Accounting in Bangladesh

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In Bangladesh, the profession of accountancy developed during the British colonial period. The basic requirements for financial reporting by all companies in Bangladesh are 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).

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Chartered Accountants complete their training in practising firms and specialise 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 of professional accountants equal in respect of employment in government services 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

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Association of Chartered Certified Accountants

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The Institute of Cost Accountants of India (ICAI), previously known as The Institute of Cost & Works Accountants of India (ICWAI), is a premier statutory professional accountancy body in India with the objects of promoting, regulating and developing the profession of Cost & Management Accountancy. Institute is also known as ICMAI. It is the only licensing cum regulating body of Cost & Management Accountancy profession in India. It recommends the Cost Accounting Standards to be followed by companies in India to which statutory maintenance of cost records applicable. ICAI is solely responsible for setting the auditing and assurance standards for statutory Cost Audit to be followed in the Audit of cost statements in India. It also issues other technical guidelines on several aspects like Internal Audit, Management Accounting etc. to be followed by practising Cost Accountants while discharging their services. It works closely with the industries, various departments of Government of India, State governments in India and other Regulating Authorities in India e.g. Reserve Bank of India, Insurance Regulatory and Development Authority, Securities and Exchange Board of India etc. on several aspects of performance, cost optimisation and reporting.

New Zealand Institute of Chartered Accountants

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

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.

Institute of Chartered Accountants of Pakistan (ICAP) is a professional accountancy body in Pakistan. As of December 2018, it has 9989 members working in and outside Pakistan. 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 Bye-Laws were revised in 1983.

Institute of Cost and Management Accountants of 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.

Institute of Certified Management Accountants of Sri Lanka

The Institute of Certified Management Accountants of Sri Lanka, is a professional body offering qualification in management accountancy in Sri Lanka.

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.

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