1.1 Origin of the Report:
The report is the requirement for the completion of Project Work: BUS 498, which itself is the major requirements for the completion of BBA Program. As per the requirement I have assigned to prepare this report on “Compliance of Applicable Accounting Standards in Banking Sector of Bangladesh” for the course BUS 498: Project Work, under the supervision of Dr. Monirul Alam Hossain, course instructor. Financial reporting a complex procedure in an organization and as the organizations are now taking global perspective, the procedure is becoming more and more complex. In this scenario of organizational reform it has become very necessary for someone related to or potentially be related the corporate world, to know the specific rules of financial reporting. And this rules when adopted by International Accounting Standard Committee (IASC) are known as International Accounting Standards (IAS). In the reflection of these IAS Bangladesh have developed standards which are called Bangladesh Accounting Standards (BAS). This report is aimed at knowing the extent to which the banking sector of Bangladesh are complying with these standards while presenting their financial position.
1.2 Background of the Report:
The Companies Act of 1994 provides basic requirements for financial reporting by all companies in Bangladesh. Accordingly the Bank Company Act of 1991 mandates reporting formats and disclosures based on BAS 30, which is similar to IAS 30. Organizations report their financial statements periodically. In reporting their financial condition they have to follow certain rules. These rules are called Accounting Standards which are primarily adopted by International Accounting Standard Committee (IASC). In Bangladesh the responsibility is held by Institute of Chartered Accountants of Bangladesh (ICAB). Currently there are more than 41 Accounting Standards followed all over the world. Among them around 20 standards are adopted in Bangladesh. Again these standards have different implications for different sectors. This study aims at knowing the extent to which the banking sector of Bangladesh are complying the adopted accounting standards. This report will help anyone who is interested to know the rules and procedures adopted by international and local authority. This aims at providing a strong insight of the compliance and non compliance scenario of Bangladesh Accounting Standards applicable in banking sector of Bangladesh. To know whether banks of Bangladesh are following reporting standards, extent of compliance, the overall scenario of compliance of Bangladesh Accounting Standards in the banking sector, preparation of this report will be very useful. To have an strong and reliable insight of reporting phenomenon in banking sector of Bangladesh, Eight sample banks were selected with the help of random sampling. The implications of each applicable Accounting Standard were focused for the better understanding of the BASs Then there will be a compliance review for each selected bank. This study is basically descriptive analysis of representation of financial statements of the selected banks. Besides, there will be some analytical review for impartial judgement of the findings. The analytical review is based on the compliance and noncompliance score by the sample banks. The sample banks under study are One Bank Ltd, Arab Bangladesh Bank ltd, Social Islami Bank ltd, HSBC, Standard Bank ltd, Uttara Bank ltd, Sonali Bank ltd, and NCC bank ltd.
1.3 Objectives of the Report:
The Primary purpose of this study is to know the extent to which banking sector of Bangladesh is complying with Accounting Standards applicable to the sector. This report is aimed at knowing the present overall compliance scenario in the banking sector of the country. The objective can be divided into following categories:
← The primary objective of this report is to...
Bibliography: 1. Mohammad Saif Uddin, Director, KPMG Bangladesh.
2. Ahmed, A. A. A and Dey, M. M. (2010) “Accounting disclosure scenario: an empirical study of the banking sector of Bangladesh”
3. Mutawaa, A. A. and Hewaidy, A. M. (2010) “Disclosure level and compliance with IFRSs: An Empirical Investigation of Kuwaiti Companies”,
4. Kasum, A. S. (2010) “The impact of compliance with accounting standards on asset and profitability of Nigerian quoted companies”
5. KPMG Accounting Checklist: http://www.kpmg.co.il/Events/IFRS/IFRS%20disclosure%20checklist.pdf
6. HSBC Website: http://www.hsbc.com.bd/1/2//about-us
7. ICAB Website www.icab.org.bd
8. Annual Reports of the Sample Banks.
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