Accounting in Bangladesh

Last updated

In Bangladesh, the profession of accountancy was developed during the British colonial period. The basic requirements for financial reporting by all companies in Bangladesh were provided by the Companies Act of 1994. [1] Today, it is represented by two professional bodies, the Institute of Cost & Management Accountants of Bangladesh (ICMAB) and the Institute of Chartered Accountants of Bangladesh (ICAB).

Contents

Chartered Accountants completed their trainings by practicing in firms that 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 types of professional accountants equal with respect to employment in government services as per circular No.Com/PTMA/AP/2/19/87. [2]

The Generally Accepted Accounting Principles (GAAP) in Bangladesh are based upon standards set by the ICAB, which has stated its intention to adopt International Financial Reporting Standards. As of 2013, ICAB has adopted the IFRS as issued by the IASB, except for IAS 39, IAS 29, and IFRS 9 [1] and All foreign companies, and domestic companies listed on the Dhaka Stock Exchange (DSE) and/or the Chittagong Stock Exchange (CSE) are required to use IFRS. [3] [4]

Bangladesh Financial Reporting Standards (BFRS)

The Institute of Chartered Accountants of Bangladesh (ICAB) prescribes Financial Reporting Standards which are known as Bangladesh Financial Reporting Standards (BFRS). Bangladesh Accounting Standards (BAS) are also included in BFRS. International Accounting Standards and International Financial Reporting Standards which are issued by the International Accounting Standards Board are what the BFRS models on. For listed companies under the Securities and Exchange Commission (SEC) rules, adopted BFRS are legally enforceable. [1]

Accountants Profession of Bangladesh

The professional Cost and Management Accountants of Bangladesh's national body is the Institute of Cost and Management Accountants of Bangladesh (ICMAB). In order to promote and regulate the Cost and Management Accounting profession in the country, the ICMAB was established. To students interested in pursuing a career in this field, the institute offers training and education and highly recognized CMA degrees on fulfillment of their qualifications. The ICMAB is the sole authority to issue licences to their members for practice in the field.

They have many visions and missions. By promoting and regulating Cost and Management Accounting they want to improve the quality of life and economic competitiveness which will eventually lead to helping Bangladesh become and industrialized nation. The institute's mission is to provide better service to the society by having its members maintain the highest professional standard while developing, equipping, and promoting the Cost and Management Accounting profession. Implementation of National Accounting as well as Cost Accounting Standards are also used with other necessary steps in order to regulate the profession. The ultimate goal of this is to develop Bangladesh's natural and human resources to enrich the shared future of the country and to ensure common welfare.

The institute is governed by a council which is under the provision of the Cost and Management Accountants Ordinance of 1977. There are twelve members consisted in the council and they are elected by the members of ICMAB. The council also consists of four nominees from the Government of Bangladesh. Each term is for three years and every year there is one President, two Vice- Presidents, one Secretary, and one Treasurer elected from the councilors. A team of fully employed personnel, however, manages the day to day administrative affairs of the institute. [5]

Institute of Chartered Accountants of Bangladesh (ICAB)

The sole regulator of accountants and auditors in Bangladesh under the Bangladesh Chartered Accountants Order of 1973 was the Institute of Charted Accountants (ICAB). There are many mandatory requirements included in the ICAB:

  1. Determining if you are qualified for membership in the institute
  2. Being able to see the initial and continuing professional development of its members
  3. Having professional examinations conducted
  4. Establishing and maintaining a quality assurance review system
  5. Being able to license auditors
  6. Maintaining and publishing of its members qualified to practice as accountants and auditors
  7. Investigating and disciplining its members for misconduct professionally
  8. Allowing them to set accounting and auditing standards

Membership in the ICAB is mandatory for all Chartered Accountants whether financial accountant or financial auditor. Fellow Chartered Accountants or Associate Chartered Accountants are usually what members of the ICAB are designated as. [6]

See also

Related Research Articles

<span class="mw-page-title-main">Accounting</span> Measurement, processing and communication of financial information about economic entities

Accounting, also known as accountancy, is the process of recording and processing information about economic entities, such as businesses and corporations. Accounting measures the results of an organization's economic activities and conveys this information to a variety of stakeholders, including investors, creditors, management, and regulators. Practitioners of accounting are known as accountants. The terms "accounting" and "financial reporting" are often used interchangeably.

<span class="mw-page-title-main">Accountant</span> Practitioner of accounting or accountancy

An accountant is a practitioner of accounting or accountancy. Accountants who have demonstrated competency through their professional associations' certification exams are certified to use titles such as Chartered Accountant, Chartered Certified Accountant or Certified Public Accountant, or Registered Public Accountant. Such professionals are granted certain responsibilities by statute, such as the ability to certify an organization's financial statements, and may be held liable for professional misconduct. Non-qualified accountants may be employed by a qualified accountant, or may work independently without statutory privileges and obligations.

The International Accounting Standards Committee (IASC) was founded in June 1973 in London at the initiative of Sir Henry Benson, former president of the Institute of Chartered Accountants in England and Wales. The IASC was created by national accountancy bodies from a number of countries with a view to harmonizing the international diversity of company reporting practices. Between its founding in 1973 and its dissolution in 2001, it developed a set of International Accounting Standards (IAS) that gradually acquired a degree of acceptance in countries around the world. Although the IASC came to include some organizations representing preparers and users of financial statements, it largely remained an initiative of the accountancy profession. On 1 April 2001, it was replaced by the International Accounting Standards Board (IASB), an independent standard-setting body. The IASB adopted the extant corpus of IAS which it continued to develop as International Financial Reporting Standards.

<span class="mw-page-title-main">Chartered accountant</span> Professional designation for accountants

Chartered accountants were the first accountants to form a professional accounting body, initially established in Scotland in 1854. The Edinburgh Society of Accountants (1854), the Glasgow Institute of Accountants and Actuaries (1854) and the Aberdeen Society of Accountants (1867) were each granted a royal charter almost from their inception. The title is an internationally recognised professional designation; the certified public accountant designation is generally equivalent to it. Women were able to become chartered accountants only following the Sex Disqualification (Removal) Act 1919 after which, in 1920, Mary Harris Smith was recognised by the Institute of Chartered Accountants in England and Wales and became the first woman chartered accountant in the world.

<span class="mw-page-title-main">Association of Chartered Certified Accountants</span> Global professional organization

Founded in 1904, the Association of Chartered Certified Accountants (ACCA) is the global professional accounting body offering the Chartered Certified Accountant qualification (ACCA). It has 240,952 members and 541,930 future members worldwide. ACCA's headquarters are in London with principal administrative office in Glasgow. ACCA works through a network of over 110 offices and centres in 51 countries - with 346 Approved Learning Partners (ALP) and more than 7,600 Approved Employers worldwide, who provide employee development.

<span class="mw-page-title-main">South African Institute of Chartered Accountants</span> Institute in South Africa

The South African Institute of Chartered Accountants (SAICA), South Africa’s pre-eminent accountancy body, is widely recognised as one of the world’s leading accounting institutes. The institute provides a wide range of support services to more than 48,000 members and associates who are chartered accountants (CAs(SA)), as well as associate general accountants (AGAs(SA)) and accounting technicians (ATs(SA)).

<span class="mw-page-title-main">Institute of Chartered Accountants of India</span> National professional accounting body in India

Institute of Chartered Accountants of India (ICAI) is India's largest professional accounting body under the administrative control of Ministry of Corporate Affairs, Government of India. It was established on 1 July 1949 as a statutory body under the Chartered Accountants Act, 1949 enacted by the Parliament for promotion, development and regulation of the profession of Chartered Accountancy in India.

<span class="mw-page-title-main">Certified General Accountants Association of Canada</span>

Founded in 1908, the Certified General Accountants Association of Canada (CGA-Canada) serves Certified General Accountants and students in Canada and nearly 100 countries. CGA-Canada established the designation's certification requirements and professional standards, offers professional development, conducts research and advocacy, and represents CGAs nationally and internationally. CGA-Canada joined the Chartered Professional Accountants of Canada to integrate operations under the CPA banner in 2015. CPA Canada is the new national accounting body formed by the merger of the Canadian Institute of Chartered Accountants (CICA) and the Society of Certified Management Accountants (CMA) in 2013, and now Certified General Accountants.

<span class="mw-page-title-main">Materiality (auditing)</span> Concept in auditing and accounting

Materiality is a concept or convention within auditing and accounting relating to the importance/significance of an amount, transaction, or discrepancy. The objective of an audit of financial statements is to enable the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in conformity with an identified financial reporting framework, such as the Generally Accepted Accounting Principles (GAAP) which is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC).

<span class="mw-page-title-main">New Zealand Institute of Chartered Accountants</span>

The New Zealand Institute of Chartered Accountants (NZICA) was the operating name for the Institute of Chartered Accountants of New Zealand. The Institute represented over 33,000 members in New Zealand and overseas. Most accountants in New Zealand belonged to the institute.

The Institute of Chartered Accountants of Bangladesh (ICAB) is the national professional accountancy body and research institute in Bangladesh. It is the sole organisation in Bangladesh with the right to award the Associate Chartered Accountant designation. It has 2,005 members.

The Institute of Chartered Accountants of Jamaica (ICAJ) is a professional accountancy body in Jamaica. It is the sole organisation in Jamaica with the right to award the Chartered Accountant designation.

<span class="mw-page-title-main">Institute of Chartered Accountants of Pakistan</span> Pakistani professional accountancy organization

The Institute of Chartered Accountants of Pakistan is a professional accountancy body in Pakistan. It has over 10,000 members working locally and globally. The institute was established on July 1, 1961 to regulate the profession of accountancy in Pakistan. It is a statutory autonomous body established under the Chartered Accountants Ordinance, 1961. With the significant growth in the profession, the CA Ordinance and By-Laws were revised in 1983.

Accountancy in Hong Kong is regulated by the HKICPA under the Professional Accountants Ordinance. The auditing industry for limited companies is regulated under the Companies Ordinance, and other Ordinances such as the Securities and Futures Ordinance, the Listing Rules, etc.

<span class="mw-page-title-main">Institute of Cost and Management Accountants of Bangladesh</span> Accounting institute in Bangladesh

The Institute of Cost and Management Accountants of Bangladesh (ICMAB) is an institution dedicated to Cost and Management Accounting education and research in Bangladesh. It is managed as an autonomous professional body under the Ministry of Commerce. As well as education, it is also engaged in regulating and promoting the profession of cost and management accountant in Bangladesh.

The Association of International Accountants (AIA) is a professional accountancy body. It was founded in the UK in 1928 and since that date has promoted the concept of ‘international accounting’ to create a global network of accountants in over 85 countries worldwide.

The Iraqi Union of Accountants and Auditors (IUAA) is a professional association for accountants and auditors in Iraq. It is the sole Iraqi member of the International Federation of Accountants (IFAC).

The Ordre des Experts Comptables de Tunisie or OECT is a professional association of accountants in Tunisia. It was created in 1983 and placed under the Ministry of Finance.

The Financial Reporting Act 2015 is an act created by the Bangladesh National Assembly. The act was passed on September 6, 2015, in order to follow the accountability and transparency of the financial reporting procedures in the country. On September 9, 2015, the act was officially published by the Government of Bangladesh.

References

  1. 1 2 3 "Bangladesh". www.iasplus.com. Retrieved 2017-10-23.
  2. ↑ "Services of CMAs". Institute of Cost and Management Accountants of Bangladesh. Retrieved 11 October 2015.
  3. ↑ David O'Regan (2003). "Bangladesh". International auditing: practical resource guide. John Wiley and Sons. p. 138. ISBN   0-471-26382-6.
  4. ↑ "IFRS Application Around the World Jurisdictional Profile: Bangladesh" (PDF). IFRS. Archived from the original (PDF) on 26 July 2015. Retrieved 11 October 2015.
  5. ↑ "The Institute". www.icmab.org.bd. Retrieved 2017-10-23.
  6. ↑ "Institute of Chartered Accountants of Bangladesh | IFAC". www.ifac.org. Retrieved 2017-10-23.

Further reading

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.