Introduction of FRA Won't Contribute Towards the Harmonization Of
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February 2013 ISSN 1993-5366 ICAB News Bulletin No. 280 Monthly News Briefing from the Institute of Chartered Accountants of Bangladesh Introduction of FRA won’t contribute towards International Federation of Accountants the Harmonization of Financial Reporting and Audit Practices in Bangladesh - Speakers at ICAB Members’ Conference stressed Speakers at the conference said that recent reliable transparency of published financial corporate frauds has warranted question on information. IN THIS ISSUE transparency and credibility of accounting and audit The speakers in the conference placed suggestions functions in the country. The speakers also said that on how to address market issues through catalyzing Conference on Harmonization of it has become imperative for the accounting high quality financial reporting and credible audit Financial Reporting and Audit practices in professionals to regain confidence and credibility of practices through technical skills, professional Bangladesh (Page 1-2) CA professionals could stakeholders to serve the public interest through competencies besides ethics. Anwaruddin be instrumental (Page 3) effective harmonization of financial reporting and Chowdhury FCA, Council Member & Past President Islami Bank officials meet ICAB President (Page 3) audit practices which inturn, ensure the of ICAB presented the thought provoking Keynote President’s Communication (Page 4-8) implementation of corporate governance. paper in the seminar. ICAB Team meets Commerce Minister (Page 9) The conference on “Harmonization of Financial Dr. SA Samad, Executive Chairman, Board of ICAB observes Reporting and Audit Practices: Perspective Investment (BoI) was the Chief Guest while Md. International Mother Language Day (Page 9) Bangladesh” was organised by the ICAB at its Motaher Hussain, Controller General Defence CRC-ICAB observes auditorium, CA Bhaban on Saturday, 23 February Finance, Office of the Controler and Auditor International Mother Language Day (Page 9) 2013, in the backdrop of “global shift towards the General of Bangladesh (OCAG) graced the occasion CA Firms requested to follow the ToR (Page 10) IAS/IFRS and the ISA frontiers”, aimed to spread as Special Guest. ICAB President Md. Abdus Salam DRC-ICAB Annual the true sense of corporate accountability and FCA, Past Presidents, Hon’ble members and Picnic-2013 (Page 10) ICAB President meets Prothom Alo Editor (Page 11) ICAB team meets NBR Chairman (Page 11) CSE to work with ICAB (Page 11) Conference on Harnessing Technology in Accounting and Auditing (Page 12) Mahbub joins ICAEW Tutor Confce in UK (Page 12) CA Students Qualify in Final Exams (Page 13-14) Results of Professonal Stage Knowledge & Application Level (Page 15-17) Campus News (Page 18) Committees of ICAB for 2013 (Page 19-23) Restoration of investors confidence (Page 24) Nesar receives Runner Up trophy (Page 24) Syful Islam Talks on Chief Guest Dr. SA Samad, Executive Chairman, Board of Investment (BoI) speaking at a conference Share Market in RTV’s organised by the Institute of Chartered Accountants of Bangladesh (ICAB) at CA Bhaban in the city on Talk Show (Page 24) Saturday, 23 February 2013. Md. Abdus Salam FCA, President-ICAB, Keynote speaker Anwaruddin A Team of Articled Students’ Assoc meets Chowdhury FCA, Members Council & Past President-ICAB, Md. Motaher Hussain, Controller General ICAB President (Page 24) Defence Finance, OCAG and Md. Matiul Islam FCA, Chairman, IIDFC were present on the occasion. ICAB News Bulletin No. 280 distinguished guests were also President-ICAB in his speech said that FRA is not only incomplete present in the conference. in itself, it is also contradictory and can’t meet the very purpose of its Samad said “the recent experience of formation. He also said that it is the global economic disorder around unnecessary and a step pursued the world raises the awareness for us without going into the depth of the to think about Bangladesh Economy. problem. In this situation, we need to think for Md. Motaher Hussain said, the harmonization of International “Harmonization of Financial Dr. SA Samad Financial Reporting and Audit Executive Chairman, Reporting and Audit Practices Board of Investment (BoI) Practices in Bangladesh more could nurture the Financial Md. Motaher Hussain extensively”. “The objective of this harmonization is to establish the Controller General Reporting Culture of Bangladesh Defence Finance, OCAG need of having such standards which can ensure the transparency in and show a reliable way on how to presentation of financial statements manifesting accountability and produce transparent information which would ultimately help to take good governance in corporate sectors”, he added. the appropriate economic decision needed for the country. He said The BoI Executive Chairman further said that these are essential for that, public sector accountants and private sector accountants should all financial assets and liabilities for recognizing, measuring, and work together and provide mutual cooperation for harmonization of disclosing useful information of financial statements to the financial reporting and audit practices in the country. Government, Regulators and Stakeholders. He lauded the role of Md. Matiul Islam FCA, Chairman, ICAB to get these standards by maintaining the process with the Industrial and Infrastructure adoption of the ISA/IAS and IFRS. He opined that if ICAB performs Development Finance Company its duty properly in practicing, controlling, monitoring and ensuring (IIDFC) Limited was present in the accountability in financial reporting and auditing, there is no need to Members’ Conference as Session form another accounting regulator body in the country. He hoped Chairman who summarized the that the recommendations of this conference could help to session in a comprehensive manner. harmonize the financial reporting and auditing practicing in the The Keynote speaker of the country. conference said harmonization of Md. Matiul Islam FCA Chairman, IIDFC Md. Abdus Salam, President of financial reporting and audit practices ICAB in his welcome address said, would enable multinational companies to obtain multiple listings in “at present, transparent, efficient and stock exchanges of different countries with less additional costs and accountable financial statement on regulatory compliance adjustments to their financial statements. He the part of all entities is expected for also said that harmonization of audit practices will enhance the the economic growth of the credibility of the audit opinion and make more acceptable of the country”. He also said that, it is to be financial report. ensured compliance with the Md. Abdus Salam FCA The Keynote speaker in his long provisions of all applicable President -ICAB deliberation concluded that any International Accounting and Auditing Standards and effort to form Financial Regulatory International Financial Reporting Standards in the preparation and Council (FRC) and bring financial presentation of the Financial Statements. He further mentioned Reporting Act (FRA) would that these standards are duly adopted by ICAB as BAS/BFRS and otherwise, increase the cost of doing BSA. He said that harmonization through proper application of business. It will hinder the growth of accounting and financial standards will ensure a comparable and business, bring complexity in the fair presentation of the financial information and help decision system specially in the area of Anwaruddin Chowdhury FCA maker in formulating economic policies. Past President & Council Member foreign investments. Keynote speaker 2 February 2013 ICAB News Bulletin No. 280 Training on IFRS for BB Senior Officials at ICAB begins CA professionals could be instrumental to realize the minimization of corporate frauds Recent embezzlement of fraudulent activities alarmed us to be He also said that the BB is keenly interested to achieve advanced conscious about quality inspection of all the bank branches. The and pragmatic technical knowledge on accounting especially on ICAB professionals will be instrumental to the Bangladesh Banks IFRS and believes the training organized by ICAB for BB officials (BB) being procedural and evidence based reviewer, in will meet the requirement banking regulation at large. minimizing the fraudulent activities and to ensure transparency A total of 35 Bangladesh Bank Senior Officials participated in the and higher level of monitoring of the internal control system. training organized by the Institute of Chartered Accountants of ICAB President Md. Abdus Salam FCA hoped, while inaugurating training on IFRS Training for Bangladesh Bank Officials at CA Bhaban in the city on Sunday, 10 January 2013. Deputy Governor, Bangladesh Bank Md. Abul Quasem was present as the Chief Guest in the occasion. Abdus Salam further said, CA firms also can play a significant role in auditing covering meticulous functions of the branches of the banks, adding the involvement of sufficient number of Chartered Accountants could scale up the true understanding of operation, Bangladesh Bank Deputy Governor Md. Abul Quasem speaking as Chief Guest at the inaugural ceremony of a training on “IFRS for Bangladesh Bank Officials” at CA Bhaban in thereby help towards minimizing the city on Sunday evening, 10 January 2013. ICAB President Md. Abdus Salam FCA, other relevant risks and stimulate the distinguished ICAB Members and BB Senior Officials were present on the occasion. substantial revenue of banks. As Chief Guest, Deputy Governor said that,