Accounting practice in Bangladesh companies.
By TanimHassan | March 2014
Page 1 of 5
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 & Management Accountants 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 of 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. As of 2001, 23 such standards had already been adopted, and listed companies are required to use IFRS.
Different Branches of Accounting:
1.Financial accounting: Limits its activities in recording business transaction and determining financial results and position.
2. Cost Accounting: Takes the responsibility of determining cost of products and services and controlling costs with a view to maximizing profit.
3. Management Accounting: Takes the duty of helping management in planning and decision making.
Functions of different Branches of Accounting
Recording business transaction.
Determining the end results of the business.
Determining the financial position on the closing date of the accounting period.
Determining cost of product or services.
Controlling cost of product or services.
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