.
b.
c.
d.
e.

Balance Sheet or Statement of affairs

Profit and Loss Account or Income Statement
Cash Flow Statement
Changes in Equity statement
Accounting Policies and Explanatory Notes

Financial Reporting provides useful information about the financial position, financial performance and
cash flows of an entity to a wide range of user group including existing shareholders, potential
investors, lenders, creditors, tax authorities, Government Regulator the SEC developed Bank, Stock
Exchange economic planners and trade unions) for economic decision making. The specific
objectives of financial reporting encompass the stewardship function, decision usefulness,
confirmatory evidence and statutory compliance:
Harmonization of Financial Reporting (FR) practices refers to convergence through overcoming
inconsistencies and narrowing down areas of differences in financial reporting practices (Accounting
treatment=Recognition and measurement, Presentation=Discloser of items in FS). The objective of
financial reporting harmonization is to prescribe a standardized manner or uniform basis for
presentation of general purpose FS. This would ensure comparability both with the entitys own FS of
previous periods and with the FS of other entities nationally and internationally. Globally harmonized
financial reporting facilitates intra-firm comparison within and outside the same industry / sector- both
on a domestic and international basis. Harmonization require a comparative evaluation of several
considerations particularly that of accounting policies, encompassing specific principles, bases, rules
and practices adopted by entity in the preparation and presentation of financial statements.
Harmonization, through proper application of accounting and financial reporting standards, ensures
uniformity through consistent application of identical accounting policies, accounting treatment
(recognition and measurement) and presentation (disclosure) of items in the financial statements of
reporting entities. Financial Reports are then objectively comparable with each other and are relevant
to decision-making needs of users, through faithful representation of the operational results and
financial position of the reporting entity. Harmonization thus ensures that financial reports achieve a
comparable and fair presentation of financial information, which may be relied upon globally by
user groups for their decisions.
Significance of IAS/IFRS in Accounting/Financial Reporting Harmonization
The IAS/IFRS are issued by the IASB to bring about world-wide harmonization in the Generally
Accepted Accounting Principles (GAAP), so that Financial Statements, as the bases for investment,
credit and similar decisions, become generally more acceptable to all users. The IAS/IFRS are
promulgated by IASB as definitive standards (subject to local adaptation) which are meant for
mandatory application, wherever adopted. These standards are designed to overcome divergences
and achieve improvement in the degree of uniformity in accounting principles and disclosures and
thereby effect harmonization in financial reporting of concerned entities. The IAS/IFRS normally
represent the formalization and codification of existing best accounting practice (nationally and
internationally) which professional members are expected to observe in practice. These Standards
therefore prescribe the Generally Accepted Accounting Principles (GAAP) which Corporate
Management is expected to apply in the preparation and presentation of published Financial
Statements. Where IAS/IFRS are adopted and applied mandatorily, the independent Auditors are
required to ensure that published Financial Statements comply with the IAS/IFRS in all material
respects and disclose any deviations observed there from.
The IAS/IFRS are highly conceptualized technical standards, the application of which is likely to have
long-term, far-reaching beneficial implications on corporate financial reporting, capital market
development and investment decisions in the economy. These Standards encompass a wideembracing multidimensional, financial reporting framework, having significant impact on the work of
the preparers, auditors and users of financial information. Harmonization through IAS/IFRS is
intended to narrow down the areas of differences and dissimilarities and overcome inconsistencies
and incongruities in accounting policies and practices world-wide. Each IAS/IFRS covers accounting
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standards (recognition and measurement related) and reporting standards (disclosure related).
Though accounting standards are generally similar, the reporting or disclosure standards may vary
significantly from entity to entity and from country to country, because of difference in corporate
objectives and economic, socio-political environments. Hence rationalization of disclosures is
essential for achieving global harmonization in accounting practices and presentation.
Benefits of Harmonization through IAS/IFRS
The complexity of business enterprises and transactions and the rapid growth of multinational entities,
cross border investments and the globalization of business activities in recent years have had a
significant impact on the nature and quality of financial reporting. Accounting Standards diverge
worldwide .Globalization of financial markets has highlighted the need to narrow differences between
investment activity (traditionally international) and accounting activity (traditionally domestic) in nature.
Accounting is described as the language of business. As with any communication, it is important that
the preparers and the users follow the same rules of understanding. Information about the business
is conveyed to the users through Financial Statements. When these statements are prepared on the
basis of the generally accepted accounting standards as provided by the framework of IAS/IFRS, the
Financial Statements become more understandable, relevant and reliable to user groups. The IAS
represents formalization and codification of best reporting practice. The IAS/IFRS are considered as a
body of doctrine having general acceptance. The Standards provide guidance and security in auditors
performance. These standards are measuring yard-sticks to assess the completeness, accuracy and
adequacy of accounting information to be disclosed in the Financial Statements. Upon application of
the standards, the product of accounting is improved and at the same time tends to achieve greater
comparability. The formalization of users Financial Statements based on standards applied in their
preparation can be viewed with greater confidence and effect comparatively with other reports
prepared within a common framework. If the standards have merits for application one country, they
would also have merits for application more globally. This leads to harmonized standardization of
global financial reporting practices.
The use of IAS/IFRS gives users of FS high quality financial information that satisfy the "qualitative
characteristics" of application of IAS/IFRS thereby understandability, relevance, reliability and
comparability. Standards application of IAS/IFRS thereby benefits users and issuers by giving them
access to a larger pool of foreign capital at a lower cost. This has been underlined by the current
Asian crisis, which has severely damaged the credibility of those Asian enterprises that do not use
financial reporting practices accepted by the international community. Harmonization of FR practices
through application of IAS/IFRS would permit multinational companies to obtain multiple listings in
stock exchanges of different countries with less additional costs and regulatory compliance
adjustments to their Financial Statements. Increasing convergence of national standards (through
adoption of IAS/IFRS) reduces the need to restate financial information from foreign subsidiaries for
consolidation purposes. The cost of preparing reconciliation statements to another set of accounting
standards for obtaining foreign listing would also be reduced.
Multinational Companies would benefit from harmonization through:
Gaining better access to foreign investor funds.
Improved management control from harmonized internal financial communication
Facilitating of appraisal of foreign for purposes of takeovers and mergers.
Ensuring easy compliance with reporting requirements of overseas stock exchanges
Facilitating of consolidation of foreign subsidiaries and associated companies.
Achieving reduction in audit costs.
Enhancing transferability/mobility of accounting staff across national borders.
Facilitating determination of tax assessments regarding foreign income.
The adoption and implementation of IAS/IFRS may help developing countries to control activities of
foreign multinational companies in their own country, by precluding such corporations from hiving
away behind complicated foreign accounting practices.
06. HARMONIZATION OF AUDITING PRACTICES

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General Considerations
There are considerable pressures from the development partners, regulatory agencies, the
Government and other stakeholders, which warrant the accountancy profession to implement
harmonization of audit practices through implementation of the International Standards on Auditing
(ISA) and the International Audit Practice Statements (IAPS) issued by the International Auditing and
Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC).
Harmonization of audit practices would benefit large international accounting firms for dispensation of
their audit function in the conduct and reporting on audit of financial information of corporate entities.
An audit is an independent examination of the Financial Statements and other related information of
an entity, irrespective of its size or legal form, whenever such an examination is conducted with a view
to expressing and opinion thereon. The overall objective of an audit of FS is to enable the auditor to
obtain reasonable assurance that the FS are free from material misstatement, and whether the FS are
prepared in all material respects, in accordance with an applicable financial reporting framework. The
auditor has to report on the FS and communicate his true and fair view opinion on the financial
position, operational result, cash flows, equity changes, explanatory notes and other relevant
information. Audit ensures the rendition of an honest, unbiased, objective, independent expert
professional opinion on the truth and fairness of the financial information. The auditors opinion lends
credibility of the FS to various stakeholders and user groups and may be relied upon for investment
and other decisions.
Diagrammatic Representation of Audit Administration
Knowledge of Business Risk
Assessment Letter of
Engagement
Accounting System & Internal
Control

Initial Discussion
Commencement of
Audit

Planning
Controlling
Documentation

Auditing Methodology

Evidencing
Review of Financial Statements
Post Audit
Review

Completion of Audit

Submission of Audit
Report
Harmonization of FR practices refers to convergence through overcoming inconsistencies and
narrowing down Areas of differences in conducting the audit (audit methodology) and reporting the
audit of financial statements (audit report).
Audit Report

Stewardship System of Financial Reporting

Under the stewardship system of financial reporting the Shareholders, who represent the Ownership
of the company, are distinct from the Directors, who represent the Management of the company. The
shareholders appoint the Directors in the company AGM to run the company in the best interests of
the ownership. The shareholders need an honest, unbiased, objective, independent expert,
professional opinion, on the truth and fairness of the financial information presented by the directors,
along with an assessment of the performance of responsibilities entrusted to them. Management is
unlikely to render that opinion with any degree of objectivity. Hence the auditor acts as bridge
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helping to make the directors/ management accountable to the shareholders/ ownership and other
stakeholders using the financial information for decision purposes.
Accountability for Stewardship System of Financial Reporting

Directors
Auditor

Shareholders

Ownership

Significance of ISA in Audit Harmonization

Management

The ISA are issued by the IAASB of the IFAC to effect global harmonization in the generally
accepted auditing standards, for application in the conduct of and reporting on the audit of FS. The
ISA based audit lends credibility of the audited FS for credit, investment and similar decisions to
diverse stakeholders and user groups. The ISA represents formalization and codification of existing
best auditing practices (nationally and internationally), which professional members are expected to
observe in the conduct of audit and formulation of the true and fair view audit opinion.
The ISA are expected to narrow down the areas of differences and overcome inconsistencies in audit
practices worldwide. Each ISA is concerned with a specific subject matter (such as risk assessment
and internal control; audit planning; controlling; documenting; evidencing; analytical review and/or
formulating the audit opinion). The ISA are intended to overcome anomalies/deviations and effect
harmonization in audit practices in respect of the manner of conducting the audit (through application
of audit methodology/ strategy) and formulating the auditors true and fair view audit opinion. Like the
IAS/ IFRS, the ISA are issued as definitive standards, (subject to local adaptation), meant for
mandatory application, in whichever jurisdiction adopted.
Benefits of Harmonization through ISA
In order to arrive at a defensible opinion, the auditor must provide evidence of a state of the art or
first class audit. This should ensure that the audit entailed an adequate assessment of the client
audit risks and review of the internal control system; and that the audit was adequately planned,
controlled and documented at each stage of its progress, from initiation to completion, to ensure
quality assurance and provide evidence of the work done that the audit was conducted in
accordance with standardized general principles governing the audit of financial information.
Harmonization of audit practices through consistent application of ISA results in qualitative
improvement in the audit function and ensures compliance with quality assurance standards
(ISA220and ISQC1). This enhances the credibility of the audit opinion and renders the audited
financial information more acceptable for investment, credit and other stakeholder decisions globally.
Audit quality assurance and credibility of auditors opinion on financial information, through application
of relevant ISA, are crucially important for attracting foreign direct investments and capital market
development of Bangladesh.
It is envisaged that full fledged implementation of the IAS/IFRS in accounting/ financial reporting and
the ISA in the audit of FS would reflect a positive dimension towards ensuring globally standardized
harmonization. This would enhance the competitive edge of Bangladeshi companies for investment
purposes- both at home (for FDI) and abroad (for cross border listing). This would also act as a
professional deterrent to ward off the imposition of an oversight regulatory body like the FRCB.
07. HARMONIZATION OF PUBLIC SECTOR ACCOUNTING & AUDITING PRACTICES
The Office of the Comptroller and Auditor General (OCAG) is the Supreme Audit Institution (SAI) of
Bangladesh, being a constitutionally established office, independent of the Government for discharge
of its power and functions (Article 128(4)). The powers and functions of the Auditor General in relation
to keeping of accounts of the Government [S-3(1)] are incorporated through enactment of the
Comptroller and Auditor General (CAG) Additional Functions Act 1974 and CAG Amendment act

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1975. The CAGs office prepares the annual Appropriation Account of the Government, which is
submitted, to the President and laid before Parliament under Article 132 of the Constitution.
Global Scenario
The Global Financial Crisis and recent Sovereign Debt Crisis around the world, has warranted greater
emphasis on improved governmental financial reporting and increased levels of accountability and
transparency in public financial management. Many countries initially adopting cash-based accounting
have moved to sophisticated modified cash or accrual basis. A recent Report by the IPSAS Board
indicated that over 80 countries have either adopted or have processes in place to adopt IPSAS for
public sector financial management/ reporting, including several Asian countries.
The Global Financial Crisis (GFC) 2008-09 (triggered by the US sub-prime mortgage market collapse
and imposing colossal trillion dollar Government bailout packages in the developed economies),
escalated by the recent Euro zone Sovereign Debt Crisis (with consequential contraction of major
European economies), is precipitating the entire global economy into a deep recession. While
Bangladesh and the regional countries have demonstrated remarkable resilience earlier, our
Governments are now seriously concerned on safeguarding our national economies against the
repercussions of the deteriorating global recession (negative impaction on macro-economic stability
and economic growth). The prevailing global economic scenario has concurrently accentuated the
need for improved Government financial reporting, for ensuring enhanced levels transparency and
accountability, for Strengthening of Bangladesh Public Sector Accounting and Auditing.
The credit crisis has raised several public sector accounting issues. Governments have extended
credit to banks, guaranteed the liabilities of banks, purchased impaired debt instruments and in some
instances have assumed control of banks. The unique nature of the credit crisis and the
unprecedented response by Governments around the world has reinforced the importance of highquality standards for financial reporting by Governments. The credit crisis has increased the need for
accountability in the public sector and for transparency in its financial dealings and thus the
implementation of IPSAS by the economies.
Strengthening Bangladesh PSFM
The Office of CAG Bangladesh has traditionally practiced a reliable system of cash basis Government
Accounting, reportedly ensuring adequate levels of transparency and accountability. In recent years
and in line with global reforms, the OCAG has consolidated its traditional method through compliance
with the Cash Basis IPSAS (Financial Reporting under the Cash Basis of Accounting) for the countrys
Public Sector Accounting and Auditing. Given adequate resources and technical support, the OCAG is
prepared to implement Accrual Accounting on a pilot basis and then move onto accrual based IPSAS.
The OCAG Bangladesh is also reportedly compliant with the INTOSAI Auditing Standards. The OCAG
has also committed to implement IFAC endorsed ISSAIs within a feasibly practicable timeframe for
audit of Government/ public sector institutions.
Public financial management is an integral component of the overall management process in the
country. It plays a significant role in the economic, efficient and effective use of public resources.
Therefore, high quality public sector financial management, incorporating high quality accounting and
auditing practices is indispensable for national economic growth. Public Sector Accounting and
Auditing are necessary for proper procurement of Government resources; supply of goods and
services through formation of budgets; recording and reporting of assets and liabilities; and keeping
proper records for preparation of accounts and presentation of financial information for decision
making purposes.
The GOB must ensure that public funds are expended in the optimum manner, ensuring economy,
efficiency, and effectiveness and reflecting accountability of expenditure decisions and transparency
of information. To ensure proper financial management, there must be an adequate system of
budgeting, accounting and financial reporting, internal control and Auditing of the Government
Ministries & Divisions, LGIs, Sector Corporations, Missions, SOEs and SOBs. Accountability refers to
stewardship of resources and individuals entrusted for their utilization and management. The essential
components of accountability include Accountability for financial resources; faithful compliance and
adherence to legal requirements and administrative policies; efficiency and economy in operation;
results of government programs, reflecting their accomplishments and effectiveness.
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There are two technical assistance projects presently under implementation, which are aimed at
Strengthening PSFM through capacity building and institutional development of the OCAG. This two
projects are the CIDA funded $10 million project on Strengthening Comptrollership and Oversight of
Public Expenditure (SCOPE) and the WB led multi donor funded $93 million projects on
Strengthening Public Expenditure Management Programs (SPEMP B)
PPP between OCAG and ICAB for Improved Audit Quality Assurance
Under a WB funded project captioned Promoting Public Private Partnership for Improved Audit
Quality Assurance the OCAG and ICAB executed an Agreement/ MoU aimed at developing a
partnership framework enabling the OCAG and the ICAB to collaborate synergically for strengthening
their capacity to support effective public and private sector audits. The ICAB will act as the Project
Consultant, entailing a contracted grant amount US$ 170K approx. with one year timeframe from
beginning July 2012 to end June 2013.
The project outcomes are envisaged to:
bridge knowledge gaps between public and private sector audit professionals,
Implement a Partnership Framework between OCAG and ICAB.
Implement and improve the level of compliance with quality control standards
ICAB is imparting training programs for OCAG officials will cover the following areas:
Double entry accounting system.
Accounting principles and standards including IAS & IFRS and IPSAS.
Methodology for implementation of accrual basis of accounting in public sector entities which
are subject to independent audit by professional firms
The training programs will provide knowledge sharing on IAS/IFRS & IPSAS and ISA & ISSAIs
between the OCAG and ICAB
Training of NBR & BB Officials
Under technical assistance project funded by WB and DFID ICAB is presently imparting training to the
NBR officials on Accounting for tax purposes and to BB officials relevant IAS/IFRS.
Harmonization of Public Sector Accounting/ Financial Reporting Practices- Role of IPSAS
Government Accounts are kept on Cash basis by single entry method, as distinct from commercial
accounts prepared under Accrual accounting double entry system (involving preparation of
Manufacturing, Trading and Profit and Loss Accounts and a Balance Sheet for the purpose of
determining the profitability and financial position of an entity at a particular date.) However, the CAG
Public Sector Accounts are now purportedly prepared as compliant with Cash Basis IPSAS (Financial
Reporting under the Cash Basis of Accounting), showing detailed particulars of cash flow movements.
Accounts compilation process in the CGA has been recently computerized and the Account Code
updated accordingly. Government accounts are maintained for accountability of the Government and
ensuring transparency and good governance of the country, and not for making profit. In the long term
Harmonization of PSA/FR may be achieved through application of IPSAS (Issued by the IPSASB of
IFAC) /IFRS (Issued by IASB)
Harmonization of Public Sector Financial Auditing Practices Role of ISSAIs
The CAG/Auditor General is the head of the Government Audit Department. The OCAG has under
him ten Directorates of Audit including the Directorate of Commercial Audit, Directorate of Works
Audit, Directorate of Civil Audit, Directorate of Mission Audit, Directorate of Defense Audit, Directorate
of Posts, Telegraphs and Telephone Audit, Directorate of Railway Audit, Directorate of Foreign Aided
Projects Audit and the Financial Management Academy
In addition to CAG (DG Commercial Audit), an external, independent audit by CA Firms is conducted
annually in respect of autonomous bodies, sector corporations, SOEs and SOBs. Two independent
Firms of Joint Auditors are appointed to undertake the audit of such public sector entities (just like the
audit of private sector entities). The Auditors (Chartered Accountants Firms) submit their usual Audit
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Report as well as a Confidential Report addressed to the Secretary of the concerned Ministry (SOBsFinance). These reports are not addressed to the stakeholders as is the practice in the case of private
sector audits. Government Ministries, Divisions, Departments, Subordinate Government offices, and
Local Government Institutions are completely outside the purview of any kind of external professional
audit by independent firms of Chartered Accountants. In the long term Harmonization of PSA/FR may
be achieved through application of ISSAIs (issued by INTOSAI) and ISA (Issued by IAASB of IFAC).
While ISSAIs relate to Public Sector Financial Auditing, the OCAG has developed / are developing
their own Standards and Guidelines for Performance Audit, Environment Audit, Forensic Audit under
donor aided projects.
08. REGIONAL HARMONIZATION OF ACCOUNTING/FINANCIAL REPORTING AND AUDIT
PRACTICES ROLE OF SAFA/CAPA
The South Asian Federation of Accountants (SAFA)
The SAFA was formed in 1984 (a year before SAARC), to serve, uphold and enhance the image and
credibility of the regional accountancy profession. SAFA is recognized as an apex body of the
SAARC with attributable responsibilities and privileges. The SAFA Mission states that SAFA, as a
forum of professional accountancy bodies, is committed to positioning, maintaining and developing
the accountancy profession in the SAARC region, and ensuring its continued eminence in the world of
accountancy in the public interest and towards broad economic development of the region. SAFAs
Objective aims at strengthening the accountancy profession to serve the public interest and contribute
towards the broad economic development of the SAARC region.
The SAFA has been proactively instrumental in encouraging regional harmonization of financial
reporting and auditing practices. It is an active participant on major professional issues affecting the
SAARC countries. It was involved in formulating a fundamental strategy document for SAARCProfessional Services under the WTO/GATS, concerned with Mutual recognition of Accountancy
Qualifications and Cross Border Practice of Accountancy. SAFA has delivered a substantial number of
Policy Instruments (on Taxation /Capital Market Development/Corporate Governance Practices, etc) to
SAARC and sovereign Governments.
SAFA BPA Awards
A significant dimension towards regional harmonization of financial reporting and auditing practices is
reflected in the SAFA Best Presented Accounts Awards and Corporate Governance Disclosures Award
Competition, being organized by SAFA annually since 1997- both for the Financial sector and Nonfinancial sector listed companies, NGO/MFIs and public sector entities. The SAFA Awards are selected
through a transparent marking system, based on predetermined, published evaluation criteria.
The Awards represent SAFAs recognition (accolades) for transparent, high quality financial reporting
and presentation of meaningful disclosures, catering to the needs of diverse stakeholder groups. The
awards competition inspires harmonization of best national, regional and global financial reporting,
corporate governance and audit practices reflecting adherence to legal, regulatory requirements and
compliance with the accounting/ reporting standards, ethical codes and practices. The Awards
competition serves as a catalyst for transparent financial reporting and enhancing the level of
harmonization in accounting and auditing practices through adequate, appropriate application of the
Standards - reflecting greater accountability of corporate management and credible transparency
of published, financial information. This ensures rendition of credible financial reports, enabling the
corporate environment to be more congenial and competitive to local, regional and foreign direct
investment, capital market development, industrialization and exports and thereby contribute towards
the economic growth of the SAARC region.
Confederation of Asian & Pacific Accountants (CAPA)
The Mission of CAPA is to develop, coordinate, and advance the accounting profession in the region.
CAPAs Vision is to ensure a relevant and respected accounting profession, trusted and valued by
governments and business, and recognized fro contributing to the development of sustainable
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financial markets and economies. It is envisioned as an inspirational leader for the accounting
profession in the region. CAPA aims at providing leadership in development, enhancement and
coordination of the accountancy profession in the Asia-Pacific region to enable the profession to
provide services of consistently high quality in the public interest. CAPA fosters a strong and cohesive
profession by providing leadership on emerging issues, coordinating with IFAC, other regional and
intra-regional organisations, member bodies and associates to achieve appropriate strategic
objectives and promote sustainable institutions. CAPA is the largest regional accountancy group,
having 31 members in 24 countries.
CAPA has a firm commitment for full fledged implementation of harmonization of Financial Reporting
& Audit Practices both in the private & public sector through application of IFRS & ISA and IPSAS &
ISSAIs respectively. CAPAs Policy Statement fully supports the convergence towards IPSAS by all
member countries in the Asia Pacific region to assist in the improvement of public sector financial
management. From a public interest perspective, effective monitoring of financial performance within
public sector entities is critical. CAPA supports accrual-based financial reporting as the only means to
provide necessary high quality, transparent reporting of public sector activities and position.
09. INSTITUTIONAL LEGAL REGULATORY FRAMEWORKS IN BANGLADESH
The legal responsibility for the preparation of financial reports is that of company management. The
auditors responsibility is to express an honest objective independent, expert professional opinion on
the truth and fairness of the financial information based on the audit performance. The legal,
Regulatory Framework for Financial Reporting and Audit of Corporate Entities in Bangladesh are
governed by the Companies Act 1994, Securities Exchange Rules 1987 and other statutes, like Bank
Company Act 1991. The professional responsibilities and conduct of Chartered Accountants are
governed by the Bangladesh Chartered Accountants Bye-laws 1973. The enforceability status for
compliance with the accounting and auditing standards, adopted by the ICAB, emanates from these
sources being legally mandatory (force of Law) or professionally mandatory (Bye-laws requirement).
The Companies Act 1994 does not contain any provision for mandatory observance of the adopted
IAS and ISA in practice. The Chartered Accountants Bye-laws 1973 have also not been amended to
require mandatory compliance of the adopted standards by ICAB members. Hence in the absence of
any broad statutory or professional requirements, the implementation of the adopted IAS/IFRS and
ISA are regarded as indicative of good, standard accounting and auditing practices. Despite adoption
of IAS and ISA by ICAB, there was no legal enforceability of these standards till end of 1997.
Implementation of the adopted standards was neither backed by Law nor professionally mandatory
(as in India, Pakistan, Nepal and Sri Lanka).
The SER 1987 (Rule 12, Sub-rules 2&3) were amended in 1997, whereby all issuers/ listed entities
are required to comply mandatorily with the requirements of all applicable IAS/IFRS, (as adopted by
ICAB), in the preparation and presentation of their FS; and all audit practices are required to ensure
compliance with relevant ISA, (as adopted by the ICAB), in the conduct of and reporting on the audit
of FS of listed entities. Hence the IAS and ISA duly adopted by the ICAB as the BAS and BSA, now
have a legally enforceable mandatory implementation status for all listed companies in Bangladesh.
The ICAB Council intends to amend its Bye-laws in the immediate foreseeable future to mandate
professional enforceability of BAS and BSA (adopted IAS and ISA) among its members irrespective
of whether engaged in the profession, service, business, and academia or otherwise. This a positive
dimension towards harmonization of financial reporting and audit practices in Bangladesh.
10. ADOPTION STATUS OF IAS/IFRS AND ISA/IAPS IN BANGLADESH
Adoption of IAS/IFRS and ISA/IAPS in Bangladesh
The ICAB is the sole custodian, professional body in Bangladesh concerned with the adoption and
issuance of IAS/IFRS and ISA as the Bangladesh Accounting Standards (BAS) and the Bangladesh
Standards on Auditing (BSA) respectively. With the aim of overcoming divergences and harmonizing
accounting and auditing practices, so as to enhance comparability and credibility of audited financial
information, the ICAB has been undertaking the adoption of IAS/IFRS and ISA for application to and
18 | P a g e

audit of Financial Statements in Bangladesh. The Council of the ICAB, through its Technical and
Research Committee, exercises stringent vetting procedures, in its IAS/ISA adoption process,
particularly to overcome any inconsistencies and ensure conformity with local laws and regulations.
In the adoption process, an IAS/IFRS or ISA is first considered by the Technical and Research
Committee (TRC) of the Council ICAB. Thereafter it is critically reviewed by a nominated subcommittee comprising of one or two members who would undertake a stringent vetting exercise to
ensure elimination of any anomalies or inconsistencies and ensure conformity with the requirement of
the existing legal regulatory requirements. Based on the recommendations of the Sub-committee and
taking into consideration necessary modifications, the TRC then formulates its recommendation to the
Council for adoption. Once approved by the Council, it becomes a definitively adopted Bangladesh
Financial Reporting Standards (BFRS) or Bangladesh Standards on Auditing (BSA).
As indicated in Appendix I, the IASC had issued 41 IAS of which 29 are presently applicable (after
necessary reformatting/revising/supersession and withdrawal). With the exception of IAS 29 on
Hyperinflation, the ICAB has adopted all the other 28 IAS extant as BAS. ICAB has adopted 12 out of
13 IFRS issued to date by IASB as BFRS. It has also adopted IFRS for SMEs applicable for FS
beginning on or after 1s Jan 2013. However, ICAB has not yet started adoption of the International
Financial Reporting Interpretations (IFRICs) issued by IASB. It has also not commenced adoption of
the International Public Sector Accounting Standards (IPSAS) issued by the PSC of the IFAC.
As indicated in Appendix II, the ICAB has adopted all the currently applicable 36 ISA and 8 IAPS issued
by the IAPC/IAASB of the IFAC as BSA and BAPS respectively. It has also adopted 2 ISRE, 2 ISAE and
2 ISRS issued by the IAFAC. It has also simultaneously adopted the IASB Framework for IAS/IFRS and
the IFAC Framework for ISA/IAPS as Bangladesh Frameworks, subject to necessary modifications
where necessary. The ICAB has also adopted the IFAC Code of Ethics and ISQC 1 as Bangladesh
Code of Ethics and BSQC 1 respectively, subject to necessary modifications as deemed appropriate.
It is happy to note that ICAB is now fully compliant with the IFAC SMOs on adoption of IFRS and ISA,
Professional Ethics and Quality Assurance. A summary of the ICAB adoption status for IAS/IFRS as
BAS/BFRS and ISA/IAPS as BSA/BAPS, together with other adopted standards and statements, is
provided in the annexed Appendices.
Adoption of IPSAS and ISSAIs
The Public Sectors Accounting Standards (IPSAS) and Auditing Standards (ISSAIs) issued by the
IPSAS B of IFAC and INTOSAI are also annexed in appendix III and IV respectively. These Standards
have not been considered for adoption by the ICAB. The OCAG has adopted Cash Basis IPSAS but
has refrained from adopting Accrual Basis IPSAS (1-32). The OCAG is also committed to implement
the ISSAIs in public sector audits.
Legal / Professional Status of Adopted Standards in Bangladesh
The Chartered Accountants Bye-laws 1973 do not contain any provision for mandatory compliance of
the adopted standards by ICAB members. Hence, in the absence of any broad statutory or
professional requirement, the adopted IAS/IFRS and the ISA are enforced as indicative of good,
standard accounting and auditing practice. The Council ICAB has prioritized necessary amendment of
its Bye-laws in the immediate foreseeable future to mandate professional enforceability of
BAS/BFRS and BSA among all its members, regardless of whether engaged in practice, service,
business or otherwise. This reflects a positive dimension towards harmonization of financial reporting
and audit practices in Bangladesh.
At present, compliance with the IAS/IFRS is legally mandatory only for listed companies, as required
be SER 1987 (Rule 12, sub-rule 2). Similarly, compliance with the ISA is legally mandatory only for
Auditors of listed entities, as required by SER 1987 (Rule 12 sub-rule 3). There is no specific, broad
requirement for observance of these standards in the Companies Act or any other applicable statute.
Hence, in a non-mandatory situation, compliance with the BAS/BFRS and BSA is regarded as
indicative of good, standard accounting/financial reporting and audit practices respectively.
Adoptability of IFRS in Bangladesh

19 | P a g e

IFRS 1: First-time Adoption of International Financial Reporting Standards

IFRS 1 was issued in June 2003 and applies to an entity whose first IFRS financial statements are for
a period beginning on or after 1 January 2004. It also applies to interim financial reports. A first-time
adopter is an entity that, for the first time, makes an explicit and unreserved statement that its general
purpose FS comply with IFRS. If a set of IFRS was given to an external party in preceding year, then
the entity will already be considered to be on IFRS and IFRS 1 does not apply. Since the ICAB has
been adopting the IAS for over two decades in the form of national standards (BAS), Bangladeshi
entities remained relatively unaffected through First Time Adoption of IFRS. The ICAB will continue
adopting the IFRS for relevant application in the FS of reporting entities.
IFRS for SMEs - Adopted, Effective for FS beginning on or after 1 January 2013.
11. CHALLENGES / LIMITATIONS OF HARMONIZATION IN BANGLADESH
Limitations to Harmonization
Apparently there are barriers to Harmonization which hinder standardization of accounting and
financial reporting practices and often act as major impediments to the globalization process. These
problems emanate essentially from differences in financial reporting purposes (for tax assessment in
some countries and for investment decisions in others), legal systems discouraging the development
of certain accounting practices and restricting the options available; relative importance of corporate
user groups; relative needs of developing countries regarding the adoption and issuance of basic
standards or principles; degree of nationalism, socio-cultural economic development of countries, and
status of professional accountancy bodies or institutes which would influence better standards for
greater harmonization.
The major Limitations to Harmonization Standardization may be summarized as follows:

The application of IAS/IFRS does not necessarily fulfill the level of public expectations. The first
rule for company accounts is construed as 'caveat lector'- "let the reader take care". It is often
reckoned that the application of IAS is a promise that the profession cannot deliver satisfactorily.
The existence of standards tends to raise expectations about the precision and comparability of
company accounts above what is sometimes practicably feasible.

Lack of knowledgeability and familiarization with Standards (IAS/IFRS) on the part of Preparers
and Auditors of Financial Statements to ensure proper application of the Standards in the
presentation and audit of financial information. This professional constraint is a major `stumbling
block' which often impedes the practical crystallization of benefits from implementation of
standards and may even lead to misleading views being presented by audited financial
information.

Implementation of standards entails incremental costs to reporting entities in ensuring compliance

with IAS through employment of appropriately qualified personnel for preparation of Financial
Statements. Audit fees would also be increased for ensuring such compliance, which is often
resented and even discontent for application of standards.

Standards are often inflexible and may tend to stifle independent judgment and prohibit
indigenous accounting in dealing conditions which may be peculiar to a particular entity This may
have an adverse effect on professional development, restricting accountants and auditors to
checking compliance with rules and disclosures.

The extent of disclosure, often in the notes, has increased greatly over the last couple of decades.
Measurement aspects covered by accounting standards of assets & liabilities or of profit & loss
are often complex and may be controversial, thus affecting reported results.

Corporate FR are often non-compliant with the mandatory disclosure requirements as per Acts,
rules & regulations and applicable IAS/IFRS by listed entities are not often reported by concerned
auditors.

Decision relevance of published annual reports for investment, credit, lending, and other
economic decisions is often compromised by substantial non-compliance by the listed companies.

There is often substantial variability in disclosure levels across various parts of annual reports.

20 | P a g e

Inadequate evaluation and monitoring of corporate report by regulatory agencies (SEC) and quasi
regulator (Stock Exchanges)

A substantial portion of the concerned countrys economy is outside the purview of any kind of
formalized financial reporting structure let alone application of IAS/IFRS. Moreover, the dominant
public sectors have hitherto been reporting traditionally outside the ambit of any IAS/IFRS and are
still resilient towards application of standards.

Under the prevailing regulatory frameworks, there is a lack of appropriate monitoring for
implementation of the adopted standards. Non-compliance with the requirements of a particular
standard is often not reported and disciplinary action is seldom instituted.

Despite a particular standard being meticulously prepared and vetted, it may still be fraught with
subjectivity and thereby not serve the intended purpose.

By any standard the audit fees in Bangladesh are very low compared to the responsibilities
involved and the time and efforts required to do a proper audit job. This obviously affects the
approach and work of the Auditor whose professional is also his source of income.

There is often contradiction between financial reporting and tax provisions and practices in a
number of cases the legal requirements given in the Companies Act/ Tax law are in contradiction
with those of the professional requirements.

The impact of corruption acts as a deterrent to transparent financial reporting. Since companies
may operate in a corrupt environment, sometimes substantial expenditures are incurred in unofficial
payments necessary to facilitate/protect their business interests.

Lack of resources of ICAB to enable and to monitor effective HFR&AP, ensuring Quality Assurance.

Despite the apparent constraints, there are many positive dimensions for effecting Harmonization of
Financial Reporting and Audit Practices in Bangladesh.
12. OPPORTUNITIES / PROSPECTS OF HARMONIZATION IN BANGLADESH
Prospects for Harmonization

There has been significant transformation in corporate culture and financial reporting practices in
the region in recent years.

The benefits of proper management accountability and transparency of financial information along
with the need for corporate governance have begun to percolate progressively into our
corporate culture. This phenomenon is bound to have a positive impact on harmonization of
financial reporting practices.

Professional Business Managers and Accountants are changing their attitudes positively towards
implementation of relevant standards and practices, by Repositioning themselves for meeting the
Challenges of the new Millennium competently and utilizing the opportunities beneficially.

Recent changes in the legal regulatory framework now require mandatory compliance with all
ICAB adopted IAS/IFRS by listed entities. It is expected that certain non-limited companies
(achieving threshold limits of turnover, etc.) may soon be brought under the ambit of IAS
application through changes in Company Law in the foreseeable future, thereby effecting greater
harmonization in financial reporting.

There has been positive support for implementation of IAS/IFRS from concerned agencies like the
BOI, the SEC, the stock exchange and chamber bodies in addition to external pressures from
development partners and donor agencies like the WB.

Despite political differences, there has been synthesized consensus between the Government
and Opposition on such policy issues as adoption of market economy, privatization of SOE,
liberalization and participation in the globalization process through the WTO- which reflects a
positive dimension towards Harmonization.

21 | P a g e

Mandatory Application of IAS 30 by listed Bank companies have greatly restored financial
discipline in the banking sector, helping to overcome loan default and enhancing the transparency
of financial information and accountability of management, thereby boosting depositor and
investor confidence.

The multinational companies (foreign investors) operating in the region have commenced a
business dialogue with the concerned government agencies for standardization of financial
reporting practices through application of IAS/IFRS.

The Professional Institutes of SAARC are expected to amend the Bye-laws for effecting
mandatory compliance of the adopted IAS/IFRS by its members irrespective of whether
engaged in profession, service or otherwise

There has been significant strengthening of Corporate Governance practices particularly in the
banking sector including such matters as restriction on Board composition and mandatory credit
rating requirements

Corporate Governance Code/ Guidelines, formulated by the SEC and BB (regulatory frameworks)
are being mandatorily implemented by all listed entities since 2006.

The greatly broadened mandate for credit rating by regulatory agencies and quasi regulatorstogether with the implementation of Basel II in the banking sector has intensified the necessity for
ensuring adequate harmonization of financial reporting and audit practices in Bangladesh.

The ICAB organized Best Published Accounts and Reports Awards and the SAFA Best Presented
Accounts Awards and Corporate Governance Awards annual competition serves as a catalyst
for transparent financial reporting through proper application of IAS/IFRS and ISA. This impacts a
positive dimension towards Harmonization of FR and AP in this region.

The WB funded Twinning project has resulted in upgrading the ICAB curriculum, examinations,
UK training on IAS/IFRS for ICAB members (ToT), quality assurance, professional ethics and
CPD programs. The project culminated with the signing of a MoU, providing limited recognition of
each others professional qualifications.

The ICAB has become fully compliant with relevant IFAC Statements of Membership Obligations
(SMOs), including the adoption of all applicable IAS/IFRS, the ISA, IES, Code of Ethics and
Quality Assurance and CPD (ICAB has not adopted the IPSAS).This imparts a multi-faceted,
positive dimension towards full fledged implementation of the IAS/IFRS and the ISA, thereby
achieving Harmonization of Financial Reporting and Audit Practices in Bangladesh.

13. POLICY ISSUES AND RECOMMENDATIONS

An effective prescription needs sound diagnosis. Policy Issues and Recommendations regarding the
globalized HFR&AP should be adequately broad based and well addressed to cover the entire
spectrum of the professional and corporate scenario in the country. The adoption and implementation
of IAS/IFRS as a vehicle for financial reporting is progressively expanding with a wider focus on
transparency and a variety of disclosures. The Government, business community, regulatory agencies
and the regional professional bodies, are expected to play a more proactive role in this respect.
Keeping the above background and the Paper coverage in perspective, may I propose that the
learned participants present in this forum and readers of this Paper, (particularly professional
members), give careful consideration of the following and take necessary initiatives in their respective
capacities to improve levels of HFR&AP in FR and AP through comprehensive implementation of the
IAS/IFRS and the ISA. This would also impact positively on enhancing the professional image of the
accounting fraternity and lend credibility to the financial reporting and audit functions in Bangladesh.
Based on the above, the following Policy Issues and Recommendations may be formulated:

Bangladesh being a low income developing country should ensure optimum utilization of limited
resources for progressive economic growth.

22 | P a g e

The national economy should be dynamic, sustainable growth oriented and free from bureaucratic
controls. Macroeconomic fundamentals, such as low rate of inflation and current account deficit,
stable currency, comfortable foreign exchange reserves, increasing remittances, exchange
convertibility and export growth must be ensured.

Government must exercise strong political will and conducive civil administration commitment
(mindset) and a firm sense of determination to forge ahead with practical implementation of the
Reforms agenda for implementation of desired changes in the economy.

Governments must take into cognizance the value addition rendered by accounting professionals
and provide them with due recognition thereof.

The Government and public must acknowledge that in this era of globalization, Accountancy has
emerged as the unified language of business, enjoying commonality world-wide and that the
IAS/IFRS impacts a positive dimension towards the global harmonization process.

The legal and regulatory environment (particularly Corporate and Securities Laws) should be
congenial to promote business growth in Bangladesh. The concerned Acts and Regulations
should be duly amended to require all listed, non-listed public and tax holidays companies to
comply with should be modified in the foreseeable future to bring certain private limited
companies, enjoying distinctly identified thresholds under the ambit of IAS/ IFRS compliance
and ISA by auditors thereof.

Corporate Governance practices should be strengthened through enactments and monitoring by

the regulatory agencies like the SEC, BB and Insurance department.

A Government Task Force may constituted comprising of members from the concerned
Government agencies and the corporate sector, the accountancy profession and regulatory
bodies, to propose and effect necessary legislative amendments for harmonization of legal, fiscal
and financial reporting practices.

As knowledge has become the cutting edge, Professionals of this Millennium would require a
multi-dimensional, multidisciplinary knowledgeability, training and expertise to be able to
discharge their professional responsibilities adequately and effectively in an independent and
ethically conscious manner. Professional bodies should work coherently in devising relevant
strategies to meet those emerging challenges competently and utilize the opportunities
beneficially for the greater professional, stakeholder and public interest. They must 'reorient'
themselves adequately to change their image from that of purely technically oriented know how
persons to that of real value for services rendered professionals engaged in a long term
strategic alliance with the clientele, business community and the Government authorities.

Professionals should be dynamically involved as relevant experts in formulating national

economic policies and instruments pertaining to such areas as legislative framework changes,
privatization of SOEs, banking sector and financial reforms, capital market development, etc.

The concerned monitoring/regulatory agencies should be adequately strengthened through

engagement of qualified competent professionals to ensure appropriate compliance and
monitoring of the implementation of adopted IAS/IFRS for financial reporting and corporate
governance practices and the ISA for audit purposes.

The private sector (as the engine of growth) as well as the formidable public sector in the region
should engage more qualified accountancy professionals for enabling competent preparation and
presentation of FS aimed at ensuring necessary harmonization in reporting practices.

The IFRS adoption methodology applied by any one regional Institute may be replicated and
scaled up by other member bodies with suitable, local adaptation. This would ensure harmonized
adoption of IFRS throughout the region and thereby enhance the regional professional image.

SAFA/CAPA may be used as a common platform for ensuring standardized regional

harmonization in the development, adoption and issuance of uniform accounting and financial
reporting standards throughout the region. They should consider establishing their own Technical
Directorate for conducting common CPD programs and fostering harmonization in line with global
financial reporting and audit practices.

23 | P a g e

The audit fees should also be appropriately increased significantly to adequately compensate for
the professional time, expertise and responsibilities involved. This would also impact on the
quality of financial reporting and audit practices.

The regional bodies should constantly educate and develop awareness among their members (as
well as non-members engaged as preparers of financial statements of reporting entities) for easy
understanding, interpretation and application of the adopted IAS/IFRS and ISA through relevant
publications and regular holding of conferences, seminars and workshops.

The regional Institutes should immediately amend their Bye-laws, to ensure mandatory
professional observance of the adopted Standards by all its members irrespective of whether
engaged in practice, service or business.

Both the Regulators and the Profession should play an active role in ensuring quality assurance
through adequate monitoring and ensuring effective compliance of the provisions of law, financial
reporting and auditing standards. Punitive actions may be taken against defaulters. Awards may
be given to Best Published Corporate Reports. Appropriate vigilant measures should be enforced
by Regulators/ Profession for non-compliance of IAS/IFRS and ISA by listed entities and auditors
thereof respectively.

Government should introduce a legal and regulatory framework prohibiting corrupt practices,
dealing firmly with those who commit them, and protecting those who blow the whistle from the
dangers of retaliatory actions. This is bound to improve business and professional ethics as well
strengthen corporate governance practices in Bangladesh and impact on enhancing the regional
professional image.

Professional accountancy bodies like the ICAB should organize seminars and conferences on
IAS/IFRS and ISA on a regular basis, for developing user (market) awareness and familiarization
with the practical implementation aspects of these highly conceptualized standards. This will
impact a positive dimension towards developing relevant professional expertise and contribute
towards the Harmonization of Financial Reporting and Audit Practices.

14. THE WAY FORWARD

The Way Forward basically entails formulation and implementation of Action Plans & Strategies,
having a clear sense of Direction and indicating Responsibility and Timeframe ensuring appropriate
levels of HFR&AP for corporate reporting and independent audit in line with best global practices.
ICAB as the sole professional regulatory body and custodian of the IAS/IFRS and ISA/IAPS in
Bangladesh should play a proactive role in promoting such Harmonization. It would thereby act as an
effective catalyst for good corporate governance and increased levels of transparency in financial
reporting and credibility of auditing practice in Bangladesh.
ICAB should :

take initiatives for development of Implementation Guidelines for IAS/IFRS and ISA aimed at
Harmonization of Financial Reporting and Audit Practices.

consider developing guidelines for implementation of both Sustainability and Integrated

Reporting in the corporate and financial sectors

catalyze positive steps for Harmonization of different reporting regimes for : Listed & Public
Companies/ Private Companies / SMEs /SOEs / NGOs&MFIs/ Co-operatives/other entities.

ensure adequate timely implementation of the WB funded project with OCAG on 'Public
Private Partnership for Improved Audit Quality Assurance.

Strengthen the capacity and functioning of its TRC and QAB of the Council.

strengthen its professional learning partnership with ICAEW.

continue relevant training & knowledge sharing with OCAG, BB, NBR, Govt. Ministries and
other concerned agencies.

24 | P a g e

ensure adequate, appropriate implementation of its Strategic Plan 2007-14.

consider finalizing its Council Reforms Re. Induction of external non-elected Councilors (10)
from top officials of Govt. Ministries, Regulators and other agencies.

adopt effective measures on a top priority basis, to prevent imposition of a superimposed,

redundant regulatory oversight body like the FRC B through enactment of the FRA.

15. CONCLUSION / EPILOGUE

Conclusion
Admittedly, the Adoptability of IFRS, or for that matter the ISA, for Harmonization of Financial
Reporting and Audit Practices (HFR&AP), may not be a "panacea" for overcoming all economic ills
prevailing in the financial reporting and auditing systems, yet it would be a pragmatic step towards
attempting to restore financial discipline, through more objective disclosure of information and more
credible reporting. The essential purpose for standardization would be to set the basic foundations of
sound financial reporting, corporate governance and auditing practices. Application of the Standards
would positively help achieve the qualitative characteristics that are necessary to reflect a set of
globally comparable "true and fair view" credible financial statements of corporate entities.
The objective of Financial Statements (FS) is to provide information about an entity that is useful to a
wide range of users in making economic decisions. The users of FS need adequately understandable,
relevant, reliable and comparable information on a timely basis to assist them in evaluating the
financial position, operational performance and cash flows of entities necessary for decision making
purposes. The responsibility for preparation of FS and for adequate disclosures therein is that of the
company management. The auditors responsibility is to form and express an independent opinion on
the Financial Statements, based on the audit. Implementation of the IFRS for harmonization purposes
would provide definitive guidance to management with regard to preparation of FS and to independent
auditors with regard to audit of FS of entities. The harmonized financial reporting and auditing
practices will, over the years, have significant impact on the transparency of the corporate sector.
Consequently, the usefulness of FS to investors and other user groups will be enhanced throughout
the corporate sector, particularly for listed securities as a means of attracting FDI and promoting
investment in the economy.
It is apparent that the Government must legislate, the Business and Professions must participate, and
there must be public support for promoting HFR&AP. The Government should foster a strong
cohesive business community and accounting profession by encouraging leadership on emerging
issues (like CG, CSR, Sustainability and Integrated Reporting Practices) and coordination with
regional and international professional bodies for achieving mutual objectives of Global HFR&AP.
Hence IFRS harmonization would reflect greater "accountability" of corporate management and
"transparency of published financial information. This would make the business and professional
environment more competitive and congenial to foreign and local investment thereby contributing
towards economic development of Bangladesh. This would thus result in Enhancing the Professional
Image through meeting the Challenges and utilizing the Opportunities for the Region.
Epilogue
Time has now come for appropriate authorities to take cognizance of the significance of
Harmonization of Financial Reporting and Audit Practices both in the private and public sectors
through practical adoptability and implementation of the IAS/IFRS and the IPSAS, to ensure adequate
levels of governance, financial discipline, transparency and credibility of reported financial information.
A robust burgeoning professional community ,financial and corporate sector are not necessary for
their own sake. Harmonization of financial reporting, corporate governance and audit practices, is
indeed necessary as a corporate professional engine to propel the requisite level of economic growth
for the regional countries. May we accentuate on that, by resolving here, at this appropriate forum,
that the Government, Business and Profession must work together coherently, by pooling their
resources, sharing each other's experiences, in responding to the emerging Challenges and
Opportunities of global competitive business and profession - as a means of ensuring the well-being
25 | P a g e

and emancipation of our people and thereby contribute towards the socio-economic upliftment,
leading to overall development, peace progress and prosperity of Bangladesh and the region. We
must, however, keep pace with the effluxion of time as otherwise we would be answerable to posterity
for our actions and attitudes. May ALLAH's Providence be our Guide!

-----------------------------------------------------

APENDICES
Appendix I (A) - Adoption Status of International Accounting Standards (IAS) by
ICAB as Bangladesh Accounting Standards (BAS)
IAS/
BAS

1
2
7
8
10
11
12
16
17
18
19
20
21
23
24
26
27
28
29
31
32
33
34
36
37
38
39
40
41
26 | P a g e

Title of Adopted IAS as BAS

Presentation of Financial Statements

Inventories
Statement of Cash Flows
Accounting Policies, Changes in Accounting Estimates and
Errors
Events After the Reporting Period
Construction Contracts
Income Taxes
Property, Plant and Equipment
Leases
Revenue
Employee Benefits
Accounting for Government Grants and Disclosure of
Govt Assc
The Effects of Changes in Foreign Exchange Rates
Borrowing Costs
Related Party Disclosures
Accounting and Reporting by Retirement Benefit Plans
Consolidated and Separate Financial Statements
Investments in Associates
Financial Reporting in Hyperinflationary Economics
Interests in Joint Ventures
Financial Instruments: Presentation
Earnings per Share
Interim Financial Reporting
Impairment of Assets
Provisions, Contingent Liabilities and Contingent Assets
Intangible Assets
Financial Instruments: Recognition and Measurement
Investment Property
Agriculture

Effective DateApplicable on or
after

1
1
1
1

Jan
Jan
Jan
Jan

2007
2007
1999
2007

1 Jan 1999
1 Jan 1999
1 Jan 1999
1 Jan 2007
1 Jan 2007
1 Jan 2007
1 Jan 2004
1 Jan 1999
1 Jan 2007
1 Jan 2010
1 Jan 2007
1 Jan 2007
1 Jan 2010
1 Jan 2007
Not adopted
1 Jan 2007
1 Jan 2010
1 Jan 2007
1 Jan 1999
1 Jan 2005
1 Jan 2007
1 Jan 2005
1 Jan 2010
1 Jan 2007
1 Jan 2007

Appendix I (B) - Adoption Status of International Financial Reporting Standards

(IFRS) by ICAB as Bangladesh Financial Reporting Standards (BFRS)
SL
#

IFRS /
BFRS

BFRS
BFRS
BFRS
BFRS
BFRS

1.
2.
3.
4.
5.

Title of Adopted IFRS as BFRS

1
2
3
4
5

First-time Adoption of IFRS

Share-based Payment
Business Combinations
Insurance Contracts
Non-current Assets Held for Sale and Discontinued
Operations
Exploration & evaluation of Mineral Resources
Financial Instruments: Disclosures
Operating Segments
Financial Instruments
Consolidated Financial Statements

BFRS 6
BFRS 7
BFRS 8
IFRS 9
BFRS
10
11.
BFRS
Joint Arrangements
11
12.
BFRS
Disclosure of Interests in Other Entities
12
13.
BFRS
Fair Value Measurement
13
IFRS for
BFRS for SMEs (Small Medium Size Entities)
SMEs
Appendix- II (A) - Adoption Status of International Standards on
by ICAB as Bangladesh Standards on Auditing (BSA)
6.
7.
8.
9.
10.

Sl. #

Effective
DateApplicable on
or after

1
1
1
1
1

Jan
Jan
Jan
Jan
Jan

2009
2007
2010
2010
2007

1 Jan 2007
1 Jan 2010
1 Jan 2010
Not Adopted
1 Jan 2013
1 Jan 2013
1 Jan 2013
1 Jan 2013

1 Jan 2013
Auditing (ISA)

1.

ISA
/
BS
A
200

2.

210

Overall Objectives of the Independent Auditor and the Conduct of an Audit in

Accordance with ISA
Agreeing the Terms of Audit Engagements

3.

220

Quality Control for an Audit of Financial Statements

4.

230

5.

240

The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements

6.

250

Consideration of Laws and Regulations in an Audit of Financial Statements

7.

260

Communication with Those Charged with Governance

8.

265

9.

300

Communicating Deficiencies in Internal Control to Those Charged with Governance

and Management
Planning an Audit of Financial Statements

10. 315

ISA/ BSA Title

Audit Documentation

11. 320

Identifying & Assessing Risks of Material Misstatement - Understanding Entity and its
Environment
Materiality in Planning and Performing an Audit

12. 330

The Auditors Responses to Assessed Risks

13. 402

Audit Considerations Relating to Entities Using Service Organization

14. 450

Evaluation of Misstatements Identified during the Audit

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15. 500

Audit Evidence

16. 501

Audit EvidenceSpecific Considerations for Selected Items

17. 505

External Confirmations

18. 510

Initial Audit EngagementsOpening Balances

19. 520

Analytical Procedures

20. 530

Audit Sampling

21. 540
22. 550

Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related
Disclosures
Related Parties

23. 560

Subsequent Events

24. 570

Going Concern

25. 580

Written Representations

26. 600

Special ConsiderationsAudits of Group FS (including Work of Component Auditors)

27. 610

Using the Work of Internal Auditors

28. 620

Using the Work of an Auditors Expert

29. 700

Forming an Opinion and Reporting on Financial Statements

30.

705 Modifications to the Opinion in the Independent Auditors Report

31. 706
32. 710
33. 720
34. 800
35. 805
36. 810

Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent

Auditors Report
Comparative InformationCorresponding Figures and Comparative FS
The Auditors Responsibilities Relating to Other Information in Documents Containing
Audited FS
Special ConsiderationsAudits of FS Prepared in Accordance with Special Purpose
Frameworks
Special Considerations Audits of Single FS and Specific Elements, Accounts or Items
of FS
Engagements to Report on Summary Financial Statements
Total BSA / Code of Ethics /BSQC 1 /Framework

Appendix II (B) - Adoption Status of International Auditing Practice Statements

(IAP by ICAB as Bangladesh Auditing Practice Statements (BAPS)
Sl.
#

IAPS /
BAPS

BAPS Title

1.

1000

Inter-Bank Confirmation Procedures

2.

1004

The Relationship Between Banking Supervisors and Banks External Auditors

3.

1005

The Special Considerations in the Audit of Small Entities(withdrawn in 2010)

4.

1006

Audits of the Financial Statements of the Banks

5.

1010

The Consideration of Environmental Matters in Audit of Financial Statements

6.

1012

Auditing Derivative Financial Statements

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7.

1013

Electronic Commerce-Effect on the Audit of Financial Statements

8.

1014

Reporting by Auditors on Compliance with IFRS (withdrawn in 2010)

Appendix III - International Public Sector Accounting Standards (IPSAS) 2011

(Not Adopted by ICAB)
Cash Basis IPSASFinancial Reporting Under the Cash Basis of Accounting
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS
IPSAS

1Presentation of Financial Statements

2Cash Flow Statements
3Accounting Policies, Changes in Accounting Estimates and Errors
4The Effects of Changes in Foreign Exchange Rates
5Borrowing Costs
6Consolidated and Separate Financial Statements
7Investments in Associates
8Interests in Joint Ventures
9Revenue from Exchange Transactions
10Financial Reporting in Hyperinflationary Economies
11Construction Contracts
12Inventories
13Leases
14Events after the Reporting Date
15Financial Instruments: Disclosure and Presentation
16Investment Property
17Property, Plant, and Equipment
18Segment Reporting
19Provisions, Contingent Liabilities and Contingent Assets
20Related Party Disclosures
21Impairment of Non-Cash-Generating Assets
22Disclosure of Financial Information about the General Government Sector
23Revenue from Non-Exchange Transactions (Taxes and Transfers)
24Presentation of Budget Information in Financial Statements
25Employee Benefits
26Impairment of Cash-Generating Assets
27Agriculture
28Financial Instruments: Presentation
29Financial Instruments: Recognition and Measurement
30Financial Instruments: Disclosures
31Intangible Assets
32Service Concession Arrangements - Guarantor

Appendix IV- INTOSAI International Standards of Supreme Audit Institutions

(ISSAI).
Not Adopted by ICAB/ Implemented by OCAG?
ISSAI 1000 General Introduction to the INTOSAI Financial Audit Guidelines
ISSAI 1003 Glossary of Terms to the INTOSAI Financial Audit Guidelines
ISSAI 1200 Overall Objectives of the Independent Auditor and Conduct of Audit in Accordance
with ISA

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ISSAI
ISSAI
ISSAI
ISSAI
ISSAI
ISSAI
ISSAI

1210
1220
1230
1240
1250
1260
1265

ISSAI 1300
ISSAI 1315
ISSAI
ISSAI
ISSAI
ISSAI
ISSAI
ISSAI
ISSAI
ISSAI
ISSAI
ISSAI
ISSAI

1320
1330
1402
1450
1500
1501
1505
1510
1520
1530
1540

ISSAI
ISSAI
ISSAI
ISSAI
ISSAI

1550
1560
1570
1580
1600

ISSAI
ISSAI
ISSAI
ISSAI
ISSAI

1610
1620
1700
1705
1706

ISSAI 1710
ISSAI 1720
ISSAI 1800
ISSAI 1805

Agreeing the Terms of Audit Engagements

Quality Control for an Audit of Financial Statements
Audit Documentation
The Auditors Responsibilities Relating to Fraud in an Audit of Financial Statements
Consideration of Laws and Regulations in an Audit of Financial Statements
Communication with Those Charged with Governance
Communicating Deficiencies in Internal Control to Those with Governance and
Management
Planning an Audit of Financial Statements
Identifying and Assessing Risks of Material Misstatements by Understanding Entity
Environment
Materiality in Planning and Performing an Audit
The Auditors Responses to Assessed Risks
Audit Considerations Relating to an Entity Using a Service Organization
Evaluation of Misstatements Identified during the Audit
Audit Evidence
Audit Evidence Specific Considerations for Selected Items
External Confirmations
Initial Audit Engagements Opening Balances
Analytical Procedures
Audit Sampling
Auditing Accounting Estimates, Including Fair Value Accounting Estimates and
Related Disclosures
Related Parties
Subsequent Events
Going Concern
Written Representations
Special Considerations Audits of Group Financial Statements (Incl. Work of
Component Auditors)
Using the Work of Internal Auditors
Using the Work of an Auditors Expert
Forming an Opinion and Reporting on Financial Statements
Modifications to the Opinion in the Independent Auditors Report
Emphasis of Matter Paragraphs and Other Matter Paragraphs in Independent
Auditors Report
Comparative Information Corresponding Figures and Comparative Financial
Statements
The Auditors Responsibilities Relating to Other Information in Documents Containing
Audited FS
Special Considerations Audits of FS Prepared in Accordance with Special Purpose
Frameworks
Special Considerations Audits of Single FSt and Specific Elements, Accounts or
Items of FS

ACRONYMS / ABBREVIATIONS
ADB
AP
BAPS
BAS
BB
BFRS
BSA
CAG
CAPA
CFAA
CGA
CIDA
CPD
DFID
DSE
EDC
FASB

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Asian Development Bank

Audit Practices
Bangladesh Audit Practice Statements
Bangladesh Accounting Standards
Bangladesh Bank
Bangladesh Financial Reporting Standards
Bangladesh Standards on Auditing
Comptroller and Auditor General
Confederation of Asian and Pacific Accounts
Country Financial Accountability Assessment
Controller General of Accounts
Canadian International Development Agency
Continuing Professional Development
Department for International Development
Dhaka Stock Exchange
Eurozone Debt Crisis
Federal Accounting Standards Board

FEE
FR
FRA
FRC
FS
GAAP
GAO
GATS
GATT
GFC
HFR&AP
IAASB
IAPS
IAS
IASB
ICAB
ICMAB
IES
IFAC
IFRIC
IFRS
IMF
INTOSAI
IOSCO
IPSAS
IPSASB
ISA
ISAR
ISSAIs
MFI
NBR
NGO
NYSE
OCAG
PPP
PSFM
SAFA
SAFA
SAI
SEC
SEC
SER
SME
SMO
UN
UNCTAD
WB
WTO

Federation European Encompatables

Financial Reporting
Financial Reporting Act
Financial Reporting Council
Financial Statements
Generally Accepted Accounting Principles
Government Accountability Office
General Agreement on Trade in Services
General Agreement on Tariffs and Trades
Global Financial Crisis
Harmonization of Financial Reporting and Audit Practices
International Auditing and Assurance Standards Board
International Audit Practice Statements
International Accounting Standard
International Accounting Standards Board
Institute of Chartered Accountants of Bangladesh
Institute of Cost and Management and Accountants of Bangladesh
International Educational Standards
International Federation of Accountants
International Financial Reporting Interpretations Committee
International Financial Reporting Standards
International Monitory Fund
International Organization of Supreme Audit Institutions
International Organization of Securities Commissions
International Public Sector Accounting Standards
International Public Sector Accounting Standards Board
International Standards on Auditing
International Standards on Accounting and Reporting
The International Standards of Supreme Audit Institutions
Micro Finance Institutions
National Board of Revenue
Non Government Organization
New York Stock Exchange
Office of the Comptroller and Auditor General
Public Private Partnership
Public Sector Financial Management
South Asian Federation of Accountants
South Asian federation of Accountants
Supreme Audit Institutions
Securities and Exchange Commission
Security Exchange Commission
Securities and Exchange Rules
Small and Medium Enterprises
Statement of Membership Obligations
- United Nations
- United Nations Conference on Trade and Development
World Bank
World Trade Organization

REFERENCES
1. Presentation of Bangladesh Perspectives of IAS/IFRS to Standard Setters (IASB)
SAFA Conference - Anwaruddin Chowdhury (2006)
2. IFRS Overview, Adoption and Implementation Status, Challenges and Future
Dimensions- ICAB Seminar - Anwaruddin Chowdhury (2006)
3. Adoptability of IFRS in SAARC Countries SAFA Conference
- Anwaruddin Chowdhury (2004)
4. Moving to the Frontiers of the IAS IFC of WB Group Conference
- Anwaruddin Chowdhury (2000)
5. Harmonization of Financial Reporting and Audit Practices FICCI/Shell Seminar
- Anwaruddin Chowdhury (2000)
6. Message of Sir David Tweedie (Chairman IASB) on the occasion of SAFA BPA Awards (2009).
7. -

IASB Pronouncements & Press Releases

First time Adoption of IFRS - David Cairns (IASC)

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8.

IAS Plus.com web portal

Strengthening Bangladesh Public Sector Accounting & Auditing Global Reforms and
The Way Forward: ICAB-CAPA International Conference 2012 Anwaruddin Chowdhury (2012)

==============================================

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