...International Journal of Accounting and Financial Management Research (IJAFMR) ISSN:2249-6882 Vol.2, Issue 2 June 2012 14-23 © TJPRC Pvt. Ltd., PRACTICE OF HUMAN RESOURCE ACCOUNTING IN BANKING SECTOR OF BANGLADESH SYED MOUDUD-UL-HUQ1 & PANUEL ROZARIO PRINCE 2 1 Lecturer Department Of Business Administration, Mawlana Bhashani Science And Technology University, Santosh, Tangail. 2 Lecturer, Department Of Business Administration, Victoria University Of Bangladesh, 15/11/APanthapath,Dhaka. ABSTRACT Success and failure of corporate undertakings purely depends upon the human resources. Now-adays human resource is a prime concern for all the institutions especially for financial institutions as they have required investing a huge amount of capital. In this context, it is worth while to examine human resource accounting practices in corporate sector i.e. banking sector in Bangladesh. For the convenience of completing the research paper successfully it has been prepared based on a sample of 25 commercial banks and practice of human resource accounting has been measured on five broad indicators which incorporates several sub indicators. In the survey it has found only few banks had mechanism to practice of human resource accounting in 2010 and now in 2011 almost the same number of banks has such mechanism and score improved by .09 due to the some enhancement program in this regard and it has been found that banking sectors in Bangladesh are often alleged as too vague in the...
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...Human Resource Accounting Human Resource Accounting (HRA) means to measure the cost and value of the people (i.e. of employees and managers) in the organisation. It measures the cost incurred to recruit, hire, train and develop employees and managers. HRA also finds out the present economic value of its employees and managers. After measuring the cost and value of its employees and managers, the organisation prepares a report. This report is called HRA Report. It is shown to the top level management. It can also be shown to the employees, managers and outside investors. Methods of HRA There are many different methods of HRA, some of which are:- 1. Actual Cost Method, 2. Replacement Cost Method, 3. Standard Cost method, etc. Advantages of HRA Benefits, objectives, advantages of human resource accounting HRA:- 1. Information for manpower planning HRA provides useful information about the cost and value of human resources. It shows the strengths and weakness of the human resources. All this information helps the managers in planning and making the right decisions about human resources. Thus HRA provides useful information for Manpower Planning and Decision Making. 2. Information for making personnel policies HRA provides useful information for making suitable personnel policies about promotion, favourable working environment, job satisfaction of employees, etc. 3. Utilisation of human resources HRA helps the organisation to make the best utilisation of human...
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...BANGLADESH RESEARCH Swinging Banking : Not Very Promising August 13, 2002 Not too bad if you may claim so ….. The Bangladesh banking sector relative to the size of its economy is comparatively larger than many economies of similar level of development and per capita income. The total size of the sector at 26.54% of GDP dominates the financial system, which is proportionately large for a country with a per capita income of only about US$370. The non-bank financial sector, including capital market institutions is only 3.22% of GDP, which is much smaller than the banking sector. The market capitalization of the Dhaka Stock Exchange was US$1,025 million or 2.19% of GDP as at mid-June 2002. In contrast, the size of the total financial sector in India, including banks and non-banks as well as the capital market is 150% (March 2002) of its GDP, with commercial banks accounting for 58.3% of GDP. Access to banking services for the population has improved during the last three decades. While population per branch was 57,700 in 1972, it was 19,800 in 1991. In 2001 it again rose to 21,300, due to winding up of a number of branches and growth in population. Compared to India’s 15,000 persons per branch in 2000, Bangladesh is not far behind in this regard. This indicates that access to the banking system in the country is not a significant problem. However the story tells a different tale The finance sector remains predominantly bank-based, accounting for 96% of the sector’s resources...
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...Mercantile Bank Limited is a specialized financial institution that performs most of the standard banking services and investment activities on the basis not only profit sharing but also social partnership. This study attempts to analyze the nature of modern banking activities and performance of Mercantile Bank Limited. All through the internship program, close observation was made on different banking activities of Mercantile Bank Limited. Its performance was reviewed and analyzed through the annual reports, and internal records of the bank. I have tried my best to use this opportunity to enrich my knowledge on banking system. After observing thoroughly, I have prepared this report on the basis of my findings and observation relating to the topic. In this situation I was assigned to prepare report on “A study on the Accounting Information System at Mercantile Bank Limited in Bangladesh”. 1.2 Objective of study General objective: * The prime objective of this report is to analyze the “A study on the Accounting Information System At Mercantile Bank Limited in Bangladesh” Specific objectives: To evaluate the financial performance of Mercantile Bank Limited 1. To conceptualized AIS at Private Banking Sectors. 2. To know about the system mainly Private Banking Sectors follow in the operation of AIS. 3. To identify the computer based transactions in Private Banking Sectors 4. To classify the software at Private Bank use in their...
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...the journal August 2005 Tackling the key issues in banking and capital markets* 1 Contents Page Editor’s comments 2 New challenges for central banks 4 Business integrity: A foundation for rebuilding reputation 16 The battleground for consumer banking 24 India: From sleeping tiger to stirring elephant 30 IFRS: Is your financial reporting sustainable? 42 Shari’a compliant financial services – standing its ground 48 Editor’s comments 2 by Phil Rivett the journal • Tackling the key issues in banking and capital markets Phil Rivett Global Leader, Banking & Capital Markets, UK Tel: 44 20 7212 4686 Email: phil.g.rivett@uk.pwc.com 3 Welcome to the August 2005 edition of the PricewaterhouseCoopers banking and capital markets journal. This is the 7th edition of the journal and brings together a rich selection of topics from our industry experts. Central banks are increasingly coming under the spotlight as they face a number of changes and challenges. In ‘New Challenges for Central Banks’, Chris Sermon, Peter Trout and Elizaveta Filipova highlight some of the new and existing opportunities facing the central banking sector in the areas of accounting, reporting, transparency, corporate governance and risk management and explore the importance of evolving practices and developments. Trust and integrity are fundamental to the financial sector, no more so than now following recent corporate transgressions. In ‘Corporate...
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...Journal of Money, Investment and Banking ISSN 1450-288X Issue 6 (2008) © EuroJournals Publishing, Inc. 2008 http://www.eurojournals.com/finance.htm Costing the Banking Services: A Management Accounting Approach Jordi Carenys Professor at the Management Control Department. EADA Business School EADA, c/o Aragó 204, 08011 Barcelona, Spain E-mail: jcarenys@eada.edu Tel: 934 520 844; Fax: 933 237 317 Web: www.eada.edu Xavier Sales Professor at the Management Control Department. EADA Business School E-mail: xsales@eada.edu Abstract The present study aims to outline the characteristics of the cost systems used in banking institutions. It does so by describing the partial costs and full cost systems in banking institutions. It then looks at the limitations of these approaches to the current competitive conditions and goes on to consider the applicability of the activity based costing system in the allocation of indirect transformation costs to branches, products and customers. Finally, we will look at the findings of a questionnaire to Spanish savings banks in order to evaluate how widespread these systems are and how they are used in savings banks. We found that direct costs systems predominate in customer and products entries whereas full costs systems are much more widespread in the case of branches. Furthermore, we also found that the use of activity based costs systems is very limited. Keywords: Saving banks Cost structure Management accounting Cost systems Activity based costing...
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...Definition of 'Accounting Standard's An accounting standard is a guideline for financial accounting, such as how a firm prepares and presents its business income and expense, assets and liabilities. The Generally Accepted Accounting Principles is comprised of a large group of individual accounting standards. GAAP standards apply to financial reporting in the United States and may be eventually phased out in favor of the International Accounting Standards. 1. Generally Accepted Accounting Principles (GAAP) In the U.S., Generally Accepted Accounting Principles are accounting rules used to prepare, present, and report financial statements for a wide variety of entities, including publicly traded and privately held companies, non-profit organizations, and governments. The term is usually confined to the United States; hence it is commonly abbreviated as US GAAP or simply GAAP. However, in the theoretical sense, Generally Accepted Accounting Principles encompass the entire industry of accounting, and not only the United States. Outside the academic context, GAAP means US GAAP. Similar too many other countries practicing under the common law system, the United States government does not directly set accounting standards, in the belief that the private sector has better knowledge and resources. US GAAP is not written in law, although the U.S. Securities and Exchange Commission (SEC) require that it be followed in financial reporting by publicly traded companies. Currently,...
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...* Critical Analysis on Costs and Benefits of the Financial Sector Within the UK. * * * * * * * * * * * * * * * * * Introduction The international financial crisis has drawn an international attention in financial regulation and policies made by governments have become increasingly prominent. In particular, strengthening financial regulation in London as an international financial centre requires huge efforts. London has been able to an international financial centre continuously, mainly due to a large number talent are familiar with the financial industry London has a unique advantage in language and location (Re, 2005). In addition to banking sectors, insurance, trust, securities and asset management business also developed. However DeMartino (2000) highlighted the current global economic depression and international financial crisis, along with UK Treasury published paper “The reform of the financial markets” referred to as “the worst crisis in 60 years”. In contrast, Frieden (2000) described the analysis of the causes of the British government's international financial crisis, and make policy recommendations on how to strengthen financial regulation. UK Financial Regulation Authorities According to Green (2011) Britain's “2009 Banking Act” was taken effect in which compared with the previous various banking laws, this law shows characteristics such as authorizing the Bank...
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...The relatively new job sector made available through accounting and the Internet has come to existence with the assistance of E-accounting. The first electronic spreadsheet was designed in developed in 1979, following the creation of the first successful PC created by Steve Jobs and Steve Wozinak. Bob Frankston and Dan Brinklin developed the first electronic spreadsheet for the Apple II created by Steve Jobs and named the spreadsheet program, “VisiCalc”. The creation of VisiCalc turned out to be one of the most important business applications for the PC. Prior to its inception in 1979 all accounting was done primarily by hand or with the use of very complicated and massive computing devices. It was not until the invention of the PC did the public at large and independent accounting professionals have access to accounting technology on the Internet. Electronic accounting began with the use of spreadsheets. Spreadsheets allowed accountants to translate the manual functions of the general ledger into a computerized accounting system. Software companies would eventually create software programs to focus on accounting, based on traditional accounting processes. E accounting is the use of online accounting applications and Internet technologies to support the business accounting function. E-accounting involves performing regular accounting functions, accounting research and the accounting training and education through various computer and internet based accounting tools such as: digital...
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...Handbook on Islamic SME Financing Islamic Banking Department State Bank of Pakistan The Team Name Designation Contact Mr. Pervez Said Director Pervez.Said@sbp.org.pk Mr. Imran Ahmad Senior Joint Director Imran.Ahmad@sbp.org.pk Ms. Fatima Javaid Regulating Officer Fatima.Javaid@sbp.org.pk TABLE OF CONTENTS S.No 1 2 3 4 5 6 Background Introduction Prudential regulations for SME Financing Importance in light of Strategic Plan for Islamic Banking Industry Scope of Islamic Banking over Conventional Banking in current Financial crises Proposed Products for Islamic SME Financing Need for Risk Management 7 Murabaha Financing Transaction Structure Accounting Treatment Risk Management 12 12 15 15 18 20 18 21 24 25 26 27 29 30 31 31 33 34 35 35 38 39 40 PARTICULARS Page No. 1 2 4 9 11 8 Ijarah Based Financing Basic Rules Accounting Treatment Risk Management 9 Salam Based Financing Basic Rules Accounting Treatment Risk Management 10 Diminishing Musharaka Basic Transaction Structure Accounting Treatment Risk Management 11 Istisna Financing Flow of Transaction Accounting Treatment Risk Management 12 Project Financing Handbook On Islamic SME Financing BACKGROUND One of the important characteristics of a flourishing and growing economy is a blooming SMEs sector. Small and medium enterprises play an important role in the development of a country. SMEs contribute to economic growth in various ways like...
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...of Pakistan in 2010, troubled as it is; ideally it would be more desirable to look at the governance issues at macro level for Pakistan. As a famous economist, Dr Shahid Javaid Burki- a long observer of Pakistan’s economy has recently stated “Pakistan can generate a greater bounce in its economy than India by creating better governance. It has occurred before in the country’s difficult economic history and could happen again.” (Improved Governance: Dawn, 12th, October 2010). However, as a starting point , in this paper we look at closely the governanceissues for the banking, a sector which has played a significant role till recent years in economic activity of Pakistan. Rehman et al (2010) have looked at the issue of corporate governance in Chemical and Pharmaceutical sectors of Pakistan and found that there is a significant impact of corporate governance on the shareholder’s returns in pharmaceutical sector of Pakistan. Corporate governance has become...
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...BANKING SECTOR REFORMS IN INDIA . Introduction: Financial sector reforms introduced in the early 1990s as a part of the structural reforms have touched upon almost all aspects of banking operation. For a few decades preceding the onset of banking and financial sector reforms in India, banks operated in an environment that was heavily regulated and characterized by sufficient barriers to entry which protected them against too much competition. The banking reform package was based on the recommendation proposed by Narsimhan Committee report (1992) that advocated a move to a more market oriented banking system, which could operate in an environment of prudential regulation and transparent accounting. One of the primary motives behind this drive was to introduce an element of market discipline into the regulatory process that would reinforce the supervisory effort of the reserve bank of India(RBI). Market discipline, especially in the financial liberalization phase, reinforces regulatory and supervisory efforts and provides a strong incentive to banks to conduct their business in a prudent and efficient manner and to maintain adequate capital as a cushion against risk exposures. The administered interest rate structure, both on the liability and the assets side, allowed banks to earn reasonable spread without much efforts. Although banks operated under regulatory constraints in the form of statutory holding of government securities and the cash reserve ratio (CRR) and...
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...| | |PROFESSIONAL EXPERIENCE |Credit Program Officer, Millennium Challenge Account-Armenia Program, Foreign Financing Projects Management Center State | | |Institution, Ministry of Finance of the Republic of Armenia, Yerevan, Armenia, February 2012 – current | | |Overall management, oversight and evaluation of implementation of the MCA-Armenia | | |Credit Program (total portfolio 8.5 mln USD), preparation of the reports, memos and other papers on the progress of the Project | | |Review reports, other deliverables and implementation documents developed and submitted by the MCA-Armenia Credit Program | | |implementer | | |Monitoring and analysis of rural financial market development trends, study of the policies for the Rural Financial Market | | |development | | |Consultations and coordination with stakeholders and donors working in the area of rural...
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...------------------------------------------------- 6 Strength of GSPB * ------------------------------------------------- 7 Share Holding Structure * ------------------------------------------------- 8 List of Directors: * ------------------------------------------------- 9 BUSINESSES * ------------------------------------------------- * ------------------------------------------------- 9.0.1 Long/Mid-Term Finance * ------------------------------------------------- 9.0.2 Short Term Finance * ------------------------------------------------- 9.0.3 Real Estate Finance * ------------------------------------------------- 9.0.4 Corporate Finance * ------------------------------------------------- 9.0.5 Merchant Banking * ------------------------------------------------- 10 BOARD & MANAGEMENT * ------------------------------------------------- 11 KEY MANAGEMENTKEY * ------------------------------------------------- 12 MARKET ASPECT * ------------------------------------------------- 13 FUND MANAGEMENT & CREDIT STATUS * ------------------------------------------------- 14 Financial Performance of GSPB – at a glance: * ------------------------------------------------- 15 Departmentalization of GSPB * ------------------------------------------------- 16 Credit & Marketing Department * ------------------------------------------------- 17 Merchant...
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...ABSTRACT Recent reports on banking sector often indicate that India is slowly but surely moving from a regime of `large number of small banks' to `small number of large banks'. The aim of this paper is to probe into the various motivations for mergers and acquisitions in the Indian Banking sector. Thus, literature is reviewed to look into the various motivations behind a banks’ merger/ acquisition event. The paper also takes us through the international mergers & acquisitions scenario comparing it with the Indian scene. Given the increasing role of the economic power in the turf war of nations, the paper looks at the significant role of the state and the central bank in protecting customer’s interests vis-à-vis creating players of international size. While, gazing at the mergers & acquisitions in the Indian Banking Sector both from an opportunity and as imperative perspectives, the paper also glances at the large implications for the nation. INTRODUCTION Generally speaking a bank is an institution dealing in money. The origin of the word bank is traced to the Italian ‘banca’, ‘banc’ or ‘banque’, which means a bench. It is stated that in Middle Ages the European money changers and moneylenders displayed their coins on their benches and conducted their business. Hence the term bank refers to the bench on which the business of money changing and money lending was conducted. Hence, the term banking is defined as accepting for the purpose of lending or investment, of...
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