...Introduction Accounting standards establish the rules for accounting in a country and prescribe what should be reported in a company’s financial statements in that territory. Their purpose is to ensure that consistent approaches of accounting are adopted nationally. They minimize the risk of material misstatement in accounts and help investors make decisions by ensuring they can get comparable information. Accounting standards, as laid down by a country’s law, are applicable to all companies registered within its territory. But in order to ensure the success, the regulating process must be established. In Bangladesh BFRS and BAS are used as the accounting and reporting standards for the companies. Companies are obliged to follow those standards and laws and some are free from such restrictions. In this assignment, a theoretical analysis has been made regarding the accounting regulation and standard setting process in Bangladesh. 2. Accounting Regulation in Bangladesh All the companies in Bangladesh (both public limited companies and private limited companies) are regulated by The Companies Act of 1994 that provides the basic requirements for the companies. It includes the requirements about financial reporting and accounting practices. But most importantly, this act is silent about either Bangladesh Accounting Standards (BAS) or International Accounting Standards (IAS),. description about the laws and regulations for different types of entities in Bangladesh has been given...
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...Accounting Practice: It is the routine manner in which the day-to-day financial activities of a business entity are gathered and recorded. A firm’s accounting practice refers to the method by which its accounting policies are implemented and adhered to on a routine basis, typically by an accountant and auditor or a team of accounting professionals. Accounting in Bangladesh: In Bangladesh, the profession of Accountancy developed during the British colonial period. Today it is represented by two professional bodies, the Institute of Cost and Management Accountant of Bangladesh (ICMAB) and the Institute of Chartered Accountants of Bangladesh (ICAB). Chartered Accountants complete their training in practicing firms and specialize in financial accounting, financial audit and tax. CMAs receive particular training in cost audit, management audit and management accounting as well as general accounting and taxation. Both the ICMAB and ICAB are under the administrative control of the Ministry of Commerce. The government of Bangladesh considers both type professional accountants equal in respect of employment in government services. The Generally Accepted Accounting Principles (GAAP) in Bangladesh is based upon standards set by the ICAB which has stated its intention to adopt International Financial Reporting Standards (IFRS). The Institute of Cost and Management Accountants of Bangladesh (ICMAB) It is the only institution in the country dedicated to Cost and Management Accounting...
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...the ever-changing global economic demands dominated by WTO regime, the ICAB is fast becoming a body of professionals whose have ability. The main research objective is to determine "the development of financial accounting and the role of ICAB". Their literature review describes the main viewpoints in the literature, strategies of various viewpoints and so on. The development of accounting not very easy project or analysis subject in accounting policy. So many companies are trying to do their best to develop their accounting in finance. Which prompt us to formulate some hypotheses; this methodology helps us to see the development of financial accounting as a spot shoot. This methodology also enables us to explain the academic value of our research on this topic; and enable us to define the method and technique of financial accounting. The Institute of Chartered Accountants of Bangladesh (ICAB) has been constantly pursuing that noble duty in the CA professionals. ICAB is the sole apex body responsible for regulating the profession of accountants and the matters connected therewith in Bangladesh established under the Presidential Order No. 2 of 1973. ICAB has two regional Offices and two regional committees in Dhaka and Chittagong. Introduction: A field of accounting that treats money as a means of measuring economic performance instead of as a factor of production. It encompasses the entire system of monitoring and control of money as it...
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...Bangladesh Securities and Exchange Commission (BSEC) The Bangladesh Securities and Exchange Commission (BSEC) was established on 8th June, 1993 as the regulator of the country’s capital market through enactment of the Securities and Exchange Commission Act 1993. Through an amendment of the Securities and Exchange Commission Act, 1993, on December 10, 2012, its name has been changed as Bangladesh Securities and Exchange Commission from previous Securities and Exchange Commission. The Commission consists of a Chairman and four Commissioners who are appointed for fulltime by the government for a period of four years and their appointment can be renewed only for further one term, but the condition is that age cannot exceed 65 in position during the tenure. The Chairman acts as the Chief Executive Officer (CEO) of the Commission. The Commission has overall responsibility to formulate securities legislation and to administer as well. The Commission is a statutory body and attached to the Ministry of Finance. Mission of the BSEC is to: Protect the interests of the investors in securities. Develop and maintain fair, transparent and efficient securities markets. Ensure proper issuance of securities and compliance with securities laws. Financial Accounting Standards Board (FASB) Since 1973, the Financial Accounting Standards Board (FASB) has been the designated organizations in the private sector for establishing standards of financial...
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...Assignment on ACT-201 Role of “ICAB” and “ICMAB” in Accounting Development of Bangladesh Submitted for: Netai Kumar Saha Lecturer Dept. of B.B.A East West University Submitted by: Md. Saim Ur Rahman Id: 2013-1-10-130 ACT-201 Sec-04 Submission Date: 29th March, 2015 Plot No-A/2, Main Road, JahuruIslam City Aftabnagar, Dhaka-1212, Bangladesh. ICAB The Institute of Chartered Accountants of Bangladesh (ICAB) is the national professional accountancy body in Bangladesh. It is the sole organization in Bangladesh with the right to award the Chartered Accountant designation. It has around 1,400 members. The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body of Bangladesh established under the Bangladesh Chartered Accountants Order 1973 (Presidential Order No. 2 of 1973). Top of Form Bottom of Form Establishment: The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body of Bangladesh established under the Bangladesh Chartered Accountants Order 1973 (Presidential Order No. 2 of 1973). ICAB's Administrative Ministry: The Ministry of Commerce, Government of the People's Republic of Bangladesh is the administrative Ministry of ICAB. ICAB's Vision: To meet the ever-changing global economic demands dominated by WTO regime, the ICAB is fast becoming a body of professionals whose expert services will be highly sought after- - To anticipate, meet and exceed the rising...
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...Complete set of financial statementsA complete set of financial statements comprises:a) A statement of financial position as at the end of the period; b) A statement of comprehensive income for the period;c) A statement of changes in equity for the period;d) A statement of cash flows for the period;e) Notes, comprising a summary of significant accounting policies andother explanatory information; andf) A statement of financial position as at the beginning of the earliestcomparative period when an entity applies an accounting policyretrospectively or makes a retrospective restatement of items in itsfinancial statements, or when it reclassifies items in its financialstatements. An entity shall clearly identify each financial statement and the notes. Inaddition, an entity shall display the following information prominently, and repeatit when necessary for the information presented to be understandable:a) The name of the reporting entity or other means of identification, andany change in that information from the end of the precedingreporting period; b) Whether the financial statements are of an individual entity or agroup of entities c) he date of the the set of finance d)The name of the reportinBeximco PharmaceuticalIt is also clear that both oreporting period are coved by the set of financial statements or notes. e)Foreign currencies are translated inaccordance with BAS-21 " Information to be presented to the statement of...
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...Abstract Creative accounting, as a matter of approach, is not objectionable by itself. However, when unethical elements make intrusion, the resultant accounting details become anything but true and fair. Creativity in such context is like referring to a half glass of water as half-full instead of describing it as half empty. While both statements are factually correct, they paint different picture and thus convey different images. Creativity in company accounting may arise under at least three different financial market conditions. The first is when a company floats its shares to attract investors to subscribe to such shares either at par or at a premium, depending on the financial market evaluation of the company’s future prospects. The second is when the company whose shares are already listed in a stock exchange, wants to paint an attractive picture of its financial conditions so that the shares may be quoted at a premium. Finally, a company having its shares listed in the stock exchange may declare and pay high dividends based on inflated profits through overvaluation of assets, undervaluation of liabilities and change in systems of stock valuation that may boost the image of the company at least in the short run. Unethical considerations in creative accounts have developed to such depths that terms like fraud audit and forensic accounting have gained currency and are becoming new professions. Accounting practitioners and auditors are increasingly required to appear...
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...financial accounting and financial reporting. It is “a coherent system of interrelated objectives and fundamentals that can lead to consistent rules and that prescribes the nature, function, and limits of financial accounting and financial statements.” It is a kind of constitution. Roles: * Conceptual framework is to be useful and rule-making should build on and relate to an established body of concepts and objectives. It increases financial statement users’ understanding of and confidence in financial reporting. It results a coherent set of GAAP. * It is used to solve new and emerging practical problems by referring to an existing framework of basic theory. * It provides guidance to identify the boundaries of financial reporting, selects the transactions, other events, and circumstances to be represented. It also helps to reorganization, measurement, summarization and the reporting of financial accounting. Developments: The IASB and FASB both of these two have a conceptual framework. The IASB’s conceptual framework is described in the document, “Framework for Preparation and Presentation of Financial Statements.” Numerous published their own conceptual framework, but no single framework was universally accepted and relied on the practice. In 1976 the FASB began to develop a conceptual framework that would be a basis for setting accounting rules and for resolving financial reporting controversies. The FASB issued six Statements of Financial Accounting Concepts...
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...Letter of Submission To The dean Faculty of Business studies Department of Business Administration Premier University, Chittagong Subject: Submission of the term paper Sir, It gives me immense pleasure to submit my term paper on “Application of Accounting Standard” of “Bank Asia limited” which was assigned to me as a fulfillment of the degree “Bachelor of Business Administration”. I tried to extend the report to a successful one. In this case I used my knowledge gaining at the time of my graduation. While making this report I came across many experiences and I used all of my experience in making the report. Despite several constraints, I gave my all efforts to make this report a meaningful one. I hope you will get the report as informative and accept my report. Sincerely yours, Acknowledgement At the very beginning of my report, I would like to pay my worship and gratefulness to the praiseworthy Almighty Allah who graces me to accomplish this report. I would like to offer my gratitude to our honorable Dean Sir, Prof. Dr. Milan Kumar Bhattacharjee, who gave us the opportunity & also for his kind supervision and providing necessary guidelines in preparing this report. I am also thankful to Ali Arshad Chowdhury, Lecturer of “Premier University” , faculty of Business Studies. Who helped me in abundant conducts to make this report more meaningful. Finally, I thank all the persons who have directly or indirectly contributed...
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...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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...the development of banking institutions. As the development process proceeds, NBFIs become prominent alongside the banking sector. The major business of most NBFIs in Bangladesh is leasing, though some are also diversifying into other lines of business like term lending, housing finance, merchant banking, equity financing, venture capital financing etc. Lease financing, term lending and housing finance constituted 94 percent of the total financing activities of all NBFIs up to June 2006. Industrial Promotion and Development Company (IPDC) was the first private sector NBFI in Bangladesh, which started its operation in 1981. Since then the number has been increasing and in December 2006 it reached 29. Of these, one is government owned, 15 are local (private) and the other 13 are established under joint venture with foreign participation. Leasing in Bangladesh, like in many of its peer countries, owes its origin to the efforts of the International Finance Corporation (IFC), Washington. At the instance of IFC, the first leasing company in Bangladesh, Industrial Development Leasing Company of Bangladesh Ltd. (IDLC) was set up in 1984 and commenced its operations in 1986, with a 20% shareholding from Korea Development Leasing Corporation. For several years, IDLC remained the sole leasing company in Bangladesh. However, the real momentum began in the 1990s. In 1997, there were 15 leasing companies in the country. Besides, some of the banks and financial institutions also added...
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...World Review of Business Research Vol. 2. No. 2. March 2012. Pp. 16 - 31 Corporate Governance-Its Problems & Prospects in Banking Industry in Bangladesh Begum Ismat Ara Huq* and Mohammad Zahid Hossain Bhuiyan** Corporate Governance ensures to bring transparency, accountability and professionalism in the management system of a corporate body that enhances the credibility and acceptability to the shareholders, employees, potential investors, customers, lenders, governments and all other stakeholders. This is more true in case of Banking Industry. Since Banks deal in public money, public confidence is of outmost importance in this Industry. The study aims at finding out problems & deficiencies involved in Corporate Governance practice in Banking Industry in Bangladesh and also suggesting ways and means to remove the same in order to make the Corporate Governance practice sound and effective. In this study, both the primary and secondary data were used. The primary data relating to problems involved in Corporate Governance practice and suggestions to remove the same were collected on the basis of a questionnaire by interviewing 24 randomly selected Bank personnel such as Directors of the Board as the internal part of management and the Auditors as the external group. The secondary data were collected through an extensive literature survey on the subject. The study has identified some major problems in Corporate Governance practice in the Banking Industry of the country. The prospect...
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...World Review of Business Research Vol. 2. No. 2. March 2012. Pp. 16 - 31 Corporate Governance-Its Problems & Prospects in Banking Industry in Bangladesh Begum Ismat Ara Huq* and Mohammad Zahid Hossain Bhuiyan** Corporate Governance ensures to bring transparency, accountability and professionalism in the management system of a corporate body that enhances the credibility and acceptability to the shareholders, employees, potential investors, customers, lenders, governments and all other stakeholders. This is more true in case of Banking Industry. Since Banks deal in public money, public confidence is of outmost importance in this Industry. The study aims at finding out problems & deficiencies involved in Corporate Governance practice in Banking Industry in Bangladesh and also suggesting ways and means to remove the same in order to make the Corporate Governance practice sound and effective. In this study, both the primary and secondary data were used. The primary data relating to problems involved in Corporate Governance practice and suggestions to remove the same were collected on the basis of a questionnaire by interviewing 24 randomly selected Bank personnel such as Directors of the Board as the internal part of management and the Auditors as the external group. The secondary data were collected through an extensive literature survey on the subject. The study has identified some major problems in Corporate Governance practice in the Banking Industry of the country. The prospect...
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...BANK PROFILE Mercantile Bank Limited (MBL) is a second generation commercial bank with 42 online branches across major cities in Bangladesh and 1115 full time employees on year end 2008. It offers full range of commercial banking products and services to the corporate, mid-market and retail segment. Under the corporate banking segments the Bank has comprehensive range of financial products including corporate deposit accounts, syndicated financing, term loan, project finance, export-import financing, working capital and other finance, bonds and guarantees, investment and business counseling, infrastructure finance, cash management services etc. With urban banking focus, the Bank is offering various alternative delivery channels like ATMs, Bills Pay Machines, Kiosks, and Internet Banking etc. The Bank has set up a brand image attributable in part to its policy of continuous customer service excellence, innovative products and services at competitive prices and maximum technology utilization. Unlike conventional branch banking, credit proposals as well as business operations are processed centrally at MBL. MBL TIME LINE MBL AT A GLANCE MBL LOCATED Corporate structure [pic] Different Books of Account of Mercantile Bank Ltd. We have studied the accompanying Balance Sheet of Mercantile Bank Limited as of 31 December 2008 and the related Profit and Loss Account, Statement of Cash Flows, Statement of changes in Equity together with...
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...political activity of the country or region involved. So, we can say that NGOs have become major players in the field of international and national development. But Bangladesh has largely failed to assist the poor or reduce poverty because of limited resources and planning, while NGOs have grown dramatically, but it ostensibly fails to fill this gap. There are more and bigger NGOs here than in any other country of equivalent size. Here, NGOs have mainly functioned to service the needs of the landless, usually assisted by foreign donor funding as a counterpoint to the state's efforts. Besides all these, in the field of NGO, Financial Reporting process and application of accounting is disgraceful. NGOs in Bangladesh have increasingly become subject to question and criticism from the government, political parties, intellectuals and the public in genus for misuse of funds, gender discrimination, and nepotism. Absence of proper guidelines in preparing financial statements and reports makes it more complex. The government of Bangladesh doesn’t have any unique rules for preparing the financial reports. In this report we will discuss about the financial reporting and Accounting system of NGOs and hopefully, the analysis and discussion of reporting systems will give guidance and support to the NGOs about the generation of accounting systems and reporting procedure, and to maintain a transparent system of utilizing grants. 1.1 Defining NGO:...
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