www.icab.org.bd 2020 YEAR OF DIGITAL TRANSFORMATION

ANNUAL REPORT 2020

www.icab.org.bd

ANNUAL REPORT 2020

YEAR OF DIGITAL TRANSFORMATION ANNUAL REPORT 2020

CONTENTS

03 Notice REPORT OF THE COUNCIL FOR THE YEAR 2020 04 The Institute- A Brief Outline 1.0 Digital Transformation 32 2.0 Exclusive Programmes in 2020 46 09 The Council-2020 - Past Presidents 53 21 Regional Committees / Overseas Chapters 3.0 Technical Affairs 64 23 ICAB's Revised Organogram 4.0 Examination and Students Affairs 75 26 President’s Narrative for 2020 5.0 Regulatory Affairs 79 6.0 Operational Affairs 81 7.0 Members' Affairs 88 8.0 Activities of Regional Committees and Overseas Chapters 94 9.0 Meeting with the Government, Regulatory Bodies and other Organisations 97 10.0 Other Important Events of the Institute 104 - New Office Bearers of ICAB for 2021 106 11.0 Report of the Quality Assurance Board (QAB) 108 12.0 Report of the Real Estate Committee (REC) 112 13.0 Report of the Professional Development Committee (PDC) 113 14.0 Report of the Taxation and Corporate Laws Committee (TCLC) 114 15.0 Report of the Investigation and Disciplinary Committee (IDC) 119 16.0 Report of the Members Issues, Services & Welfare Committee (MISWC) 122 17.0 Report of the Chairman of the Review Committee for Published Accounts & Reports 124 18.0 Report of the Audit Committee 128 19.0 Acknowledgement 129

FINANCIAL HIGHLIGHTS 130 AUDITORS’ REPORT FINANCIAL STATEMENTS 2019-2020 136

02 | The Institute of Chartered Accountants of NOTICE

(Bye-law 66 of the Institute of Chartered Accountants of Bangladesh Bye-Laws, 2004)

The 48th Annual General Meeting of the Institute of Chartered Accountants of Bangladesh (ICAB) will be held on Saturday, 26 December 2020 at 05:30 pm ( Time) through online by using Zoom App to transact the following businesses:

AGENDA

1. To confirm the Minutes of the 47th Annual General Meeting of the Institute held on 18 December 2019; 2. To receive, consider and adopt the Report of the Council together with Audited Financial Statements of the Institute and the Auditors’ Report thereon for the year ended 30 June 2020; 3. To appoint Auditors for the year 2020-21 and to fix their remuneration; 4. To introduce new Office Bearers of the Institute for the year 2021; and 5. Any other business with permission of the Chair.

All esteemed members of the Institute are cordially invited to attend the meeting.

Shubhashish Bose Chief Executive Officer (CEO), ICAB

Dhaka, 10 December 2020

N: B: Meeting URL, ID & Passcode: Zoom URL : https://zoom.us/j/93702328266?pwd=N3VOWXFPSS9KUTlUUFBkaGVGR0g5QT09 Meeting ID : 937 0232 8266 Passcode : 2020

The Institute of Chartered Accountants of Bangladesh | 03 ANNUAL REPORT 2020

THE INSTITUTE - A BRIEF OUTLINE

The Institute of Chartered Accountants of Bangladesh (ICAB) was established under the Bangladesh Chartered Accountants Order, 1973 (President's Order No. 2 of 1973) to fulfil the vision of Bangabandhu Sheikh Mujibur Rahman, the father of the nation, for the purpose of regulating the profession of accountants and for matters connected therewith. The vision, mission, aims and objectives of the Institute are as follows:

ICAB members hold a widely respected professional accounting qualification which supports enterprise, VISION corporate governance and sustainable growth in the business environment.

04 | The Institute of Chartered Accountants of Bangladesh • To promote and regulate high quality financial reporting and auditing in Bangladesh MISSION • To develop and maintain the competence of professional accountants and;

• To enhance the reputation of the accounting profession in all sectors of the economy

The Institute of Chartered Accountants of Bangladesh | 05 ANNUAL REPORT 2020

To accomplish the above mission, ICAB has been endeavoring to:

 Regulate the Profession of Accountants and matters connected therewith

 Administer its members and students

 Ensure professional ethics and the code of conduct

 Provide specialized and professional training in Accounting, Auditing. Taxation, Corporate Laws, Management Consultancy, Information Technology and related

AIMS & OBJECTIVES subjects

 Impart Continuing Professional Development (CPD) to members

 Foster acceptance and observance of International Accounting Standards/ International Financial Reporting Standards (IAS/IFRS) and International Standards on Auditing /International Auditing Practices Standards (ISA/IAPS) in Bangladesh.

 Keep abreast of the latest developments in accounting techniques, audit methodology, information technology, management consultancy and related fields and;

 Liaise with international and regional organizations to strengthen mutual cooperation

06 | The Institute of Chartered Accountants of Bangladesh MEMBERSHIP As of 01 July 2020, the Institute has 1727 members, of whom 1594 are residing in 01 Bangladesh and 133 in abroad. There are 1284 Fellows and 443 Associates enrolled with the Institute. Out of 1727 members, 375 are practicing as public accountants and the rest 1352 are either serving in various key positions in public and private organizations, both at home and abroad, and self-employed running their own business.

INTERNATIONAL AFFILIATION ICAB is an active member of the following international and regional accounting 02 bodies: • International Federation of Accountants (IFAC)- as a founding member • Confederation of Asian and Pacific Accountants (CAPA) • South Asian Federation of Accountants (SAFA)- as a founding member • Chartered Accountants Worldwide (CAW)- ICAB is an associate member

MoU & MPA ICAB has Memorandum of Understanding (MoU)/Membership Pathway Agreement with 03 the following national & international organizations: • MoU with the Institute of Chartered Accountants in England & Wales (ICAEW), UK Under this MoU ICAB has been working with ICAEW as a learning and professional development partner, and allows ICAB Members to apply for ICAEW Membership. • MoU with Chartered Institute of Public Finance and Accountancy (CIPFA), UK Under this MoU ICAB Members are eligible to apply for membership of the Chartered Institute of Public Finance and Accountancy (CIPFA), a globally recognised membership body for the public sector. • MPA with CPA Australia ICAB members can obtain members of CPA Australia just after passing 04 papers (i.e. 1. Ethics and Governance, 2. Financial Reporting, 3. Global Strategy & Leadership and 4. Strategic Management Accounting) out of their 12 papers. This MPA became effective from 20 July 2018. • MoU with IFRS Foundation Under this MoU ICAB was allowed with the copyright license to publish both in print and online electronic editions of IFRS, IAS and IFRS for SMEs as issued by the International Accounting Standards Boards (IASB) and to distribute English language version of these standards in Bangladesh until June 2020. • MoU with LGSP The key feature of the MoU is to conduct an external audit of Union Parishads' latest annual financial statements along with the performance assessment and fiduciary & safeguard compliance assessment. • MoU with NBR ICAB and NBR signed a landmark MoU on Document Verification System (DVS) which is the verification of audited financial statements submitted to the Income Tax Department of NBR.

The Institute of Chartered Accountants of Bangladesh | 07 ANNUAL REPO R T 2020

GLOBAL RECOGNITION ICAB members are recognized by the global/international professional Institutes as follows: Institute of Chartered Accountants in England & Wales (ICAEW), UK 04 • Pathway membership is open for ICAB members based on their required experiences • Members without the required experiences are to pass ICAEW Advanced Level only CIPFA, UK • Pathway membership is open for ICAB members based on their required public sector experiences CPA Australia • Through Membership Pathway Agreement (MPA), ICAB Members can become members of CPA Australia after passing just four papers.

ICAB PUBLICATIONS ICAB publications include, inter alia, a quarterly journal titled ‘The Bangladesh Accountant' and a monthly mouthpiece, 'ICAB News Bulletin'. In the journal, articles of ICAB Members 05 and others are published. Articles on various aspects of auditing, accounting, financial and economic issues are published in the journal, while the latest ICAB events related to the profession and the institute unfold in the news bulletin. ICAB also publishes books and booklets on accounting profession and research materials.

WEBSITE (WWW.ICAB.ORG.BD) ICAB website provides the required information for students, members and other 06 stakeholders.

FACEBOOK (FACEBOOK.COM/CA.BANGLADESH) 07 ICAB Facebook provides up-date of ICAB ongoing activities.

EXTERNAL RESOURCES AUDITORS BANKERS Mr. Md. Fazlul Haque FCA (Enrl: 933) Dhaka Bank Ltd. 08 Proprietor Southeast Bank Ltd. Haque Fazlul & Co. AB Bank Ltd. Chartered Accountants Janata Bank Ltd. 21/A, Purana Paltan (5th floor) Social Islami Bank Ltd. Dhaka-1000 Sonali Bank Ltd.-UK Bank Asia and NRB Global Bank Mr. Snehasish Barua FCA (Enrl: 894) One Bank Partner Shahjalal Islami Bank Snehasish Mahmud & Co. BRAC Bank Chartered Accountants House # 10 (3rd floor), Road # 9 ACTUARY Block- J, Baridhara, Dhaka-1212 Z Halim & Associates

08 | The Institute of Chartered Accountants of Bangladesh THE COUNCIL 2020 ANNUAL REPORT 2020

THE COUNCIL 2020

PRESIDENT

Mr. Muhammad Farooq FCA, President of the year of Grant Thornton International & Director of Grant 2020, has been in the ICAB Council since 2013. He Thornton Consulting Bangladesh Limited. chairs the Council, Executive Committee, Examination Committee, Committee for Project During the period of his service as public Development & Capacity Building and is member accountant, he established himself as an expert in of different standing and non-standing committees the audit of both national and multinational financial of Council-ICAB. He served ICAB as institutions, including Bangladesh Bank. Mr. Farooq Vice-President (F & A) in 2013 has obtained a wide range of experience in the monitoring, review and performance of audit Mr. Farooq became an Associate Member in 1986 conducted under different Embassies and and a Fellow Member in 1991 of ICAB. He did his Development Financial Institutions, International graduation & masters from Dhaka University. He is Agencies and lead partner in the audit of banks currently the Managing Partner of Howladar Yunus and financial institutions. & Co., Chartered Accountants, a full member firm

10 | The Institute of Chartered Accountants of Bangladesh VICE PRESIDENT (EDUCATION & EXAMINATIONS)

Mr. Sidhartha Barua FCA, became an Associate He has also been rendering services to the ICAB as Member of ICAB in 1995 and a Fellow Member in 2000 of member of different standing and non-standing the Institute. Mr. Barua obtained M.Com degree in committees. Accounting from University. He served the Mr Barua was the Chairman ICAB- CRC in the year 2004 Meghna Petroleum Ltd. from 1987 to 2001 in different and the Executive Member of ICAB-CRC during capacities. 2004-2006. Currently, he is the partner of M. A. Mallik & Co., He is a permanent Member & Convener of Finance Chartered Accountants, Chittagong, and Council Committee- Chittagong Club Limited, President and Member of ICAB for the term 2019-2021. He is the Vice Trustee- Bangladesh Buddhist Foundation & Trustee President (Education and Examinations) of ICAB for the Prantic Welfare Trust, Life Member of Diabetic year 2020. He is also the Chairman of Committee for Association of Bangladesh. He is also Council Member & Small and Medium Practitioners, and the Co-chairman of ex- Finance secretary of Bangladesh Bouddah Kristi Board of Studies of the Council –ICAB for the year 2020. Prochar Sangha, Dhaka.

VICE PRESIDENT (TECHNICAL AND REGULATORY AFFAIRS)

Mr. Sabbir Ahmed FCA qualified in 2000 and become a renowned multinationals as well as most reputed local Fellow Member of ICAB in 2005. Mr. Ahmed has been conglomerates. elected as Vice President of ICAB for the year 2020. As Vice He regularly presents key-note papers on various President he has been carring out the responsibility for professional issues at ICAB CPD seminars/members Technical and Regulatory Affairs of the Institute. Mr. Ahmed conferences as well as other reputed forums both home and is a Council Member of ICAB for the term 2019-2021 and abroad. As a subject matter expert, he has been invited by serving in various committees of ICAB Council including different regulatory authorities (i.e. Bangladesh Bank, BSEC, Chairman of TRC. He is also acting as the Chairman of the OCAG etc.) to work with them on various reform initiatives. South Asian Federation of Accountants (SAFA) Committee on Professional Ethics & Independence and a selected Having a great passion for teaching, Mr. Ahmed is taking member of Confederation of Asian and Pacific Accountants training on IFRS and auditing related matters for ICAB members (CAPA) Audit Group. and classes for the advanced level students. Mr. Ahmed is also a visiting/adjunct faculty member of Dhaka University and Mr. Ahmed is a partner of Hoda Vasi Chowdhury & Co, one Business Schools of other reputed private universities. of the largest and oldest Chartered Accountants firm in Bangladesh previously known as A. F. Ferguson & Co. He He is actively involved in various socio economic welfare has nearly twenty five years of professional experience organizations like member of Transparency International, including more than a decade of international experience of board member of Australia Bangladesh Council, Melbourne. working with one of the Big Four Firms in countries like In addition to writing in leading national dailies on professional Australia, Indonesia, Germany, Singapore, Tajikistan, UAE, issues, he is also invited to participate in TV talk shows to UK etc. His client portfolio includes some of the World discuss topical business and finance related matters.

The Institute of Chartered Accountants of Bangladesh | 11 ANNUAL REPORT 2020

VICE PRESIDENT (OPERATIONS & MEMBERS' SERVICES)

Mr. Mohammed Forkan Uddin FCA, became an Welfare Committee (MISWC)-2020. He has also been Associate Member in 2005 and a Fellow Member of the rendering services to ICAB as one of the faculty Institute of Chartered Accountants of Bangladesh (ICAB) members and member of different standing and in 2010. Mr. Uddin has been elected as Vice President of non-standing committees. Before joining as partner of M ICAB for the year 2020. As Vice President he has been M Rahman & Co., Chartered Accountants, he was a carring out the responsibility for Operations & Members' partner of Masih Muhith Haque & Co., Chartered Services of the Institute. He has an M Com in Accounting. Accountants. He also served as manager of Banco Finance & Investment Ltd. Presently he is the Managing Partner of M M Rahman & Co., Chartered Accountants, a member firm of Russell He is the life member of Bangladesh Economic Bedford International (UK) and Council Member of ICAB Association, Feni Samity, Treasurer of Rotary Club of 2019-2021. Mr. Forkan is the Chairman of Articled Baridhara Sunrises and the Trainer of BCS Tax Academy, Students Committee (ASC), and the Co-chairman of ICB and Faculty of UODA. He is a regular participator in Taxation and Corporate Laws Committee (TCLC), Live TV Program on Economic/Business issues and an Regulatory & Trade Body Affairs and Coordination ocassional contributor to the daily newspapers. Committee (RTBACC) and Members Issues, Services &

COUNCIL MEMBER

Mr. Akhtar Sohel Kasem FCA, became an Associate Mr. Kasem is a Council Member of ICAB since 1995. He Member of ICAB in 1981 and Fellow Member in 1986. served as the President of ICAB in 2004 and the Vice Earlier, he completed his articles with Coopers & President in 2001. He has been working for different Lybrand, London and became a member of ICAEW in Standing and Non-standing Committees of ICAB and 1981. He is also an Associate Member of CPA Ontario, SAFA for many years. Canada. He is currently the Senior Partner of A. Qasem& Co., Chartered Accountants, Member Firm of Ernst & Mr. Kasem was a Board Member of Dhaka Stock Young Global Limited and is also the ICAEW Contact Exchange Ltd (DSE), Power Grid Company Bangladesh Member in Bangladesh. Ltd and a member of DSE Expert Panel. He is a Rotarian and Past President of Rotary Club of Dhaka Central.

12 | The Institute of Chartered Accountants of Bangladesh COUNCIL MEMBER

Dr. Md Abu Sayed Khan FCA, was born in 1958. He Dr. Khan has been serving ICAB and closely attached obtained first class in B. Com (Hons) and M. Com with its activities for a long time. He was Secretary of (Accounting) from the University of Dhaka. He became Dhaka Regional Committee (DRC) of ICAB for two terms an Associate Member of ICAB in 1983 and a Fellow (1999 & 2000). He was also in the ICAB Council from Member in 1988. He conducted academic research on 2001 to 2015 and served as Vice President of ICAB in Public Sector Financial Management System in 2002 and 2003. He is a member of the current Council of Developing countries, availing the prestigious ICAB (for 2019-21). He has been serving in the different Commonwealth Scholarship, at the University of standing and non-standing committees of ICAB Council. Bradford (UK) Business School and earned a PhD At present he is Chairman of the Editorial Board and degree from the University of Bradford in 1996. public Finance and Public Sector Accounting Sub-committee. Formerly he was Managing Director of Bangladesh Telecommunications Company Ltd. (BTCL) and Dr. Khan served as Chairman, Sirajgonj Zila Samity in Telephone Shilpa Sangstha Ltd. (TSS). He was also the Dhaka. He also served as Director of Board of different Member Finance of BTCL for long time. After retiring from public sector organisations such as, Teletalk Bangladesh the government service in 2017, he joined S.F. Ahmed & Ltd., Bangladesh Cable Shipla Ltd., DESCO, North West Co., Chartered Accountants, as Senior Director and is Power Generation Company Ltd, Telephone Shilpa looking after the assurance and advisory services. Sangstha and Bangldesh Telecommunications Company Ltd. He is a member of Officers’ Club, Dhaka.

COUNCIL MEMBER

Mr. Mohammed Humayun Kabir FCA, obtained B. Com Mr. Kabir has working experience of over 39 years. He (Hons) with first class and M.Com in Accounting from the worked for a CA firm from February 1981 to Jan 1985, a University of Dhaka. He studied Chartered Accountancy financial institution from February 1985 to June 1988 and and passed both group I & II of final exams of ICAB in since then, has been working for Industry. Currently, he one go. He became ACA in 1984 and FCA in 1989. He is the Chief Executive of a ceramics tableware also studied on International Capital Market at St. manufacturing & exporting company. Catherine’s College, Oxford, UK. Mr. Kabir has been He is also involved with National Board of Revenue recognized seven times as a CIP (Export) in 2007, 2011, (NBR) as a Facilitator of Alternate Dispute Resolution 2012, 2013, 2014, 2015 and 2017 and awarded Jatiyo (ADR) since March 2012, Federation of Bangladesh Paribesh Padak in 2010 by the Government of Chamber of Commerce & Industries (FBCCI) as a Bangladesh. Chairman/Co-Chairman/Member of its different standing

The Institute of Chartered Accountants of Bangladesh | 13 ANNUAL REPORT 2020

and non-standing committees, and with Bangladesh at Sydney Australia. Currently, he is the Chairman of Ceramics Manufacturers & Exporters Association, as an Taxation & Corporate Law Committee - TCLC and Review adviser. committee for Published Accounts & Reports - RCPAR of ICAB. He represents ICAB to South Asian Federation of Mr. Kabir was an Independent Director of Islami Bank Accountants – SAFA Board as a technical advisor (2019 Bangladesh Ltd (2016-2019), a member of Management & 2020) and as a member to SAFA committee for Committee (2014-2016) of Bangladesh Employers’ Improvement in Transparency, Accountability & Federation (BEF), an elected Director of Shippers' Governance - ITAG in 2020. Council of Bangladesh (2009-11), Director of Bangladesh Jute Spinners' Association (2015-17) and a Mr. Kabir is well known for his expertise in fiscal laws, Vice-Chairman of Bangladesh Jute Goods Association financial management, business strategies, corporate (2007-09). He also sat in the Board of Directors of governance and macroeconomic issues. His analyses Shadharan Bima Corporation (2008-2013), Bangladesh and suggestions are being accepted by the policy Telecommunication Company Ltd (2008), West Zone framers, decision makers and entrepreneurs with high Power Distribution Company Ltd (2005-06) and Dhaka esteem and value. Mr. Kabir is a regular participant in TV Stock Exchange Ltd (2008). talk shows on banking, capital market, fiscal matters and Since 2001, he has been an elected Council Member of issues relating to trade and investment. He has delivered the Institute of Chartered Accountants of Bangladesh lectures, presented papers and chaired seminars at (ICAB) for seven consecutive times (2001-2021). He was home and abroad on topics relating to business & vice president in 2002 & President in 2008 of ICAB. He accountancy profession. He has been nominated by the represented ICAB to International Federation of Government to its different Committees for reviewing Accountants - IFAC general assembly meetings held in Corporate/Taxation Laws, for evaluating proposals for 2010 at NewYork USA, in 2014 at Rome Italy, and in 2018 investment/EOI/consultant hiring/ procurement bids.

COUNCIL MEMBER

Mr. A F Nesaruddin FCA, was born in 1956. After currently a senior partner of Hoda Vasi Chowdhury & Co., completing B. Com (Hons) and M. Com in Finance from Chartered Accountants and one of the nominated the University of Dhaka, he started studying Chartered directors on the board of United Finance Limited. Accountancy in 1981. He became an Associate Member of ICAB in 1984 and a Fellow Member in 1989. He is a Prior to starting public practice in 1998, Mr. Nesaruddin Fellow Member of Institute of Chartered Secretaries of served in senior executive positions of Duncan Brothers Bangladesh (ICSB) as well. and its associated companies. He also served for one year in an investment company in Saudi Arabia. Mr. Nesaruddin FCA is the Immediate Past President of ICAB. He also served the Institute as the Vice-President He is a contributor to leading national dailies specially on (Education & Training) in 2015. He has been in different taxation, corporate governance and other professional standing and non-standing committees of ICAB since issues. He is also a former Independent Director of 1984. Singer Bangladesh Ltd, Sonali Bank Ltd, WASA, IIDFC Securities Ltd, IIDFC Capital Ltd and Bangladesh Mr. Nesaruddin is in public practice since 1998 and Rural Electrification Board.

14 | The Institute of Chartered Accountants of Bangladesh COUNCIL MEMBER

Mr. Kamrul Abedin FCA, is the managing partner of M. Vice-President (Technical & Research) for a period of 02 J. Abedin & Co., Chartered Accountants, an years from 2014 to 2015. He is the Chairman of Quality independent member firm of Moore Stephens Assurance Board of ICAB for the year 2020. International Limited. He has been with this 51-year-old firm for more than 30 years. After obtaining his Masters in He was earlier elected to the Dhaka Regional Committee Accounting from the University of Dhaka he joined M. J. (DRC)-ICAB for consecutive two terms 1995-1997 and Abedin and Co. as an articled student. In the year 1986 1998-2000. He was the Chairman of DRC-ICAB in 1998 right after becoming Associate Member of ICAB, he and Honorary Secretary in 1995. He has also been joined the firm as a partner. serving the Institute in different capacities (Member/ Chairman) of different standing and non-standing Mr. Abedin served ICAB as President in 2016 and as committees of the Council-ICAB.

COUNCIL MEMBER

Mr. Nasir Uddin Ahmed FCA, obtained B. Com, (Hons) member of SAFA in 2009. He was a Board Member and degree with first class and M. Com, both in Accounting Chairman of Board Audit Committee of Bangladesh from the University of Dhaka. An ICAB Medal awardee in Commerce Bank Ltd., Bangladesh Submarine Cable Co. CA Intermediate Examination, he became a Member of Ltd., Commerce Bank Securities and Investment Ltd. ICAB in February 1987. He became a member of ICAEW and LEADS Corporation Ltd. As President ICAB, he was in November 2017 and CIMA, UK in May 2017. Ex-officio Director in DSE, BTCL, BICM, SME Foundation and NAPD. Currently he is an Independent Director of Currently a Senior Partner of MABS & J Partners, Shahjalal Islami Bank Ltd and Treasurer of Institute of Chartered Accountants, he worked for British American Informatics and Development (IID), a policy advocacy Tobacco Bangladesh and Coats Bangladesh for more institute in Bangladesh. He was General Secretary of than two decades and lastly as Finance Director. He Dhaka University Accounting Alumni Association for a attended Management Development Programs at tenure of two years during 2003-05. He is also a Fellow various business schools including Cranfield School of Member of ICSB and various other professional Management, Asian Institute of Management, IIM- institutions at home and abroad. Ahmedabad, Singapore Institute of Management etc. Currently, he is sitting on the Board of Confederation of He was a Vice President of ICAB in 2003 and 2004. He Asian and Pacific Accountants (CAPA) for a tenure of 4 took over as President-ICAB in 2009. He was a board years till November 2023.

The Institute of Chartered Accountants of Bangladesh | 15 ANNUAL REPORT 2020

COUNCIL MEMBER

Mr. Adeeb H. Khan FCA, is the Senior Partner of Rahman Board of BRAC, several times voted internationally as Rahman Huq, Chartered Accountants (Member Firm of world’s No.1 NGO. He is the Chairman of BRAC’s Audit KPMG International in Bangladesh). and Finance Committee.

Mr. Khan was the President of The Institute of Chartered Mr. Adeeb Khan has been and is on the Executive Accountants of Bangladesh (ICAB) in 2017. He was a Committee of Metropolitan Chamber of Commerce and Vice President of ICAB in 2016. He has been a Council Industry from 2011-2016 and 2019-2021 and Chairman member since 2013. He was the Chairman, Professional of its Taxation Sub-Committee for most of these years. Ethics and Independence Committee, South Asian His past directorships include Biman Bangladesh Federation of Accountants (SAFA). Airlines Limited, Electricity Generation Company of Bangladesh Limited, etc. Mr. Khan has been a member of the Institute of Chartered Accountants in England and Wales since 1991 and of Mr. Khan is a member of the Executive Committee of ICAB since 1992. He is a member of the Governing Bangladesh Legal Aid and Services Trust (BLAST).

COUNCIL MEMBER

Mr. NKA Mobin FCA, is a fellow Chartered Accountant in Senior Vice-President. He is one of the Board members the country and presently one of the council members of of Biman Bangladesh Airlines, Shasha Denims Ltd, MJL ICAB. He is also a Chartered Secretary and a Fellow Bangladesh Ltd. and Bangladesh Submarine Cables member of ICSB and member of the Institute of Certified Company Ltd. Management Accountants of Australia. He holds MBA in Finance from Dhaka University and EMBA degree from Mr. Mobin is one of the sponsor Directors of the Emerging Sweden, Singapore and France, and completed a Credit Rating Ltd (ECRL). It’s a licensed Credit Rating Management course from Japan. He was the Vice Company in Bangladesh from BSEC established around President (Education and Examinatons) of ICAB for the 11.5 years back. Having a technical collaboration year 2019. agreement with Malaysian Rating Corporation Berhard (MARC) since 2009. Completed around 22,100+ rating Mr. Mobin is currently the Managing Director & CEO of assignments with a current client base of 6,500+ and Emerging Credit Rating Limited (ECRL). He is rich in office in 4 places in Bangladesh and having around 70+ leadership quality and leading currently the Dhaka staff. Chamber of Commerce and Industries (DCCI) as its

16 | The Institute of Chartered Accountants of Bangladesh COUNCIL MEMBER

Mr. Md. Shahadat Hossain FCA, was born in 1965. He did Mr. Hossain was a Board Director of Bangladesh Cable Shilpa his Masters in Accounting and became an Associate Limited (an entity under Ministry of Post and Member in 1993 and a Fellow Member of ICAB in 1998. He Telecommunication) and Horipur Power Plant (a strategic is a senior partner of MABS&J Partner, Chartered business unit of Bangladesh Power Development Board). He Accountants, Board Director of Rajshahi WASA and Agrani also worked as Member of National Wages and Productivity SME Financing Company Limited. Commission (NWPC) under Labour and Employment Ministry, Government of the People's Republic of Bangladesh. A Council Member of ICAB since 2007, Mr. Hossain was the Vice President of ICAB in 2009 & 2011. He was the Secretary He is a trainer on IFRS and a regular contributor to different of DRC-ICAB in 2004, the Chairman of Technical & Research daily newspaper and periodical journals. He has presented papers at home and abroad on various financial, Committee (TRC) of the Council ICAB in 2011 and Chairman economics, budgeting, fiscal, agriculture, education issues. of Small and Medium Practitioners (SMP) Committee in He participates in TV talk shows, radio program and 2017. Presently he is the Chairman of Regulatory & Trade roundtables. Mr. Hossain authored three books- Body Affairs and Coordination Committee of the Council Bangabandhu O Bangladesher Arthonity, Muktir Shangram ICAB. He has also been working for different standing and and Accountability for Economic Development. He has non-standing committees of ICAB for a several years. He is represented ICAB in various nominated capacities in various a member of Small & Medium Practices (SMP) Committee of government organizations. SAFA.

COUNCIL MEMBER

Professor Dr. Md Salim Uddin FCA, is a Fellow Chartered He is the Council member of ICAB and member of different Accountant (FCA), Fellow Cost & Management Accountant standing and non-standing committees of the Council-ICAB. (FCMA), and Certified Public Finance Accountant (CIPFA), He had qualified in the Bangladesh Civil Service-BCS UK. He obtained his Honours in Commerce and Master in Examination in 1993. Presently, he is a Professor of Accounting from the University of Chittagong. He also Department of Accounting, University of Chittagong and obtained MBA with distinction from the University of also Chairman of Bangladesh House Building Finance Brussels, Belgium. He completed certificate course on IFRS Corporation-BHBFC and Chairman of Executive Committee and ISA at ICAEW in UK funded by World Bank jointly of Islami Bank Bangladesh Limited. organized by Ministry of Commerce, Bangladesh and He was an Independent Director, Chittagong Stock ICAEW, UK. He also participated at The Program on Exchange (CSE) appointed by the Government. He was also Consultancy Training (PCT) in Japan organized and partly an Independent Director of Premier Bank Ltd, Director of financed by AOTS Chubu Office (CKC). He did his PhD on Rupali Bank Ltd and Rupali Investment Ltd. He has more “Application of International Financial Reporting than sixty research publications at home and abroad and Standards-IFRS in Bangladesh”. He was the Vice President presented valuable papers in many national and (Technical and Regulatory Affairs) of ICAB for the year 2019. international seminars, training programs and workshops.

The Institute of Chartered Accountants of Bangladesh | 17 ANNUAL REPORT 2020

COUNCIL MEMBER

Mr. Gopal Chandra Ghosh FCA, FCMA, CPA (Aus), is serving ICAB as Council Member since 2013 and served currently the Group CFO of Anwar Group of Industries. as Vice President (Education & Training) for the year Previously, he worked as Director Consulting of Atik 2013. He is a Fellow Member of ICAB, ICMAB and CPA Khaled & Co., Chartered Accountants, Chief Financial Australia. Officer (CFO) of Viyellatex Group and as Financial Controller and Head of Internal Audit of Lafarge Surma Mr. Ghosh also served as Secretary General of The Cement Ltd. Earlier, he worked as Deputy Director of Institute of Internal Auditors, Bangladesh (IIAB) for many Studies (Technical & Research) and Project Director of years. He was a founder Director of ISACA Dhaka ICAB. Prior to that, he worked as Manager, Audit & Chapter and was Secretary of the Chapter for a long Consulting of ACNABIN & Co., Chartered Accountants. time. He has been working for different standing and non-standing committees of the Council-ICAB since Mr. Ghosh completed B. Com. (Hon’s) and M. Com. 1998. (Accounting) from the University of Dhaka. He has been

COUNCIL MEMBER

Mr. Md. Abdul Kader Joaddar FCA, became an Associate Mr. Joaddar had served SCB for 12 years (2003 to 2015) Member of the Institute of Chartered Accountants of performing with distinction as Financial Controller of SCB Bangladesh (ICAB) in 2001 and a Fellow Member in 2019. UAE operation from 2006 to 2012. He had also performed He obtained Bachelor of Commerce (Honours) and Master the role of acting CFO for UAE and was engaged in Finance of Commerce degrees in Accounting from the University of Transformation Program as the Global Process Manager for Dhaka. Mr. Joaddar is currently working as the Managing General Ledger and Accounting as well as Head of Client Analytics, Group Corporate and Institutional Clients Finance Director and Chief Financial Officer of Standard Chartered of SCB, based in Singapore. Prior to joining SCB in 2003, Mr. Bank, Bangladesh (SCB) since October 2018. In his career Joaddar has worked as the Manager, Assurance & Advisory spanning over 19 years, Mr. Joaddar acquired vast Services, Rahman Rahman Huq, a member firm of KPMG in experience within Banking and Life Insurance industry in the Bangladesh. areas of Finance, Performance Management, Financial Controls, Budgeting, Forecasting. Liquidity, Balance Sheet & Mr. Joaddar is also a Council Member of ICAB for Capital Management, Corporate Tax Management, 2019-2021. He also chairs the Committee on Professional Accountants in Business, Co-chairs the Taxation & Payments. Prior to joining Standard Chartered, he was Corporate Laws Committee, and Committee on ICAB working as the Deputy Managing Director and CFO of BRAC Management Reforms Project Development & Capacity Bank Limited in Bangladesh and has also served as the CFO Building 2019. He has also been serving the Institute as of MetLife Bangladesh. member of various standing and non-standing Committees.

18 | The Institute of Chartered Accountants of Bangladesh COUNCIL MEMBER

Mr. Md. Moniruzzaman FCA, obtained B. Com. (Hons) and Ex-faculty of the Institute, Mr. Moniruzzaman also immensely M. Com in Accounting from the University of Dhaka. He contributed to various committees in the past like IDC, TRC, became an Associate Member of the Institute of Chartered RCPAR, SMP, Media & Branding, Editorial Board, etc. He Accountants of Bangladesh (ICAB) in 2001 and a Fellow also served different listed companies in the role of an Member in 2006. Independent Director and the Chairman of Audit Committees. Mr. Moniruzzaman, a Senior Partner of ACNABIN Chartered Accountants, completed his articleship with the said firm Presently, Mr. Moniruzzaman is a Board member of and joined there as a partner in 2003. He served ICAB as the Bangladesh Rural Electrification Board (BREB) and also a Vice President for Operations & Members Services for the member the Academic Council of the Faculty of Business year 2019. He is the Chairman of Members’ Issues, Services Studies of the University of Dhaka. He is a current Vice and Welfare Committee (MISWC) and Co-chairman of Real President and Life Member of the Accounting Alumni, Estate Committee (REC), Articled Students Committee University of Dhaka and also Life Member of Dhaka (ASC) and Quality Assurance Board (QAB) as well as University Alumni Association, SM Hall Ex-students’ member of different standing and other committees of ICAB. Association and Bangladesh Accounting Association. He is also an avid social worker.

COUNCIL MEMBER

Mr. Mahmudul Hasan Khusru FCA, has been the Mr. Khusru is currently the Director & CEO, Expo Group, council member of ICAB since 2016. He was the Vice Bangladesh, Director & CEO, DataFort Limited (a President, Education & Training (E&T) of ICAB in 2016 & franchisee of InfoFort LLC, UAE), Board Director of 2018. InfoSapex Limited, Freight Options Ltd & MASCO International Ltd. He is also involved in the continuous Mr. Khusru has been serving as the faculty member of development process of ICAB in various capacities. He ICAB on Taxation for more than 16 years. He is also was the Chairman of Dhaka Regional Committee (DRC) involved in the preparation of various study materials of of ICAB in 2011. Institute.

The Institute of Chartered Accountants of Bangladesh | 19 ANNUAL REPORT 2020

COUNCIL MEMBER

Mr. Md. Mahamud Hosain FCA, is business graduate, and Previously he served as CFO of DHL Logistics, a fully owned Fellow Member of the Institute of Chartered Accountants of subsidiary of Deutsche Post DHL, Head of Corporate Bangladesh [ICAB]. Currently he is the Managing Partner of Finance and Risk Management at Robi Axiata and Finance MMH (Chartered Accountants, Management Consultants & Controller of Airtel Bangladesh. BPO Partner), Chairman, EAM Holdings Limited, Link In Ltd As part of professional development program, Mr. Mahamud and Total Logistics Limited, and Director Rupali Bahumukhi participated in large number of seminars, training programs Khamar Limited. and workshops in the areas of Financial Planning, Business Mr. Mahamud is also engaged with Asian Development Integration, Merger and Takeover and Leadership & Change Bank, World Bank, International Fund for Agricultural Management and IFRS in Singapore, Thailand, India, Sri Development in the capacity of Financial Management Lanka, Malaysia, UK and Indonesia etc. Mr. Mahamud has Consultant. actively participates in various business forums of different His other Engagements are: trade bodies and chambers. He is an active social worker. He volunteered as member of Mr. Mahamud conducted a number of training programs on Board of Directors in Dhaka WASA and Bangladesh Rural IFRS, Contemporary Assurances & Corporate Reporting Electrification Board (BREB) till October 2020. issues, Leadership & Business Performance Evaluation for His Membership and Association includes Fellow Member of participant from various leading MNCs and local the Institute of Chartered Accountants of Bangladesh [ICAB]; conglomerates, Bangladesh Bank, National Board of Member of Institute of Internal Auditors – Bangladesh; Life Revenue and University Teachers. As a visiting resource Member of Gulshan North Club, Barisal Club, Purbachal person he also taught in some of the leading Business Club, Corporate Executive Club, Gulshan Health Club, Schools and Institute (ICAB/National University). Banani Society and Rotary Club of Dhaka North East. Mr. Mahamud regularly participates in television talk show in Mr. Mahamud has been in the ICAB Council since January a number of national television channels on business and 2016. He was Vice President, Technical & Research for the economy. He also hosts “Market Watch”, a talk show year 2018 and Finance & Administration for the year 2017. televised by NTV on capital market & economy and “Digital He was member of Committee on the Governmental & Dialogue” on contemporary Economical Issues, Business & Public Sector Enterprise Accounting of South Asian Trade with country renowned Economist, Business & Trade Federation of Accountants (SAFA) for the year 2017-2018. Leaders & Regulators.

COUNCIL MEMBER

Ms. Maria Howlader FCA, is the founder of Howlader Maria Ms. Maria is currently serving as a Council Member of ICAB for & Co., (HmAC) Chartered Accountants (Member Firm of the term 2019-2021. She is the Chairman of Women Members TGS Global). She has been serving Bangladesh Audit, Empowerment & Leadership Development Committee (WME & Accounting and Advisory Practice since 2008. Before LDC) and Chairman of the project ‘Development and founding her own professional practice and consultancy Implementation of Audit Practice Software for CA Firms in work she was the partner in A. Qasem & Co., Chartered Bangladesh’ under Committee for Project Development and Accountants and practiced there for many years. Earlier she Capacity Building of ICAB. She is also the Vice Chairperson of worked for Hoda Vasi Chowdhury & Co., Chartered Women Leadership Committee in South Asian Federation of Accountants. She became an Associate Member of ICAB in Accountants (SAFA). She has been working for different Standing and Non-standing Committees of ICAB for many years. 2008 and Fellow Member in 2013. She had been one of the faculties of ICAB from 2009 to 2018.

20 | The Institute of Chartered Accountants of Bangladesh REGIONAL COMMITTEES/OVERSEAS CHAPTERS Currently the Institute has two regional committees to run different activities; Dhaka Regional Committee (DRC) and Chittagong Regional Committee (CRC). The committees consist of a Chairman, Secretary with seven members for DRC and three for CRC, who all are elected by the members. Dhaka Regional Committee (DRC) Chittagong Regional Committee (CRC) Mr. Ziaur Rahman Zia FCA Chairman Mr. Kamrul Islam FCA Chairman

Ms. Anika Sultana FCA Secretary Mr. Subash Chandra Hony. Secretary Mr. Md. Selim Reza FCA Member Chowdhury FCA Mr. Mohammad Redwanur Rahman FCA Member Mr. Imran Abu Hasan FCA Member Mr. Md. AKH Hasif Sowdagar FCA Member Mr. A.H.M. Ariful Islam FCA Member Mr. Mohammad Shaheed FCA Member Mr. Miltan Bepari FCA Member Mr. Md. Razib Hossain FCA Member Mr. Mohammad Abul Member Mr. Md. Amran Hossan FCA Member Kashem FCA Address: CA Bhaban (7thFloor),100 Kazi Nazrul Address: HBFC Building (3 rd Floor), Islam Avenue, Kawran Bazar, Dhaka -1215 1/D, Agrabad Com. Area, Chittagong OVERSEAS CHAPTERS The Institute has three Overseas chapters located in UK, Canada and Australia. Each chapter is run by a Management Committee consisting of Chairman, Secretary and three members.

ICAB UK CHAPTER MANAGEMENT ICAB-NORTH AMERICAN COMMITTEE CHAPTER AT CANADA Mr. AKM Fazlur Rahman FCA Chairman Mr. AKM Asaduzzaman FCA Chairman MBA, FCMA Mr. A Malek Sharif FCA Secretary Mr.. Md Mahbubul Haque FCA Secretary Mr. Md Shahabuddin ACA Member Mr.. Md Sarwar Hossen FCA Member Mr. Md SalimAhmed ACA Member Mr. Mohammed Arif Uddin FCA Member Mr. Mohammad Sakib ACA Member Mr. Mohammad Shakawat Hossain Member Bhuyan FCA Address: 77 Valleyfield Road, Streatham, Address: 54 Pharmacy Avenue, London SW 16 2HX, UK Scarborough ON M1L 3E5, Canada Tel : +416 690 3547 Tel : +44(0) 20 87699442, Mobile : +44 7973404833 E-mail : [email protected]

ICAB-ASIA PACIFIC CHAPTER (ASPAC) AT AUSTRALIA Mr. Hamiduddin Ahmed FCA, CPA (AU) Chairman Mr. Manzur Isa FCA, FCPA (AU) Vice-Chairman Mr. Abu Haider Mohammed Kibria FCA Secretary Mr. Syed Akram Ullah ACA Treasurer Mr. Zaber Ahammed ACA Joint Secretary

The Institute of Chartered Accountants of Bangladesh | 21 ANNUAL REPORT 2020

CHIEF EXECUTIVE OFFICER (CEO), ICAB

Mr. Shubhashish Bose to the rank of a Secretary to the Government in December drew an end to his 2016. bureaucratic career as a As a government representative, Shubhashish Bose Senior Secretary to the attended a number of high level overseas summits/ Government of consortia/ conference/ training programs/ seminars/ and Bangladesh. Finally he workshops. These included World Summit on Sustainable performed his Development, NAM Foreign Ministers’ Conference, assignment as the Senior Commonwealth Tax Conference, Paris Consortium Secretary of the Ministry Meeting, OECD Meeting etc. of Commerce. Before discharging his He also took part in trade delegation to Russia, responsibility as the Uzbekistan, Kyrgyzstan, Kazakhstan, Ukraine, South Senior Secretary of the Ministry of Commerce, he was in Africa, Zambia, Mozambique, Brazil, Chile, Colombia and charge of the Ministry of Textile and Jute as well. Myanmar in order to explore global market for export of Bangladeshi products and to invite foreign direct Shubhashish Bose was born in a respectable family on 1st investment to Bangladesh. He was also a delegation December 1959 in , Bangladesh. He was a member to the 9th WTO Ministerial Conference held in member of the Bangladesh Civil Service 1982 (regular Bali, Indonesia from 3rd to 6th December, 2013. Also batch). He joined the Bangladesh Civil Service in 1983 and attended the 10th WTO Ministerial Conference in Nairobi, served in different capacities in the Taxation Department Kenya during 15-18 December, 2015. He had the for long 17 years. He also served in two Bangladesh opportunity to take part in the 11th Ministerial Conference Missions abroad (South Africa and France) as Commercial of the WTO in December 2017 in Buenos Aires, Argentina Counsellor for seven years and half. Later he served as as the Secretary of the Ministry of Commerce. Secretary, Board of Investment for one year. He was then promoted to the rank of a Joint Secretary to the He led Bangladesh delegation to Washington DC in 2018 Government in 2009 and served the Finance Division for to hold meeting with the USTR under the TICFA (Trade and two years. He was posted as Director General of Executive Investment cooperation Forum Agreement) between Cell of Non-Government EPZs Board of Governors in the Bangladesh and the USA. He also led Bangladesh Prime Minister’s Office (PMO). Afterwards, he was posted delegation for TICFA (Bangladesh and the USA) meeting to the Export Promotion Bureau as Vice Chairman on in Dhaka in 2017. Shubhashish Bose also led Bangladesh 30.11.2011 and served the organization for 4 years plus. delegation to Nepal and Bhutan for Commerce Secretary He also worked as Director General for the W.T.O Cell, level talks. Led Bangladesh delegations for talks in the Ministry of Commerce for one year before being promoted Commerce Secretary level with India and Thailand.

CHIEF OPERATING OFFICER (COO), ICAB

Mr. Mahbub Ahmed Accountants (SAFA) for the year 2017. He was nominated Siddique FCA, joined the as Assistant Executive Secrecy of SAFA in 2016. He is also Institute of Chartered ICAB nominated director at SAFA Foundation and Accountants of Marketing Director at Chartered Accountants Worldwide. Bangladesh (ICAB) in Before joining ICAB, he was employed by the Institute of 2008. He was the Chartered Accountants in England and Wales (ICAEW) as Secretary & CEO (In a consultant of the World Bank Funded ICAB-ICAEW Charge) of ICAB from 27 Twining Project. He has also working experience in finance September 2020 to 30 division of Robi, one of the largest telecommunication November 2020 in company in Bangladesh. addition to his existing role as Director Mr. Mahbub completed his masters in accounting in 2002 Technical. As Director Technical, he has been leading the and chartered accountancy in 2007. He became an area of quality assurance, technical standards, training associate member of ICAB in 2007 and fellow member in and research, international affairs and collaboration, and 2012. other technical matters. He has also working experience He participated in different trainings, workshops and as member secretary of different standing and conference at home and abroad and also conducted a non-standing committees of the Council-ICAB for many number of professional development programmes as a years including Quality Assurance Board, Technical and resource person, especially in the area of quality Research Committee, International Affairs and assurance and professional standards. Mahbub has Collaboration etc. travelled many countries on official assignments. He loves Currently Mr. Siddique is designated as Chief Operating to travel and has already visited China, India, , Sri Officer (COO) of ICAB. Mr. Mahbub also played the role of Lanka, Thailand, Malaysia, Singapore, Turkey, Nederland, Executive Secretary of South Asian Federation of France, Italy, UK, Australia, Canada, etc.

22 | The Institute of Chartered Accountants of Bangladesh ICAB's Revised Organogram

Chief Executive Officer (CEO)

Shubhashish Bose

Chief Operationg Officer (COO)

Mahbub Ahmed Siddique FCA

DIVISIONAL HEADS Technical & Regulatory Education & Information Student Affairs Examinations Technology (IT)

Md Saiful Islam FCA Md. Abdul Halim Sheikh Md. Afzal Hossain Mohammad Deloar Hossain Senior Deputy Director Additional Director Controller of Examinations Deputy Director

Members Service Operations

Md. Shahjahan Siraz Md. Shohel Rana ACA Deputy Director Chief Financial Officer

The Institute of Chartered Accountants of Bangladesh | 23 ANNUAL REPORT 2020

Departmental Heads Admin, HR & Press & Financial Report Meeting, Event Procurement Publication and Monitoring & Management and Public Relations Practice Review International Affairs

SM Abu Nayem Ahmed SM Abu Nayem Ahmed Md. Afsar Uddin FCA Md. Nasrat Hasan Senior Deputy Director Senior Deputy Director Senior Deputy Director Deputy Director

Chattogram Office Student Articleship Technical Standards, Counselling & Management Research & Training Enrolment

Suraia Parveen Mohammed Abu Salam FCS Aleya Ferdous Aleya Ferdous Deputy Director Deputy Director Deputy Director Deputy Director Enforcement Study Materials Interanal Control Membership & (Investigation & & Compliance Practice Admin Disciplinary Action)

Afseen Baten ACA Hossain Mahmud Patwary Hossain Mahmud Patwary Md. Omar Faruqe Deputy Director Deputy Director Deputy Director Senior Assistant Director Infrastructure & IT Real Estate & Finance & Library Support Inventory Accounts Management Management

Engr. Md. Amdad Hossain Engr. Md. Shahadat Hossain Sheikh Mohammad Imtiaz Tanjia Sharmin Senior Assistant Director Senior Assistant Director Senior Assistant Director Assistant Director Planning & Class Members in Members Welfare Execution (Exam) Management Practice & Service & I MWF

Mohammad Wahiduzzaman Md. Serajul Islam Sarker Anjela Roy Mohammad Abu Taher Mazumder Rummaan Assistant Director Co-ordination Officer Senior Officer Officer

24 | The Institute of Chartered Accountants of Bangladesh OVERCOMING OBSTACLES THROUGH DIGITAL TRANSFORMATION ANNUAL REPORT 2020

PRESIDENT’S NARRATIVE FOR 2020 Muhammad Farooq FCA PRESIDENT - ICAB

26 | The Institute of Chartered Accountants of Bangladesh every other institutions for obvious WITH THE NATION'S SHUTDOWN, THE reason of the pandemic. However, ICAB could finally hold examination INSTITUTE HAD TO REMAIN CLOSE FOR OVER between 19 November 2020 and 05 December 2020 at Shaheen College 3 MONTHS BETWEEN MARCH AND JUNE 2020. Dhaka and in Chittagong Office. I must appreciate DRC, CRC and THIS CREATED BOTH FUNCTIONAL AND associated officials who could “ conduct the exam successfully FINANCIAL IMPEDIMENTS FOR US AT maintaining social distancing and other safety measures in place which VARIOUS LEVELS. many institutes in the country could not. It is indeed a great pleasure We took initiatives to address the However, ICAB has taken initiative to for me to welcome you all to concern, we sent letters Finance introduce Computer Based Testing/ the 48th Annual General Minster, Bangladesh Bank, Ministry I Online Examination for Professional Meeting of the Institute of of Finance for financial stimuli for CA ” Examinations of Certificate Level. Chartered Accountants of firms and CA profession soon after ICAB Council agreed in principle to Bangladesh (ICAB). At the very we realized the severity of the take Professional Examinations of outset I would like to express my situation. We realized this situation is Certificate Level online and advised sincere gratitude to the Council not going to go any time sooner. to prepare the institute with Members for their unwavering necessary software, Infrastructure support during my tenure. I must also Dear Members, as soon as we learnt and logistics as well as questions acknowledge the relentless support that we have to embrace new bank. Online Examination will of ICAB officials and members of the normal, we transformed the mode of enable the institute to increase the staffs. delivery of all our activities digitally. We conducted meetings, Members' frequency of conducting Dear Members, it was 3 months we Conference, Trainingsm workshops, examinations and students will get experienced our usual World. Things Classes through online using Zoom more chances to sit for the started changing with the spread of App. To fill the gap of 3 months examination. COVID-19 from Wuhan, China and disruptions, we conducted a number We conducted a series of discussion disrupted the normal life. The world of 25 CPD/Members Conference, and demonstration sessions with the started to experience innumerable and most of them (21) delivered world recognized education service deaths and infections which is yet to online and in fact, this would be the provider vendor like Pearson Vue an be over. The world is in a panic and highest in number that ICAB could UK based global company, we are still seeing untimely and ever have in a year. Prometric a US based education & IT sudden demise of many of our loved service company and SciTech ones. It's about a year or so now, Dear Members, every month I kept Academy an Australia based people are adapting with the New you abreast of important events and education & IT service company. We Normal. initiatives through President's Communication. However, I am expect that we will be able to sort out We have lost a number of our 23 happy to recall some of them in this the matter soon. Chartered Accountants, who would august gathering. Online Meetings be present today. We pray for their Online Classes and Examinations eternal peace and pray for their Highest number of meeting were families that the Allmighty, the most Dear members, we conducted online held virtually in the year 2020. During merciful give them strength to bear and after the lockdown, virtual this irreparable loss. classes to support the students which went incredibly well. Total 542 meetings became the new norm of the Institute. For virtual meetings, the Dear Members, with the nation's online classes of certificate level, amount of scheduling and logistical shutdown, the institute had to remain professional level and advance Level staff, actually required in normal close for over 3 months between were held during the year 2020. The times for each meeting, were less. March and June 2020. This created students gave feedback expressing The meetings were flawless and both functional and financial their full satisfaction on ICAB's more participatory. This also takes impediments for us at various levels. endeavour. The attendance of the reduced cost and that records are With the global disruption of trade, students was also praiseworthy. far more accurate than notes taking business and education, we the during in-person meetings. Institute and our CA firms also had to This year conducting examination endure the fallout in manifold. was huge challenge for us as with

The Institute of Chartered Accountants of Bangladesh | 27 ANNUAL REPORT 2020

CPD/Members’ Conference Development in Bangladesh’, National Board of Revenue (NBR) ‘Financial Reporting Act 2015 – formed a Taskforce headed by Md This year, we held massive number Roles and Responsibilities of Shabbir Ahmed, Director, Central of online member’s conference (22), Professional Accountants’, Intelligence Cell of NBR. From ICAB, which was almost in every week. ‘Compliance of Standards in Audited Mr. Mohammed Forkan Uddin FCA, Those were held on wide range of Financial Statements of Listed Vice President (OMS) led the subject like Changes in Accounting Banks’, ‘Application of Technology in Taskforce of ICAB. The purposes are Standards, ‘Income Tax Policy Paper Audit Practice’, 'Audit Regulatory to identify the unscrupulous on the upcoming Amendment of Reforms in Bangladesh - The Way organizations who submit Income Tax Ordinance 1984’, Forward,' Preventing COVID 19: A unauthentic audited financial ‘COVID 19 Impacts on Financial Cyber Security Approach", “Impact statements to evade taxes and the Reporting and Audit’, International of COVID 19 on Business - The way forward to ensure submission of Webinar on Role of Chartered Bangladesh Perspective”, "ERP unauthentic financial reports to Accountants in Economic Recovery Implementation in Bangladesh - Department of Taxes of NBR, to and Promoting Cross-Border Progress, Constraints and identify the companies and Investments', ‘Bond Market Prospects" and many more. organizations who do not submit annual return with the Registrar of Joint Stock Companies (RJSC) and TO FILL THE GAP OF 3 MONTHS DISRUPTIONS, submit no tax return. We believe with the effort of NBR and ICAB we can WE CONDUCTED A NUMBER OF 24 create a modern and trusted tax CPD/MEMBERS CONFERENCE AND MOST OF administration environment. Best Presented Annual Report THEM (20) DELIVERED ONLINE AND IN FACT, (BPA) “ Dear members, ICAB hosted BPA THIS WOULD BE THE HIGHEST IN NUMBER award keeping in mind the social THAT ICAB COULD EVER HAVE IN A YEAR. distancing. We held this flagship event at Pan Pacific Sonargaon Hotel, Dhaka with award winners and All CPDs/ workshops were turned out Sonargaon Hotel, Dhaka in the limited number of guests due to to be largely participatory and presence of Finance Minister, NBR pervasive as members were able to Chairman and other high officials. COVID-19. Despite eventualities, our participate from any corner of the The DVS Project has already Jury Board made their best world. attracted huge attention” from endeavours. I congratulate RCPAR regulators, media and Government. Chairman and Committee for their Exclusive programme in honor of This would obviously single out the effort in holding the events Finance Minister ‘Listen to the fake report. This would also open successfully and make this arduous Leader’ huge opportunities for our practicing task easy. CAs as all business entities have to Establishment CA Club ICAB organized an exclusive come under the umbrella of our audit programme ‘Listen to the Leader’ in firm. We are expecting we shall be Establishment of CA Club Limited is honour of Finance Minister AHM able to sign MoU with Bangladesh a unique initiative of ICAB this year. A Mustafa Kamal FCA, MP on Monday, Bank, FRC, BSEC, IDRA, RJSC, etc. significant progress has already 24 February 2020 at CA Bhaban in very soon. the city. He delivered his visionary been made to materialize the thoughts about the CA profession Earlier we organized virtual initiative. The main objectives of CA and urged for impactful contribution members’ conference on Club are to operate, maintain and run of Chartered Accountants Document Verification System and a social and recreational club with all professionals in the progression of Authenticity of Audited Financial usual privileges, advantages, the country. We thanked Finance Statements” organized by the convenience and accommodation of Minister sparing his valuable time. Institute of Chartered Accountants of social and cultural activities, games, Bangladesh (ICAB) where huge sports, food, beverages and other Document Verification System number of tax officials of NBR joined services for the members of the (DVS) the conference. We need to keep this Institute of Chartered Accountants of ground breaking project ahead for Bangladesh (ICAB) and other Dear members, this year, the sake of the profession as well as eminent and distinguished undoubtedly our landmark project is the country, as a whole. Document Document Verification System. We personalities of the society of Verification System (DVS) will fill the have already made an MoU with Bangladesh admitted as Members of gap and help bringing financial NBR with a gala event at Pan Pacific the Club. discipline in the country

28 | The Institute of Chartered Accountants of Bangladesh matter. The Committee is working to THE DVS PROJECT HAS ALREADY ATTRACTED develop integrated and ISA based Audit Software. A team of audit HUGE ATTENTION FROM REGULATORS, MEDIA practitioners who are expert in using audit software have been chosen to AND GOVERNMENT. THIS WOULD OBVIOUSLY determine the audit scope and requirements for audit software SINGLE OUT THE FAKE REPORT. THIS WOULD module. I am sure if we can “ implement it, we all will get the ALSO OPEN HUGE OPPORTUNITIES FOR OUR benefit from this remarkable PRACTICING CAS AS ALL BUSINESS ENTITIES initiative. Joint membership scheme with HAVE TO COME UNDER THE UMBRELLA OF OUR ICAEW AUDIT FIRM. ICAEW sent a draft renewal proposal of the MOU and offered a Joint membership scheme. Recently, It will promote friendship, the meeting; Consideration and ICAEW has implemented a dual cooperation and mutual adoption of Audited Financial student and membership scheme in understanding among members of Statements of the IMWF for the collaboration with CA Sri Lanka. In the club, other clubs and the larger period upto 30 June 2020; this regard, ICAEW proposed that society in general.” Appointment of Auditor of IMWF for ICAB might consider the similar the year 2020-2021 and fixation of scheme with necessary Besides arranging many facilities like remuneration; Consideration and modifications jointly agreed by the cultural programmes, games and discussions on the report of the two Institutes. These proposals of sports, this club will arrange and Executive Council of IMWF for the ICAEW was placed in Council provide financial grant, scholarship period upto 30 June 2020; Approval meeting of ICAB and Council- ICAB and other assistance to CA students of action plan and annual budget for formed a 7-Member Sub-Committee and children of members and any the IMWF for the year 2020-2021. to review the proposed other students to promote education Memorandum of Understanding and while in and distress. I am extremely happy that about 100 (MOU) between ICAB and ICAEW Members of the Foundation The said Sub-Committee reviewed The club will also recognize and spontaneously participated in the draft renewal proposal and celebrate the achievements and discussion meeting. recommended some modifications. services of the members and their The Council-ICAB felt that the joint children in different professions and I would like to thank Chairman of membership scheme will bring more business and to perpetuate the MISWC and Vice President (OMS) for benefits for the Institute and the memory of those members who laid taking this matter forward. profession as a whole. So, the down their lives in the service of the scheme may be finalized and signed country and the society. Establishing University upon inserting few modifications. The Joint membership scheme will Already 100 members of the Institute This year we have put all-out effort be a separate agreement as was have registered their names for aiming to establish University. We proposed in the draft MOU. The membership of CA Club. I must formed a Trustee Board. We took the proposed MOU and Joint appreciate the splendid work of Mr. opinion of our members. We have membership scheme are now under Md. Moniruzzaman FCA, Council appointed a Consultant in regards to process and will be finalized very Member regarding this matter. that. The work is going ahead and soon. hopefully we will achieve a ICAB Members’ Welfare substantive results if we continue Events related to Policy Matter Foundation (IMWF) pursuing this agenda. We have formed a trustee board, proposed Dear Members, our service to the This year we were able to hold the faculties and made financial nation is important. It is important to 1st Annual General Meeting (AGM) assessment. policy makers. We sent our of the ICAB Members’ Welfare constructive suggestion aiming Foundation (IMWF) on 30 November Audit Software improved tax policy to NBR. We held 2020 through online Zoom where I members' conference on Income presided over as President and We also took initiative to introduce Tax Policy paper on Amendments of Chairman of the ICAB Members’ audit software. “Development of Income Tax Ordinance 1984 in the Welfare Foundation. Audit Practice Software for CA Firms presence on NBR Chairman, in Bangladesh” is another promising Members. The policy paper was the In the meeting, proceedings rolled projects of ICAB. A committee has hard work of our members which on successfully as per the agenda of been formed to to deal with this helped NBR a great deal.

The Institute of Chartered Accountants of Bangladesh | 29 ANNUAL REPORT 2020

Dear members, as soon as we still on so that we can make the final Therefore, I sincerely acknowledge realised the impact of COVID-19, we arrangement with MES. The project the support of Government came up with a guideline for our cost is estimated to be 3 crores. Both Ministries, LGRD, NBR, OCAG, members as to how to audit and budget and design have been BSEC, CSE, DSE, IDRA, BIDA, NGO prepare financial statements amidst approved by the Council. Once Affairs Bureau, Bangladesh Bank, the Coronavirus pandemic which implemented, this will be one of the World Bank and other stakeholders included the assessment of modern state of the art technology for supporting ICAB and its causes. significant risks, forecasts on asset auditorium. Since there has to be an valuation and recoverability, and extra ordinary safety measures in Dear Members, you will find the very importantly, the question of place, we thought it would be better summary of the events in the Annual going concern—if the company will idea to get the job done by MES Report and Financial Statements. I be able to continue its business or Army. We are waiting for their final believe ICAB has more to do. I am not etc. response in this regard. confident my successor will take the institute to further heights. I look After the announcement of National Rajuk Land forward extending my service to Budget 2020, ICAB’s immediate ICAB any time it is sought. reaction on the Budget was We are trying our best to expand our published in national dailies with due already allotted 01 bigha Rajuk Land Lastly, I express my thanks to Vice importance on 12 June 2020. With a to 03 bighas at Purbachal New Town Presidents, the chairmen and swift move, we arranged virtual Press Project of RAJUK. We took this members of all the committees for Conference on ‘Post national budget matter to RAJUK Chairman handing their contribution and support. I must 2020’ through virtual platform on 13 over a letter and also subsequently also thank Press & Publication June 2020, where as many as 30 met high officials of RAJUK several Section and others who worked hard journalists of printing and electronic times to explain our necessity. We for the publication of this Annual media participated. The event are hopeful that some better results Report. subsequently followed “ICAB-The will be achieved. I am sure my Business Standard Virtual predecessor will take the matter Dear Members, no doubt, we are Post-Budget Discussion 2020. This further in next year. feeling shock, denial, or even deep was joint initiative by ICAB and the grief and despair right now due to Restructuring Organogram English daily through Zoom video disruption and changing landscape. conferencing on June 14, 2020 However, it is important that we ICAB has recently restructured the where Planning Minister Mr. MA remain resolute to our objectives organogram to bring dynamism and Mannan, MP was the chief guest. despite eventualities. Rather than efficiency of the activities of the Country’s renowned economists, being afraid of change or avoiding it, Instittue. It has also modified the business leaders, think tanks side by we should try to adjust and see this position of Secretary & CEO as Chief side our CA experts participated in as an opportunity to excel. Executive Officer (CEO). Mr. the session. Embracing and establishing ‘New Shubhashish Bose, Former Senior Normal’ in all spheres of lives may be Renovation Works Secretary, Ministry of Commerce, the key to our success as individually Govt. of Bangladesh has been and collectively in the days ahead. This year, we undertook the appointed by the Council-ICAB in the renovation work of 1st floor which position with effect from 1st With these, I would like to wrap up remained vacant for long time since December 2020. today. We pray to Almighty for His Prothom-Alo office was shifted from divine blessings to protect us from CA Bhaban. This floor will house 4 Additioanlly, ICAB has created a new this pandemic. We pray for class rooms, one conference room positon titled Chief Operating Officer everyone’s good health and well for teachers, rooms for ICAB (COO) who will be next to CEO in the beings. Officials, Book Corner etc. Once the hierarchy. Mr. Mahbub Ahmed Campus will be used for university, Siddique has been designated for With this, I wish you all a very happy the class of students can be the post with effect from 1 and prosperous life ahead. May the conducted from here. Moreover, we Deccember 2020. Almighty Bless us all. will be able to use these rooms for Concluding Remarks multiple purposes including conduct of training activities as and when We made our utmost endeavor to necessary. raise all our professional matters to Government Ministries and other Muhammad Farooq FCA We also took initiative to renovate 9th regulatory and autonomous bodies. I President floor auditorium which became old am very happy to report that we got due to long time use. The Council good response from all. We were approved the budget and design. able to interact and maintain good We wanted to take help from Army rapport with all of them. Military Engineering Service. Effort is

30 | The Institute of Chartered Accountants of Bangladesh REPORT OF THE COUNCIL FOR THE YEAR 2020 ANNUAL REPORT 2020

1.0 DIGITAL TRANSFORMATION

The year 2020 was a year of digital transformatin for ICAB. From March 2020 onward things started changing as COVID-19 speeded from Wuhan, China to every corner of the world. The world started counting deaths after death. People didn't know how to cope up with the situation initially. However, ICAB predicted the situation well ahead and went online massively utilizing digital platform in all its activities. Because of digitalization, COVID-19 could not create bar to pursue our desired goals. Number of Meetings, Seminars, Online Classes and Programmes held through digital platform was record number. 1.1 Online Classes

ICAB continued taking classes through online by using Zoom platform during and after the lockdown. These online teaching modules in different levels were developed by ICAB’s faculties. These modules included a range of interactive features including pre and post course assessments, video clips, quizzes, animation, learner activities, presentations, etc. A record number of students regularly participated in the classes and reap the benefits of them. ICAB dedicated team regularly maintained communication with the students for holding the classes effectively through online from 6:00pm to 10:00pm. Total 542 online classes of certificate level, professional level and advance level were held during the year 2020.

. A total of 216 Online Classes were held for the Students of Certificate Level and 57 Teachers were engaged in those classes.

. A total of 222 Online Classes were held for the Students of Professional Level, and 42 Teachers conducted those classes.

. A total of 105 Online Classes were held for the Students of Advanced Leve, and 15 Teachers conducted those classes.

32 | The Institute of Chartered Accountants of Bangladesh 1.2 Online Council Meetings for the year 2020

Highest number of meeting were held virtually in the year 2020. During and after the lockdown, virtual meetings became the new norm of the Institute. For virtual meetings, the amount of scheduling and logistical staff, actually required in normal times for each meeting, were. With a flawless digital record of all meetings proceedings, which also reduced cost and that records also were far more accurate than notes taking during in-person meetings.

A total of 20 Council Meetings were held in 2020. Among those 16 Council Meetings were held virtually and 6 meetings of the Council were held physically.

The Institute of Chartered Accountants of Bangladesh | 33 ANNUAL REPORT 2020

1.3 Online Committee Meetings of the Council-ICAB for the year 2020

A total of 89 different standing and non-standing committee meetings were held in the year 2020, out of which 62 meetings were held virtually.

34 | The Institute of Chartered Accountants of Bangladesh 1.4 Online Workshop/Training for the year 2020

During the year 2020 ICAB held a number of Trainings and Workshops on different subject to keep the knowledge and skills up-to-date. Due to pandemic, from April 2020 on ward all trainings were delivered online through digital Platform which included 4 online trainings on Certificate Course on ‘Information Systems Audit (IS Audit)’ 4th Batch, 8th Batch, 9th Batch and 10th Batch; 2 online trainings on Training programme on ‘VAT and SD Act 2012’ - 1st Batch and 2nd Batch; training on 'Contemporary Financial Reporting and Auditing Issues' and training on 'Internal Auditors of URIDS Project Accounts (DMCS/RRKB)' for Bangladesh Rural Electrification Board (BREB) Officials were held in 2020, besides, holding workshops physically in February and March 2020.

.

The Institute of Chartered Accountants of Bangladesh | 35 ANNUAL REPORT 2020

1.5 Online CPD for the year 2020

To fill the gap of 3 months’ disruptions, ICAB conducted a massive number of CPD/Members Conference totalling 23 and most of them (21) delivered online and in fact, this would be the highest in number that ICAB could ever have in a year. On an average 800 members in each session participated with zeal and enthusiasm. Members were at ease and no doubt learnt a lot as they interacted with their queries to the panelist/paper presenter in every session. Subject: ‘Salient features of Finance Bill 2020-21 and Macroeconomic aspect of National Budget 2020-2021’. Date: 18 June 2020.

Md. Alamgir Hossain, Member (Tax Policy), Ranjan Kumar Bhowmik, Member (Tax Survey and Inspection) and Md. Masud Sadik, Member (VAT Policy) of the National Board of Revenue (NBR) were Special Guests, Muhammad Farooq FCA, ICAB President delivered welcome address while, ICAB Council Member and Past President Md. Humayun Kabir FCA was the Session Chairman.

Subject: ‘COVID 19 Impacts on Financial Reporting and Audit’. Date: 20 June 2020

Muhammed Farhad Hussain FCA, Past President-ICAB was the Chief Guest. Paper presenter was Sabbir Ahmed FCA, Vice President-ICAB and Partner, Hoda Vasi Chowdhury & Co, Chartered Accountants. While Nasir Uddin Ahmed FCA, Member Council and Past President of ICAB acted as Session Chairman.

36 | The Institute of Chartered Accountants of Bangladesh Subject: ‘Bringing Improvement in the Financial Reporting and Quality of Auditing’. Date: 4 July 2020

CQK Mustaq Ahmed, Chairman, Financial Reporting Council (FRC) was the Chief Guest; Prof. Dr. Shaikh Shamsuddin Ahmed, Commissioner, Bangladesh Securities and Exchange Commission (BSEC) was Special Guest; Mahbub Ahmed Siddique FCA, Director Technical-ICAB was Paper Presenter; Muhammed Farhad Hussain FCA, Past President of ICAB acted as Session Chairman.

Subject: ‘Overcoming Covid-19 Challenges’. Date: 5 July 2020

M Ala Uddin Ahmad FCA, CEO, MetLife Limited & Metropolitan Life Insurance Co Ltd, Hong Kong, AHM Kibria FCA, Senior Manager, Group Financial Reporting, AMP, Australia, AKM Fazlur Rahman FCA, Chairman, ICAB UK Chapter Management Committee, and Sarwar Azam Khan FCA from ICAB North American Chapter were Panel Speakers; Shahadat Hossain Bishal ACA, Director, Abul Khair Group was Paper Presenter; while Kamrul Abedin FCA, Member Council & Past President ICAB acted as Session Chairman.

The Institute of Chartered Accountants of Bangladesh | 37 ANNUAL REPORT 2020

Subject: ‘The Role of Chartered Accountants in Economic Recovery and Promoting Cross-Border Investments'’. Date: 11 July 2020

Salman F Rahman MP, Private Sector Industry and Investment Adviser to the Honorable Prime Minister of the Government of the People’s Republic of Bangladesh was the Chief Guest; Md Humayun Kabir FCA, Member Council and Past President of ICAB was Session Chairman; Robert Hodgkinson FCA, Executive Director, Technical at the Institute of Chartered Accountants in England and Wales (ICAEW), UK was Paper Presenter.

Subject: ‘Introduction to Modern Workplace'’. Date: 12 July 2020

Mustafa Jabbar, Honourable Minister, Posts and Telecommunications Division (PTD), GoB was the Chief Guest; Akhtar Sohel Kasem FCA, Member Council and Past President and Chairman of the Information & Communication Technology Committee (ICTC) of ICAB was Session Chairman; Muhammad Mirsad Hossain, Head of Software Business, Smart Technologies BD Ltd was Paper Presenter.

38 | The Institute of Chartered Accountants of Bangladesh Subject: ‘Financial Reporting Act 2015 – Roles and Responsibilities of Professional Accountants’. Date: 23 August 2020

C.Q.K. Mustaq Ahmed, Former Chairman, Financial Reporting Council of Bangladesh was the Chief Guest; Executive Director, Audit Practice Review of FRC Md. Sayeed Ahmed, Executive Director, Financial Report Monitoring Mohammad Mohiuddin Ahmed FCA, and Executive Director, Standard Setting, M Anwarul Karim FCA were Panel Speakers; Mahbub Ahmed Siddique FCA, Director Technical, ICAB was Paper Presenter.

Subject: ‘Bond Market Development in Bangladesh'’. Date: 26 August 2020

Professor Shibli Rubayat-Ul-Islam, Chairman, Bangladesh Securities and Exchange Commission (BSEC) was the Chief Guest; Dr. Shaikh Shamsuddin Ahmed, Commissioners of BSEC and Professor Dr. Md. Mizanur Rahman, Commissioners of BSEC were Special Guests; Adeeb Hossain Khan FCA, Member Council and Past President of ICAB acted as Session Chairman; a number of top management officials of a reputed Bank was Paper Presenters.

The Institute of Chartered Accountants of Bangladesh | 39 ANNUAL REPORT 2020

Subject: ‘Head and Heart of Leadership’. Date: 12 September 2020

Dr Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) was the Chief Guest; Ayesha Jahan Bibha, Affiliate Professor, University of Denver, Sydney, Australia was Paper Presenter; Parveen Mahmud FCA, Past President of ICAB acted as Session Chairman.

Subject: ‘Document Verification System and Authenticity of Audited Financial Statements’. Date: 17 September 2020

Abu Hena Md. Rahmatul Muneem, Senior Secretary, Internal Resources Division (IRD) & Chairman, NBR was the Chief Guest; Md. Alamgir Hossain, Member (Tax Policy), National Board of Revenue (NBR) was Special Guest; ICAB Vice President Mohammed Forkan Uddin FCA was Paper Presenter, Md. Humayun Kabir FCA, Member Council and Chairman of Taxation and Corporate Laws Committee, ICAB acted as Session Chairman.

40 | The Institute of Chartered Accountants of Bangladesh Subject: ‘Application of Technology in Audit Practice’. Date: 3 October 2020

Mohammad Muslim Chowdhury, Comptroller and Auditor General of Bangladesh (CAG) and Former Secretary, Ministry of Finance, GoB was the Chief Guest; Suraiya Zannath Khan FCA, Lead Financial Management Specialist, the World Bank was Special Guest; Sk. Md. Tarikul Islam FCA, Partner, Hoda Vasi Chowdhury & Co. - Chartered Accountants; Ali Amjad Choudhury FCA, Partner, Howladar Yunus & Co. - Chartered Accountants; Al Amin Redwanur Rahman ACA, Senior Manager – Assurance, A Qasem & Co. Chartered Accountants; and Md. Abdul Wahab Akanda ACA, AGM & Head of Corporate Finance, Expo Group, Bangladesh were Paper Presenters; Kamrul Abedin FCA, Member Council & Past President-ICAB acted as Session Chairman, while, Maria Howlader, Council Member, introduced the theme of the conferance.

Subject: ‘Audit Regulatory Reforms in Bangladesh - The Way Forward’. Date: 17 October 2020

Comptroller and Auditor General of Bangladesh (CAG) Mohammad Muslim Chowdhury was the Chief Guest; Financial Reporting Council (FRC) Chairman Professor Dr Md Hamid Ullah Bhuiyan was Special Guest; Dr Javed Siddiqui, Associate Professor at Alliance Manchester Business School, UK was Paper Presenter; Muhammed Farhad Hussain, Past President-ICAB acted as Session Chairman.

The Institute of Chartered Accountants of Bangladesh | 41 ANNUAL REPORT 2020

Subject: ‘Business Transformation - Recipe for Survival and Success’. Date: 24 October 2020

Yasir Azman, CEO, Grameenphone was the Chief Guest; Jasmine Ahmed, Senior Vice President, Global Finance Transformation, News Corp, New York, USA and ex Sr. Vice President, Business Transformation of Dentsu Aegis Network, New York, USA was Paper Presenter; Dewan Nurul Islam FCA, Past President, ICAB and Managing Director, Grant Thornton Consulting Bangladesh Ltd. acted as Session Chairman.

Subject: ‘Proposed ICAB University of Business and Technology’. Date: 31 October 2020

Md. Humayun Kabir FCA, Member Council and Past President, ICAB was Session Chairman; Muhammad Farooq FCA, President, ICAB was the Paper Presenter.

42 | The Institute of Chartered Accountants of Bangladesh Subject: ‘Preventing COVID 19: A Cyber Security Approach’. Date: 11 November 2020

Khaled Aziz, Managing Director and Country Chief Operating Officer, Standard Chartered Bank, Bangladesh, Imran Ahmed FCA, CISA, General Manager and Chief Audit Officer, Sonali Bank Ltd, Mehedi Hasan, Chief Information Security Officer, Bangladesh Bank; and Gopal Chandra Ghosh FCA, Member Council of ICAB were Panel Speakers; Sumon Ahmed Sabir, Chief Technology Officer (CTO) at Fiber @ Home Ltd. and Mohammad Fakrul Alam, Senior System Engineer, R&D at NTT Ltd. was Paper Presenters; Khondkar Atique-e-Rabbani FCA, Managing Director, the Computers Ltd. acted as Session Chairman.

Subject: ‘Impact of COVID 19 on Business - The Bangladesh Perspective’. Date: 14 November 2020

Dr. Md. Salim Uddin FCA, FCMA, CPFA (UK), CIFRS (UK), Member Council, ICAB, Professor of Department of Accounting, University of Chittagong and Chairman, Bangladesh House Building Finance Corporation (BHBFC) & Chairman, Executive Committee of Islami Bank Bangladesh Ltd was Paper Presenter; Dewan Nurul Islam FCA, Past President, ICAB and Managing Director, Grant Thornton Consulting Bangladesh Ltd. acted as Session Chairman.

The Institute of Chartered Accountants of Bangladesh | 43 ANNUAL REPORT 2020

Subject: ‘ERP Implementation in Bangladesh - Progress, Constraints and Prospects’. Date: 21 November 2020

Khondkar Atique-e-Rabbani FCA, Managing Director, The Computers Ltd.; Saiful Huq FCA, General Manager (A & F) & Company Secretary, Wartsila Bangladesh Limited; Sabbir Ahmed FCA, Partner, Ahmed Sheikh Roy & Co. Chartered Accountants; and Rajib Kumar Saha FCA, Head of Performance Management Office, RAK Ceramics (Bangladesh) Limited. were Panel Speakers; Mr. Gopal Chandra Ghosh FCA, Member Council of the Institute of Chartered Accountants of Bangladesh (ICAB) and Group CFO, Anwar Group of Industries was Paper Presenter; Mr. Akhtar Sohel Kasem FCA, Member Council & Past President of the Institute of Chartered Accountants of Bangladesh (ICAB) acted as Session Chairman. Subject: ‘Audit Quality, Trust and Covid’. Date: 24 November 2020

Ms. Parveen Mahmud FCA, Past President of the Institute of Chartered Accountants of Bangladesh (ICAB) and Chairman, UCEP Bangladesh was the Chief Guest; Dr. Javed Siddiqui, Associate Professor of Financial Reporting, Alliance Manchester Business School, UK; Mr. Mohammad Sakib ACA, Associate Director (Audit & Assurance), RPG Crouch Chapman LLP, UK; Mr. Asif Zaki Chowdhury ACA, Senior Manager (Audit & Assurance), Ernst & Young LLP, UK; and d. Mr. AKM Azharul Haque ACA, Senior Manager (Audit & Assurance), Deloitte LLP, UK. were Panel Speakers; Ms. Julia Penny FCA (UK), Vice President of the Institute of Chartered Accountants in England and Wales (ICAEW) was Paper Presenter; A K M Fazlur Rahman FCA, FMAAT, Chairman, ICAB UK Chapter Management Committee acted as Session Chairman:

44 | The Institute of Chartered Accountants of Bangladesh Subject: ‘The future of non-profit financial reporting – Bangladesh stakeholders’. Date: 28 November 2020

Md. Rashadul Islam, Director General (Grade-1) of the NGO Affairs Bureau, Bangladesh was the Chief Guest; Azahar Ali FCA, Country Champion, Bangladesh, IFR4NPO, Assistant Country Director and Country Financial Controller, Concern Worldwide and Ms. Samantha Musoke ACA, Project Director, IFR4NPO for Humentum was Paper Presenters: Rasheda K. Choudhury, Executive Director, Campaign for Popular Education (CAMPE) and Former Adviser to Caretaker Government of Bangladesh Session Chairman.

1.6 Online Examination Initiative to Introduce Computer Based Test in ICAB Professional Examinations for Certificate Level

ICAB took a revolutionary initiative to transform its activities Digitally. Initiatives to implement Computer Based Testing/ Online Examination for Professional Examinations of Certificate Level was one of the remarkable initiative. ICAB Council agreed in principle to take Professional Examinations of Certificate Level online and advised to prepare the institute with necessary software, Infrastructure and logistics including questions bank.

Online Examination will enable the institute to increase the frequency of conducting examinations and students will get more opportunity to sit in examination which will bring positive impact in success rate, it is hoped.

Under the guidance & supervision of the Examination Committee of the Council – ICAB, preliminary task for adopting Computer Base Testing has already been started. By then, we conducted a series of discussion and demonstration session with the world recognized education service proving vendors like Pearson Vue an UK based global company, Prometric, a US based education & IT service company and SciTech Academy, an Australia based education & IT service company. A team led by Mr. Sidhartha Barua FCA, Vice President –Education & Examination is working on the matter.

The Institute of Chartered Accountants of Bangladesh | 45 ANNUAL REPORT 2020

2.0 EXCLUSIVE PROGRAMMES IN 2020

2.1 Exclusive Programme 'Listen to the Leader' in honour of Finance Minister

ICAB organized an exclusive programme titled 'Listen professionals like Chartered Accountants in the to the Leader' in honour of Finance Minister AHM progression of the country. Bangabandhu Sheikh Mustafa Kamal FCA, MP. ICAB welcomed Minister at Mujibur Rahman not only dreamt of an independent CA Bhaban and gave warm reception on 24 February country but also economic emancipation of the 2020 to Mr. Kamal who is a member of this Institute. people. Everyone has to bear this philosophy in their hearts and come forward to work for the people, he Government is working to ensure an inclusive growth added. of the country so that there could be an equitable distribution of wealth. We are determined that the He also urged the CAs to pursue the best in attaining benefits of all development works should reach to the the points of sustainable development goals. I believe backward people. We are working for the people CAs can do a great deal for the advancement of specially those who are underprivileged, and trying to Bangladesh in ‘Ease of Doing Business’ Index. Citing bring them in the development process so that they a news from an English daily he encapsulated that could chase a dream of how to come out from the foreign investors are coming to Bangladesh poverty and hunger. The government has a clear considering it to be an ideal place for investment and vision to make the country poverty and hunger free by naturally wants safe return out of it. 2030 and become developed by 2041. The Chartered Accountants definitely are the part of this ICAB President Muhammad Farooq delivered development route and the way the economy is address of welcome and reiterated that. ICAB and its moving forward. We have many challenges, and members are firmly committed to become a partner of professional like CAs are required to address these the government’s initiatives for economic challenges. development of the country. He further added that CAs would come forward to take up any role assigned Finance Minister AHM Mustafa Kamal FCA, MP made by the Government. Few hundreds of chartered these remarks while he was speaking to the Chartered accountants and auditors of listed companies Accountants urged for impactful contribution of attended the programme.

46 | The Institute of Chartered Accountants of Bangladesh 2.2 Document Verification System (DVS)

ICAB and NBR jointly launched Document Verification System (DVS), a Land Mark Initiative of ICAB

A Memorandum of Understanding (MoU) signed

'Document Verification System' is one of the land mark During the event, a memorandum of understanding initiative of ICAB in this year. This will obviously bring (MoU) was signed between ICAB and NBR on the discipline in financial management and increase verification of audited financial statements submitted corporate tax collection, the expert strongly to the Income Tax Department of NBR. advocated. From December onward, tax officials will verify through the DVS as to whether the audited ICAB President Muhammad Farooq FCA, delivered report submitted to the National Board of Revenue the welcome address. Convenor of ICAB DVS (NBR) is authentic or not. Data from NBR's database Taskforce & Vice President Mohammed Forkan Uddin will be compared with ICAB's DVS database. FCA and Council Member Gopal Chandra Ghosh FCA Institutions whose audit reports and information are jointly presented a presentation on Document not available at ICAB DVS database will be under Verification System (DVS). scrutiny, NBR officials cautioned. DVS Taskforce convener & Vice President Mohammed As the chief guest Finance Minister AHM Mostafa Forkan Uddin FCA described how the application Kamal FCA, MP announced the inauguration of the would work to ensure authenticity of the audited Document Verification System (DVS) at gala event at financial statement. Hotel Sonargaon 12 November 2020 through online. From next month onward, ICAB members will have to Abu Hena Md. Rahmatul Muneem, Senior Secretary, provide all the information in the DVS in regards to Department of Internal Resources (IRD) and audit of the accounts of various companies. Chairman, National Board of Revenue (NBR) attended ICAB has developed the DVS ensuring the data the ceremony as the Special Guest. Md. Alamgir security and confidentiality of the clients. It will be Hossain, Member (Tax Policy), NBR was present as made mandatory for all practicing Chartered Guest of Honour. Accountants to register with the DVS Portal and to generate Document Verification Certificate (DVC). If any deviation, audit reports and financial statements signed by them would not be accepted by the regulators and other stakeholders.

ICAB Council Members & Past Presidents Md. Humayun Kabir FCA, Kamrul Abedin FCA and Adeeb Hossain Khan FCA also spoke in the ceremony while Sabbir Ahmed FCA, Member of ICAB Taskforce on DVS and Vice President (TRA) of the Institute offered vote of thanks.

The Institute of Chartered Accountants of Bangladesh | 47 ANNUAL REPORT 2020

2.3 ICAB National Awards

20th ICAB National Award for Best Presented Annual Reports 2019

The Institute of Chartered Accountants of Bangladesh In Banking Sector (Private) category, BRAC Bank (ICAB) awarded 23 entities (listed and non-listed) in Limited secured first prize, Shahjalal Islami Bank 12 different categories including Public Sector Banks, Limited and Bank Asia Limited became joint second Private Sector Banks, Financial Services Sector, prize winners, and Mutual Trust Bank Limited and Manufacturing, Insurance, Service Sectors, Mercantile Bank Limited became the joint third prize Communication and Information Technology, NGOs, winners. Agriculture, Public Sector Entities and Diversified Holdings for their best presented annual reports 2019 In the category of Financial Services Sector, IDLC at a gala event at the Pan Pacific Sonargaon Hotel, Finance Limited won first prize, while IPDC Finance Dhaka on 26 November 2020. Limited won the second prize and LankaBangla Finance Limited the third prize. Recognizing first, second and third positions in each category, entities which achieved a minimum In Manufacturing category, British American Tobacco threshold of scores were awarded the “Certificate of (BD) Limited won first prize, Orion Pharma Limited the Merit.” Among the winners IDLC Finance Limited second prize and Summit Power Limited bagged third became the overall winner and 18 Entities received prize while Grameenphone Limited was the lone first Certificates of Merit. winner in Category of Communication and Information Technology. This year, 54 entities submitted their nominations for the ICAB award. No nomination from public sector Green Delta Insurance Co. Limited became first prize banks was received within set timeline. Award for winner, Prime Insurance Co. Limited second and Diversified Holdings category could not be Reliance Insurance Limited won the third prize winner considered because of scoring less than the in Insurance category. In Public Sector Entities threshold marks required. category, Investment Corporation of Bangladesh (ICB) became the first prize winner. As the Chief Guest Commerce Minister Tipu Munshi, MP handed over the prizes to the winners. Commerce SAJIDA Foundation secured first prize, Ghashful Secretary Dr Jafar Uddin and Dr. Md. Hamid Ullah second and CODEC became joint second prize Bhuiyan, Chairman, Financial Reporting Council winners while Action Aid Bangladesh won the third (FRC), were present on the occasion as Special prize in Non-Governmental Organization (NGO) Guests. ICAB President Muhammad Farooq FCA and category. Unique Hotel & Resorts Limited was the first Chairman of Review Committee for Published prize winner in category of Service Sector while Accounts & Reports Mohammed Humayun Kabir Golden Harvest Agro Industries Limited was the first FCA spoke on the occasion. prize winner in category of Agriculture.

48 | The Institute of Chartered Accountants of Bangladesh In Integrated Reporting category, Lanka Bangla This year, Bangladeshi companies participated in the Finance Limited won first prize, IDLC Finance Limited 11 sectors out of 13 sectors of SAFA Best Published the second prize while the Bank Asia Limited and Annual Reports 2019 Award competition and secured BRAC Bank Limited became joint third prize winners. first position in 8 sectors (including Private Sector Banks, Financial Services, Insurance, Manufacturing, In Corporate Governance disclosures, IDLC Finance Communication & IT, Agriculture, Corporate Limited and Lanka Bangla Finance Limited became Governance Disclosures and Integrated Reporting). joint first prize winners, Bank Asia Limited got second Besides, Reliance Insurance Ltd of Bangladesh was prize and Islami Bank Bangladesh Limited and BRAC adjudged as ‘overall winner’ in this competition. Bank Limited became joint third prize winners. Bangladeshi companies also secured second SAFA BPA Results position in 4 sectors and third position in 7 sectors.

SAFA Best Published Annual Reports 2019 Award CA Sri Lanka will organize SAFA BPA Reports Award was finalized in a virtual SAFA ITAG Committee ceremony virtually on 23 December 2020. Award meeting held on 11 December 2020. recipients of SAFA countries will take part in this ceremony virtually.

2.4 MOU and Joint Membership Scheme with ICAEW

The Institute of Chartered Accountants in England and Wales (ICAEW) sent a draft proposal for renewal of the Memorandum of Understanding (MOU) and also offered a Joint membership scheme to the Institute of Chartered Accountants of Bangladesh (ICAB). It is to be noted that recently, ICAEW has implemented a dual student and membership scheme with CA Sri Lanka. In this regard, ICAEW proposed that ICAB might consider the similar scheme with necessary modifications if agreed between ICAB & ICAEW. Council- ICAB formed a 7-Member Sub-Committee to review the proposed MOU between ICAB and ICAEW & Joint membership scheme offered by ICAEW and the Sub-Committee placed the report to the Council-ICAB with few modifications and recommendations. The Council-ICAB felt that the joint membership scheme will bring more benefits for the Institute and the profession as a whole. So, the scheme may be finalized and signed upon inserting modifications. The Joint membership scheme will be a separate agreement as was proposed in the draft MOU. The proposed MOU and Joint membership scheme are under process and is expected to be finalized very soon.

Key features of MOU are as follows: . ICAEW membership will be open to all qualified ICAB members subject to the completion of five years of full ICAB membership and other general conditions. . ICAB members having less than 5 years of post-qualification experience may be members of ICAEW after passing 3-paper of advanced level exam of ICAEW.

Key features of the Joint Membership Scheme are as follows: . Students have to complete first 2 levels of ICAB exams (certificate and professional level) as usual. . After completing the first 2 levels of ICAB exams; students are given the option to either:  Complete the final 3 ICAB exams to get just ICAB membership or  Complete the final 3 ICAEW Advanced Level exams to be invited to the membership of both ICAB and ICAEW. . Students must also complete the ICAEW Ethics Learning Programme before qualifying for dual membership. . PWE and Professional Development requirements are met under their training agreement with ICAB. . ICAEW will map the Practical Work Experience (Articles) and Professional Development to be maintained by ICAB under their employer authorisation. . ICAEW will offer reduced membership fee which means members coming via this route need to pay one fee per annum for both memberships once they have qualified as a member.

The Institute of Chartered Accountants of Bangladesh | 49 ANNUAL REPORT 2020

2.5 Reception Accorded to Newly Qualified CAs

The smiling faces, among others were the newly Forkan Uddin FCA, Council Members Md. qualified Chartered Accountants at a program Moniruzzaman FCA, Gopal Chandra Ghosh FCA, ‘Reception to Newly Qualified Members' organized by Maria Howlader FCA and Secretary & CEO (In the Institute of Chartered Accountants of Bangladesh Charge) Mahbub Ahmed Siddique FCA were present (ICAB) on 29 November 2020 at CA Bhaban, Dhaka. on the occasion. They shared their experiences and ICAB President Muhammad Farooq FCA, Vice advised on how to make a successful in career. Presidents Sabbir Ahmed FCA and Mohammed

2.6 Establishing CA Club

Establishment of CA Club Limited is a unique initiative of ICAB in this year. A significant progress has already been made. Several Meetings through online Zoom were held in 2020 to discuss the progress of the establishment of CA Club and associated matters. The main objectives are to operate, maintain and run a social and recreational club with the privileges, advantages, convenience and accommodation of social and cultural activities, games, sports, food, beverages and other services for the members of the Institute of Chartered Accountants of Bangladesh (ICAB) and other eminent and distinguished personalities of the society of Bangladesh to be admitted as Members of the Club.

It will promote friendship, cooperation and mutual understanding among members of the club, between other clubs and the larger society in general.

Besides arranging facilities like cultural programmes, games and sports, this club will arrange and provide financial grant, scholarship and other assistance to CA students and children of members and students by promoting education and assist while in distress.

The club will also recognize and celebrate the achievements and services of the members and their children in different professions and business and to perpetuate the memory of those members who laid down their lives in the service of the country and the society.

The Club will start its operation after obtaining necessary permission from the Government/concerned authority. Already 100 members of the Institute have enlisted their names as member of CA Club.

50 | The Institute of Chartered Accountants of Bangladesh 2.7 1st AGM of ICAB Members’ Welfare Foundation (IMWF)

The 1st Annual General Meeting (AGM) of the ICAB Members’ Welfare Foundation (IMWF) was held on 30 November 2020 through online Zoom. ICAB President and Chairman of the ICAB Members’ Welfare Foundation presided over the meeting.

The meeting proceedings rolled on successfully as per the agenda of the meeting; Consideration and adoption of Audited Financial Statements of the IMWF for the period upto 30 June 2020; Appointment of Auditor of IMWF for the year 2020-2021 and fixation of remuneration; Consideration and discussions on the report of the Executive Council of IMWF for the period upto 30 June 2020; Approval of action plan and annual budget for the IMWF for the year 2020-2021; and other associated matters.

Md. Moniruzzamn FCA, Secretary General of IMWF presented the report on the activities of the foundation since its inception. Mohammed Forkan Uddin FCA, Vice President (OMS) and Treasurer of IMWF presented the Financial Statements for the year ended on 30th June 2020. About 100 Members of the Foundation spontaneously participated at the discussion meeting.

2.8 Development and Implementation of Audit Practice Software for CA Firms in Bangladesh

On the initiative of Mr. Mohammad Farooq FCA, President of ICAB, a list of projects has been undertaken for the year 2020 for the benefit of ICAB and CA Profession in Bangladesh. As a part of that endeavour, Council-ICAB has formed a Committee in the name “Project Development and Capacity Building” for the year 2020 where “Development of Audit Practice Software for CA Firms in Bangladesh” is one of the most promising projects of ICAB.

Under the leadership of Ms. Maria Howlader FCA, Member Council of ICAB, a 14-member committee has been formed with the purpose of emphasizing on . Identifying the feasibility, responsibility, cost and the development and implementation of an integrated investment requirements for Audit Software; ISA based Audit Practice Software for CA Firms in Bangladesh. More than five practicing members and . Analysis of existing situation of utilizing Audit professionals expert in using Audit Practice software Software of neighboring countries like India, are consistently looking after on the following issues to Pakistan and Sri Lanka etc.; make the project successful by this year 2020: . Financial and Technical feasibility for both . Determining the requirement and scope of developed vis-a-vis Purchase option of Audit development of Audit Software for CA Firms in Practice Software; Bangladesh; . Conducting a Member Conference on . Formation of a group of 13 professional members “Application of Technology in Audit Practice” to who actively participated in analyzing and create awareness among practicing members of reviewing the feasibility of globally available Audit ICAB to perform Audit work with the use of Practice software in the perspective of software. Bangladesh;

The Institute of Chartered Accountants of Bangladesh | 51 ANNUAL REPORT 2020

2.9 New Position Created in ICAB

Chief Executive Officer of ICAB Chief Operating Officer of ICAB

ICAB has recently modified the ICAB has created a new positon position of Secretary & CEO as under the designation Chief Chief Executive Officer (CEO). Mr. Operating Officer (COO), who will Shubhashish Bose, Former Senior be next to CEO in the hierarchy. Mr. Secretary, Ministry of Commerce, Govt. of Bangladesh has been Mahbub Ahmed Siddique has been appointed by the Council-ICAB in that position with designated for the post with effect effect from 1st December 2020 from 1 Deccember 2020. Mr. Bose has a chequred career having vast experience to work in multifarious organisations at home and abroad.

2.10 Establishing University expected to be diverted towards CA study instead of choosing other traditional career path. This will also This year ICAB made substantive effort aiming to remove the fear of not passing CA Exam as the establish University. A Trustee Board is formed. The enrolled students will be able to acquire graduation opinion of our members was sought. A Consultant in and post graduation. With standard curriculum and this regard is also appointed. The work is going ahead experienced faculty members we must have been be and hopefully a substantive results will be achieved if able to weigh out the quality and pass rate and in turn we continue pursuing this agenda. Proposed faculties overcome the downtrend of having bright and have been discussed and financial assessment meritorious students in CA profession. made. It is expected that ICAB would require to provide fund The idea of establishing University was first floated in for setting up university. But later on the university will the year 2015. A consultant named Mr. Abul Kalam be able to run independently if right publicity and Azad is engaged with the responsibility to fulfil the planning is made. obligation that the prior approval requires. The proposed University will have highly acclaimed We are proposing the structure of ICAB University in a experience Trustee Board Members. way that it should be able to run separately and independently as far as the administration and the A group of experienced faculty members will also be management is concerned. engaged. It is expected that with the back-up of ICAB, the University would succeed rather than fail. A Members’ Conference was held on 31 October 2020 to consult on the establishment of University. Many bright Through ICAB University, HSC/A Level students are ideas came up which was taken with due importance.

52 | The Institute of Chartered Accountants of Bangladesh PAST PRESIDENTS OF ICAB ANNUAL REPORT 2020

PAST PRESIDENTS

PRESIDENT | 1972 Late Abul Qasem FCA (Enrolment No. 02), the first President of ICAB in 1972, was among the few notable personalities who ventured to take up accounting as a career in the British colonial days braving social, political and financial hurdles. Having graduated with honours from Dhaka University in 1939, Abul Qasem served his articles with M/S A C Roy & Co. in Calcutta. He was qualified as the second Muslim Chartered Accountant in this sub-continent. After independence of Bangladesh, he became the Founder President of ICAB.

PRESIDENT | 1973-74 Late Md Mufazzal Hussain Chowdhury FCA (Enrolment No. 05) partner of Chowdhury Hossain Zaman & Co, Chartered Accountants, served as President of the ICAB in 1973-74. He was also a Founder Council Member of the Institute. MH Chowdhury drafted the Chartered Accountants Order 1973 and the Bye Laws under it. Through cooperation with others he had the CA Order passed by the Government of Bangladesh.

PRESIDENT | 1974-75 Late Mohammad Saifur Rahman FCA (Enrolment No. 18) founder partner of Rahman Rahman Huq, Chartered Accountants, was the President of the ICAB for the terms 1974 –‘75. He was also a Fonder Council Member of the ICAB. As a Cabinet Minister of Finance, Planning, Commerce and Foreign Trade of the Government of Bangladesh and Chairman of various Cabinet Committees for over a decade (976-82, 1991-1996 & 2001-2006), Mr. Rahman had been actively involved in defining government's economic, monetary, fiscal and trade policies.

PRESIDENT | 1975-76 & 81 Late Zahir Uddin Ahmed FCA (Enrolment No. 10) was the President of the Institute of Chartered Accountants of Bangladesh (ICAB) for two terms in 1975 & 76 and 1981. Mr. Ahmed was the President of South Asian Federation of Accountants (SAFA), an apex body of SAARC for 2002.

Mr. Ahmed had served as Member of several committees including the Cost and Price Consultative Committee and Company Law Reforms Committee, Law Commission, National Wages and Productivity Commission 2010 which was formed by the Government of Bangladesh.

PRESIDENT | 1976-77 Late Md. Anowar Hossain Miah FCA (Enrolment No. 13) partner of Chowdhury Hossain Zaman & Co, Chartered Accountants, was ICAB President for the term 1976-77. He served in WAPDA as Chief Cost Accounts Adviser in 1964, EPIDC and BIDC as Senior Deputy Chief Accountant in 1964-71, BSIC and BSFIC as Director Finance in 1972-76 and BSEC in 1976-81 as Director Finance and Chairman (Acting). He also served the Ministry of Industry as Liquidator of Four Textile Mills upto 1982.

54 | The Institute of Chartered Accountants of Bangladesh PAST PRESIDENTS

PRESIDENT | 1978 Late Noor Mohammad Howladar FCA (Enrolment No. 14) partner of Howladar Yunus & Co, Chartered Accountants was ICAB President in 1978. He had been in the Council ICAB for a number of terms since its inception. Having served for five years in erstwhile PIDC, Mr. Howladar started public practice in 1961 in Dhaka. A dedicated academician, Mr. Howlader was associated with education and training of CA students for several years and also held the office of the Chairman of Board of Studies of the Institute for a number of years.

PRESIDENT | 1979 Late Muhammad Masihur Rahman FCA (Enrolment No. 06), partner of MM Rahman & Co, Chartered Accountants, served as President of the Institute in 1979. His contribution and initiative in the construction of the present CA Bhaban is immense. A fellow member of both ICAB and ICAEW, Masihur Rahman had been in practice for 40 years. He was the Founder President of FBCCI. He was also Director of the Bangladesh Shilpa Bank and the Janata Bank. In the eighties he was Member of the Taxation Enquiry Commission of Bangladesh and the National Commission on Money Banking and Credit.

PRESIDENT | 1980 Mr. Mohammad Jainul Abedin FCA (Enrolment No. 09) is a senior partner of M/S M. J. Abedin & Co., Chartered Accountants. He is one of the founder Members of ICAB. He served the ICAB as President in 1980. He had been in the Council-ICAB for several terms. He also served as covenanted Qualified Assistant with Price Waterhouse Peat & Co. in Dhaka from 1958 to 1962. A dedicated academician, Mr. Abedin was a part-time lecturer in the Commerce Faculty of Dhaka University.

PRESIDENT | 1982 Late AKM Mosharraf Hossain FCA (Enrolment No. 37) sole proprietor of Mosharraf Hossain & Co, Chartered Accountants, was the President of the Institute for 1982. A Founder Council Member, Mr. Hossain was in the Council ICAB for many years. He was also fellow of ICAEW. Mosharraf Hossain was an elected member of the Parliament and he served as State Minister for Power, Energy and Mineral Resources. A fellow member of the British Institute of Management, he has also received higher training in Management from Administrative Staff College, Henley in UK. He was appointed Secretary, Ministry of Industries between 1988-1990. He established the Board of Investment in 1989 and was its first Executive Chairman.

PRESIDENT | 1983 Late Kazi Kamrul Hoda FCA (Enrolment No. 17) was President of the Institute for 1983. A Founder Council Member, he had served in the Council ICAB from its inception till his death on 29 January 1998. Mr. Hoda was also a fellow of ICAEW. Having graduated in honours in Mathematics from Dhaka University in 1952, he obtained his Master's degree from Oxford University, UK in 1956. Thereafter, he served articles with Thornton & Thornton, Chartered Accountants in Oxford and qualified as a chartered accountant from the English Institute in 1960. After liberation, Kamrul Hoda became a senior partner of Hoda Vasi Chowdhury & Co, Chartered Accountants, which he held from 15 September 1972 and onward.

The Institute of Chartered Accountants of Bangladesh | 55 ANNUAL REPORT 2020

PAST PRESIDENTS

PRESIDENT | 1984 Late Mohammad Yunus FCA (Enrolment No. 20) founder partner of Howlader Yunus & Co, Chartered Accountants, was President of the Institute for 1984. One of the senior most Chartered Accountants of the country, Md Yunus was President of South Asian Federation of Accountants (SAFA) in 1988 and President of Dhaka Chamber of Commerce and Industry (DCCI) for two terms in 1983-84 and 1992-93. He was in the Executive Committee of DCCI for six years and was also a Director of Federation of Bangladesh Chamber of Commerce and Industry for two terms.

PRESIDENT | 1985 Late Mohammed Toha FCA (Enrolment No. 31) partner of Toha Khan Zaman & Co, Chartered Accountants, was President of ICAB for 1985 and served the Council ICAB for 15 years. Mr. Toha was qualified as a Chartered Accountant from the CA Institute in erstwhile Pakistan in 1965. Md Toha was Chairman/Director of BCIC, Director Finance of BSFIC and Member Finance of BADC. He was also Chairman/Director of the Board of Directors of all large industrial companies under BCIC, BCFIC, Ciba Geigy Bangladesh Ltd, Titas Gas Transmission and Distribution Company Ltd and Sonali Bank. He was awarded the Atish Dipankar Gold Medal in 1989 for in Best Organiser category.

PRESIDENT | 1986 Mr. Kamal Ziaul Islam FCA (Enrolment No. 24) was graduated in B.Sc. from St. Xavier's College, Calcutta in 1955 and earned B.Com. (Hons) in Economics from Leeds University, UK in 1960. He was qualified as a Chartered Accountant from England & Wales in 1962. He joined the government as Controller of Accounts & Finance, East Pakistan Industrial Development Corporation (1969-72), Finance Director of Bangladesh Textile Mills Corporation (1972-76), Finance Director of Bangladesh Small Industries Corporation (1976) and Director, Finance, Bangladesh Petroleum Corporation (1977). KZ Islam was the President of Bangladesh Cricket Board (1982-86) for four years. He was the President of the Institute of Chartered Accountant of Bangladesh for 1984

PRESIDENT | 1987 Mr. AKM Rafiqul Islam FCA (Enrolment No. 30) was the President of ICAB for 1987. Having completed his B.Com from Dhaka University in 1957, Rafiqul Islam was qualified as a Chartered Accountant from the erstwhile Institute of Chartered Accountants of Pakistan in 1965. He was a Silver Medalist of the Institute of Insurance for Asia and the Pacific in Manila (UNCTAD Scholarship 1983). Rafiqul Islam was the Founder Managing Director of Pragati Insurance Ltd (1986) and Chairman of Bangladesh Insurance Association, former Director of FBCCI, Executive Member of MCCI, Member-Secretary of Insurance Law Review Committee-1980-81, Member of WTO Committee and Member-Steering Committee of BSEC.

PRESIDENT | 1988 Mr. Abdul Hafiz Choudhury FCA (Enrolment No. 41) a senior partner of Rahman Rahman Huq, Chartered Accountants, was President of the Institute for 1988. Having completed his B.Com and M.Com from Dhaka University in 1960, he became a member of ICAEW in 1966. He became a member of the CA Institute in erstwhile Pakistan in 1967. Hafiz Choudhury is a founder trustee of Independent University, Bangladesh. He was also a Director of the Board of Dhaka Electric Supply Company Limited. He had been an Executive Committee member of MCCI for a number of years, served as Chairman of its various committees.

56 | The Institute of Chartered Accountants of Bangladesh PAST PRESIDENTS

PRESIDENT | 1989 & 92 Late Jamal Uddin Ahmad FCA (Enrolment No. 19) a partner of Ahmad & Ahmad, Chartered Accountants, was President of the Institute for two terms in 1989 and 1992. One of the senior most and outstanding Chartered Accountants of the country, JU Ahmad held the post of the Deputy Prime Minister of Bangladesh Government from 1977 to 1982. He also served as Member, Executive Committee of MCCI, Member Company Law Committee and President of Chittagong Association in Dhaka. Also a fellow of ICAEW, Jamal Uddin Ahmad obtained his Master's degree in Commerce from Dhaka University in 1954. A Past President of SAFA, Jamal Uddin Ahmad was also a member of the Public Sector Committee of IFAC during 1993-1995.

PRESIDENT | 1990 Mr. ABM Azizuddin FCA (Enrolment No. 46), a founder partner of ACNABIN, Chartered Accountants, was president of the Institute for 1990. ABM Azizuddin served as a national expert to a UNDTCD-funded project in Bangladesh-Training of Chartered Accountants. A dedicated academician, ABM Azizuddin was a Professor of Commerce at the then Jagannath College Dhaka, Salimullah College Dhaka, Haraganga College, Munshiganj for several years during '60s. He authored a number of books on Accounting. He is now the managing partner of ACNABIN.

PRESIDENT | 1991 Late M A Quadir Mollah FCA (Enrolment No. 73) sole proprietor of Mollah Quadir Ahsan &Co, Chartered Accountants, was President of the Institute for 1991. Having graduated in Commerce from Dhaka University in 1958, MA Quadir Mollah qualified as a Chartered Accountant from the Institute of Chartered Accountants in erstwhile Pakistan in 1970. Mr. Quadir Mollah served as Senior Executive and Member Board of Directors in various government and semi-government organisations including the BJEC, BFDC, BRTC, BTMC, etc. for more than a decade. He was Member of National Wages & Productivity Commission for two terms. He was also in Dhaka University Senate from 1978 to 1981 as an elected member. In 2001, he was a member of Water Board Governing Council under Ministry of Water Resource Division. He actively participated in Language Movement in 1952 and liberation war in 1971.

PRESIDENT | 1993 Mr. Muhammed Abdul Halim Gaznavi FCA (Enrolment No. 97) a partner of Aziz Halim Anwar & Co, Chartered Accountants, was President of the Institute in 1993. Having graduated in Commerce from Jagannath College in 1966, he was qualified as a Chartered Accountant in 1973. He was awarded the coveted Gold Medal for securing the top position in Commerce Group in the 1964 HSC Examination. He also stood first in the Kamel Examination from Madrasah-e-Alia, Dhaka in 1961.

PRESIDENT | 1994 Mr. Howlader Mahfel Huq FCA (Enrolment No. 105) Managing Partner of Mahfel Huq & Co, Chartered Accountants, was ICAB President for 1994. Having qualified as a Chartered Accountant from ICAB in 1973, Mahfel Huq started practice as a public accountant in 1974. A nominated Member of the Board of Governors of Bangladesh Planning and Development Academy, he also served as Member (part-time) of Turnover Tax Commission, Government of Bangladesh.

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PAST PRESIDENTS

PRESIDENT | 1995 Late Badrul Ahsan FCA (Enrolment No. 59) a Partner of Nurul Faruk Hasan & Co, Chartered Accountants (A Correspondent Firm of RSM International) was President of the Institute for 1995. Having passed the LLB final examination from Dhaka University with first class first, Badrul Ahsan was qualified as a Chartered Accountant in 1969 from the erstwhile CA Institute in Pakistan. He was the Controller of Accounts of Janata Bank during 1972-73. He received the prestigious "Sonali Bank Medal" and "American express Inc Award" from the Institute of Bankers Diploma.

PRESIDENT | 1996 Mr. Abu Nasar Altaf Hussain Siddiqui FCA (Enrolment No. 60) a partner of Rahman Rahman Huq, Chartered Accountants, was President of the Institute in 1996. He became a fellow of ICAEW in 1968, Altaf Siddiqui served Thomson McLintock & Co, Chartered Accountants in London office before joining Glaxo Laboratories (Pakistan) Ltd in 1969. After liberation, Altaf Siddiqui continued serving Glaxo and was instrumental in forming Glaxo Bangladesh Limited in 1974. He was its Finance Director and Company Secretary.

PRESIDENT | 1997 Mr. Anil Chandra Nath FCA (Enrolment No. 53) a partner of Basu Banerjee Nath & Co, Chartered Accountants, was President of the Institute for 1997. Having qualified as a Chartered Accountant in 1968 from the CA Institute in erstwhile Pakistan, AC Nath joined the profession in 1969 as a partner of Basu Banerjee Nath & Co. He was graduated in Commerce in 1960 and obtained LLB degree in 1964 from Dhaka University.

PRESIDENT | 1998 Mr. Abbas Uddin Khan FCA (Enrolment No. 439) is a Managing Partner of Abbas Khan & Co., Chartered Accountants. He was President of ICAB in 1998. Former Chairman of Bangladesh Agricultural Development Corporation (BADC), Mr. Khan is a Fellow Member of the Royal Institute of Public Administration (RIPA), UK. He was Director of Bangladesh Biman and also the Commissioner of Bangladesh Securities & Exchange Commission.

PRESIDENT | 1999 Mr. Md. Anisur Rahman FCA (Enrolment No. 226) completed Matriculation in 1960 and passed I. Com. and B. Com from the University of Dhaka respectively in 1962 and 1966. He was the President of ICAB in 1999 and the Chairman of Dhaka Regional Committee in 1988. Mr. Anis is Managing Partner of Rahman Anis & Co. Chartered Accountants. He was the Member of the Board of Directors of Power Grid Company Ltd and Member of the Board of Directors of Dhaka WASA. He was also elected President of Jute Mills Officers' Association.

58 | The Institute of Chartered Accountants of Bangladesh PAST PRESIDENTS

PRESIDENT | 2000 Late Abul Khair Chowdhury FCA (Enrolment No. 52) was one of the founder Partners of Hoda Vasi Chowdhury & Co., Chartered Accountants and was trained in A F Ferguson & Co - Chartered Accountants between 1962 - 1967 and qualified as CA in 1968 from ICAP. He was also founder member & Vice President of Chittagong Stock Exchange and Ex-Officio Councilor of Dhaka Stock Exchange (Y2K) and member of SEC Advisory Board. He was President of ICAB for 2000. Mr Chowdhury had rare distinction of serving the Bangladesh Government in exile at Mujibnagar in between April - December 1971.

PRESIDENT | 2001 Mr. Anwaruddin Chowdhury FCA (Enrolment No. 343) Member Council and Past President (2001) of ICAB, served as a Director on the CAPA Board for 2011-15. He was a Technical Advisor to IFAC Board (2000-01) and Executive Secretary SAFA (1995). He served in the UNCTAD ISAR Advisory Committee for 3 years (2001-03) and was Chairman of ISAR's Workshop on Corporate Governance in 2001. He drafted the ICAB CPE Document and pioneered the Introduction of ICAB National Awards for BPAR. Anwaruddin was the founder Managing Director of Credit Rating Agency of Bangladesh Ltd.

PRESIDENT | 2002 Late Mohamed Abdul Baree FCA (Enrolment No. 482) obtained M.Com degree from University of Dhaka and secured first class first. In early seventies he was teacher in the Commerce faculty of Dhaka University. He obtained M.Sc. in Industrial Administration from Aston Business School, UK and qualified as a chartered accountant from the Institute of Chartered Accountants in England and Wales (ICAEW). He was a faculty at the National University of Singapore in early eighties. He was also a partner of Rahman Rahman Huq and also was a partner of Hoda Vasi Chowdhury & Co. He was the President of the Institute of Chartered Accountants of Bangladesh for 2002. He authored books on Income Tax and Value Added Tax (VAT).

PRESIDENT | 2003 Mr. A.K.Gulam Kibria FCA (Enrolment No. 392) was qualified as a Chartered Accountant from The Institute of Chartered Accountants of Bangladesh in 1982. Mr. Kibria was nominated Honorary Director of many state owned companies and enterprises, like Agrani Bank Ltd., Rupali Bank Ltd., Dhaka Electric Supply Co Ltd., Dhaka Water Supply & Sewerage Authority, Power Grid Co. Ltd., Horipur Power Station and Dhaka Stock Exchange Ltd. He was Council Member of ICAB for several terms. Mr. Kibria was President of ICAB for 2003

PRESIDENT | 2004 Mr. Akhtar Sohel Kasem FCA (Enrolment No. 328) became an Associate Member in 1981 and Fellow Member in 1986 of ICAB. Prior to that, he completed his articles with Coopers & Lybrand, London and became a member of ICAEW in 1981. He is also an Associate Member of the Institute of Chartered Accountants of Ontario, Canada. He is currently the Senior Partner of A Qasem & Co., Chartered Accountants. Mr. Kasem is a Council Member of ICAB since 1995. He served as the President of ICAB for 2004. He has been working for different Standing and Non-standing Committees of ICAB and SAFA for many years.

The Institute of Chartered Accountants of Bangladesh | 59 ANNUAL REPOR T 2020

PAST PRESIDENTS

PRESIDENT | 2005 Late Sheikh A. Hafiz FCA (Enrolment No. 110) was the President of ICAB for 2005. He became an Associate Member in 1974 and Fellow Member of ICAB in 1980. He was also a Fellow Member of the Institute of Chartered Accountants in England and Wales (ICAEW). He was the President of the South Asian Federation of Accountants (SAFA) for 2009. Mr. Hafiz is a former Senior Partner of Rahman Rahman Huq, Chartered Accountants and was a Director of Sonali Bank Ltd. and Chairman of the Audit Committee of Agrani Bank Ltd. Mr. Hafiz was a member of the Sweden Bangladesh Trust Fund Committee and a member of the Government of Bangladesh Gas Utilization Committee.

PRESIDENT | 2006 Mr. A.S.M. Nayeem FCA (Enrolment No. 353) was the President of ICAB for 2006. He was the President of the South Asian Federation of Accountants (SAFA) in the year 2017. He was a lecturer of Chittagong University. He did his M.Sc. from UK. He is a Fellow Member of ACCA (UK). He is also an Associate Member of the Institute of Chartered Accountants in England and Wales (ICAEW).

Currently, Mr. Nayeem is a Partner of ACNABIN, Chartered Accountants. He is an ex-Director of Chittagong Stock Exchange Ltd. and ex-Chairman of Bangladesh Shipping Agents Association and Port Users Forum.

PRESIDENT | 2007 Mr. Muhammed Farhad Hussain FCA (Enrolment No. 452) completed his SSC and HSC from Mirzapur Cadet College, "A" Levels from Greenmore College, Birmingham UK and ICAEW Foundation Course from City of Birmingham Polytechnic, Birmingham. He completed his Article ship training from Calthorpes, Chartered Accountants, Birmingham. Presently, he is the Managing Partner of Hussain Farhad & Co, Chartered Accountants. Mr. Hussain was the President of ICAB for 2007.

PRESIDENT | 2008 Mr. Mohammed Humayun Kabir FCA (Enrolment No. 462) obtained B. Com (Hons) with first class and M.Com in Accounting from the University of Dhaka. He studied Chartered Accountancy and passed both group I & II of final exams of ICAB in one go. He also studied on International Capital Market at St. Catherine’s College, Oxford, UK. Mr. Kabir has been recognized seven times as a CIP (Export) in 2007, 2011, 2012, 2013, 2014, 2015 and 2017 and awarded Jatiyo Paribesh Padak in 2010 by the Government of Bangladesh. Mr. Kabir was the President of ICAB for 2008.

PRESIDENT | 2009 Mr. Nasir Uddin Ahmed FCA (Enrolment No. 535), obtained B. Com, (Hons) degree with first class and M. Com, both in Accounting from the University of Dhaka. He became a member of ICAEW in November 2017 and CIMA, UK in May 2017. He was President ICAB for 2009. Currently a Senior Partner of MABS & J Partners, Chartered Accountants, he worked for British American Tobacco Bangladesh and Coats Bangladesh for more than two decades and lastly as Finance Director. Currently, Mr. Ahmed is on the Board of Confederation of Asian and Pacific Accountants (CAPA) for a tenure of 4 years till November 2023.

60 | The Institute of Chartered Accountants of Bangladesh PAST PRESIDENTS

PRESIDENT | 2010 Mr. Jamaluddin Ahmed Ph.D, FCA (Enrolment No. 498) was a partner of M/s. Hoda Vasi Chowdhury & Co., Chartered Accountants. He obtained B.Com (Hon's), M.Com in Accounting from the University of Dhaka. He also obtained Ph.D from Cardif Business School, University of Wales (UK). He served the ICAB as Vice President in 2006 and 2007 and as President in 2010.

PRESIDENT | 2011 Ms. Parveen Mahmud FCA (Enrolment No. 632) is the Chairman of UCEF Bangladesh. She was Founding Managing Director of Grameen Telecom Trust. Ms. Mahmud started her career with BRAC, and was the financial controller of ActionAid Bangladesh. She was the Deputy Managing Director of Palli Karma-Sahayak Foundation (PKSF) and was partner, ACNABIN, Chartered Accountants. Ms Mahmud was the first women council member of ICAB in 2007- 2009, 2010-2012 and 2015-2018. She was the first female President of the ICAB for 2011 and the first female Board member in the South Asian Federation of Accountants (SAFA), apex accounting professional body of the SAARC.

PRESIDENT | 2012 Mr. Md. Syful Islam FCA (Enrolment No. 615) was President of ICAB for 2012. After the completing of B.Com (Hon's) and M.Com in Accounting from the University of Dhaka, he studied CA course. Mr. Islam is a Managing Partner of Syful Shamsul Alam & Co., Chartered Accountants. Mr. Islam was a Board Member of SAFA for the year 2012; Director-Rupali Bank Ltd (2007-2013); Director-DSE (2012), BTCL (2012-2013) and SME Foundation.

PRESIDENT | 2013 Mr. Md Abdus Salam FCA (Enrolment No. 570) completed B. Com (Hon's) and M. Com in Accounting from the University of Dhaka. He was President ICAB for 2013, Mr. Salam was in the Council from 2010 -2015 and served as the Vice President, (Education and Training)) from 2010 to 2012. Mr. Salam is a life Member of Bangladesh Economic Association. He was also a Board Director of Islami Bank Bangladesh Ltd and Independent Director of IBN Sina Pharmaceuticals Industry Ltd. Mr. Salam is a partner of ARTISAN, Chartered Accountants.

PRESIDENT | 2014 Mr. Showkat Hossain FCA (Enrolment No. 137) was President of the Institute of Chartered Accountants of Bangladesh (ICAB) for 2014. He is a partner of Hoda Vasi Chowdhury & Co Chartered Accountants, an independent correspondent firm to Deloitte Touche Tohmatsu. He was an Independent Director of the Chittagong Stock Exchange (CSE) nominated by the government.

The Institute of Chartered Accountants of Bangladesh | 61 ANNUAL REPORT 2020

PAST PRESIDENTS

PRESIDENT | 2015 Mr. Masih Malik Chowdhury FCA (Enrolment No. 337) was President ICAB for 2015. He is an alma mater of Govt Pilot High School & MC College Sylhet, DU Economics Deptt., ICAB (Rahman Rahman Huq - now KMPG Member) & City Law College, Dhaka. He founded his own practice Masih Muhith Haque & Co., Chartered Accountants in 1985. He is a former DU Senator. He has a passion to contribute in Journals, Magazines and Dailies infrequently. He authored a number of books on economic issues and beyond; ivRbxwZ I ev‡RU; evsjv‡`k: Dbœqb fvebv; Budget: Tool for Development Resource; Views on Development; ey‡ki mv‡i½xev`K †K; Economy Election and Politics; Own Resources for Development; wbe©vPb, A_©bxwZ I ¯^‡`k wPšÍv; kÖxjsKv I gvjØx‡c 9 w`b; A‡÷ªwjqv I gvj‡qwkqv Ny‡i ¯^‡`k|

PRESIDENT | 2016 Mr. Kamrul Abedin FCA, is the managing partner of M. J. Abedin & Co., Chartered Accountants, an independent member firm of Moore Stephens International Limited. After obtaining his Masters in Accounting from the University of Dhaka, he joined M. J. Abedin and Co. as an articled student. In the year 1986 right after becoming Associate Member of ICAB, he joined the firm as a partner. Mr. Abedin served ICAB as President in 2016. He is the Chairman of Quality Assurance Board of ICAB for the year 2020.

PRESIDENT | 2017 Mr. Adeeb H. Khan FCA, is the Senior Partner of Rahman Rahman Huq, Chartered Accountants (Member Firm of KPMG International in Bangladesh). Mr. Khan was President ICAB for 2017. He has been a member of the Institute of Chartered Accountants in England and Wales (ICAEW) since 1991 and of ICAB since 1992. He is a member of the Governing Board of BRAC. He is the Chairman of BRAC’s Audit and Finance Committee. Mr. Khan is a member of the Executive Committee of Bangladesh Legal Aid and Services Trust (BLAST).

PRESIDENT | 2018 Mr. Dewan Nurul Islam FCA (Enrolment No. 606) did his MBA in finance with distinction from the University of Technology Sydney (UTS), Australia and qualified chartered accountancy in 1990. Mr. Islam has extensive senior level management experience with large local corporates, MNC’s and financial institutions in the country and abroad. Currently Mr. Islam is the managing director of Grant Thornton Consulting Bangladesh limited, one of the world’s leading advisory firms. Mr. Dewan Nurul Islam FCA was in ICAB Council since 2013 and became president of ICAB in 2018.

PRESIDENT | 2019 Mr. A F Nesaruddin FCA, completed B. Com (Hons) and M. Com in Finance from the University of Dhaka. Mr. Nesaruddin FCA is the Immediate Past President of ICAB. He is in public practice since 1998 and currently a senior partner of Hoda Vasi Chowdhury & Co., Chartered Accountants and one of the nominated directors on the board of United Finance Limited. He is a contributor to leading national dailies specially on taxation, corporate governance and other professional issues.

62 | The Institute of Chartered Accountants of Bangladesh COVID-19 TRANSFORMED ICAB DIGITALLY ANNUAL REPORT 2020

3.0 TECHNICAL AFFAIRS

3.1 ICAB Centre for Professional Excellence (ICPE)

ICAB offers training and workshop qualification to a broad range of professionals and help fostering their leadership qualities as well as enhance commercial, finance and technical knowledge that are fundamental to the boosting up of careers as well as supporting the long-term prospects of business. During the year 2020, ICAB held a number of Trainings and Workshops on different subject to keep the knowledge and skills up-to-date. Due to pandemic, from April 2020 on ward, all trainings were delivered online through digital Platform.

Period & No. of Sl. # Name of the Training Facilitators Duration Participants 1. Certificate Course on 14 October 30 Members from Mr. Imran Ahmed FCA, CISA ‘Information Systems Audit (IS 2019 to 12 ICAB and Other Mr. Md. Tohidur Rahman Bhuiyan Audit)’ -4th Batch February 2020 Organisations Engr. Md. Mushfiqur Rahman Mr. Abu Md. Sabbir Hassan Chowdhury Mr. S.M. Tofayel Ahmad Mr. Biswagit Saha Ms. Mahmuda Binta Yousuf Hemo Mr. S. M. Al-Mahmud Hashim Mr. Md. Tanvir Rahman, CISA Mr. Mohammad Shahadat Hossain, CISA Mr. Nayem Mahmud, CISA Engr. Md. Nasim Adnan, PhD (Australia), CSE 2. Certificate Course on 25 January to 34 Members from Mr. Mohammad Salahuddin ‘International Financial 21 March 2020 ICAB and Other Chowdhury FCA, Reporting Standards Organisations Mr. Snehasish Barua FCA, (IFRS) – 8th Batch Mr. Sabbir Ahmed FCA, Mr. Sk. Md. Tarikul Islam FCA, Mr. Muhammad Aminul Hoque FCA, Mr. Md. Rokonuzzaman FCA & Mr. Sk. Ashik Iqbal FCA 3. Workshop on 16 February 78 Members of Mr. Snehasish Barua FCA & ‘Implementation of IFRS 2020 ICAB Mr. Sk. Ashik Iqbal FCA 16 Leases: challenges and way forward specially for Banks, FI and Insurance companies’ 4. Workshop on ‘Practical 3rd & 4th 63 Members of Mr. Ali Amjad Choudhury FCA Demonstration of Audit March, 2020 ICAB Materiality, Journal Entry Testing, Audit Sampling and Opening Balances’ 5. Certificate Course on 29 August to 24 53 Members from Mr. Sabbir Ahmed FCA 'International Financial October 2020 ICAB and Other Mr. Mohammad Salahuddin Chowdhury FCA Reporting Standards Organisations Mr. Snehasish Barua FCA (IFRS)-9th Batch Mr. Sk. Md. Tarikul Islam FCA Mr. Muhammad Aminul Hoque FCA Mr. Md. Rokonuzzaman FCA Mr. Abu Haider Mohammed Kibria FCA Mr. Wasequl Huq

64 | The Institute of Chartered Accountants of Bangladesh Sl. # Name of the Training Period & Duration No. of Participants Facilitators 6. Training programme on ‘VAT 06 September to 92 Members from Mr. Snehasish Barua FCA and SD Act 2012’ - 1st Batch 20 September ICAB and Other Mr. Rakesh Saha FCA & 2020 Organisations Mr. MBM Lutful Hadee FCA 7. Workshop on ‘Compliance of 21 September 136 Members of Mr. Mahbub Ahmed Siddique FCA Standards in Audited Financial 2020 ICAB Statements of Listed Banks" 8. Training Programme on ‘VAT 04 October to 20 50 Members from Mr. Snehasish Barua FCA and SD Act 2012’ - 2nd Batch October 2020 ICAB and Other Mr. Rakesh Saha FCA & Organisations Mr. MBM Lutful Hadee FCA 9. Workshop on 17 October 2020 100 Members of Bangladesh Securities and Exchange 'Contemporary Financial ICAB Commission Reporting and Auditing Issues' 10. Training Programme on 30 October to 28 35 Bangladesh Mr. Muhammad Aminul Hoque FCA 'Internal Auditors of URIDS November 2020 Rural Electrification Mr. Sk. Md. Tarikul Islam FCA Project Accounts Board (BREB) Mr. Sk. Ashik Iqbal FCA and (DMCS/RRKB)' for Bangladesh Officials Mr. Al Amin Redwanur Rahman ACA Rural Electrification Board (BREB) Officials

3.2 Detail Activities of ICPE During the Year 2020

Closing Ceremony of Certificate Course on Information Systems Audit (IS Audit)-4th Batch

The closing ceremony of Certificate Course on Certificate Course on IFRS Information Systems Audit (IS Audit)-4th Batch was held on 12 February 2020 at ICAB training room. A ICAB organised certificate course on IFRS to enhance good number of ICAB members in business, IT, the competence of professionals serving in key Finance, Banking Sectors, Accounts and Compliance position of financial sector in Bangladesh. The course of Bangladesh Bank and other renowned covers IFRS for all financial Institutions. A organizations participated in the training. comprehensive coverage of all IFRS with all latest updates are being transacted at the sessions of the ICAB organized this Capstone Certificate Course on training. The objective of this training was to acquire Information Systems Audit (IS Audit)-4th batch to in-depth knowledge about the preparation of financial respond to the emerging need of auditors. statements in compliances with IFRS and the application of IFRS in specific cases. Resource persons of the training were IS audit experts who are Qualified CISA/CISM/Chartered Accountants ICAB Members and Professionals from various and the prominent IS/IT audit experts including financial institutions participated in the course. practitioners & academicians. The course IFRS experts trained from the Institute of Chartered conmmenced on 14 October 2019. Accountants in England and Wales (ICAEW), UK,

The Institute of Chartered Accountants of Bangladesh | 65 ANNUAL REPORT 2020

prominent and renowned Chartered Accountantancy Organized by Chartered Accountants Students’ Practitioners and Academicians conducted the Society, students’ body of CA Sri Lanka, the 34th sessions on every Saturday for total eight days International CA Students’ Conference 2020 was held extending from 25 January to 21 March 2020. on 11 February 2020 at Shangri- La, Colombo. CA Students from ICA Bangladesh, ICA India, ICA Nepal Vice President Sabbir Ahmed FCA, Md. Tareq Kamal and ICA Pakistan were among the foreign delegates FCA, Muhammad Aminul Hoque FCA, Sk. Ashik Iqbal invited to participate in the conference. Ms. Dulani FCA, Sk. Md. Tarikul Islam FCA Mohammad Fernando, the CEO of CA Sri Lanka welcomed the Salahuddin Chowdhury FCA, Snehasish Barua FCA, foreign student delegates to the Institute of Chartered and Md. Rokonuzzaman FCA were the resource Accountant of Sri Lanka. persons of the training. Two ICAB students Ms. Nimat Zarin, Audit Associate Intensive Workshop on ‘Implementation of IFRS 16 at A. Qasem & Co, Chartered Accountants and Mr. Leases: Challenges and Way Forward’ Mahdi Hasan, Audit Associate at Rahman Rahman Huq, Chartered Accountants represented Bangladesh in the Conference. The theme of the Conference was in line with today’s global talk of #FutureReady. The session looked at the future challenges ahead in the career of Chartered Accountants from a student's perspective.

The four-day tour of the conference not only addressed the issues that future accountants will face and need to be prepared of, but also gave an opportunity to explore the unexplainable beauty of Sri Lanka. Among the amazing hospitality of the Students ICAB Centre for Professional Excellence (ICPE)’ Society of CA Sri Lanka, a visit to Gangarama Temple, organised an intensive workshop on ‘Implementation One Galle face, Diyatha Uyana Park were remarkable. of IFRS 16 Leases: Challenges and Way Forward’ for EY Sri Lanka invited the foreign delegates to visit their the respected Members of all Audit Firms engaged in firm, which carries 113 years of Big4 traditions. The audit of Banks, Financial Institutions and Insurance at Institute of Chartered Accountants of Sri Lanka also ICPE Training room on 16 February 2020. A total of 79 organized a feedback session with all the students representatives, drawn from the partners of different and the foreign delegates. audit firms, participated in the programme. Workshop on Practical Demonstration of Audit The resource persons of the workshop were Materiality Snehasish Barua FCA, partner, Snehasish Mahmud & Co., Chartered Accountants and Sk. Ashik Iqbal, Workshop on ‘Practical Demonstration of Audit Partner, Nurul Faruk Hasan & Co., Chartered Materiality, Journal Entry Testing, Audit Sampling and Accountants. ICAB President distributed the Opening Balances’ was held at ICAB training room on certificates to the participants. The certificate 4 March 2020. Practicing members and directors, awarding ceremony was followed by dinner. senior managers of CA firms participated in the workshop. Ali Amjad Choudhury FCA, Partner, CA Students conference at Sri Lanka Howladar Yunus & Co., Chartered Accountants was the resource person.

Closing Ceremony of Training on ‘Summary of Changes Brought in by Finance Act 2020’

Closing ceremony of the training programme on ‘Summary of changes brought in by the Finance Act 2020’ was held through online ZOOM on 20 September 2020. The seven-day training was attended by a total of 90 members of the Institute. Md. Masud Sadiq, Member (VAT Policy), National Board of Revenue (NBR) spoke on the occasion as the chief guest while ICAB President Muhammad

66 | The Institute of Chartered Accountants of Bangladesh Farooq FCA delivered address of welcome. ICAB Vice Training on Internal Auditors Presidents Sidhartha Barua FCA, and Sabbir Ahmed FCA, Council & Past President Md. Humayun Kabir Training on Internal Auditors was conducted from 30 FCA, Snehasish Barua FCA, Partner, Snehasish October 2020 and continued to 28 November 2020. A Mahmud & Co. also spoke on the occasion. total of 35 Bangladesh Rural Electrification Board (BREB) officials participated in the programme. Virtual Workshop on ‘Compliance of Standards in Audited Financial Statements of Listed Banks Muhammad Aminul Hoque FCA, Sk. Md. Tarikul Islam FCA, Sk. Ashik Iqbal FCA and Al Amin Redwanur Rahman ACA were the resource persons of the training.

Online Training on ‘VAT and SD Act 2012

Online training on ‘VAT and SD Act 2012 was held between October 2020, to 20 October 2020.

A total of 50 Members of ICAB and others organisations participated in the programme. Snehasish Barua FCA, Rakesh Saha FCA and MBM Lutful Hadee FCA conducted the session as resource persons. The virtual workshop on ‘Compliance of Standards in Audited Financial Statements of Listed Banks’ was Virtual Workshop on 'Contemporary Financial organized ICAB as part of the quality assurance Reporting and Auditing Issue review activities of the Institute on 21 September 2020 through Zoom online. About 120 CFOs, concerned Virtual workshop on Contemporary Financial executives of Banks, the partners and managers of Reporting and Auditing Issue was held on 17 October audit firms engaged in audit of listed Banks, attended 2020. A total of 100 Members of ICAB took part in the the workshop. programme.

Muhammad Farooq FCA, President-ICAB inaugurated Resource persons from the Bangladesh Securities the workshop and Mahbub Ahmed Siddique FCA, and Exchange Commission (BSEC) conducted the Director Technical-ICAB delivered the presentation on workshop. initial findings with emphasis on the compliance of standards in the Audited Financial Statements of Day-long training Session on DVS listed Banks. The main purpose of the workshop was to enhance and ensure the compliance of standards and regulations relating to the Financial Statements of listed banks. The concluding remarks was made by Kamrul Abedin FCA, Council Member, Past President & Chairman of Quality Assurance Board of ICAB.

Online Certificate Course on IFRS

Online certificate course on International Financial Reporting Standards (IFRS) started from 29 August 2020, was concluded on 24 October 2020. A total of 53 Members of ICAB and Others Organisations took Day-long training Session on Document Verification part in the training programme. System (DVS) was held on 25 October 2020 at ICAB Chattogram Regional Office. ICAB Vice President Mohammad Salahuddin Chowdhury FCA, Resource Sidhartha Barua FCA inaugurated the training persons were Snehasish Barua FCA, Sabbir Ahmed session. FCA, Sk. Md. Tarikul Islam FCA, Muhammad Aminul Hoque FCA, Md. Rokonuzzaman FCA, Abu Haider Thirty practicing members from different firms in Mohammed Kibria FCA, Wasequl Huq Reagan FCA Chattogram Region participated in the session and Sk. Ashik Iqbal FCA. conducted by Mohammad Deloar Hossain, Deputy Director (IT), ICAB.

The Institute of Chartered Accountants of Bangladesh | 67 ANNUAL REPORT 2020

3.3 Technical Guidelines The nature of individual entities and risk profile of the industries concerned will determine the impact of the ICAB Issues COVID-19 Guidelines for Accountants crisis, said the primary regulator of the country's and Auditors external auditors.

The ICAB named some sectors that might be more affected during initial stages. Export-oriented industries, including their backward linkage, may suffer due to order cancellations, it predicted. The list of sufferers includes travel, tourism and hospitality industries on account of both lower local and international demand and restrictions as well.

Lenders, due to deferral of loan repayment, slower credit growth and stress of borrowers may also suffer in business. Meanwhile, the insurance sector may The Institute of Chartered Accountants of Bangladesh suffer from lower renewal, return on investments and (ICAB) came up with a guideline for all its members on higher claims. what and how to address in the preparation and audit of financial statements during the coronavirus If public and private sector projects are delayed, the pandemic. construction and relevant manufacturing sectors will face difficulties. Besides, businesses that rely on The detailed guideline, prepared by the technical and inward remittance may also suffer. research committee of the ICAB, was sent to the chartered accountants in the middle of this month. In such a context, ICAB members are guided to enquire, observe and opine whether the publisher of Sabbir Ahmed, ICAB vice-president and Chairman of the financial statement is likely to survive this hard Technical and Research Committee, told that time and operate in the coming days. Besides, there accounting and auditing standards demand an should be a better reflection of the true nature of impact forecast of factors in companies’ businesses. inventories, existing assets, receivables, orders, the It includes the assessment of significant risks, possibility of successful repayment of loans and other forecasts on asset valuation and recoverability, and liabilities in this unusual time. very importantly, the question of going concern—if the company will be able to continue its business or not. The ICAB also said that travel restriction during the time of pandemic has increased challenges for “In the uncertain time of the pandemic, it is very auditors to check essential information. It also caused important for the users of financial statements that difficulties for companies about timely assessment of they get the picture of risks and uncertainties right as things and preparing statements. much as possible,” Sabbir said. To assist the member of the institute involved in The ICAB told its members, who are in diversified preparation and presentation of the financial roles ranging from management positions to external statement in line with IFRS and other applicable auditing, that the uncertainty and business impacts of relevant standards and regulations and the member the not-seen-in-decades global crisis should be involved in auditing (practicing members), ICAB reflected in companies' disclosures, and auditors' Technical and Research Committee (TRC) issued observation and opinion. letters to Bangladesh Bank, Financial Reporting Council, Bangladesh Securities and Exchange For that, compliance with the followed accounting Commission, Insurance Devolvement Authority and standards is a must. Micro-Credit Regulatory Authority for addressing the Like all others, the ICAB said the extent and ultimate issues of financial reporting and auditing emerged economic impact of the pandemic are still unknown from COVID-19 outbreak. and it will vary among industries.

68 | The Institute of Chartered Accountants of Bangladesh 3.4 Virtual Media Briefing by ICAB on National Budget 2020

ICAB organised a virtual media briefing on Saturday, Parveen Mahmud FCA, Council Member Md 13 June 2020 just one day after the announcement of Shahadat Hossain, Secretary & CEO Major General the National Budget 2020. Muhammad Imrul Quayes, ndc, psc (Retd), Snehasish Barua FCA, Partner, Snehasish Mahmud & ICAB President Muhammad Farooq FCA, ICAB Vice Co., Director (Technical) Mahbub Ahmed Siddique President Sidhartha Barua FCA, Sabbir Ahmed FCA FCA, attended the media briefing. and Mohammed Forkan Uddin FCA, Md Humayun Kabir, Council Member & Past President and A large number of Electronic and Print Media Chairman of Taxation & Corporate Laws Committee attended the Virtual Media Briefing organized by (TCLC), Past Presidents Md. Abdus Salam FCA, ICAB.

Virtual Post Budget Discussion held Jointly by ICAB and The Business Standard

On 11 June 2020 government announced a budget of Shahadat Hossain FCA and Fellow Member BDT 5,68,000 Crore equivalent to 17.9% of the GDP Snehasish Barua FCA gave brief presentations on the and this is a increase by 13.24% compared to revised National Budget 2020. budget of 2019-20. Speaking as the Chief Guest, Planning Minister MA An active partner of promoting Good Governance, Mannan said, “Listening to today's discussion, the ICAB organised this session every year. Economists, budget seems to be a business-friendly budget.” He businesses and professionals of different said, the prime minister has described it as a recovery backgrounds took part in a virtual post budget budget. The agriculture and health sectors have been discussion organised jointly by the Business Standard prioritised. The increase in tax on mobile recharges, and The Institute of Chartered Accountants of increase in excise duty on bank deposits are popular Bangladesh (ICAB) on Sunday, 14 June 2020. items. There is an opportunity to discuss this before Planning Minister MA Mannan, MP attended the event the budget is passed. "We have a challenge in as chief guest. ICAB Secretary Major General financing the budget," he added. Efforts should be Muhammad Imrul Quayes, ndc, psc (Retd) and the made to solve this by increasing the tax net. executive Editor of the Business Standard Shariar Ahmed delivered welcome speeches. ICAB Past “It is an injustice to those who pay taxes regularly,” President and Chairman Taxation & Corporate Laws Dr. Fahmida Khatun, executive director of the Centre Committee (TCLC) of ICAB moderated the session for Policy Dialogue, said on the way the government while ICAB President Muhammad Farooq FCA has given a blanket immunity to individuals holding inaugurated the session. ICAB Council Member Md. black money. She said, this facility was given at

The Institute of Chartered Accountants of Bangladesh | 69 ANNUAL REPORT 2020

different times in the past but people did not use in the Mosharraf Hossain Bhuiyan said the tax system right way. She said, only Tk16,000 crore has been globally is direct taxes. “That means collecting money whitened through this facility provided by different from the rich and spending it on the development of governments since the independence of the country. the state and poverty.”

Mosharraf Hossain Bhuiyan, the immediate past Shams Mahmud, president of the Dhaka Chamber of chairman of the National Board of Revenue (NBR) Commerce and Industry said, the opportunity to said, it was not the right move to give a chance to whiten black money should be given for two to three whiten black money with just 10 percent tax. He said, months instead of one year. "It should have been “It could be in line with the regular rates plus a penalty given only in investment, not wholesale. It could – it may be symbolic.” He said a flat 10 percent tax increase the flow of money if the opportunity was cannot be imposed on all amounts. If someone whiten given for a maximum three to four months to overcome Tk100 crore and another Tk10 lakh, it is not the same. the novel coronavirus crisis," he added.

3.5 Members’ Conferences held Physically Subject: ‘Changes in Accounting Standards Effective from 1 January 2019’. Date: 29 February, 2020

C. Q. K. Mustaq Ahmed, Chairman, Financial Reporting Council (FRC) was the Chief Guest; Sabbir Ahmed FCA, Vice President-ICAB and Partner, Hoda Vasi Chowdhury & Co. Chartered Accountants was Paper Presenter; Akhtar Sohel Kasem FCA, Council Member & Past President-ICAB and Senior Partner, A Qasem & Co. Chartered Accountants acted as Session Chairman.

70 | The Institute of Chartered Accountants of Bangladesh Subject: ‘Income Tax Policy Paper on the upcoming Amendment of Income Tax Ordinance 1984’. Date: 15 March 2020

Abu Hena Md. Rahmatul Muneem, Senior Secretary, Internal Resources Division (IRD) & Chairman, National Board of Revenue (NBR) was the Chief Guest; Nahar Ferdousi Begum, Member (Taxes Legal & Enforcement) and Ranjan Kumar Bhowmik, Member (Tax Survey & Inspection) were Special Guests; Mohammad Al Maruf Khan FCA, Partner, Howladar Yunus & Co., Chartered Accountants and Mr. Snehasish Barua FCA, Partner, Snehasish Mahmud & Co., Chartered Accountants was Paper Presenters; Md. Humayun Kabir FCA, Council Member and Past President of ICAB acted as Session Chairman.

3.6 External Events

Virtual SAFA Forum on Challenges in Financial Sabbir Ahmed Participated in ICMA International Reporting and Way Forward with COVID 19 Webinar Outbreak Sabbir Ahmed, FCA, Vice President, ICAB As a panel discussant Sabbir Ahmed, FCA, Vice participated in an international webinar on ‘the President, ICAB and Chairman, SAFA Committee on challenges and role of professional accountants amid Professional Ethics & Independence participated in and post Covid-19 era’ which was organized by the Virtual SAFA Forum on Challenges in Financial Institute of Cost and Management Accountants Reporting and Way Forward with COVID 19 Outbreak (ICMAB) on 5 June 2020. arranged by the CA Sri Lanka on July 27, 2020 at 3.00 PM in SL time. As one of the speakers Mr. Ahmed came up with insight thoughts on a topic titled as overcoming Manil Jayesinghe, President, CA Sri Lanka delivered COVID-19 Challenges on Financial Reporting and address of welcome while Sue Lloyd, Deputy Chair of Role of Professional Accountants. Among many the IASB presented the keynote paper. SAFA others, representatives of SAFA, CAPA, ICMAP, ICAI, President also spoke in the event. ICAN and ICMASL also took part in the webinar. Md. Jafar Uddin, Secretary, Ministry of Commerce, Among other panel discussants were Sanjeev Singhal Government of the People’s Republic of Bangladesh of Institute of Chartered Accountants of India (ICAI), was present as the Chief Guest. Madan Krishna Sharma of Institute of Chartered Accountants of Nepal (ICAN), Farrukh Rehman of SAFA Foundation Day Webinar Institute of Chartered Accountants of Pakistan (ICAP) and Manil Jayesinghe of CA Sri Lanka. Nishan SAFA Foundation Day Webinar was held on 22 August Fernando moderated the session. 2020 where a panel discussion on COVID 19

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Pandemic: Changing Dynamics of the Accountancy 3.7 Compliance and Technical Standards Profession was held. This webinar was the kind of engagement the profession needed. Publication of IFRS, ISA and relevant pronouncements and Code of Ethics for The impressive lineup of speakers from around the Professional Accountants region participated in the discussion as panelists who were Muhammad Farooq, President, ICA Bangladesh, The application and compliance of the accounting Md. Jasim Uddin Akond, President, ICMA and auditing standards to improve presentation and Bangladesh, CA. Atul Kumar Gupta, President, ICA audit of the financial statements is a fundamental India, CMA Balwinder Singh, President, ICoAI, CA. requirement of the members of the accountancy Madan Krishna Sharma, President, ICA Nepal, profession. ICAB has also published the 2020 version Khalilullah Shaikh, President, ICA Pakistan, Zia Ul of IFRS as issued by International Accounting Mustafa Awan, President, SAFA and President, ICMA Standards Board (IASB). The Institute is fully aware of Pakistan, Manil Jayesinghe, President, CA Sri Lanka the need to keep our members updated of the latest and Prof. Lakshman R Watawala, President, CMA Sri developments in the accounting profession. Lanka. The Moderator of the discussion was Ms. Javaria Malik, Director- Corporate Communications, Being regulator of the Accountancy Profession in ICMA Pakistan. Bangladesh, ICAB has been performing its responsibilities for the review, adoption, publication ICAB President Muhammad Farooq briefly spoke on a and dissemination of relevant International segment of the discussion on Companies’ adaptation Accounting, Auditing, Assurance, Ethics and other to survive through COVID19 and the business agility pronouncements as pronounced by International for the long-term, post COVID-19. Accounting Standards Board and International Federation of Accountants till the year 2019. The Speakers said, the coronavirus (COVID-19) is Institute is also carrying out its responsibilities by presenting unexpected and extreme challenges for promoting the use of these standards through organizations of all sizes and sectors across the education, training and building awareness through world. It is quickly changing how entities operate and its members and other stakeholders. ICAB has also how individuals live and work. published 2020 version of IFRS Standards through ICAB website. They also elaborated that the accountancy profession across the globe is uniting to play its part in tackling The Technical and Research Committee (TRC) of the the fallout from the virus, supporting and advising Council-ICAB has been working hard to enrich and governments, policymakers and regulators, and update the members with latest status of the crucially supporting finance professionals as they accounting and auditing standards from time to time. work with their organisations and clients to minimise the economic and business consequences. ICAB has adopted all applicable IFRS, ISA and other relevant international standards and pronouncements ICAB wrote to NBR for the Time Extension of and Code of Ethics for Professional Accountants upto Submitting Monthly VAT, Tax Returns of Cos 2019.

ICAB wrote to National Board of Revenue (NBR) for In 2017, ICAB Council decided to adopt IFRS and the extension of submission of return of companies IFRS for SMEs, ISAs and all relevant international and firms with waivering penalty and interest as the standards and pronouncements in Bangladesh country is undergoing nationwide shutdown due to instead of issuance of BFRS and BFRS for SMEs, BSA pandemic COVID-19. All government and private and local standards and pronouncement which will be offices were closed for a long time. In this situation it effective for annual period beginning on or after 1 was not possible to prepare monthly statement as January 2018. concerned officials of firms and companies were forced to go on general holidays as declared by the The responsibility of adoption and publication of government for combating corona virus to save lives financial reporting and auditing standards has been of people from being affected. handed over to FRC from 2020.

In this circumstances, ICAB urged NBR in a letter to Technical Publications and Updates extend the time of the submission of monthly return of company’s VAT and tax. ICAB citied neighbouring In 2020, the Technical Department with the direct country’s example in this regard. guideline of the Technical and Research Committee

72 | The Institute of Chartered Accountants of Bangladesh (TRC) of the Institute has disposed of its assigned . Development of illustrative guideline based on responsibilities. IFRIC 21, IFRIC 23 and IAS 12 for reducing the uncertainty over income tax treatments; The adoption and publication of these accounting and financial reporting standards provide necessary . Published the technical updates including guidance to our members and preparers of financial significant economic issues through ICAB monthly statements for the correct application of the news bulletin; Standards in practice. Basically, the application of the IFRSs in the financial statements of the reporting . Comments and respond to IFAC and other global entities will ensure compliance in all material respects accounting bodies on exposure draft and relevant issued by the IASB, thereby enhancing the credibility standards, if any; of financial information for reliance by investors, other . stakeholders and user groups. Updated the IFAC Dash Board Report and SMO Action plan relating to technical standards & ICAB initiated its journey of promoting application of issues; BFRSs in Bangladesh long back and started adopting . IFRSs as BFRSs without modification (until legally Provided clarification of the queries on different required) in the year 2000 with a vision to keep up the technical and professional issues to the relevant accounting and reporting practices at par stakeholders; international level. Now the vision is coming true as . Prepared template of auditor’s report in Bangladesh is set well ahead of many countries in the accordance with ISA 700 and made available at process of adopting IFRSs. ICAB web site; The IFRS, ISA and relevant pronouncements and . Organized technical sessions /workshops on IESBA Code of Ethics for Professional Accountants impact of COVID-19 using webinar and/or other were made available at ICAB website in the year forms of online video conference facilities; 2020. . Maintaining liaison & take up issues with Few activities of the Technical Department which were regulators in relation to foreign owned entities and done in 2020 are as follows: foreigners; . Created a separate section at ICAB website . Communicated and supported the regulators on relating to Potential Impact of COVID-19 on the implementation of standards; Profession, Business and Overall Economy in Bangladesh; . Reviewed the auditor’s report of the listed companies of Bangladesh as per ISAs. . Developed of an ‘Illustrative notes to the financial statements and extract of the auditor's report due At present, TRC is working to identify sector-wise to COVID-19'; deviation (say, banking companies, NBFIs, Life Insurance, General Insurance, Non Profit . Updates of technical materials at ICAB website on Organizations, NGOs etc.) between the requirements latest technical and other law related issues (like of IFRS and local laws/regulations in preparing ISA, IFRS, Code of Ethics and other laws and financial statements. regulations);

The Institute of Chartered Accountants of Bangladesh | 73 EDUCATION THROUGH VIRTUAL PLATFORM 4.0 EXAMINATION AND STUDENTS AFFAIRS

4.1 Examination Conduct of Examinations in Nov-Dec 2020

This year, conducting examination was a huge This year, the examinations of November-December challenge for ICAB as it happend with every other sessions were held from November 19 to December institution for obvious reason that the pandemic 05, 2020 in Dhaka, Chattogram and London centres forced the world to do. simultaneously. In Dhaka, the examinations were held in BAF Shaheen College, Tejgaon, Dhaka. In Year 2020 is a precarious year for examination sector Chattogram, the examinations were held in ICAB CRC in Bangladesh. Since the outbreak of Covid 19 in office, HBFC Building, Agrabad, Chattogram. In Bangladesh in March 2020, postponement on class London the examinations were held in the High and examination related activities had been imposed Commission Office of Bangladesh in London. The for sine die. ICAB tried again and again to hold the number of applicants in Nov-Dec2020 examinations May-June 2020 examinations in a suitable time, held was 6340. several meetings on the issue but no scope was found to hold the May-June 2020 examinations. However, Centre-wise number of examinees ICAB could finally hold examination between 19 Level Dhaka Chattogram London Total November 2020 and 05 December 2020 at BAF Shaheen College Dhaka, Chattogram Office (CRC) Certificate 3616 426 - 4042 and in High Commission of Bangladesh in London. Level ICAB conducted the exam successfully maintaining Professional 1689 160 - 1849 social distancing and other safety measures in place Level which many institutes in the country could not. Advanced 414 32 3 449 Level Planning for online examinations With the right direction of the concerned authorities The pandemic situation has made ICAB to think of and effective co-ordination among the concerned breaking away from the tradition of paper based officials of ICAB, members of the regional committees examinations (PBT) to computer based online and the concerned officials of the respective centres examinations (CBT). The Examination Committee of held the examinations very smoothly. the Council for 2020 has already decided to hold the Certificate Level Examinations online and has formed Results published in 2020 a sub-committee to work on it and come up with a specific proposals for holding Certificate Level Results of November-December 2019 session were examinations online. published on February 03, 2020. Level-wise results have been shown below: Concession of examination fees Level Appeared Partly Fully Passed Passed In consideration of the negative impact of ongoing

COVID-19 pandemic situation, the Council 2020 was Certificate 3974 1027 160 kind enough to reduce 20% of the existing Level examination fees for all levels for Nov-Dec 2020 Professional 1747 428 58 examinations so that all the students can cope up Level their examination fees for appearing at the Advanced 425 86 44 examinations in 2020. Level

The Institute of Chartered Accountants of Bangladesh | 75 ANNUAL REPORT 2020

students attended the classes with zeal and enthusiasm.

There are 03 (three) Wings of Student Affairs Division: ICAB- Academic Campus, Study Manual Department and ICAB- Central Library.

ICAB-Academic Campus

• Academic Campus consists of four Departments (Counselling, Enrolment, Class Management and Teaching Quality Assessment). Regular campus President-ICAB inspects exam hall at BAF Shaheen office activities start from 10:00 am to 6:00pm and College online class commences from 6:00pm to 10:00pm.

4.2 Student Affairs • Total 24 teachers conducted the classes. 1181 students of Certificate, Professional and In response to the challenge that COVID-19 Advanced Levels participated in online calsses in pandemic made to the education sector at home and 8 sections. world wide, ICAB conducted online classes to support the students which went incredibly well. The During the Coronavirus Pandemic, Academic students gave feedback expressing their full Campus resumed office functions since May 31, satisfaction on ICAB's endeavour. The attendance of 2020, maintaning safety measures as per directives of the students were also praiseworthy. Hundreds of the Government. Arrangement of the Pre-Examination Classes Class Schedule Remarks Examination Level Physicall Session From To y at Campus Certificate Level 22 December 2019 21 March 2020 Past Questions' Solution Session 22 March 2020 31 March 2020 Day Time Certificate Level Class 15 March 2020 16 May 2020 Professional Level 01 March 2020 25 May 2020 Advanced Level 01 March 2020 15 May 2020 Certificate Level (Evening Shift) 20 March 2020 25 May 2020 May-June 2020 Special Class for Professional & 16 April 2020 21 May 2020 Advanced Levels Review Session 18 May 2020 25 May 2020 DRC-Mock Exam 03 May 2020 17 May 2020 DRC -Mock Exam Feedback 20 May 2020 25 May 2020 Session Online Past Questions' Solution Session 22 May 2020 25 May 2020 classes Certificate Level 01 June 2020 31 August 2020 through Past Questions' Solution Session 01 September 2020 07 September 2020 Virtual Day Time Certificate Level Class 05 September 2020 31 October 2020 Platform Professional Level 01 September 2020 25 November 2020 Advanced Level 01 September 2020 15 November 2020 Certificate Level (Evening Shift) 20 September 2020 25 November 2020 Nov-Dec 2020 Special Class for Professional & 18 October 2020 17 November 2020 Advanced Levels Review Session 18 November 2020 25 November 2020 DRC-Mock Exam 25 October 2020 10 November 2020 DRC -Mock Exam Feedback 15 November 2020 20 November 2020 Session Past Questions' Solution Session 12 November 2020 23 November 2020 May-June 2021 Certificate Level 01 December 2020 28 February 2021

76 | The Institute of Chartered Accountants of Bangladesh Other Related Programmes

Programme Schedule Exam Session Students’ Orientation Programme for Certificate Level 21-Dec-19, 15-Mar-20, 18- May-June 2020 Mar-20 Teachers’ Group Discussion (same subjects’ teacher) 11-Mar-20 Teachers’ Discussion Session 23-Mar-20 Students' Feed Back Session 20-Apr-20 BCACP -English Language Learning Course Every 2-month after Students’ Orientation Programme for Certificate Level 30-May-20, 3-Sep-20, 29- Nov-Dec 2020 Nov-20 Teachers’ Group Discussion ( related subjects’ 13-Jun-20 teacher) Students’ Orientation Programme 31-August-20 Teachers’ Group Discussion ( related subjects’ 04-Sep-20 teacher)

Class Management Information:

The pen picture of the levels and number of students & teachers attending the courses for the year 2020 at Dhaka Centre are furnished below:

Level / Courses Centre Examination No. of No. of Session Students Teachers Certificate Level (4th Batch, Evening Shift) 681 Professional Level (4th Batch) Dhaka May-June 2020 141 65 Advanced Level (4th Batch) 54 Certificate Level (4th Batch, Evening Shift) Dhaka Nov-Dec 2020 503 66

Major Decisions Taken by Board of Studies of the Council (BOS)-ICAB Meeting

• Publication of "Business Laws" and "Corporate Laws & Practices" as per new syllabus (completed)

• Updating of Syllabus on CL-"Principles of Taxation" and PL-"Tax Planning & Compliance" (under process)

• All levels Suggested Answers and 15-Subject Manuals have been updated / published (completed)

Study Manuals Department ICAB Central Library is accommodated with wonderful arrangements at CA Bhaban 2nd & 3rd Study Manual Department remains open in all working Floor. days with a view to provide facilities to the students. 15-subjects’ manuals and all suggested answers are During the COVID-19 (Corona virus) ICAB-Central currently available in ICAB's books’ sale centre at Library continue to remain closed to avoid mass academic campus. gathering and safety of the students.

4.3 ICAB Library Services for Students NOTE: The Library team is dedicated to support remote Library Services to its students and members The ICAB libraries, both in Dhaka and Chattogram during the COVID-19 Pandemic. To ensure the healthy have been enriched with professional books, journals and safety of Library staff and users, ICAB is not and periodicals of updated versions. Library providing face-to-face assistance but Library Team is Management Software having databases of all books, committed and active to provide any kind of journals and magazines is also in use. information if required, through Email and phone.

The Institute of Chartered Accountants of Bangladesh | 77 ANNUAL REPORT 2020

Stocks and Additions of Books as on 30 June 2020 It provides constant services to the CA students and Institute's member in seven days of a week from 10pm Total s tock of books as on 30 June 2020 25,750 to 10pm. The Central Library best facility provides for Purchased during the year 276 study of all concerned in Dhaka. Stock of books as on 30 June 2019 25,474 Books sent to CRC Library from 2770 Major Accomplishments: inception to 30 June 2019 Books sent to CRC Library during the year 362 • Ensure Library Education to the students Daily average attendance of the students 250 • Professional Education Services to the Members Before examinations (one month) 450 student attendance • Establish e- library facilities (under construction) Prepared Library Card up to 30 June 2019 13,275 • Necessary support to library management and Prepared Library Card during this year 2667 education activities, etc.

78 | The Institute of Chartered Accountants of Bangladesh 5.0 REGULATORY AFFAIRS

Amendment of the Bangladesh Chartered Profession in Bangladesh. In view of the above, ICAB Accountants Order 1973 (P. O 2 of 1973) has submitted its written propositions to the Ministry.

On 24 August 2020, the Cabinet decided not to repeal The ICAB Team was comprised of President-ICAB all Orders or Acts which were enacted during the Muhammad Farooq FCA, Council Member Md. period from 1972 to 15 August 1975; though those Shahadat Hossain FCA and SDD-ICAB (Regulatory Orders or Acts may be amended, if necessary. The Affairs), Saiful Islam FCA. For the same purpose ICAB decision was taken at the cabinet meeting chaired by team again joined in a meeting of the working group the Hon’ble Prime Minister Sheikh Hasina. on 13 February 2020.

The Ministerial Cabinet of the Government of the Meeting with Bangladesh Bank People’s Republic of Bangladesh approved, in principle, the Chartered Accountants Act 2017, which A team of ICAB met Md. Sadrul Huda FCA, General was to replace Chartered Accountants Order 1973 (P. Manager of Internal Audit Department of Bangladesh O 2 of 1973). The ICAB had been pursuing the Bank at the latter’s office on 25 February 2020. The Ministry of Commerce for retaining the name as ICAB Team discussed the criteria recently set by the Chartered Accountants Order 1973 (P. O 2 of 1973) by Bangladesh Bank to enlist auditors for Banks and updating it with necessary amendments instead of Financial Institutions during the meeting with Mr. passing a new act with new name. We believe that the Huda. ICAB Team raised issues like the criteria for a above decision taken by the Cabinet on 24 August firm or member to be unlisted based on either 2020 goes in line with the observation of ICAB. There complain while the case was under investigation or on is no denying that the Hon’ble Prime Minister has CIB report and may not be updated with actual taken a timely decision to signify the historical information. ICAB requested Mr. Huda to consider the perspectives that the country needed. issues during evaluation of EOIs of CA Firms for the enlistment. Such decision will make many Orders/Acts including CA Order 1973 to carry the legacy of the vision of The ICAB Team was comprised of VP (OMS), Bangabandhu Sheikh Mujibur Rahman to build Sonar Muhammad Forkan Uddin FCA, Council Members Bangla. This will also protect fading away the glorious Md. Shahadat Hossain FCA and Md. Moniruzzaman deeds of the Father of the Nation from the minds and FCA, and SDD-ICAB (Regulatory Affairs) Saiful Islam hearts of future generation. FCA.

Meeting with the Ministry of Commerce on Bangladesh Securities and Exchange Commission Chartered Accountants Act, 2017 (BSEC)

A team of ICAB attended a working group meeting The BSEC has published the updated Panel of regarding Chartered Accountants Act, 2017 at Auditors’ of BSEC on 30 July 2020. According to the Ministry of Commerce, GoB on 06 February 2020. The updated list, the following 37 CA Firms are included in meeting was presided over by Additional Secretary the Panel of Auditors’ of BSEC: (FTA). In the meeting, ICAB Team requested the concerned to amend the Chartered Accountants A. Hoque Co., A. Qasem & Co., A. Wahab & Co., Order, 1973 instead of enacting new Chartered ACNABIN, Ahmed Zaker & Co., ARTISAN, Ashraf Accountants Act as the Order denotes the Uddin & Co., Aziz Halim Khair Choudhury, FAMES & contribution of Bangabondhu Sheikh Mujibur Rahman R, G Kibria & Co., Hoda Vasi Chowdhury & Co., in establishing the Chartered Accountancy profession Howlader Yunus & Co., Hussain Farhad & Co., Islam as well as carry the legacy of Chartered Accountancy Aftab Kamrul & Co., Islam Quazi Shafique & Co., K.M.

The Institute of Chartered Accountants of Bangladesh | 79 ANNUAL REPORT 2020

Alam & Co, K.M. Hasan & Co, Kazi Zahir Khan & Co, i. Based on the observations of Quality Assurance Khan Wahab Shafique Rahman & Co, M.J. Abedin & Department (QAD), the Council-ICAB has Co., M.M. Rahman & Co., MABS & J Partners, Mahfel imposed monetary penalty of Tk. 100,000 (One Huq & Co., Malek Siddiqui Wali, Masih Muhith Haque Lac) only upon Mr. AKM Mizanur Rahman FCA & Co., Nurul Faruk Hasan & Co., OCTOKHAN, Pinaki (438), Mr. Augustine Dipak Karmakar FCA (989), & Company, Rahman Mostafa Alam & Co., Rahman Mr. Md. Abdur Rahman FCA (163) and Mr. ABM Rahman Huq, SF Ahmed & Co., S.K. Barua & Co., Hussain Ahmed FCA (242), Partners of Shafiq Shafiq Basak & Co., Shiraz Khan Basak & Co., Syful Mizan Rahman & Augustine, Chartered Shamsul Alam & Co., Toha Khan Zaman & Co., Zoha Accountants; Zaman Kabir Rashid & Co. ii. Based on the observation of Quality Assurance The detail list can access at: https://www.sec.gov.bd/ Department (QAD), the Council-ICAB has revoked slaws/Panel_of_Auditors_of_BSEC_30.07.2020.pdf Certificate of Practice (CoP) of Mr. Razdwan Raquibuddin Mohammed FCA (995) for 02 (two) FRC and ICAB Joint Meeting years with effect from 01 November, 2020 and has imposed monetary penalty of TK. 100,000 (one A Joint meeting between FRC Executives and ICAB lac) upon Mr. Md. Nurul Huda Monsury FCA (395) Representatives was held on 06 September 2020 at and Mr. Razdwan Raquibuddin Mohammed FCA 12.00 P.M. by using Zoom App through video (995), Partners of Nasir Mohammad & Co, conferencing. Chartered Accountants.

Mohammad Mohiuddin Ahmed FCA, Executive iii. The Council-ICAB has imposed monetary penalty Director, Financial Report Monitoring and Mohammad of Tk. 3 lac upon Mr. Md. Anwar Hossain FCA Anwarul Karim FCA, Executive Director, Standard (1097) ex-partner of Akhter Abbas Khan & Co, Setting division, attended from FRC. Chartered Accountants; and

Muhammad Farooq FCA, President of ICAB, Three iv. The Council-ICAB has reprimanded Mr. Md. (03) Vice-presidents, Chairman RTBAC, Some Waliullah FCA (247), Partner of Malek Siddiqui Council Members and Executives attended the Wali, Chartered Accountants in connection with meeting from ICAB. the observations of Bangladesh Securities & Exchange Commission (BSEC). In the meeting, the following issues were discussed: Ministry of Commerce 1. Signature of Audit Report: ISA 700 has allowed signature of audit report using the name Proposal for the amendment of the Bangladesh engagement partner or the firm name or both. FRC Chartered Accountants Order, 1973 (P.O. 2 of 1973) can specified the modality of signature of audit report for bringing harmonization within the A meeting was held on 29 October 2020 at Ministry of Country; Commerce regarding the amendment of the Bangladesh Chartered Accountants Order, 1973. The 2. Application of IFRS for SME for some Public Institute of Chartered Accountants of Bangladesh Interested Entities defined by FRC; (ICAB) was requested to provide proposals for amending the Bangladesh Chartered Accountants 3. Disclosure of Other Information on Audit Report of Order, 1973 and ICAB submitted its proposal Non-Listed Entities in Bangladesh. accordingly. Disciplinary Order of the Council-ICAB

The Council-ICAB has taken following disciplinary actions based on the recommendations of Investigation and Disciplinary Committee (IDC):

80 | The Institute of Chartered Accountants of Bangladesh 6.0 OPERATIONAL AFFAIRS

6.1 First Floor Renovation Works

The renovation work of 1st floor is undertaken in this year. This floor will house 4 class rooms, one conference room for teachers, rooms for ICAB Officials, Book Corner etc. Once the Campus will be used for university, the class for students can be conducted from here. Moreover, we will be able to use these rooms for multiple purposes including conduct of training activities as and when necessary.

Interior Design of 1st Floor renovation

6.2 Auditorium Renovation Works

It was felt necessary to renovate 9th floor auditorium as it became old due to long time use. We took the consultation of Structural Engineers Limited and later on Military Engineering Services (MES) to materialise the project. The project cost is estimated to be approximately 3 crores. Both estimated budget and design have been approved by the Council. Once implemented, this will be one of the modern state of the art technology oriented auditorium. Since there has to be an extra ordinary safety measures in place, it was thought to get the job done by MES Army. Institute is however, waiting for their final response in this regard. Interior Design of 9th Floor Auditorium renovation

6.3 Admin and Welfare Activities

ICAB Observed International Mother Language Day A team of the Institute of Chartered Accountants of Bangladesh (ICAB) placed floral wreath at the Central Shaheed Minar in observance of Amar Ekushey and International Mother Language Day on 21st February 2020. ICAB President Muhammad Farooq FCA, Council Member Md. Shahadat Hossain FCA, Secretary Major General Muhammad Imrul Quayes, ndc, psc (retd), DRC Chairman Ziaur Rahman Zia FCA and other Members of the Institute pictured at the early morning of the day in front of the Institute.

The Institute of Chartered Accountants of Bangladesh | 81 ANNUAL REPORT 2020

ICAB Observed National Mourning Day COVID 19 Testing at Japan East West Medical College Hospital

Upon an understanding, ICAB has arranged a functional line to have COVID 19 testing at Japan East West Medical College Hospital at Uttara, Aichi Nagar, JBCS Sarani, Khairtek, Turag, Dhaka.

All members, employees of ICAB including their families and relatives will be able to get the test done at the hospital on priority basis. Should anybody face difficulty, the name of Dr. S. M. Mamun Iqbal, Associate Professor, Cardiology, Japan East West Medical College Hospital could be referred.

ICAB organized Milad Mahfil and distributed food ICAB has made the similar arrangement with Anwar among the poor, marking 45th Death Anniversary of Khan Medical College and Hospital, Dhanmondi, Father of the Nation Bangabandhu Sheikh Mujibur Dhaka earlier. Rahman and National Mourning Day on 15 August ICAB Family Day Out 2020 2020.

ICAB Observed Birth Centenary of Bangabandhu Sheikh Mujibur Rahman

ICAB arranged its annual picnic for the staff and their families titled ‘ICAB Family Day Out 2020’ on 24 January 2020. It was an well organised programme. The venue was Barnochhata Picnic Spot, Jirabo, Yarpur, Ashulia, a 100-minute drive from the Dhaka city. It was a journey started in the morning at 05:30 a.m. and arrived the garden by 10.00 a.m. The garden cum rest house was surrounded by mesmerising natural beauties. It has the bounty of amenities to spend enjoyable time. The Event management firm was tasked to make the arrangements of food, decoration and related services. The whole day passed with fun alfresco and fervor. There were arrangements of various games including cricket tournament in which the picnickers; employees, spouses and children participated and drew out a fun games. The picnic buzz engulfed the whole spot while different types of games and funfairs took place one after the other. After the delicious lunch, a cultural programme followed and the prizes were distributed to the winners. The lucky persons of ICAB observed Birth Centenary of ICAB Family Day was announced. An eye popping Bangabandhu Sheikh Mujibur Rahman at CA raffle draw were held amidst enthusiasm. All eyes Bhaban by offering Doa, slicing cake and were set to the rotation of raffle draw box. With the decoration of CA Bhaban sunset, everybody was seemed so satisfying and returned back to Dhaka happily with fresh mood.

82 | The Institute of Chartered Accountants of Bangladesh 6.4 Press & Publications

Publication of Journal and News Bulletin

ICAB had a very good coverage in Media over the year. Special care was taken to improve the publications in quality and standard. The Journal and News Bulletin were published on time. The number of contributors for Journal is also increased.

Publications of ICAB

The Institute of Chartered Accountants of Bangladesh | 83 ANNUAL REPORT 2020

6.5 Media Coverage Workshops & FRA issue etc got huge media coverages in both print and electronic media. Vice This year ICAB drew good media attention on its Presidents and Members Council and Fellow national and international events. ICAB Members’ Members were also invited in several electronic media Conferences, Roundtable Discussion on Budget of talkshows during 2020. 2019-20, DVS Launching Ceremony, Trainings and

Printing Media coverage of ICAB during 2020

84 | The Institute of Chartered Accountants of Bangladesh 6.6 Articled Students

During the year 2019-2020, the Institute granted Articleship registration to a number of 1,102 students. A total of 1,225 students completed their Articleship training and 30 Articled Students discontinued Articlesship due to various reasons in this year. Detailed statistics are as follows:

Total number of Articled Students as on 01 July 2019 4,146 Add: Registered during 2019-2020 1,102 5,248 Less: Course Completed during 2019-2020 (1,225 ) Discontinued during 2019-2020 (30) (1,255 ) In Course Articled Students as on 30 June 2020 3,993

The growth of Articled Students over the years is shown in the chart below:

5000 New Registra�on 4500 4000 3500 3000 2500 2000 1500 1000 500 0

6.7 Scholarships & Grants Scholarships

Amount disbursed during the year Sl. Number of Total Name of Scholarship 1st year 2nd year 3rd year No. Scholarship disbursed Installment Installment Installment 1. S F Ahmed Foundation 02 112,500/ - - - 112,500/ - Scholarship 01 July 2019 to 30 June 2020 2. RRH Scholarship 04 121,500/ - 121,500/ - April 2019 to March 2020 3. ACNABIN Scholarship 02 36,000/ - 36,000/ - w.e.f. 01 July 2019 to 30 June 2020 ACNABIN General 27,000/ - 18,000 45,000/ - ACNABIN Female 36,000/ - 12,000 48,000/ - 4. ABM Azizuddin Scholarship 01 42,000/ - 48,000/ - 90,000/ - 01 January 2019 30 December 2019 5. Bhola Foundation 48,000/ - 48,000/ - 6. M J Abedin Scholarship 03 103,500/ - 103,500/ - 7. Howlader Yunus 02 60,000/ - 30,000/ - 90,000/ - 8. Syful Shamsul Alam 03 87,500/ - 30,000/ - 111,250/ - 9. AKM Mizanur Rahman 01 24,000/ - 24,000/ - 10. M H Chowdhury 02 48,750/ - 46,250/ - Total disbursed during the year = 876,000/ -

The Institute of Chartered Accountants of Bangladesh | 85 ANNUAL REPORT 2020

(i) A F Mujibur Rahman Foundation is providing 06 6.9 Human Resource Activities (six) Scholarships amounting to Tk. 2000/- per month per student. After reviewing the result of During the year 2020, several decision were taken by selected students, the scholarship is renewed in the Human Resource Department of the Institute to every year. create performance oriented culture where employees would be inspired to work willingly. (ii) Abdur Rouf Bhuiyan: Employees’ Job Role Assessment To encourage the articled students of ICAB, Mr. For the purpose of understanding and clarifying Abdur Rouf Bhuiyan FCA, honourable member of employees’ role at the office, HRD initiated a circular ICAB has introduced a scholarship program under the to submit employees’ current duties and name & style of ‘Abdur Rouf Bhuiyan Scholarship’ responsibilities through a prescribed template. This effective from July 2020. This programme finances 01 could be considered one of the significant actitvities (one) articled student of ICAB selected by the Articled for HR to collect the details of the activities, executed Students Committee for providing scholarship an by the employees. It’s been observed that some of the amount of BDT. 5000/- (five Thousand) each month for employees are overburdened and some are less a year. tasked. HRD made an attempt to create a balance Grants and Scholarship to BCACP between them thereby creating a smooth working environment. During the year 2019-2020, Tk.16,80,000 as Employees’ Performance Appraisal scholarship from the General Fund, Tk. 8,40,000 as General Grant, Tk. 10,59,305 as office rent and utility In order to evaluate and assess employees’ and Tk. 90,000 for organising various programmes; performance, the performance appraisal form has The total amount of Tk. 36,69,305 was disbursed to been provided by the HR to the employees on Bangladesh Chartered Accountancy Chhatra quarterly basis. The performance appraisals have Parishad (BCACP) as part of students’ welfare. been collected from them and summarized accordingly. Furthermore, the annual training plan has 6.8 Articled Students’ Allowances also been summarized attached with the performance appraisal form for figuring out the proper training in To attract the brilliant and meritorious students to CA order to make the employees more efficient. education, the Council approved the enhancement of the monthly allowance of Articled Students as below Permanent Employees’ Annual Increment with effect from 1 July 2019: Based on the present practice of ICAB, annual Years of allowance Amount (Taka) increment has been given to the 51 number of permanent employees based on National Pay Scale. 1st year Tk.4,000/- Employees’ Attendance & Leave Management nd 2 year Tk.4,500/- Status 3rd year Tk.5,000/- It is one of the regular duties of HR department to th 4 year Tk.5,500/- maintain and record the employees’ attendance and leave status appropriately. Usually, at the end of the month the summary of the attendance report is However, to encourage brilliant and meritorious prepared and sent to the management. Apart from students, CA firms may consider to pay additional that, the daily attendance report is sent to the amount of allowance to students. management on daily basis. This is very crucial for Increment to the Articled Students: ensuring employees’ regular presence at the office in due time. During the COVID 19 pandemic situation, (i) Tk. 1000 would be added as increment to an roster duty was maintained. Articled Students of respective CA firms passing Training for the ICAB Employees his/her Certificate Level. A training session on office management, office (ii) Tk. 1500 would be added as increment to an etiquette and effective communication has been Articled Students of respective CA firms passing taken place for the senior officers and officers of his/her Professional Level. ICAB, organized by the Human Resource Department. The training session was quite crucial for

86 | The Institute of Chartered Accountants of Bangladesh maintaining the standard office etiquettes along with • Mr. Md. Budrul Alam Rasal: Officer (Technical); the note writing and filing processes. • Mr. Monirul Islam Khan: Officer (Finance & Accounts); Employees’ Recruitment and Onboarding Status • Mr. Md. Manik Mia: Officer (Finance & Accounts); One of the biggest tasks of HRD of this year is the • Ms. Rokayya Afsana: Officer (Student Counselling) completion of the recruitment process of 27 • Mr. Md. Tohidul Alam Towru Khan: Officer employees on both the regular and contractual basis. (Information Technology) According to the new Organogram approved on the • Ms. Farjana Boby: Officer (Members' Services); 4th Council Meeting held on 16th April 2019, there was vacancy for 27 employees at the Institute. So the • Mr. Mohammad Abu Taher Mazumder: Officer newly recruited employees fulfilled the vacant (Members' Services) positions. The orientation and placement of those • Ms. Shamima Sultana: Officer (Admin, Estate, P&P newly recruited employees have also been and Branding) completed. Their confirmation of service has also • Ms. Faria Sumsad Suha: Officer (Human Resources) been completed after required process. • Mr. Mohammad Abdullah: Officer (Reporting -Regulatory Affairs) Employee Recruitment and Separation Status • Mr. Chayan Das: Officer (Technical); To fill the vacant positions as well as to strengthen • Mr. Al Amin: Office Assistant (Members' Services) different departments/sections the following • Mr. Md. Rasel Miah: Library Assistant (Library) recruitment have been made: • Mr. Mohammad Salim: Computer Technician • Mr. Sheikh Mohammad Imtiaz: Senior Assistant (Information Technology) Director (Finance & Accounts); • Mr. Mohammad Abdul Gaffar Hawladar: Computer • Mr. Mohammad Khorshed Alama: PO to Secretary Technician (Regulatory Affairs) & CEO (Secretary & CEO’s Office); • Mr. Md. Monirul Islam: Liftman (Admin, Estate, P&P • Ms. Tanjia Sharmin: Assistant Director (Library) and Branding) • Mr. Md. Ali Akther Rabbi: ICPE (Technical); • Mr. Mahbub Alom: Liftman (Admin, Estate, P&P and Branding) • Mr. Md. Reyad Chowdhury: Senior Officer (President’s Secretariat); • Mr. Md. Roni Mia: Messenger Boy (Members Services) • Mr. Niloy Rahman: Officer (Articleship Management); • Mr. Md. Mahabub Alam: Messenger Boy (Students Affairs). • Mr. Md. Saroare Kownine: Officer (Human Resources); • Mr. Kawser Ahmed: Library Attendant (Library)

EMPLOYEE SEPARATION STATUS During the year of 2020, the following employees have left ICAB:

Name : Maj Gen Muhammad Imrul Quayes, ndc, psc (Retd) Designation : Secretary & CEO Joining Date : 07 May 2017 Separation Date : 17 September 2020 Career summary at ICAB : Maj Gen Muhammad Imrul Quayes, ndc, psc (retd), joined as Secretary at ICAB on 07 May 2017 and served the Institute for 3 years, 4 months and 10 days. His dedication, commitment and effort at the Institute were exemplary.

Name : Ms. Sayma Banu Designation : Senior Deputy Director Department : ICAB Center for Professional Excellance Joining Date : 01 August 2009 Separation Date : 28 July 2020 Career summary at ICAB : Ms. Sayma Banu joined as Deputy Director in Learning & Professional Development later on promoted as Senior Deputy Director and served the Institute for 10 years 11 months 27 days. During the period, she worked with utmost dedication, sincerity and hard work.

The Institute of Chartered Accountants of Bangladesh | 87 ANNUAL REPORT 2020

7.0 MEMBERS' AFFAIRS

7.1 Membership

The total members strength of the Institute as of 1 July 2020 was 1727, of whom 1284 were Fellows and 443 were Associates. The membership statistics are furnished below.

1. Total number of Members : 1727 a. Male Members : 1591 b. Female Members : 136 c. Residing in Bangladesh : 1594 d. Fellow Members : 1284 e. Associate members : 443

2. Total number of Members outside the country : 133 a. No. of Members in UK : 45 b. No. of Members in Canada : 40 c. No. of Members in USA : 13 d. No. of Members in UAE : 04 e. No. of Members in Australia : 16 f. Other Countries : 15

3. Total number of Members in practice : 375 a. Dhaka : 339 b. Chattogram : 36 c. Abroad : - 3.1 Total number of Fellow Members in practice : 365 a. Dhaka : 329 b. Chattogram : 36 c. Abroad : - 3.2 Total number of Associate Members in practice : 10 a. Dhaka : 10 b. Chattogram : - c. Abroad : -

4. Total number of Members not in practice : 1352 a. Dhaka : 1142 b. Chattogram : 77 c. Abroad : 133 4.1 Total number of Fellow Members not in practice : 919 a. Dhaka : 762 b. Chattogram : 63 c. Abroad : 94 4.2 Total number of Associate Members not in practice : 433 a. Dhaka : 380 b. Chattogram : 14 c. Abroad : 39

5. Number of Partnership Firm : 91

6. Number of Proprietorship Firm : 69

88 | The Institute of Chartered Accountants of Bangladesh 7.2 Membership Growth

The growth in membership of the Institute is shown in the chart below:

New Member Total Member 2000

1800

1600

1400

1200

1000

Engagement-Wise 800 Membership Growth: Membership 600

400

200

0

7.3 Members Entitled to Training Articled the concerned member with relevant information/ Students reply. Contact information of the 'Members' Service Corner' is given below: The total number of members entitled to train articled students as on 01 July 2019 was 303. During the year Phone : +88028189258 (Direct No) 2019-20, one practicing members have been Hunting No : +8809612612100 (Ext. 200) removed from the register due to sudden death but another 08 members were granted permission to train Email : [email protected] Articled Students. However, up to 30 June 2020 total Creation of International Help Desk number of Members Entitled to Train Articled Students is 310. The RCOMCC Committee recommended to create a 7.4 Newly Qualified Chartered Accountants dedicated ‘Service Desk’ with an appointment of a Enrolled as Members dedicated officer of ICAB to ensure ‘one stop service’ for all ICAB Regional Committees and Overseas During the year 2020, 44 examinees qualified as Chapters’ members. Chartered Accountants and became Associate members of the Institute. The Committee will maintain instant liaison with ICAB Secretariat to implement this proposal as early as 7.5 'Members Service Corner' possible. Besides, for the time being, Committee assigns Md Nasrat Hasan (e-mail: Now the members can contact the Members' Service [email protected]), Deputy Director and Corner for relevant professional queries from 10.00 Member Secretary of this Committee to attend all am to 6.00 pm on working days. On receipt of queries/ communication made from overseas chapter requests from members, officers/executives members in regards to professional matters. responsible shall make necessary effort and call back

The Institute of Chartered Accountants of Bangladesh | 89 ANNUAL REPORT 2020

7.6 Members’ Achievement

British Magazine Showered Accolade to Md Anwar Hossain Chowdhury FCA AHM Mustafa Kamal FCA as “World’s gets appointed as Member, Board of Best Finance Minister” Trustees of the AIM AHM Mustafa Kamal FCA, Md Anwar Hossain Finance Minister, Chowdhury FCS, FCA Government of (Enrl. No. 931) has been Bangladesh was named as appointed as Member, the best finance, minister of Board of Trustees (AIM the world by The Banker, a BOT) of the Asian Institute London-based business of Management (AIM), magazine, beating Philippines. Anwar candidates from Asia Chowdhury did his Masters Pacific, America, Africa, in Management from AIM in the Middle East and Europe. 1998. He was associated with AIM since his graduation. He is also Trustee Member of The magazine crowned Kamal with the Finance Federation of AIM Alumni Association. Minister of the Year for Asia Pacific and Global Award-2020. He is the first finance minister in AIM is the first school in Southeast Asia to receive Bangladesh who won such world accolade. accreditation from the US-based Association to Advance Collegiate Schools of Business (AACSB), The Finance Minister of the Year awards of The globally recognized as having the world's highest Banker, owned by the Financial Times Group, standards. celebrates the efforts of officials that have best managed to stimulate growth and stabilise Mr Chowdhury is currently working as Country economies. Head – Bangladesh of IPE Global Limited, a development sector consultancy group working all Mr. Kamal was appointed as finance minister in over the World. January last year. Earlier, he served as the planning minister of the government from 2014 to 2018.

90 | The Institute of Chartered Accountants of Bangladesh 7.7 We Mourn

Shahriar Hossain Molla FCA, (Enrl. Mr. Md Mahtab Hossain FCA (Enrl. No. 147) passed away on 28 January 127), passed away on 24 June 2020 2020 at a local hospital in Dhaka. He at Evercare Hospital (Apollo was 76. (Innah Lillahe... Rajeun). Hospital), Dhaka (Inna Lillahe Wa He left behind his wife, two sons, one Inna Illahe Rajeun). daughter and a host of relatives and friends to mourn his death. On behalf of the Institute, President Muhammad Farooq FCA expressed deep He passed chartered accountancy from Rahman condolence to the bereaved family and sought Rahman Huq (RRH), Chartered Accountans in 1978. During his 38 years long career he worked for eternal peace to the departed soul. Erstwhile Burma Eastern Co., Bangladesh Textile Mills Corporation, Biman Bangladesh Airlines, Mr. Kanchi Lal Das FCA (Enrl. 403) National Oil Corporation (Libya), Pacific Telecom passed away on 28 May 2020 at Bangladesh Ltd., Rangs Group in various DMCH, Dhaka. His last religious capacities. formalities was held at Postogola On behalf of the Council of ICAB, President Crematorium, Dhaka. Muhammad Farooq FCA expressed condolence to On behalf of the Institute, President the bereaved family and sought eternal peace to the departed soul. Muhammad Farooq FCA expressed condolence to the bereaved family and sought eternal peace to the departed soul. Mr. Milan Kanti Rakshit FCA (Enrl. No. 292) passed away on 14 January 2020 due to pneumonia Mr. Md. Tofazzal Islam Talukder FCA at UK. He was working with public practice in (Enrl. 608), Partner of Howladar London for more than 45 years. He left behind his Yunus & Co., Chartered Accountants wife and three daughters and host of friends and passed away on 23 May 2020 at a professional colleagues to mourn his sudden death. Hospital, Dhaka (Inna Lillahe Wa Inna Illahe Rajeun). His Namaz-e-Janaza On behalf of the Institute, President Muhammad was held at a Mosque of Dhanmondi, Farooq FCA expressed deep condolence to the Dhaka and later his Burial took place at Banani bereaved family and sought eternal peace to the Graveyard, Dhaka. departed soul. On behalf of the Institute, President Muhammad Farooq FCA expressed condolence to the bereaved Mr. Abdus Samad ACA, (Enrl. No. family and sought eternal peace to the departed 1971) passed on 26 February 2020 soul. due to brain stroke at the age of 32. Mr. Md. Enayet Ullah FCA (Enrl. # (Inna Lillahe Wa Inna Illahe Rajeun). 412) passed away on 26 July 2020 at He left behind his wife, a daughter Anwar Khan Medical College & and a host of relatives and friends to Hospital, Dhaka due to COVID-19 mourn his death. (Innalillahe... Rajeun). On behalf of the Council of ICAB, President On behalf of the Institute, President Muhammad Farooq FCA expressed condolence to Muhammad Farooq FCA expressed deep the bereaved family and sought eternal peace to the departed soul. condolence to the bereaved family and sought eternal peace to the departed soul.

Mr. Mohammed Mashir Alam FCA Mr. Ajit Kumar Dhar FCA (Enrl no. (Enrl. No. 628) passed away on 18 723), passed away on 17 July 2020 at March 2020 at the age of 56 at his his residence, Dhaka, due to cardiac residence. (Inna Lillahe Wa Inna Illahe arrest. He was 69. Rajeun). On behalf of the Institute, President On behalf of the Council of ICAB, Muhammad Farooq FCA expressed President Muhammad Farooq FCA expressed condolence to the bereaved family and sought condolence to the bereaved family and sought eternal peace to the departed soul. eternal peace to the departed soul.

The Institute of Chartered Accountants of Bangladesh | 91 ANNUAL REPORT 2020

Mr. Mohammad Humayun Morshed FCA (Enrl. No. Mr. Md. Obaidur Rahman FCA (Enrl. 136), passed away on 13 July 2020 (Inna Lillahe Wa No. 49), Partner, M M Rahman & Inna Illahe Rajeun). Co., Chartered Accountants passed away on 7 October 2020 at Dhaka On behalf of the Institute, President Muhammad due to old age complications (Inna Farooq FCA expressed deep condolence to the Lillahe Wa Inna Illahe Rajeun). bereaved family and sought eternal peace to the On behalf of the Institute, President departed soul. Muhammad Farooq FCA expressed deep condolence to the bereaved family and sought eternal peace to the departed soul. Mr. Bibhuti Bhusan Saha FCA (Enrl. No. 200), Ex-Senior Partner, MABS & Mr. Md. Abdul Majid FCA (Enrl. No. 64), Advisor J Partners, Chartered Accountants (Accounts & Finance), Meghna Life Insurance Co. passed away on 26 August 2020 at Ltd. passed away on 31 October 2020 at Dhaka Popular Medical College Hospital, (Inna Lillahe Wa Inna Illahe Rajeun). Dhaka due to COVID-19. On behalf of the Institute, President Muhammad On behalf of the Institute, President Muhammad Farooq FCA expressed deep condolence to the Farooq FCA expressed condolence to the bereaved bereaved family and sought eternal peace to the family and sought eternal peace to the departed departed soul. soul.

Mr. Sarder Rabiul Islam FCA (Enrl. Mr. Mohammad Ahsun Ullah FCA (Enrl. No. 780), No. 167), Founder Partner, S R Islam GM Finance, Berger Paints Ltd. passed away on 21 & Co., Chartered Accountants September 2020 at Dhaka (Inna Lillahe Wa Inna passed away on 6 October 2020 at Illahe Rajeun). Dhaka due to old age complications On behalf of the Institute, President Muhammad (Inna Lillahe... Rajeun). He was 80. Farooq FCA expressed deep condolence to the On behalf of the Institute, President Muhammad bereaved family and sought eternal peace to the Farooq FCA expressed deep condolence to the departed soul. bereaved family and sought eternal peace to the departed soul.

Mr. ATM Mustafizur Rahman FCA Mr. Mohd Ishaque Ali Miah FCA (Enrl. No. 253), Partner, Rahman (Enrl. No. 206), Partner, G. Kibria & Mustafiz Haq & Co., Chartered Co., Chartered Accountants passed Accountants passed away on 01 away on 22 September 2020 at Dhaka November 2020 at Dhaka (Inna (Inna Lillahe Wa Inna Illahe Rajeun). Lillahe Wa Inna Illahe Rajeun). On behalf of the Institute, President On behalf of the Institute, President Muhammad Muhammad Farooq FCA expressed deep Farooq FCA expressed deep condolence to the condolence to the bereaved family and sought bereaved family and sought eternal peace to the eternal peace to the departed soul. departed soul.

ICAB Past President, Former M.P. & ICAB Past President Mr. M A Quadir Mr. A K M Mosharraf State Minister Mollah FCA (Enrl. No. 73), Adviser Hossain FCA (Enrl. No. 37) , Partner, Mollah Quadir Yusuf & Co., Chartered A Hoque & Co., Chartered Accountants passed away on 12 Accountants passed away on 17 November 2020 at Dhaka due to old October 2020 at Labaid Hospital, age complications (Inna Lillahe... Dhaka (Inna Lillahe... Rajeun). Rajeun). On behalf of the Institute, President Muhammad On behalf of the Institute, President Muhammad Farooq FCA expressed deep condolence to the Farooq FCA expressed deep condolence to the bereaved family and sought eternal peace to the bereaved family and sought eternal peace to the departed soul. departed soul.

92 | The Institute of Chartered Accountants of Bangladesh ICAB Past President and Former Mr. Md Ibrahim Mia FCA (Enrl. No. SAFA President Mr. Sheikh A. Hafiz 391), Partner, S.K. Barua & Co. FCA (Enrl. No. 110), Former Senior Chartered Accountants, passed away Partner, Rahman Rahman Huq, on 30 November 2020 at Hi-care Chartered Accountants passed away General Hospital Ltd., Dhaka due to on 12 November 2020 at Dhaka (Inna COVID-19 (Inna Lillahe Wa Inna Illahe Lillahe... Rajeun). Rajeun). On behalf of the Institute, President Muhammad On behalf of the Institute, President Muhammad Farooq FCA expressed deep condolence to the Farooq FCA expressed deep condolence to the bereaved family and sought eternal peace to the bereaved family and sought eternal peace to the departed soul. departed soul.

Mr. Mamoon Rahman FCA (Enrl. No. 479), passed Mr. Ashraful Haq Amin FCA (Enrl. away on 23 November 2020 at London, UK due to No. 1265), SVP & Chief Financial COVID-19 (Inna Lillahe Wa Inna Illahe Rajeun). Officer (Head of Finance Division), ONE Bank Ltd., passed away on 07 On behalf of the Institute, President Muhammad December 2020 at Evercare Hospital Farooq FCA expressed deep condolence to the Dhaka (Inna Lillahe Wa Inna Illahe bereaved family and sought eternal peace to the Rajeun). departed soul. On behalf of the Institute, President Muhammad Farooq FCA expressed deep condolence to the bereaved family and sought eternal peace to the departed soul.

Doa Mahfils Doa Mahfils were held virtually on 9 November and 16 November 2020 for the salvation of departed souls who left us forever in this year.

The Institute of Chartered Accountants of Bangladesh | 93 ANNUAL REPORT 2020

8.0 ACTIVITIES OF REGIONAL COMMITTEES AND OVERSEAS CHAPTERS

8.1 Dhaka Regional Committee (DRC) Telemedicine Service Organized by DRC-ICAB

DRC-ICAB Annual Picnic 2020

Telemedicine Service for ICAB members was arranged by Dhaka Regional Committee-ICAB from 21 March 2020. Situation emerged from COVID-19 A day with fun and festivity. A day with family/children pandemic, services from public/private hospitals leaving the boredom of daily routine. became tough to avail. Health experts are also discouraging to go to hospitals unless it is emergency. DRC Distributed Blankets To address the issues, Telemedicine could be a solution for mild to moderate cases. Spouse or relatives of some of the ICAB members with specialization in different medical fields have agreed to extend their advices to our members. DRC-ICAB is coordinating the services. The list of doctors and their contact numbers are given as shown in the table.

DRC-ICAB Observed International Accounting Day 2020

The Dhaka Regional Committee of ICAB distributed warm clothes among the cold hit distressed people in Parulia area Lalmonirhat on 15 January 2020. ICAB President Muhammad Farooq FCA, Vice Presidents Sabbir Ahmed FCA & Mohammed Forkan Uddin FCA, Secretary & CEO Maj Gen Muhammad Imrul Quayes, Dhaka Regional Committee-ICAB, observed the ndc, psc (retd) and Director (Technical) Mahbub International Accounting Day 2020 on 10 November Ahmed Siddique FCA along with the Members of DRC 2020 in Bangladesh. posed for photograph shortly before the team left the Institute for Parulia Lalmonirhat. The International Accounting Day on the 10th of November is observed every year by countries across the globe.

94 | The Institute of Chartered Accountants of Bangladesh Observance of 50th 'Victory Day' at CA Bhaban

Warm reception for valiant freedom fighters (ICAB Members) was held by DRC, ICAB in observance of 50th 'Victory Day' on 16 December 2020 at CA Bhaban.

8.2 Chattogram Regional Activities a. Members’ Conferences/CPD in Chattogram

Members’ Conference-2020 in Chattogram

Sl. # Name of the Members’ Conference Date Remarks 1. Reformation of Company Law to attract FDI-A 11 January 2020 Held at Chittagong Demand of Time 2. Challenges of Banking Sector to achieve SDG & 22 February 2020 Held at Chittagong Vision 2041 CPD Seminar on ‘Challenges in Corporate Law and Members’ Conference on ‘Challenges of Banking Reform to Attract Foreign Investment’ Sector to Achieve SDG & Vision 2041’

Chattogram Regional Committee (CRC) of ICAB Chittagong Regional Committee (CRC) of ICAB organised a seminar on ‘Challenges in Corporate Law organised a seminar on ‘Challenges of Banking and Reform to Attract Foreign Investment’ on 11 Sector to Achieve SDG & Vision 2041’ on 22 February January 2020 at Hotel Agrabad Ltd, Chattogram. 202 at Conference Hall of Chattogram.

Mohibul Hasan Chowdhury (Nowfel) M.P., Hon’ble Mamun-Ur-Rashid, Managing Director, Chittagong Deputy Minister, Ministry of Education, GoB was Stock Exchange Limited was present as the Chief present as the Chief Guest. Guest.

Showkat Hossain FCA, Past President-ICAB and Sidhartha Barua FCA, Vice-President-ICAB and Senior Partner, Hoda Vasi Chowdhury & Co., Managing Partner, M. A Mallik & Co. Chartered Chartered Accountants was the Session Chairman of Accountants was the Session Chairman of the the conference. conference. Imtiaz Alam FCA, FCMA, National Council Barrister Tanjib-ul Alam, Advocate Supreme Court of Member-ICMAB & Chairman, Infinity Group of Bangladesh presented the Key-note paper. Sidhartha Companies & Corporate Support Limited presented Barua FCA, Vice President-ICAB and Barrister Anita the Keynote paper. Ghazi Rahman, Advocate, Supreme Court of Bangladesh participated in the discussion.

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b. Other Activities Charity Work by the Members of ICAB-Chattogram Region CRC Donates Medical Equipment for Treatment of COVID-19

Handover of High Flow Humidifier H-80 Series Distribution of Household Products through Hon’ble Machine to the Hon’ble DC, Chittagong Police Commissioner of Chattogram at Chattogram Region on 11May 2020.

8.3 ICAB NAC Chapter

Virtual meeting with North American Chapter (NAC)

RCOMCC of ICAB held a virtual discussion meeting with North American Chapter (NAC) through online zoom video conferencing on 27 June 2020. Chairman Handover of High Flow Humidifier H-80 Series of RCOMCC and Council Member Mahamud Hosain Machine to the Founder of Chattogram Field Hospital FCA along with Co-Chairman Akhtar Sohel Kasem Chattogram Regional Committee (CRC)-ICAB FCA, DRC Chairman Ziaur Rahman Zia FCA, Director donated 'High flow Nasal Cannula, to Chattogram (Technical) Mahbub Ahmed Siddique FCA, ICAB General Hospital, and Chattogram Field Hospital for North American Chapter (NAC) Chairman AKM treatment of COVID-19 patients. Asaduzzaman FCA, Secretary Md. Mahbubul Haque FCA, Members Mohammad Shakawat Hossain A team of CRC-ICAB visited DC Office and Bhuyan FCA, Mohammed Arif Uddin FCA, Md. Chattogram Field Hospital to hand over the medical Sarwar Hossen FCA, participated in the discussion. equipment on 16 July 2020. Chattogram District Commissioner Mohammad Elius The discussion took place on wide range of issues like Hossain and Dr. Bidduth Barua cordially received the creation of email ID in ICAB domain for Chairman and medical equipment from the CRC-ICAB. Secretary of ICAB NAC, to maintain official communication from the Chapter end, registration of The members of CRC team were ICAB Vice-President ICAB NAC in Toronto, Canada, opening of a Bank Sidhartha Barua FCA, CRC Chairman Kamrul Islam Account for ICAB NAC in Canada ,timing of ICAB FCA, Honorary Srcretary Subash Chandra CPD through virtual platform, publication of events of Chowdhury FCA and Fellow member Mohammad ICAB NAC in ICAB Monthly News Bulletin and Annual Abul Kashem FCA. Report, creating a dedicated ‘Service Desk’ for all ICAB Regional Committees and Overseas Chapters Observation of International Mother Language members for any professional matters. Day-2020

96 | The Institute of Chartered Accountants of Bangladesh 9.0 MEETING WITH THE GOVERNMENT, REGULATORY BODIES AND OTHER ORGANISATIONS

ICAB Delegates Met Finance Minister, GoB ICAB President Muhammad Farooq FCA, Vice President Mohammed Forkan Uddin FCA, Council Delegates from the Institute of Chartered Accountants Members Md. Shahadat Hossain FCA, Md. of Bangladesh (ICAB) paid a courtesy call on Finance Moniruzzaman FCA, Maria Howlader FCA and Fellow Minister AHM Mustafa Kamal FCA at latter’s office on Member Fouzia Haque FCA held a Meeting with the 2 February 2020. The delegation led by ICAB Commerce Minister Tipu Munshi, MP on 8 February President Muhammad Farooq FCA, in its introductory 2020. They apprised the minister about the ongoing meeting, felicitated the minister for his being developments of ICAB and discussed matters of accolade with the world best Finance Minister and the professional interest. Minister of Asia and Pacific 2020, and briefly exchanged views on professional matters. It was also They handed over a letter to the Minister to highlight discussed that both the Ministry of Finance and ICAB ICAB’s view points as to why keeping the CA Order of would continue working together in the relevant fields 1973 in its original form having minor changes will be for the development of the country. We discussed better instead of making new Chartered Accountants about the draft CA Order and ICAB’s view point Act as the former carries the legacy of the contribution including the justifications for our propositions. of Bangabandhu Sheikh Mujibur Rahman and history of the CA profession.

Coordination Meeting between ICAB and NBR to Develop Document Verification System (DVS)

The other members of the ICAB delegation were Vice Presidents Sidhartha Barua FCA, Sabbir Ahmed FCA, Mohammed Forkan Uddin FCA, Council Member & Past President Md. Humayun Kabir FCA & Council On 8 September 2020, the Institute of Chartered Member Shahadat Hossain FCA. Accountants of Bangladesh (ICAB) and the National Meeting with the honourable Commerce Minister Board of Revenue (NBR) jointly held coordination meeting on developing Document Verification System (DVS) to authenticate the audited financial statements.

ICAB President Muhammad Farooq FCA made an introductory remarks at the programme on DVS at NBR conference room on Tuesday, 8 September 2020 where Abu Hena Md. Rahmatul Muneem , Senior Secretary, Internal Resources Division (IRD) & Chairman National Board of Revenue (NBR), members of NBR, other senior officials, ICAB Vice

The Institute of Chartered Accountants of Bangladesh | 97 ANNUAL REPORT 2020

Presidents Sabbir Ahmed FCA, Mohammed Forkan Uddin FCA and Councils Members were present. A technical presentation on DVS was made by Deputy Director (IT) of ICAB.

NBR Chairman Abu Hena Md. Rahmatul Muneem advised ICAB to consider legal challenges in implementing DVS.

In presentation part, ICAB Vice President Mohammed Forkan Uddin FCA explained the importance of DVS to curb down the malpractice. He said, DVS is the October 2020 at ICAB Council Hall. About 200 upgradation of the existing DIAR system. From the representatives from Firms participated in 10 sessions commitment to build a better Bangladesh, ICAB which were facilitated by ICAB IT Team. initiated the DVS which would help the revenue generating authority and other regulators to NBR Taskforce Team Met ICAB President authenticate the Financial Statements.

This DVC can be accessed by the Government Agencies, different stakeholders and Regulators like Bangladesh Bank, FRC, BSEC, IDRA, if arranged under MOU or any framework with the Institute.

Additionally, people who want to verify the audit reports through this application would also have access to this application to find some essential financial information.

DVC will be generated by the Practicing Chartered The team of Taskforce of the National Board of Accountants at the time of signing a documents of Revenue(NBR) headed by Md Shabbir Ahmed, financial information of organizations. All the Director, Central Intelligence Cell of NBR visited ICAB documents will carry a unique code generated by the on 01 October 2020 and held a meeting to discuss the system. During generating the DVC some mandatory matters relating to Document Verification Systems Financial Figures of the company like Turnover, Net (DVS). ICAB President Muhammad Farooq FCA, Worth, Profit or Loss etc. must be entered. Vice Presidents Sabbir Ahmed FCA and Mohammed Forkan Uddin FCA, Council Member & Past President The DVC can be verified through the search option on Kamrul Abedin FCA, Council Member Gopal Chandra DVS Portal by sharing few information such as name Ghosh FCA and Secretary & CEO(In-Charge) of person, organization, purpose of verification of Mahbub Ahmed Siddique FCA were present in the information, unique code of documents, mobile meeting. number and email address. Then a onetime password (OTP) will be generated to the registered One of the main tasks of the NBR Taskforce is to find mobile number of searching person and require to out the way forward to ensure the submission of submit the OTP for getting details of auditors, financial unauthentic audited financial reports to the information and the list of persons or regulators or Department of Taxes of NBR. In this direction ICAB organizations who verified the information through and NBR are jointly working to develop the DVS to DVS. authenticate the audited Financial Statements.

Earlier, ICAB introduced DIAR (Digital Identification of MoU between ICAB and Local Government Audit Reports) system in 2017 and NBR issued a SRO Division advising tax officials to verify duly singed audit reports through DIAR system available in ICAB website. DVS A Memorandum of Understanding (MoU) between the will be an upgraded version of DIAR. Institute of Chartered Accountants of Bangladesh (ICAB) and Local Government Division under the CA Firm Level Testing Session on DVS Ministry of Local Government Rural Development and Cooperatives, GoB was signed at LGSP office in the CA Firm Level Testing Session on Document city on Wednesday, 14 October 2020. Verification System (DVS) was started from 17

98 | The Institute of Chartered Accountants of Bangladesh ICAB President Muhammad Farooq FCA and Maran Certified Accountants (ACCA) Bangladesh was led Kumar Chakraborty, Additional Secretary, Local by Zarif Ludin, Head of Market Partnership. He was Government Division signed the MoU for the Annual accompanied by Its Country Head Ahsanul Haque External Audit of Union Parishads across the country Bashar, Shafaat Ali Choyon, Senior Business and the Review of Audit Report submitted by Audit Development Manager and Prawma Tapashi Khan, Firms under Local Government Division, Ministry of Education Manager during the meeting. They Local Government Rural Development and discussed the areas of mutual cooperations including Cooperatives, GoB. scopes and opportunities of members between the two institutes. ICAB Secretary & CEO (In-charge) Mahbub Ahmed Siddique FCA, Deputy Director Md. Afsar Uddin FCA, ICAB Vice Presidents Sabbir Ahmed FCA and Deputy Project Director, Local Government Support Mohammed Forkan Uddin FCA, Secretary & CEO Maj Project-3, Md. Jahirul Islam were also present in the Gen Muhammad Imrul Quayes, ndc, psc (retd) and programme. . Director (Technical) Mahbub Ahmed Siddique FCA were also present in the meeting. The Local Government Division (LGD) of the ICAB President Paid Courtesy Call on IDRA Ministry of LGRD and Cooperatives has initiated the Chairman implementation of Local Governance Support Project-3 with financial support from the World Bank from January 2017 to December 2021. One of the objectives of the LGSP-3 is to institutionalize the UP fiscal transfer system, and Union Parishads’ audit & performance assessment.

ICAB will perform its statutory and regulatory role through sensitizing the firms on the quality requirement of the assignment(s). It will also facilitate the participating firms to prepare an audit plan, a standard audit program, common understanding of materiality and a standard audit report format including adverse and disclaimer of opinions. ICAB Office Bearers paid a courtesy call on Md. Shafiqur Rahman Patwari, Chairman, Insurance The key feature of the Project is to ensure UPs to have Development & Regulatory Authority (IDRA) at latter’s an external audit of their latest annual financial office on 15 January 2020 to appraise the statements along with the performance assessment development of the institute and discussed and fiduciary & safeguard compliance assessment. professional issues including quality financial reporting in compliance with financial reporting The ICAB and the LGD will review the provisions of the standards as mandated for the insurance sector. MOU on an annual basis and amend it as necessary ICAB expressed its willingness to work with IDRA and upon mutual consent. assured its full cooperation.

ACCA Team Met ICAB President Courtesy Call on Executive Chairman BIDA

A team of ACCA met ICAB President Muhammad ICAB Office Bearers led by President Muhammad Farooq FCA at CA Bhaban on 15 January 2020. The Farooq FCA paid a courtesy call on Md. Sirazul Islam, delegation from the Association of Chartered Executive Chairman, Bangladesh Investment

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Stakeholders’ Meeting Regarding Amendment to Companies Act

ICAB President Muhammad Farooq FCA along with council member Md. Shahadat Hossain FCA and ICAB Senior Deputy Director Md. Saiful Islam FCA participated in stakeholders’ meeting on 23 January 2020 at Planning Division, NEC on the amendment of the Companies Act. The meeting particularly focused about the forms & procedure of one person company with a view to ease of doing business. The meeting was chaired by Md. Anisul Haque, MP, Minister, Law, Development Authority (BIDA) at latter’s office on 16 Justice and Parliamentary Affairs, Government of January 2020. The meeting discussed professional Bangladesh. Among others present in the meeting issues and shared opinions about the role of were Finance Minister AHM Mustafa Kamal FCA, Chartered Accountants in the development of various Private Sector Industry and Investment Adviser to the sectors of economy. The meeting also focused on the Prime Minister, Salman F Rahman and Ex Commerce necessity to protect the interest of the people of the Minister Tofail Ahmed, MP. land against the aggressive intrusion of foreign nationals in job sectors in recent years. ICAB Delegates Paid Courtesy Call on BSEC Chairman ICAB Vice President Sabbir Ahmed FCA and Secretary & CEO Maj Gen Muhammad Imrul Quayes, ndc, psc (retd) were also present at the meeting.

ICAB Team Met Chairman, Financial Reporting Council

A team of ICAB led by President Muhammad Farooq FCA paid a courtesy call on CQK Mustaq Ahmed , Chairman-Financial Reporting Council (FRC) on 6

January 2020 at latter’s office. Different professional issues including mutual collaboration between the two Delegates from the Institute of Chartered Accountants regulators were discussed in the meeting. ICAB team of Bangladesh (ICAB) paid a courtesy call on Dr. M assured FRC Chairman that Institute does not Khairul Hossain, Chairman, Bangladesh Securities compromise with the quality services of the practicing Exchange Commission (BSEC) on 20 February 2020. members and shows zero tolerance to any In its introductory meeting, ICAB President malpractice. The meeting also discussed the role of Muhammad Farooq FCA briefly exchanged views on CAs in maintaining audit quality and strengthening the some professional issues including the changes of ICAB’s monitoring system to CA Firms, active some sections of IFRS and the means of compliance. involvement of ICAB in standard settings including The meeting also discussed probable areas where ICAB's contribution in the process of review, adoption, both the capital market regulatory authority and ICAB training and dissemination of this standard over the could work together for the development of the years. country.

ICAB requested the supreme watchdog body of The other members of the ICAB delegation were Vice accounting profession Bangladesh for the Presidents Sabbir Ahmed FCA, Mohammed Forkan implementation of prescribed audit fees schedule of Uddin FCA, and Secretary & CEO Major General ICAB. Muhammad Imrul Quayes, ndc, psc (Retd).

The members of ICAB team were Vice Presidents ICAB Team Paid Courtesy Call on Commerce Sidhartha Barua FCA, Sabbir Ahmed and Mohammed Secretary, GoB Forkan Uddin FCA, Council Member Md. Shahadat Hossain FCA and ICAB Senior Deputy Director Md. A team of the Institute of Chartered Accountants of Saiful Islam FCA. Bangladesh (ICAB) led by its President Muhammad

100 | The Institute of Chartered Accountants of Bangladesh Members of NBR Task Force met ICAB President

Farooq FCA paid a courtesy call on Dr. Md. Jafar Uddin, Secretary, Ministry of Commerce (MoC), GoB at Bangladesh Secretariat on 12 August 2020. The The members of National Board of Revenue (NBR) other members of the team were ICAB Vice President Task Force headed by Md. Shabbir Ahmed, Director, Mohammed Forkan Uddin FCA, Council Member Md. Central Intelligence Unit visited ICAB and met ICAB Shahadat Hossain FCA and Secretary Major General president Md. Muhammad Farooq FCA on 27 August Muhammad Imrul Quayes, ndc, psc (Retd). 2020. During the meeting ICAB Vice Presidents Sabbir Ahmed FCA and Mohammed Forkan Uddin The ICAB delegates apprised the Secretary about the FCA, other Council Members, and Secretary & CEO ongoing activities and development of the Institute. Major General Muhammad Imrul Queayes, ndc, psc The Secretary, MoC assured ICAB delegates of (Retd) were present. continued supports of the Ministry in overall development of the Institute and the profession. They discussed way forwards to authenticate Audited Financial Statements. ICAB and NBR are jointly ICAB Team Paid Courtesy Call on BSEC Chairman working to develop Document Verification System (DVS) which will be effective mechanism to verify the Audited Financial Statements.

Courtesy Call on Chairman, RAJUK

A team of the Institute of Chartered Accountants of Bangladesh (ICAB) led by its President Muhammad Farooq FCA paid a courtesy call on Professor Shibli Rubayat-Ul-Islam, Chairman, Bangladesh Securities and Exchange Commission (BSEC) at his office on 13 ICAB delegation led by its President Muhammad August 2020. The other members of the team were Farooq FCA paid a courtesy call on Md Sayeed Noor ICAB Vice Presidents Sabbir Ahmed FCA, Alam, Chairman, Rajdhani Unnayan Kartripakkha (RAJUK) on 10 September 2020 at latter’s office. The Mohammed Forkan Uddin FCA, Council Members other members of ICAB delegation were Vice Md. Abdul Kader Joaddar FCA, Md. Moniruzzaman Presidents Sidhartha Barua FCA, Sabbir Ahmed FCA FCA and Secretary and CEO Major General (Retd.) and Mohammed Forkan Uddin FCA, Council Muhammad Imrul Quayes, ndc, psc. Members Mahmudul Hasan Khusru FCA, Md. Abdul Kader Joaddar FCA, Md. Moniruzzaman FCA, Maria The ICAB delegates apprised the BSEC Chairman Howlader FCA, Secretary Major General Muhammad about the ongoing activities and development of the Imrul Quayes ndc, psc (Retd) and Senior Deputy Institute. The BSEC Chairman assured ICAB Director Sqn Ldr SM Abu Nayem Ahmed, psc ((Retd). delegates of continued supports of the BSEC in They discussed about issues regarding the allocation overall development of the Institute and the of land plot to ICAB for the purpose of establishing profession. ICAB Academic Campus and issues regarading CA Bhaban.

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Courtesy Call on Director General of NGO Affairs Bureau

Ahmed FCA, Council Member Md. Moniruzzaman FCA, Director (Technical) and Secretary & CEO ICAB President Muhammad Farooq FCA paid a (In-charge) Mahbub Ahmed Siddique FCA. courtesy call on Director General of NGO Affairs The ICAB delegates apprised the FRC Chairman Bureau Rashadul Islam at latter’s office on 20 October about ongoing activities and development of the 2020. ICAB Council Member & Past President Kamrul Institute. They also discussed about the future Abedin FCA, Council Member Md. Moniruzzaman engagements of both the parties to further promote FCA, Secretary & CEO (In-charge) Mahbub Ahmed the high quality financial reporting and to improve the Siddique FCA and Fellow Member Md. standards of accountancy and audit services in the Rokonuzzaman FCA were also present in the meeting. country. They discussed matters related to professional development. ICMAB delegates Visit ICAB ICAB Team Met IDRA Chairman

ICMAB Executive Director Md. Mahbub Ul Alam A team of the Institute of Chartered Accountants of FCMA, and his team met ICAB Secretary and CEO Bangladesh (ICAB) led by its President Muhammad (In-charge) Mahbub Ahmed Siddique FCA at latter's Farooq FCA paid a courtesy call on Dr. M Mosharraf office on 19 October 2020. Hossain FCA, Chairman, Insurance Development and Regulatory Authority (IDRA), at latter’s office on 06 Other team members from ICMAB were Arifur October 2020. The other members of the team were Rahman Meethu FCMA, Consultant, and Md. ICAB Vice President Mohammed Forkan Uddin FCA, Nayim-Uz-Zaman, Assistant Director, (Education). Council Member Md. Moniruzzaman FCA, Director They discussed about the progress on mutual (Technical) and Secretary & CEO (In-charge) Mahbub recognition and other professional matters. Ahmed Siddique FCA. Virtual Meeting of Jury Board Related to 20th ICAB ICAB Team Met New Chairman of FRC National Award

A team of the Institute of Chartered Accountants of A virtual meeting of the 9-Member Jury Board of the Bangladesh (ICAB) led by its President Muhammad Review Committee for Published Accounts & Reports Farooq FCA paid a courtesy call on Professor Dr. Md. (RCPAR) of Council-ICAB was held on 27 August Hamid Ullah Bhuiyan, Chairman, Financial Reporting 2020. Md. Matiul Islam FCA, Chairman, IIDFC Limited Council (FRC), Bangladesh at his office on 05 and former Secretary of Finance, GoB chaired the October 2020. The other members of the team were meeting. ICAB Vice Presidents Sidhartha Barua FCA, Sabbir

102 | The Institute of Chartered Accountants of Bangladesh Other Jury Board members Ahmed Ataul Hakeem ICAB Delegates Met Chairman, Financial FCMA, Former C&AG of Bangladesh, Dr. Atiur Reporting Council (FRC) Rahman, Former Governor, Bangladesh Bank, Dr. Syed Ferhat Anwar, Director, IBA, University of Dhaka, AKM Aftabul Islam FCA, Director, Board of Directors, Bangladesh Bank, Hedayetullah Al Mamoon, Former Senior Secretary, Finance Division, MoF, GoB, Dr. Mahmuda Akhter, Council Member, Financial Reporting Council (FRC) Bangladesh, Dr Mustafizur Rahman, Distinguish Fellow, Centre for Policy Dialogue, and Shah Husain Imam, Editor, The Financial Express were present in the meeting.

Muhammad Farooq FCA, President ICAB delivered the opening remarks while Md Humayun Kabir FCA, ICAB delegates comprising of Vice President Chairman of RCPAR introduced the learned Juries in Mohammed Forkan Uddin FCA, Council Members the meeting. All Council members, Convenors of all 11 Gopal Chandra Ghosh FCA and Md. Moniruzzaman Sub-Committees of RCPAR and Maj General FCA, and Deputy Director (IT) Mohammad Deloar Muhammad Imrul Quayes (retd.), Secretary & Hossain held a meeting with Dr. Md. Hamid Ullah CEO-ICAB were also present in the meeting. Bhuiyan, Chairman, Financial Reporting Council Chairman of RCPAR Md Humayun Kabir FCA (FRC), Bangladesh and Md. Sayeed Ahmed FCA, explained to the Juries about the objectives, criteria Executive Director, Audit Practice Review of FRC on and marking methodology used for determining the 26 November 2020. winners in each category of Best Presented Annual Reports 2019. Jury Board after discussion, They discussed on the areas of mutual collaboration recommended some observations for future guidance including signing of a MoU regarding use of and endorsed the category wise results of Award Document Verification System (DVS). Winners and Certificate of Merit winners for 20th ICAB ICAB Delegates Held Meeting with Registrar of RJSC National Award competition 2020 for the approval of Council-ICAB.

ICAB Delegates Met Registrar, RJSC

ICAB delegates met Md. Mokbul Hossain, Registrar (Additional Secretary), Office of the Joint Stock Companies and Firms (RJSC) on 2 December 2020. ICAB delegates met Md. Mokbul Hossain, Registrar They discussed on the areas of mutual collaboration (Additional Secretary), Office of the Joint Stock including signing of a MoU regarding use of Companies and Firms (RJSC) on 22 November 2020. Document Verification System (DVS).

The Institute of Chartered Accountants of Bangladesh | 103 ANNUAL REPORT 2020

10.0 OTHER IMPORTANT EVENTS OF THE INSTITUTE

Advisory Committee Meeting of ICAB and Mohammed Forkan Uddin FCA also resumed their respective offices for the same tenure. After taking charge, the new President of ICAB sought cooperation and urged all to work together for the development of the institute. He urged ICAB personnel to be instrumental for the activities of ICAB.

Mr. Farooq has been in the ICAB Council since 2013. He served ICAB as Vice-President (F & A) in 2013. Earlier, he chaired the Professional Development An advisory committee meeting was held on 29 Committee (PDC) and Real Estate Committee (REC) January 2020 at ICAB Council Hall, CA Bhaban. ICAB and was active member of different standing and office bearers and Past Presidents of the Institute non-standing committees of Council-ICAB. Mr. Farooq participated in the meeting. The meeting was chaired became an Associate Member of ICAB in 1986 and a by ABM Azizuddin FCA, Past President-ICAB. The Fellow Member in 1991. He did his graduation & issues like quality audit, implementation of ICAB audit masters from Dhaka University. fees schedule, strengthening financial strength of the Institute, re-evaluation of examination system without At the session, quality being compromised, student’s enrolment, etc. the ICAB’s new were transacted in the meeting. The Institute recorded office bearers their valuable suggestions of it past president on opened the floor these issues. ICAB President Muhammad Farooq FCA to hear from the thanked them for their presence and appreciated their employees. They thoughtful suggestions. The Past Presidents, ICAB took notes on Office Bearers and Secretary & CEO participated in different issues the meeting. raised by the employees on Muhammad Farooq FCA Takes over the Charge of the development ICAB President 2020 of ICAB and appreciated their

cordial engagements with the institute. Vice Presidents Sidhartha Barua FCA, Sabbir Ahmed FCA and Mohammed Forkan Uddin FCA also spoke on the occasion. Muhammad Farooq FCA took over the charge of President of the Institute of Chartered Accountants of Bangladesh (ICAB) for the year 2020 at a ceremony held at CA Bhaban on 6 January 2020. Three Vice Presidents Sidhartha Barua FCA, Sabbir Ahmed FCA

104 | The Institute of Chartered Accountants of Bangladesh Felicitation Team of USAID Bangladesh met ICAB President

USAID Bangladesh has taken a new initiative to Representatives from the National Life Insurance Co appraise Bangladesh’s audit environment. This Ltd. greeted Newly Elected ICAB President appraisal will provide an analysis of the country's Muhammad Farooq FCA current regulatory and legal framework of the audit profession. The outcome of the appraisal will inform USAID to take the next step in assessing the audit firms of Bangladesh. Eventually, USAID/ Bangladesh would come up with a list of audit firms eligible to conduct USAID funded projects. In this aspects a team headed by Robin Sharma, Controller of USAID Bangladesh met ICAB President Muhammad Farooq FCA on 18 February 2020 at CA Bhaban to discuss about audit practice, procedures, methodology including IDC matters. The meeting was a part of series of meetings with various entities including regulatory bodies, audit firms, development Chattogram Regional Committee (CRC) congratulated partners. Newly Elected ICAB President with flower bouquet ICAB Vice Presidents Sabbir Ahmed FCA and Mohammed Forkan Uddin FCA, Secretary & CEO-ICAB Maj Gen Muhammad Imrul Quayes, ndc, psc, (Retd.), Director (Technical) Mahbub Ahmed Siddique FCA and Deputy Director (Practice Review-Quality Assurance) Md. Afsar Uddin FCA were also present in the meeting.

ICAB has Sought Govt’s Stimuli for CA Firms and Related Members COVID-19 spreaded in an unprecedented scale

throughout the world. The effect of COVID-19 has already brought the world economy into recession Dhaka Regional Committee (DRC) congratulated and the worst is yet to come. Bangladesh has also Newly Elected ICAB President with flower bouquet been hit hard as the country remained shutdown for a long time. CA firms under ICAB are affected due to prolong nationwide shutdown. To mitigate the circumstances, ICAB sought BDT 100 Crore as stimulus package for the CA firms and related members under the Government’s bailout fund. ICAB has requested this stimuli as soft loan for the uninterrupted services of CA firms. ICAB sent letters to the concerned ministries to include CA firms and related members as the professionals contribute Govt’s revenue greatly as preparer of financial statements, providing audit BD Finance congratulated Newly Elected ICAB services, project consultancies etc. throughout the President and Vice Presidents with flower bouquets year.

The Institute of Chartered Accountants of Bangladesh | 105 ANNUAL REPORT 2020

New Office Bearers of ICAB for 2021

Mr. Mahmudul Hasan Khusru FCA President

Mr. Sidhartha Barua FCA Mr. Md. Abdul Kader Joaddar FCA Ms. Maria Howlader FCA Vice President Vice President Vice President

The Institute of Chartered Accountants of Bangladesh (ICAB) has elected Mr. Mahmudul Hasan Khusru FCA as President and Mr. Sidhartha Barua FCA, Mr. Md. Abdul Kader Joaddar FCA and Ms. Maria Howlader FCA as Vice Presidents of the Institute for the year -2021.

The new office bearers of ICAB were elected by the members of the Council at 21st Council Meeting of the year 2020 on Tuesday, 08 December 2020, which was presided over by current ICAB President Mr. Muhammad Farooq FCA. Mr. Mahmudul Hasan Khusru FCA will take over the charge of President of ICAB on 1 January 2021.

New Regional Committees of 2021 formed

Dhaka Regional Committee (DRC) Chittagong Regional Committee (CRC) Mr. Md. Selim Reza FCA Chairman Mr. Mohammad Shaheed FCA Chairman Mr. Md. AKH Hasif Sowdagar FCA Secretary Mr. Mohammad Abul Kashem FCA Hony. Secretary Mr. Mohammad Redwanur Rahman FCA Member Mr. Ziaur Rahman Zia FCA Member Mr. Imran Abu Hasan FCA Member Mr. A.H.M. Ariful Islam FCA Member Mr. Miltan Bepari FCA Member Mr. Kamrul Islam FCA Member Mr. Md. Razib Hossain FCA Member Ms. Anika Sultana FCA Member Mr. Md. Amran Hossan FCA Member Mr. Subash Chandra Chowdhury FCA Member

106 | The Institute of Chartered Accountants of Bangladesh Summary of the Meetings of the Different Standing Committees/ Boards held in 2020

Sl # Standing Committees / Boards No. of Meetings held in 2020 1 Executive Committee 08 2 Examination Committee 06 3 Investigation & Disciplinary Committee (IDC) 05 07 4 Articled Students Committee (ASC) 04 5 Technical & Research Committee (TRC) 03 6 Board of Studies (BoS) 04 7 Quality Assurance Board (QAB)

Summary of the Meetings of Non-Standing Committees/ Boards held in 2020 Sl # Other Non- Standing Committees / Boards Nos. of Meetings held in 2020 1 Real Estate Committee (REC) 02 2 Editorial Board 03 3 Professional Development Committee (PDC) 04 4 Taxation & Corporate Laws Committee (TCLC) 05 5 Committee for Project Development and Capacity Building 02 6 Regulatory & Trade Body Affairs and Coordination Committee 03 7 International Affairs and Collaboration Committee 02 Regional Committees and Overseas Management Chapter 8 07 Committee (RCOMCC) 9 Review Committee for Published Accounts & Reports (RCPAR) 04 10 Information & Communication Technology Committee (ICTC) 03 11 Members Issues, Services & Welfare Committee (MISWC) 04 12 Continuing Professional Development Committee (CPDC) 04 13 Committee for Small and Medium Practitioners (SMP) 02 14 Media & Branding Committee - 15 Committee on Professional Accountants in Business (PAIB) 01 Women Members Empowerment and Leadership 16 03 Development Committee (WMELDC) Committee on Public Finance and Public Sector 17 02 Accounting (CPF & PSA) 18 Audit Committee 02 20 Advisory Committee 02

The Institute of Chartered Accountants of Bangladesh | 107 ANNUAL REPORT 2020

11.0 REPORT OF THE QUALITY ASSURANCE BOARD (QAB)

On behalf of the Quality Assurance Board (QAB) of • Formed a Quality Assurance Board in the year the Council-ICAB, I am delighted to present the QAB 2004 with the status of a Standing (i.e. Permanent) Report on the Quality Assurance Review (QAR) Committee, headed by a Past President of the activities in general and for the year 2020 in particular. Institute, and reporting directly to the Council. These review activities were carried out by the Practice Review (Quality Assurance) Department of • After setting up the QAD in 2009, QAB has been ICAB under the guidance of QAB during the year monitoring and overseeing QAD for quality 2020. assurance related activities of the Institute in accordance with IFAC SMO-1: Quality Assurance. Audit Firms licensed to operate in Bangladesh • In the year 2019 the department was renamed as ICAB holds the sole and exclusive right to issue Practice Review (Quality Assurance) Department. practicing licenses to proprietors and partners of firms of chartered accountants to carry out Audit and • In the years 2008 and 2009 ICAB adopted the Assurance services in Bangladesh. As of 1st July International Standard on Quality Control. 2020, the number of such partnership audit firms • In 2009, ICAB Council updated the conditions for licensed by ICAB stood at 91 and the number of Certificate of Practice (COP) where compliance proprietorship firms at 68, making a total of 159 firms. with the requirements of adopted ISQC 1, The number of members in practice was 373 and the submission of Annual Returns of firms and QAD number of members not in practice was 1355. The visits by ICAB had been inserted in relation to the number of practicing members entitled to train programme of quality control of the audit firms in articled students stood at 304. Bangladesh.

Issuance/renewal of Certificate of Practice is done • The quality assurance review system of ICAB was annually by ICAB and requires strict adherence to: (a) set up in 2010 with the support of a twinning attaining a minimum number of CPD hours in a year; project with the ICAEW to provide technical and (b) submission of Annual Return by the firms support for capacity building of ICAB members, in within the stipulated time. A circular on imposing particular the practicing members of ICAB. monetary penalty for non-submission/late submission of Annual Return and conditions for renewal of • From the year 2010, ICAB started the Quality Certificate of Practice (CoP) was issued in 2015. Assurance Visits as planned initially.

Quality control process of ICAB as regulator and • QAD adopted a Quality Assurance Visit Manual, activities of Quality Assurance Department designed checklists for evaluating firms’ procedures for quality control, cold file review, The responsibility for issuance and renewal of whole firm review, etc., closely mirroring the Certificate of Practice to auditors vests with ICAB. In a regulations and processes followed by ICAEW. bid to address the quality control issues and also to upgrade the quality of audit and assurance services • During the year 2020, the Practice Review (Quality by the firms, ICAB has in place the Practice Review Assurance) Department works to update the (Quality Assurance) Department with full time Quality Assurance Visit Manual. qualified professional accountants and staffs. Over the years, the Council/QAB/PR(QA)D has embarked • In the fourth three-year cycle (2019-2021), 86 firms on the following programs: were visited including 13 branches of those firms,

108 | The Institute of Chartered Accountants of Bangladesh 03 surprise visits along with 05 special visits were also • In 2018, Practice Review (Quality Assurance) conducted during April 2019 to till date. Among Department identified that in some cases, the these, 08 Firms were found to have significant number of audit clients as mentioned by the CA non-compliance with quality assurance firms in their Annual Returns of 2016 submitted to requirements and were referred to IDC through ICAB did not match with the information collected Council-ICAB. from RJSC. Upon recommendation of the QAB, the issue was sent to the Investigation and • QAD completed the first, second and third Disciplinary Committee (IDC) of the Council-ICAB three-year cycles (2010–2012, 2013-2015 and to take necessary measures against the said CA 2016-2018) of quality assurance visits to all audit firms as per ICAB Bye-Laws and subsequently the firms with a priority of audit firms having listed issue was placed to the Council-ICAB. The said clients and then firms having other Public Interest firms were penalized. Entity (PIE) clients. The QAD completed its first three-year cycle (2010-2012) successfully • In 2018, Practice Review (Quality Assurance) covering visits of all the firms and the second Department, with the cooperation of IT department three-year cycle (2013-2015) of visits of firms in developed a database based on firms’ annual the year 2015 where a significant progress has returns 2016 at ICAB ERP system with a view to been achieved as the number of grossly identify the authenticated information relating to non-compliant firms were reduced to 50%. audited companies and their audit firms. Anybody from anywhere can view the related information • A further significant progress was noticed during through ICAB web site. the third three-year cycle (2016-2018) of visits of firms, as the number of grossly non-compliant • Practice Review (Quality Assurance) Department firms was reduced significantly. organized a number of training programmes on Digital Identification of Audit Reports (DIAR) for all • As reported by Practice Review (Quality CA Firms in Dhaka and Chittagong to up to date Assurance) Department and recommended by database of their audit clients through DIAR QAB more than 100 firms have been referred by system from time to time. Council to IDC during the year 2011 to 2020 for non-compliance of quality assurance matters. • ICAB in 2020, developed a comprehensive Document Verification System (DVS) with • In 2017, the previous Audit Practice Manual (APM) additional features having unique Document along with a Case Study was updated, published Verification Code for each audit report and key and disseminated to the practicing members of financial data from the companies audited ICAB. Financial Statements. ICAB provided a number of training on DVS to all CA firms in Dhaka and • Practice Review (Quality Assurance) Department Chittagong. The DVS was launched on 12 assisted the Investigation and Disciplinary November 2020. Committee (IDC) of the Institute to contemplate actions against the firms having major • During the year 2020, a team comprising of ICAB non-compliances with quality assurance executives worked to review the financial requirements, issues relating to professional statements of listed banks year ended as on 31 misconduct and unsatisfactory results arising out December 2019. A workshop relating to initial of the quality assurance review. findings specifically related to compliance of standards in the Audited Financial Statements of • Practice Review (Quality Assurance) Department said listed banks was organized on 21 September developed a dummy audit working paper file 2020. CFOs and Engagement partners of the (based on manufacturing sector) in the year 2020 listed banks were invited in the said workshop. for the practicing members which is available at Subsequently, the findings were sent to the ICAB website (word and pdf copy). engagement partners of the listed banks.

• Practice Review (Quality Assurance) Department • During the year 2020, a team comprising of ICAB conducted a number of workshops for all executives reviewed the audit fees of listed practicing members, qualified managers and companies received by the auditor and also articled students on use of Dummy Audit working compared the fees with ICAB’s prescribed fee paper files. schedule. Further, as part of quality assurance review, ICAB took initiatives to review the audit files

The Institute of Chartered Accountants of Bangladesh | 109 ANNUAL REPORT 2020

of listed entities and the audit firms who received clients, number of qualified and part qualified staff lower audit fees. and students, and other relevant information. This information covers the calendar year (Jan–Dec) and is PRACTICE REVIEW (QUALITY ASSURANCE) due for submission to ICAB by 15 February of the DEPARTMENT-CAPACITY BUILDING following year. In accordance with the directives of the Council, no Practicing Certificates are to be issued or • The Practice Review (Quality Assurance) renewed without receipt of the Annual Returns from Department is a department of the Technical the concerned firms. It is to be noted that in 2020, 02 Division of ICAB. The Quality Assurance Board Practicing Certificates were not renewed because of (QAB) of the Council ICAB actively guide and failure in submission of annual return by their firms. monitor the quality assurance activities. One Fellow Chartered Accountant and one CA course (b) Practice Review (Quality Assurance) completed personnel are directly working in the Department Visits ‘Practice Review (Quality Assurance) Department’ of the Institute under the supervision of Director The next step involves a selection of firms for visits by Technical, ICAB. QAB felt that to perform the the Practice Review (Quality Assurance) Department quality assurance review and other departmental Reviewers. The QAB policy is to cover all firms under activities timely and effectively, minimum Two (02) Practice Review (Quality Assurance) Department more Chartered Accountants as Quality visits within each three-year cycle. The Practice Assurance Reviewers (Deputy Director Position) Review (Quality Assurance) Department reviewer and Four (04) other executives need to be maintains formal procedures and documentation in recruited on immediate basis in the Practice compliance with IFAC SMO-1 and as guided by Review (Quality Assurance) Department of ICAB. ICAEW. A Checklist, earlier prepared and approved by the QAB, is used for this purpose and the following • ICAB adopted the ICAEW model for Quality key areas are covered: Assurance, and ICAEW imparts training to the Practice Review (Quality Assurance) Department . Leadership – highlights the responsibility of the on an ongoing basis. Mr. Mahbub Ahmed Partners to maintain adequate quality control Siddique FCA, Director Technical visited ICAEW in procedures in performing audit engagements London to gain first-hand knowledge and (Lead the firm from the top - giving consistent experience in 2011 and also later on. He was messages on the importance of quality control); seconded to the ICAEW team to visit the audit firms and was also invited to observe the . Ethical Requirements – to establish written policy proceedings of the hearings of the Disciplinary on ethical requirements including annual Committee of the ICAEW. confirmation of independence and ICAB requirements (Always act ethically in accordance • Despite lack of adequate human resources, with the relevant standards and pronouncements); Practice Review (Quality Assurance) Department is trying hard to run its all activities smoothly, . Acceptance and Continuance – of new and maintaining the IFAC requirements in this regard. existing clients: to develop written procedures on We are also constantly liaising with ICAEW and acceptance and continuance of new and existing receiving ongoing advice and guidance as and clients and maintain those procedures in addition when needed. ICAB also emphasizes the to ICAB’s specific requirements in this regard importance of quality assurance issues through (Focus on the right clients being matched by the workshops (for the practicing members, qualified right skills with emphasis on integrity and managers and articled students) and CPD competencies); seminars. . Human Resources – to develop written policies Procedures followed by the Practice Review on recruitment, training, compensation, skills, (Quality Assurance) Department competence, ethical requirements, appraisals, etc. (Maintain capable and competent staff giving (a) Annual Returns of Firms due attention to the firm’s human resources policies and procedures); The work of Practice Review (Quality Assurance) Department starts after the practicing firms submit . Engagement Performance – to develop quality their Annual Returns. Such annual submission, control procedures and apply in appropriate starting from 2010, mainly includes summary of manner for ensuring quality in audit and

110 | The Institute of Chartered Accountants of Bangladesh assurance service (Deliver quality audits, consultation Future Plan of Practice Review (Quality on difficult or contentious matters and meeting Assurance) Department: 2021 requirements for engagement quality control review); In addition to its normal activities, the Practice Review (Quality Assurance) Department has planned to focus . Monitoring – to develop a monitoring system of on the following areas in the year 2021: quality control of the firm (Monitor the firm’s system of quality control and carry out a periodic objective (a) To update the framework and procedures for the inspection of a selection of completed audit quality assurance program to ensure that engagements); members in practice carry out audits in accordance with the professional standards . Documentation – to establish a well-organized adopted by the Institute; documentation procedures and maintain the permanent and current working files (Document (b) To conduct special quality assurance visits to the the operation of the quality control system so that CA firms having listed audit clients (risk-based) as the firm complies with ISQC 1 documentation and when necessary; requirements). (c) To conduct follow-up visit to the firms, require In line with the procedures for firm visits, 15 days’ prior significant improvement in terms of quality notice is given to the firms for such visits. The visits assurance; are carried out in a very professional manner and all findings are discussed with the firm’s partners prior to (d) To conduct special review of quality of audited completion of the visit. Following an internal review by financial statements including audit working files the QAB, the reports are then issued to the respective for listed clients with lower audit fees compared to firms and a written response is requested on the ICAB fee schedule; actions which the firm plans to initiate to address the (e) To provide training to the CA firms on shortcomings. implementation of Document Verification System (C) Report on results of Practice Review (Quality (DVS) and monitoring the database through ICAB Assurance) Department Visits website;

QAD classifies the results of the visit as either (f) To reconcile the database re audit client Satisfactory or Unsatisfactory, and the results are information among CA firms (through Annual placed before the QAB, without disclosing the names Return or DVS), RJSC and NBR and review the of the firms being reported upon, for necessary audit working papers files of the audit clients; guidance and decision. A Satisfactory rating means (g) To review the financial statements of listed entities; no immediate action is required and the firm will be covered again in the next cycle of visits, usually 3 (h) To conduct more training to update and upgrade years from the date of the last visit. An Unsatisfactory the professional knowledge and skills of the rating triggers a different set of actions – the firm is members in practice, thus facilitating capacity given a second opportunity to demonstrate building of the firms; improvement. A follow up visit is made, usually 6 months later. And if the results still do not meet the (i) To coordinate with the Financial Reporting Council requirements, the case is then referred by QAB to the (FRC) and strengthen the capacity building Investigation & Disciplinary Committee (IDC) through programmes of the practicing firms in the areas as the Council for necessary action as per the Institute’s may be focused by FRC and ICAB Council. Bye Laws.

Though the Practice Review (Quality Assurance) Department started its journey from the year 2009, much progress has been achieved so far. A lot of work Kamrul Abedin FCA still needs to be done to bring our audit quality control Chairman, Quality Assurance Board and standard up to a level that we all can be proud of. Member Council and Past President - ICAB

The Institute of Chartered Accountants of Bangladesh | 111 ANNUAL REPORT 2020

12.0 REPORT OF THE REAL ESTATE COMMITTEE (REC)

On behalf of the Real Estate Committee (REC) of the This year, we also have made agreement with Prime Council-ICAB, I am pleased to report on the various Bank for renting out part of our ground floor (3148 sft.) activities of the REC for the year 2020. to Prime Bank at the rate of Tk. 90 per sft.

In 2020, a good number of meetings and Besides those, due to COVID-19, we have placed a Sub-Committee meetings of REC were held. disinfections chamber procured from Bangladesh Furthermore, Renovation Committee (RC) of ICAB Machine Tolls Factory (BMTF) at the entrance of the supported the REC throughout the year in execution main gate of CA Bhaban. I am sure we are being of the activities of the REC. Like previous years, Real benefited by this equipment. Estate Committee (REC) of ICAB has put its best endeavour for the development work of ICAB. We are trying our best to expand our already allotted 01 bigha Rajuk Land to 03 bighas at Purbachal New This year due to COVID-19, it was difficult to Town Project of RAJUK. We took this matter to RAJUK undertake Real Estate activities especially in the 1st Chairman handing over a letter and also subsequently half of the year. met high officials of RAJUK several times to explain We had to take most of our activities online. The our necessity. We are hopeful that some better results Campus Classes had to resume online. The library will be achieved. had to remain restricted for the students to avoid Renovation work is a continuous process by its nature. gatherings. A lot of works are still need to be done. On behalf of However, we felt necessary that we renovate our 9th the REC, I express gratefulness to President, Vice floor auditorium. We took the consultation of Structural Presidents, Councilors, Members of REC & Engineers Limited and later on Military Engineering Renovation Committee and the employees of the Services (MES) to materialise the project. The project Institute who actively participated and contributed to cost estimated to be 3 crores. Both estimated budget the activities of the Committee during the year. and design have been approved by the Council. Once implemented, this will be one of the modern With this I would like to conclude. I wish everyone safe state of the art technology oriented auditorium. Since days ahead, May Allah show his divine blessings so there has to be an extra ordinary safety measures in that we can resume normally in all our activities. place, we thought it would be better idea to get the job With warm regards to everyone. done by MES Army. We are waiting for their final response in this regard. We also undertook the renovation work of 1st floor which remained vacant for long time since Prothom-Alo office was shifted from here. The renovation work of 1st floor is expected to be completed soon. This floor will house 4 class rooms, one conference room for teachers, rooms for ICAB Officials, Book Corner etc. Once the Campus will be used for university, the class of students can be A F Nesaruddin FCA conducted from here. Moreover, we will be able to use Chairman, Real Estate Committee (REC) and these rooms multiple purposes including conduct of Council Member and Past President-ICAB training activities as and when necessary.

112 | The Institute of Chartered Accountants of Bangladesh 13.0 REPORT OF THE PROFESSIONAL DEVELOPMENT COMMITTEE (PDC)

On behalf of the Professional Development Conveners of the Focus Groups kept regular Committee (PDC) of the Council-ICAB, I am pleased communication with their relevant regulators to report on the various activities of the PDC for the throughout the year to establish close link and year 2020. In 2020, 04 (four) meetings of PDC were professional developments. Throughout the year organized. several meeting with the regulatory bodies/other organizations were held where the importance of Also 02 (two) online discussions were organized– recruitment of more CAs in public and private sectors 01(one) Discussions Session on “Impact of COVID-19 etc and enhancement of audit fees (implementation of on the profession particularly who are in practice and ICAB Fees Schedule) were discussed and requested way forward” and another Discussions on “Changed them to take actions. Leadership in Regulators: Role of ICAB and Auditors”. A Sub-Committee on (i) Post Pandemic Challenges & I express my sincere thanks to the President, Council New Business Opportunities; and (ii) Project Proposal Members and all members of PDC and members of for ICAB and its members. “was also formed. The different working groups/teams for their kind support Sub-Committee already submitted a Concept Paper and active participation in PDC. on the Challenges faced by CA Firms in Bangladesh due to COVID- 19 and identified business opportunities”.

Furthermore, as many as 08 (eight) Focus Groups were formed and most of which were active during the year:

Sl. No. Name of Focus Group Mahmudul Hasan Khusru FCA 1 Bangladesh Bank (BB) & Financial Chairman, Professional Development Committee and Institutions (FI) Member Council-ICAB 2 Financial Reporting Council (FRC) 3 C & AG and Public Finance 4 NGO & Donor Agencies 5 Exploring New Opportunities for members 6 Archive on Regulatory Updates 7 Limited Liability Partnership (LLP) 8 RJSC & SEC

The Institute of Chartered Accountants of Bangladesh | 113 ANNUAL REPORT 2020

14.0 REPORT OF THE TAXATION AND CORPORATE LAWS COMMITTEE (TCLC)

On behalf of the Taxation and Corporate Laws respect of changes in the provisions of Companies Committee (TCLC), I am pleased to report on the Act, the Securities & Exchange Ordinance and activities of the TCLC for the year 2020. Rules thereon.

Area of Activities during the year Events and activities of TCLC in 2020 at a glance

The scope of works of TCLC, a non-standing Dates/ Periods Events and Activities committee of the Council of the Institute are as follows: February 18, Income Tax Policy paper on 2020 the upcoming amendment of i. To obtain views from the members of the Institute Income Tax Ordinance 1984 in respect of Annual Budget Proposals for was prepared by the Committee. preparation of ICAB’s recommendations for February 24, Income Tax Policy paper on submission to the National Board of Revenue 2020 the upcoming amendment of (NBR); Income Tax Ordinance 1984 was submitted to Finance ii. To review Finance Bill and providing comments of Minis ter, GoB the Institute to National Board of Revenue and also March 15, 2020 Members’ Conference on to important members of Parliament; ‘Income Tax Policy Paper on the upcoming amendment of iii. Providing opinions/recommendations on SROs Income Tax Ordinance 1984’. and other rules and regulations affecting the March 25, 2020 Income Tax Policy paper on profession and the business as a whole from time the upcoming amendment of to time; Income Tax Ordinance 1984 was submitted to National iv. Representing the Institute to different ministries Board of Revenue (NBR) and regulating authorities on the fiscal & corporate March 25, 2020 Submission of law matters and to safeguard the interest of the proposals/recommendations Institute and its members; on Income Tax Ordinance and Rules, VAT and v. Organizing CPD Seminar(s) on Income Tax Supplementary Duty Act and Ordinance 1984, Income Tax rules or on any new Rules & Customs Act 1969 to law proposed in this regard, VAT & SD Act, 2012 NBR for their consideration to incorporate the same in the and rules thereon prior to finalization of Finance National Budget 2020-21. Bill 2020; April 13, 2020 Submission of proposal to NBR for the extension of vi. Arrangement of press conference and roundtable submission of monthly return discussion on National Budget; of company’s VAT and tax due to COVID-19 pandemic. vii. Arrangement of training on Income Tax and VAT & SD Act, 2012 for dissemination of knowledge to April 19, 2020 Submission of the stakeholders of ICAB; Proposals/recommendations on Income Tax Ordinance viii. Arrangement of CPD seminars both in Dhaka and and Rules, VAT and Chittagong on Income Tax, Company Law and Supplementary Duty Act and other related subjects, as and when deemed fit, in

114 | The Institute of Chartered Accountants of Bangladesh Dates/ Periods Events and Activities Dates/ Periods Events and Activities Rules & Customs Act 1969 to July 23, 2020 Proposals submitted to NBR NBR for their consideration to re amendment of SRO No. incorporate the same in the 149-AIN/2020/110 -VAT dated National Budget 2020 -21. 11 June 2020 to bring article April 19, 2020 Proposals/recommendations 5 and 6 (re Tax Deduction at on Income Tax Ordinance source) of the said SRO in and Rules, VAT and line with Sections 45 and 49 Supplementary Duty Act and (3) of the VAT and SD Act Rules & Customs Act 1969 2012 to remove complexity were sent to FBCCI as per and harassment at the field their request. level and also to reduce January -March Publication of Income Tax number of lawsuits. 2020 Policy paper on the upcoming August 12, 2020 Submission of proposal to (Bangladesh amendment of Income Tax NBR re clarification on Accountant of Ordinance 1984 prepared by “Promotional Expense” under ICAB) the Committee in the newly enacted Finance Act Bangladesh Accountant of through “PARIPATRA” and ICAB. also proposed to charge tax June 03 , 2020 Submission of proposal to on Gratuity from the NBR to insert a provision assessment year 2021 -22. under section 174(2)(e) of September 06 ICAB organized training on Income Tax Ordinance 1984 to 20 (7 da ys), ‘VAT & Supplementary Duty and section 130(1) of VAT & 2020 (SD) Act, 2012 & Changes SD Act 2012 so that brought in through Finance Authorized Tax Act 2020’ Representative and September 27, Dissemination of Summary of Authorized VAT Practitioner of 2020 changes introduced through the assessee should be Finance Act 2020 to ICAB Practicing Professional members through a circular. Accountant. October 04 to ICAB organized training on June 11, 2020 Reaction of ICAB on National 20 (8 days), ‘VAT & Supplementary Duty Budget 2020 -21 sent to the 2020 (SD) Act, 2012 & Changes Daily News Paper brought in through Finance immediately after the Act 2020’ declaration of the Budget. June 13, 2020 Press Conference on Post- Number of Meetings Held National Budget for the year 2020-21 titled Five (05) meetings of TCLC were held during the year 2020. Preparation of Income Tax Policy paper on the June 14, 2020 Post -Budget roundtable upcoming amendment of Income Tax Ordinance discussion jointly organized 1984 and submission to NBR by ICAB and the Business The Committee prepared Income Tax Policy paper on Standard. Income Tax Ordinance 1984 with a view to assist NBR June 17, 2020 Submission of a number of proposals on Income Tax and in formulating the Finance Bill of 2020. As an apex VAT to NBR for the professional institute of the country, ICAB felt necessity amendment of Finance Bill to reform the income tax law by modernising and 2020-21 simplifying the tax system to meet the demand of the June 18, 2020 Members’ Conference on economy of Bangladesh. The recommendations of the ‘Salient Features of Finance policy paper were prepared by an expert team, Bill 2020 -21 and comprising of Mr. Mohammad Forkan Uddin FCA, Mr. Macroeconomic aspect of Sabbir Ahmed FCA, Mr. Snehasish Barua FCA, Mr. National Budget 2020 -21’. Mohammad Al Maruf Khan FCA, Mr. Khundkar April-June 2020 Publication of Summary of Mahmudul Hasan FCA, Mr. Hasan Mahmood FCA, Mr. (Bangladesh changes introduced through Mohammad Syed Bashir Ali FCA, Mr. MBM Lutful Accountant of Finance Act 2020 in the Hadee FCA, Mr. Debabrata Roy Chowdhury FCA, Mr. ICAB) Bangladesh Accountant of Md. Kamruzzaman ACA, Mr. Amit Dhar ACA and Mr. ICAB. Aminur Rahman, Ex-Member, NBR.

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The objective of the paper was to highlight issues ICAB also sent a number of new proposals on Income about how to make the tax system in Bangladesh Tax and VAT to NBR for the amendment of Finance Bill more growth-friendly, simple and transparent and 2020 on 17 June 2020. fairer. The policy paper dealt four categories of issues which are as follows: On June 03, 2020, ICAB sent another proposal to NBR to insert a new provision under section 174(2)(e) of Category A focused on Widening the tax net for Income Tax Ordinance 1984 and section 130(1) of revenue generation with an aim to achieve a higher VAT & SD Act 2012 allowing only Practicing tax GDP ratio from two perspectives: Clientele (tax Professional Accountant to be Authorized Tax payers) Perspective and Collector (department) Representative and Authorized VAT Practitioner of the perspective; assessee under this section. Category B considered issues relating to private ICAB sent a proposal to NBR re amendment of SRO sector investment/employment generation/export No. 149-AIN/2020/110-VAT dated 11 June 2020 to diversification; bring article 5 and 6 (re Tax Deduction at source) of the said SRO in line with Sections 45 and 49 (3) of the Category C dealt with the ways to attract more FDI VAT and SD Act 2012 to remove complexity and (foreign direct investment) in the country; and harassment at the field level and also to reduce Category D examined to ascertain changes required number of lawsuits. to improve “Paying Taxes” indicator for ease of doing On August 12, 2020, ICAB submitted proposals for business in Bangladesh. clarification on “Promotional Expense” and not to The Income Tax Policy paper was published in the charge tax on Gratuity received from unapproved Bangladesh accountant, the quarterly journal of ICAB, gratuity scheme in the current assessment year. NBR January-March 2020 issue for dissemination to ICAB partially accepted our proposal by deferring the tax stakeholders. imposition on gratuity received from unapproved scheme from the assessment year 2021-22 instead of The policy paper was handed over to Mr. AHM 2020-21. Mustafa Kamal FCA, MP, Honorable Finance Minister of the Government of the People's Republic Dissemination of changes introduced through of Bangladesh on 24 February 2020 and to Mr. Abu Finance Act 2020 to ICAB members: Hena Md. Rahmatul Muneem , Chairman of NBR on Summary of changes introduced through Finance Act 15 March 2020. 2020 was published in the Bangladesh accountant ICAB submitted this policy paper to the NBR through the quarterly journal of ICAB, April-June 2020 issue a letter dated 25 March 2020 as well. for dissemination to ICAB members, which was again sent to ICAB members through a circular dated 27 Submission of budget related Proposals to NBR September 2020. The Committee prepared and submitted a set of Reaction of ICAB on National Budget 2020-21 sent constructive proposals on Income Tax Ordinance and to the Daily Newspaper immediately after the Rules, VAT & Supplementary Duty Act and Rules, declaration of the Budget Customs Act to NBR for incorporation in the Finance Act 2020. ICAB's proposals were for revenue increase After the announcement of National Budget 2020-21, as well as rationalization of some of the existing ICAB’s immediate reaction on the Budget was provisions of the Acts. published in national dailies with due importance on 12 June 2020. ICAB congratulated the Government ICAB appealed to National Board of Revenue (NBR) for announcing the budget equivalent of 17.9% of for the extension of submission of return of companies GDP amounting to Taka 5,68,000 crores in the COVID and firms with waiving penalty and interest as the 19 situation. ICAB also appreciated that the proposed country was undergoing nationwide shutdown due to budget of FY 2020-21 prioritized allocations for health, COVID-19 pandemic. All government and private agriculture, social safety net and job creation aiming offices were closed for sixty-six days from 26 March to mitigate the impact of the pandemic due to 2020 to 30 May 2020. Concerned officials of firms and COVID-19. companies were enjoying general holidays as declared by the government for combating corona Virtual Press Conference on National Budget for virus to save lives of people from being affected with the year 2020-21 titled the deadly disease. In this circumstances, ICAB urged NBR in a letter to extend the time of the submission of monthly return of company’s VAT and ICAB organized virtual press conference and shared tax by 15th and 20th June 2020 respectively. its thoughts on the National Budget 2020-21 before

116 | The Institute of Chartered Accountants of Bangladesh the media on Thursday, 13 June 2020; just one day Council Member & Past President-ICAB, A F after the announcement of the National Budget 2020. Nesaruddin FCA Council Member & Past Journalists from print and electronic media joined the President-ICAB, Kamrul Abedin FCA Council Member conference and the outcome of which was well & Past President-ICAB, Mohammed Forkan Uddin circulated in the national newspapers and the FCA Vice President of ICAB, Md. Shahadat Hossain electronic media. Muhammad Farooq FCA, ICAB FCA Council Member-ICAB, Snehasish Barua FCA President, Md. Humayun Kabir FCA, Parveen Fellow Member-ICAB, Shahriar Ahmed Khan Mahmud, Md. Abdus Salam FCA, Nasir Uddin Ahmed Executive Editor, the Business Standard. FCA, A F Nesaruddin FCA, Md. Shahadat Hossain, N The participants discussed on the National Budget K A Mobin FCA, Sidhartha Barua FCA, Sabbir Ahmed 2020-21 & Finance Bill 2020 and challenges of their FCA, Mohammed Forkan Uddin FCA, Snehasish implementation in the COVID-19 situation. At the Barua FCA, Rakesh Saha FCA, Major General discussion, they focused on revenue and expenditure Muhammad Imrul Quayes, ndc, psc (retd) and in macroeconomic aspect, changes in income tax, Mahbub Ahmed Siddique FCA joined the press VAT and customs law as well as their impact on conference. investment, employment and business. It was Leaders of the Institute of Chartered Accountants of recommended to consider cost-benefit analysis Bangladesh (ICAB) expressed their views on the before making any change in the system of income National Budget 2020-21 in detail in the said press tax, VAT and customs act. Participant opined that new meet. They suggested NBR to take measures for imposition of a five percent supplementary duty on increasing the collection of taxes by widening the tax mobile recharges and the increase in excise duty on net and modernization of tax administration to meet bank deposits was unjust to common people. The up the challenges in financing the budget. In this participants also expressed their concern about the regard, ICAB suggested a number of suggestions for collection of revenue as targeted taka 3,78,000 crores the amendment of Finance Bill 2020-21. ICAB also and they thought, it would be challenging task due to informed that some multinational advisory firms were the negative impacts of pandemic on trade, rendering tax and VAT related services to a large commerce, industries, import, export and services. number of companies in Bangladesh violating This huge target was a monumental task for NBR. It provision of section 174(2)(e) of Income Tax was also revealed that total revenue collection from Ordinance 1984 and section 130(1) of VAT & SD Act direct taxes was only 30 percent in our country while it 2012. To increase the revenue of the government, to is more than 50 percent in almost all of the countries of enhance the transparency of application of the laws the world. Participants emphasized on employment and to ensure the confidentiality & accountability, management and opined the necessity to expand the ICAB proposed to amend section 174(2)(e) of Income tax net and IT driven tax administration. Otherwise, Tax Ordinance 1984 and section 130(1) of VAT & SD uncertainty would grip the economy. They also put Act 2012 so that only Practicing Professional emphasis on steps for attracting more foreign direct Accountant can work as Authorized Tax investment (FDI) into the country. Representative and Authorized VAT Practitioner of the CPD Seminars and others assessee. There were 2 Members’ Conference and 2 trainings Virtual Post-Budget Discussion organized by ICAB in 2020.

A National Post-Budget virtual discussion was jointly The 1st Members’ Conference was held on 15 March organized by ICAB and the Business Standard on 14 2020 titled ‘Income Tax Policy Paper on the June 2020. The outcome of which was well circulated upcoming Amendment of Income Tax Ordinance in the national newspapers. Planning Minister Mr. M A 1984’ at ICAB auditorium. Mr. Abu Hena Md. Rahmatul Mannan, MP joined as Chief Guest in the discussion. Muneem, Senior Secretary, Internal Resources The discussion was also participated by Division (IRD) & Chairman, National Board of Revenue distinguished personalities, a number of council (NBR), Ministry of Finance, GoB was the Chief Guest. members, past presidents of ICAB and members of Ms. Nahar Ferdousi Begum, Member (Taxes Legal & ICAB including: Ahsan H Mansur, Executive Director, Enforcement) and Mr. Ranjan Kumar Bhowmik, Policy Research Institute (PRI), Dr. Nazneen Ahmed, Member (Tax Survey & Inspection) were the special Senior Research Fellow BIDS, Rakibur Rahman, guests. Mr. Mohammad Al Maruf Khan FCA, Partner, Director of the Dhaka Stock Exchange, Dr. Fahmida Howladar Yunus & Co., Chartered Accountants and Khatun, Executive Director of the Centre for Policy Mr. Snehasish Barua FCA, Partner, Snehasish Dialogue, Mosharraf Hossain Bhuiyan, the immediate Mahmud & Co., Chartered Accountants jointly Past Chairman of the National Board of Revenue presented the conference paper and Mr. Md. (NBR), Shams Mahmud, President of the Dhaka Humayun Kabir FCA Member Council & Past President Chamber of Commerce and Industry, Muhammad of ICAB was the Session Chairman. Mr. Muhammad Farooq FCA ICAB President, Md. Humayun Kabir FCA Farooq FCA, ICAB President and Mohammed Forkan

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Uddin FCA Council Member & Vice President of ICAB Barua FCA, Partner, Snehasish Mahmud & Co., were also present in the conference. Chartered Accountants conducted the session as

nd resource person. Mr. Md. Humayun Kabir FCA The 2 Members’ Conference was held on 18 June Member Council, Past President and Chairman of Salient Features of Finance Bill 2020 titled ‘ Taxation and Corporate Laws Committee of ICAB was 2020-2021 and Macroeconomic aspect of National the Session Chairman. Budget 2020-2021’. Mr. Md. Alamgir Hossain Member (Tax Policy) of National Board of Revenue Gratitude (NBR) and Mr. Ranjan Kumar Bhowmik, Member (Tax Survey & Inspection) of National Board of Revenue I would like to thank to the members and the joined as the Special Guests. Mr. Md. Shahadat employees of the Institute who actively participated Hossain FCA, Council Member of ICAB & Senior and contributed to the activities of the Committee Partner, MABS & J Partners. - Chartered Accountants during the year. I would also like to thank the respected and Mr. Snehasish Barua FCA, Partner, Snehasish members of the Taxation and Corporate Laws Mahmud & Co., Chartered Accountants jointly Committee (TCLC) of the Council-ICAB who extended presented the conference paper. Mr. Md. Humayun their relentless effort in need assessment as well as for Kabir FCA Member Council, Past President and the support in developing the income tax policy paper. Chairman of Taxation and Corporate Laws Committee Moreover, I must take this opportunity to extend special of ICAB was the Session Chairman. Mr. Muhammad thanks to Mr. Aminur Rahman, Ex-Member, NBR for his Farooq FCA, ICAB President and Mohammed Forkan inspiration in undertaking the work and for his inputs. Uddin FCA Council Member & Vice President of ICAB My special thanks to Mr. Mohammad Al Maruf Khan were also present in the conference. FCA, Mr. Snehasish Barua FCA and Mr. Rakesh Saha FCA for giving their invaluable time and active The 1st training was held from 06 September 2020 to contribution. Without their creative inputs and 17 September 2020 titled ‘VAT & SD Act, 2012’. Mr. dedicated services, it would not be possible to carry Snehasish Barua FCA, Partner, Snehasish Mahmud & out the activities of TCLC successfully. Co., Chartered Accountants, Mr. MBM Lutful Hadee FCA, Proprietor, Hadee Lutful & Co., Chartered I hereby express my heartfelt gratitude to the Accountants and Mr. Rakesh Saha FCA, Partner-Tax President, Vice Presidents and Members of the and Regulatory Services, Ernst & Young Advisory Council ICAB for their support and look forward to Services Bangladesh Limited conducted the session similar cooperation in future. as resource persons. Closing Ceremony of Training I place on record my appreciation and thanks, on Programme on ‘Summary of changes brought in by behalf of the TCLC to ICAB secretariat specially to Ms. the Finance Act 2020’ was held on 20 September Suraia Parveen, Deputy Director and member 2020. Mr. Md. Masud Sadiq, Member (VAT Policy), secretary of TCLC for her dedicated services, inputs National Board of Revenue (NBR), Ministry of Finance and co-operation in carrying out activities of the joined as the Chief Guest. Mr. Snehasish Barua FCA, committee throughout the year. I also like to put on Partner, Snehasish Mahmud & Co., Chartered record the ICAB officials particularly Mr. Mohammad Accountants conducted the session as resource Deloar Hossain, Deputy Director (IT)-ICAB & his team person. Mr. Md. Humayun Kabir FCA Member and Mr. Hossain Mahmud Patwary, Deputy Council, Past President and Chairman of Taxation and Director-ICAB for their sincere and dedicated services Corporate Laws Committee of ICAB was the Session and extended cooperation in conducting the meetings, Chairman. Mr. Sidhartha Barua FCA Vice President of workshop and conferences on virtual platform. ICAB was also present in the session. Conclusion The 2nd training was held from 04 October to 20 October 2020 titled ‘VAT & SD Act, 2012’. Mr. TCLC and its sub-committees worked hard during the Snehasish Barua FCA, Partner, Snehasish Mahmud & year in the interest of the Institute and its Members. Co., Chartered Accountants, Mr. MBM Lutful Hadee However, the competing forces also appeared FCA, Proprietor, Hadee Lutful & Co., Chartered stronger and more vigilant than ever before. Accountants and Mr. Rakesh Saha FCA, Partner-Tax Members' integrity, alertness and unity are the need of and Regulatory Services, Ernst & Young Advisory the hour to achieve the goals. May Almighty guide Services Bangladesh Limited conducted the session and grant us success. as resource persons. Closing Ceremony of Training Programme on ‘Summary of changes brought in by the Finance Act 2020’ was held on 20 October 2020. Mr. A. K. M. Mahbubur Rahman, Director General, Bangladesh Customs Excise & VAT Training Mohammed Humayun Kabir FCA Academy, National Board of Revenue (NBR), Ministry Chairman, Taxation & Corporate Laws Committee of Finance joined as the Chief Guest. Mr. Snehasish and Member Council & Past President-ICAB

118 | The Institute of Chartered Accountants of Bangladesh 15.0 REPORT OF THE INVESTIGATION AND DISCIPLINARY COMMITTEE (IDC)

On behalf of the Investigation & Disciplinary Committee (IDC) of the Council-ICAB, I am presenting the report of the activities of IDC for the year 2020.

SUMMARY OF IDC MEETINGS

During the year, all the meetings were held virtually considering the impact of Covid-19. The summary of IDC meetings held during this year are as follows: Meeting Date No. of Agenda No. of Members Attendance No. 1. 19.08.2020 06 25 20 2. 02.09.2020 05 25 14 3. 29.09.2020 08 25 20 4. 27.10.2020 11 25 16 5. Scheduled to be held on 09 December 2020

DECISIONS TAKEN BY COUNCIL-ICAB IN THE YEAR 2020 BASED ON IDC RECOMMENDATION

No. of Sl. # Basis Summary of Decisions Cases

Complain Based Approach:

1 IDC investigated 02 One (01) case has been disposed of by revoking observations of Quality certificate of practice of one partner and imposing Assurance Board (QAB), monetary penalty of Tk. 100,000 upon all the Partners ICAB and recommended of a CA Firm. to the Council -ICAB. One (01) case h as been disposed of by imposing monetary penalty of Tk. 100,000 upon the Partners of a CA Firm. 2. IDC investigated 01 The case has been disposed of by imposing monetary complaints of Executive penalty of Tk. 300,000 upon an ex -practicing member Committee of ICAB. of the Institute.

Information Based Approach:

3. IDC investigated 01 The case has been disposed of by reprimanding the observations of BSEC. engagement partner.

Total 04

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ISSUES UNDER INVESTIGATION

The summary of the activities dealt by IDC during the year is as follows:

Sl. No. of Basis Summary of Activities # Cases

Complain Based Approach:

1. Complaints of BSEC 01 One (01) case has been recommended to the Council-ICAB to impose monetary penalty upon engagement partner. The Council reviewed the recommendation and decided to give opportunity of being heard to the concerned member. 2. QAB 11 One (01) case has been recommended to the Council-ICAB to impose monetary penalty upon the partners of the Firm. IDC reviewed the observations of QAB and decided to give opportunity of being heard to the partners of 05 CA Firms in its upcoming meetings. The matter is under investigation. 3. Complaints of DSE 01 IDC reviewed the complaints in detail and decided to give opportunity of being heard to concerned member in its upcoming meetings. The case is under investigation. 4. Complaints of FRC 01 IDC reviewed the complaints in detail and decided to give opportunity of being heard to concerned member in its upcoming meetings. The case is under investigation. 5. Complaint of BB 01 IDC reviewed the complaints and decided to ask explanation from concerned CA firms. The case is under investigation. 6. Complaint of FID, MoF 01 IDC reviewed the complaints and requested the concerned regulator to provide necessary papers & documents. The matter is under investigation. Information Based Approach:

7. Member 01 An Information received that a practicing member is engaged with fulltime service. The matter is under investigation.

8. Bangladesh Securities & Exchange 01 Commission (BSEC) ICAB clarified its position to Bangladesh Securities & Exchange Commission (BSEC).

9. Bangladesh Steel Engineering 01 The case has been disposed of as the matter was Corporation not under the purview of IDC.

10. Individual 01 The matter was sub judice with Hon’ble High Court of the Bangladesh Supreme Court.

Total 20

120 | The Institute of Chartered Accountants of Bangladesh MEMORY Committee Members of IDC and ICAB officials have been very cooperative. I particularly thank the With a very heavy heart, we report that Mr. Sheikh A members of the IDC who have worked very long hours Hafiz FCA, past President of ICAB, past President of in each of the meetings. This was necessary to ensure SAFA and Chairman of IDC, has expired on 13 that IDC arrives at a fair decision in every case. November 2020 (Inna lillahi wa inna ilayhi raji’un). We Members of the Committee deserve special thanks for very sincerely recognise the great contributions made their dedication. We are thankful to Financial by Mr. Sheikh A Hafiz FCA, as Chairman of IDC since Reporting Council, Bangladesh Bank, Bangladesh 2016. Under the able leadership of Sheikh A Hafiz Securities & Exchange Commission (BSEC) for their FCA, the Investigation and Disciplinary Committee support (IDC) of ICAB reached a new heights. May Allah SWT grant him highest place in Jannah.

CONCLUSION

Investigation & Disciplinary Committee (IDC) has Dewan Nurul Islam FCA been working hard in assisting ICAB Council in Co-Chairman, Investigation & Disciplinary regulating the accountancy profession in Bangladesh. Committee, ICAB

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16.0 REPORT OF THE MEMBERS ISSUES, SERVICES & WELFARE COMMITTEE (MISWC)

On behalf of the Members’ Issues, Services & Welfare MISWC assigned designated staff of Members' Committee (MISWC) of the Council-ICAB, I am Service Department of ICAB to keep contact with pleased to report on the various activities of the the members of ICAB and to know whether they MISWC for the year 2020 as follows: need any supports during the Covid-19 outbreak. The assigned staff of ICAB under direct No. of Meeting held in 2020 supervision and monitoring of MISWC communicated with all respected members Members’ Issues, Services & Welfare Committee residing in Bangladesh over phone/mobile during (MISWC). held 04 (four) meetings during the year the Lock Down period to know about the Covid-19 2020. The details of the meetings held by MISWC are situation and other needs, if any, of the members as under: and their families. Meeting Date of Meeting Mode No. of c. Arrangement of blood for members No. Attendees The Committee during the year 2020 arranged 01 13 February 2020 Physical 16 blood on emergency basis for several Covid-19 02 07 September 2020 Virtual 25 affected members of ICAB. 03 22 November 2020 Virtual 19 04 15 December 2020 Physical 18 d. Arrangement of employment of Members MISWC has arranged employment opportunities Activities during the year 2020 for some members of the Institute during the year The major activities of the Committee during the 2020. year 2020 are highlighted below: e. Organized Doa Mahfil in memory of deceased a. Medical support service arrangement for Covid-19 Past Presidents and members of ICAB with different hospitals MISWC with the support of ICAB arranged 02 Doa During the Covid-19 pandemic the Committee has Mahfil in memory of the deceased Past Presidents arranged medical treatment and support service and other deceased members of ICAB on 07 facilities for the members of ICAB and their family November 2020 and 16 November 2020. members with the following hospitals under f. Reception to the newly qualified Chartered separate Memorandum of Understanding so that Accountants the members of the Institute and their family members can get necessary medical treatment MISWC organized a reception program for 45 new facilities on priority basis: chartered accountants/members who qualified in Nov-Dec 2019 session. i. Anwar Khan Medical College & Hospital, Dhanmondi, Dhaka; g. Establishment of CA Club Limited ii. Japan East West Medical College Hospital, Uttara MISWC took initiatives in the year 2019 to establish Dhaka; and a family club for recreation, socialization and creating bonding among the members of ICAB. In iii. Gulshan Clinic, Shahjadpur, Gulshan/Baridhara, this year 2020 that initiative got materialized. Dhaka. Under the control, supervision and monitoring of b. Constant contact with the Members during ICAB Members' Welfare Foundation 100 lock-down period for Covid-19 pandemic respected members of ICAB have established the

122 | The Institute of Chartered Accountants of Bangladesh long desired CA Club Limited as Founder Members. Executive Council of IMWF in its meeting held on 22 Registration of the Club with the Registrar of Joint November 2020 approved Tk. 5,00,000 (Taka five Stock Companies & Firms is in progress. lac) only for each of the deceased members as death compensation benefits, cheques of which h. Status of ICAB Members Welfare Foundation have been handed over to the respective (IMWF) nominees of the deceased members.

Though the IMWF was established in 2017, the Members We lost in 2020 activities could be started in a limited scale in June 2019. Total members of IMWF was 215 as of 23 I am sorry to inform you that during this year 2020 we November 2020. Out of total 215 members, 98 have lost our 23 beloved and respected members. It members have got registration during 2020. 04 is such a loss which can never be recovered. We pray (four) meetings of the Executive Council of IMWF to the Allah SWT for salvation of the departed souls of were held in 2020. Alongside, the Annual General our beloved members whom we have lost during 2020 Meeting (AGM) of IMWF was held on 30 and before. May the departed souls rest in eternal November 2020. 03(three) respected members of peace. The names of those great souls we lost in 2020 IMWF died till 20 November 2020 and the are as follows:

Sl. Name Enrl. no Date of Expiry No. 1 Mr. Milan Kanti Rakshit FCA 292 14 -Jan-20 2 Mr. Shahriar Hossain Mollah FCA 147 28 -Jan-20 3 Mr. Abdus Samad ACA 1971 26 -Feb-20 4 Mr. Mohammed Mashir Alam FCA 628 18 -Mar -20 4 Mr. Md Tofazzal Islam Talukder FCA 608 23 -May -20 5 Mr. Kanchi Lal Das FCA 403 28 -May -20 6 Mr. Md Mahtab Hossain FCA 127 24 -Jun-20 7 Mr. Mohammad Humayun Morshed FCA 136 13 -Jul-20 8 Mr. Ajit Kumar Dhar FCA 723 17 -Jul-20 9 Mr. Md Enayet Ullah FCA 412 26 -Jul-20 10 Mr. Bibhuti Bhusan Saha FCA 200 26 -Aug-20 11 Mr. Mohammad Ahsun Ullah FCA 780 21 -Sep-20 12 Mr. Miah Mohd Ishaque Ali FCA 206 22 -Sep-20 14 Mr. Sarder Rabiul Islam FCA 167 6-Oct-20 13 M r. Md Obaidur Rahman FCA 49 7-Oct-20 15 Mr. Abul Kalam Md Mosharraf Hossain FCA 37 17 -Oct-20 17 Mr. Md. Abdul Majid FCA 64 31 -Oct-20 18 Mr. ATM Mustafizur Rahman FCA 253 1-Nov -20 19 Mr. MA Quadir Mollah FCA 73 12 -Nov -20 20 Mr. Sheikh Abdul Hafiz FCA 110 12 Nov 2020 21 Mr. Mamun Rahman FCA 479 23 Nov 2020 22 Mr. Md. Ibrahim Mia FCA 391 30 Nov 2020 23 Mr. Ashraful Haq Amin FCA 1265 07 Dec 2020

Finally, I express my sincere thanks and gratitude to the President, Council Members, Co-Chairman & all members of MISWC and the officials and staff members of ICAB for their kind support and cooperation extended towards attainment of Md. Moniruzzaman FCA objectives of the Committee during the year 2020. Chairman, Members’ Issues, Services & Welfare Thanks & wish you all the best. Committee (MISWC) of the Council-ICAB

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17.0 REPORT OF THE CHAIRMAN OF THE REVIEW COMMITTEE FOR PUBLISHED ACCOUNTS & REPORTS (RCPAR)

On behalf of the Review Committee for Published  Selection of three Best Published Annual Reports Accounts & Reports (RCPAR), I am pleased to report from each sector and also selection of three best on the activities of the RCPAR, a non-standing reports on Corporate Governance and three best Committee of the Council of ICAB for the year 2020: reports on Integrated Reporting for sending to SAFA Committee for Improvement in Scope of works Transparency, Accountability and Governance During the year RCPAR worked in following areas: (ITAG); 1. Inviting published annual reports for the year 2019  Arranging meeting with the other member of the from the entities under following sectors for SAFA in the country to get its endorsement/ submission to ICAB - ratification to the RCPAR selected reports before sending the same to ITAG.  (i). Private Sector Banks, (ii) Financial Services/Non-Banking Financial Institutions, (iii) 2. Finalization of the separate evaluation criteria for Insurance, (iv). Manufacturing, (v) Communication life and non-life insurance and sending the same & IT, (vi). Diversified Holdings, (vii). Agriculture, to ITAG for their review and consideration. (viii). Service (ix) Public sector banks (x) public sector non-banking entities and (xi) non-profit 3. Finalization and submission of the country report organizations. on Bangladesh performance in the SAFA level competition on Best Published Annual Reports,  Selection of Evaluators for evaluating the Corporate Governance and Integrated Reporting. published annual reports on the basis of the SAFA criteria for awarding under following four Number of RCPAR Meetings Held categories: (i). Best Published Annual Reports (ii). Corporate 04 (four) meetings of RCPAR (including one physical Governance (iii) Integrated Reporting and (iv). and 3 virtual meetings) were held in the year 2020. Overall Winner. Discussions and decisions/outcomes of the meetings are stated below:  Recommending to the Council for constitution of the Jury Board and its members.

Meeting # Agenda decisions/outcomes and Date 1st Meeting, Discussion and finalization of the Work Work Plan for 2020 finalized. 25-02-20 Plan of the Committee for the year 2020; Discussion on ICAB comments/ Two Sub-Committees for Life and Non-Life suggestions on proposed SAFA criteria Insurance criteria have been constituted for for Life Insurance and Non-Life Insurance. review and to prepare ICAB’s comments and submit the same in the next RCPAR Committee meeting for consideration. Committee nominated Mr. Kamrul Abedin FCA and Mr. Muhammed Farhad Hussain FCA as the Convenors respectively for Life Insurance and Non-Life Insurance. Discussion on SAFA ITAG Committee Committee recommended that two ICAB officials decision to submit a report on which Mr. Md Afsar Uddin FCA and Mr. Md Nasrat countries are getting awards in specific Hasan to prepare the report and Chairman was sectors and the reasons behind for authorized to finalize the report before sending getting the awards in previous years. the same to SAFA ITAG Committee.

124 | The Institute of Chartered Accountants of Bangladesh Meeting # Agenda decisions/outcomes and Date 2nd Meeting, Discussion on the decisions of SAFA Committee decided that both hardcopy and 09-08-20 ITAG Committee meeting held on 6 July softcopy of annual reports will be accepted from 2020 in connection with SAFA BPA the entities for evaluation in this year and asked Award competition 2020; to the Secretary of the Committee to observe the new deadline for submission of the nominations to SAFA by 31 August 2020.

Discussion on the status of marking/ Committee decided: evaluation of Bangladeshi annual reports (i). Member Secretary shall ensure that all of 2019 for ICAB National Award and annual reports submitted within August 15, 2020 SAFA BPA Award competition 2020; are marked/evaluated.

(ii). While assigning an annual report to evaluator, Member Sec retary shall ensure that there is no conflict of interest there.

(iii). Meetings of Sub-Committees may be held either physically or virtually.

Discussion on formation of Jury Board Committee authorized the Chairman to finalize for 20th ICAB National Award competition the list of Jury Board Members of RCPAR of 2020; Council-ICAB and recommended to keep the number of Members of the Jury Board at nine.

3rd Discussion on marking/ evaluation of The Committee accepted the recommendations Meeting, Annual Reports 2019 which were of the Sub-Committees and finalized the results 25-08-20 reviewed and recommended by the Sub- for Jury Board consideration with following Committees of RCPAR (for 20th ICAB observations: National Award competition 2020) i). No annual report from public sector banks was received within the set deadline. Award for Diversified Holdings category could not be considered because of scoring lesser than threshold marks by the participating entities. ii). Considering COVID 19 Pandemic situation this year, minimum marks for awarding ‘Certificate of Merit’ for Banking, NGOs and Integrated Reporting are recommended at 70%, for Corporate Governance category, minimum mark are recommended at 80% and for all other categories minimum marks are recommended at 60% for awarding ‘Certificate of Merit’. iii).For Integrated Reporting Category, ICAB will officially request to ICMAB to nominate such a Representative in future who will have no conflict of interest with awardee companies. iv)., The entity which received highest total number. assigning first position three, 2nd position two, 3rd position one and certificate of merit zero, in three categories i.e. Best Published Annual Reports, Corporate Governance Disclosures and Integrated Reporting shall be selected as overall winner.

The Institute of Chartered Accountants of Bangladesh | 125 ANNUAL REPORT 2020

Meeting # Agenda decisions/outcomes and Date Discussion on the upcoming meeting of Committee approved the results of the Sub- the Jury Board of RCPAR of Council-ICAB Committees of RCPAR and recommended to the to recommend the list of winners under Jury Board to review and endorse the same, with different categories for Council their observations, if any. The Committee was consideration; informed that the Jury Board will meet virtually on 27 August 2020 and after their endorsement, the results shall be placed with their observations/report to the Council for approve.

Proposal to increase remuneration of Committee recommended to the Council that Evaluators and introduce same amount of Council Members shall not be paid any remuneration for Reviewers. remuneration. Remuneration of Evaluators not being the Council Members may be increased from Tk.1000 per annual report to Tk.1500 per annual report and introduce same remuneration for Reviewers i.e., Tk.1500 per annual report with effect from 2020. Automation Proposal for marking evaluation works Committee recommended to develop a software module for evaluation works and thanked Mr. Mahmudul Hasan Khusru FCA, Member Council ICAB for his keen willingness to assist the team in this regard.

Removal of ‘Table of Reference to SAFA Committee asked the Member Secretary of RCPAR Criteria’ from the Annual Reports. to communicate with the Management of the nominated entities for SAFA competition. to make sure that Table of Reference to SAFA Criteria, if any, are removed from the annual reports before sending the same to SAFA.

Preparation of draft comments on Committee asked the Member Secretary of RCPAR proposed life and non-life Insurance to prepare draft comments on both proposed life & criteria non-life Insurance criteria, and to circulate among two Sub-Committees members for their opinion/ suggestions before finalization. 4th Discussion on draft ICAB comments/ Committee suggested few changes on draft Meeting, recommendations on proposed SAFA Life comments on proposed life and non-life insurance 19-10-20 Insurance and Non-life Insurance criteria criteria and requested the Sub-Committees members to re-check the changes before finalization the same sending to SAFA. Discussion on organizing 20th ICAB Committee recommended following items for National Award Ceremony for Best organizing 20th ICAB National Award ceremony: Presented Annual Reports 2019; - The programme will be held on 26 November 2020 at Pan Pacific Sonargaon hotel. - Commerce Minister and Commerce Secretary will be the Chief Guest and Special Guest in the event. - Budget for expenditure and proposed income from advertisement has been recommended for the council consideration.

Results of 20th ICAB National Award Competition

Out of 11 sectors, public sector banks and entities under Diversified Holdings did not receive any award during the year. Total 23 companies from remaining 9 sectors received 32 trophies (by becoming 1st, 2nd or 3rd) and 14 companies received certificate of merit in the 20th ICAB National Award competition. IDLC Finance Limited secured highest number and awarded ‘overall winner’ in this year.

Table below shows the summary of the results of 20th ICAB National Award for Best Published Annual Reports, Corporate Governance and Integrated Reporting:

126 | The Institute of Chartered Accountants of Bangladesh Sl Type of award Best Published Annual Reports # (Rank/ Listed entities Non- listed position) entities Service Agriculture Diversified Holdings Public Banks NGOs Private Banks Financial Services Manufacturing Insurance Communications & IT Public Sector Entities Corporate Governance Integrated Reporting Overall Winner Total No of award winning companies 1 1st 1 1 1 1 1 1 1 1 - - 1 2 1 1 13 2 2nd 2 1 1 1 - - 2 1 1 9 3 2nd 2 1 1 1 - - 1 2 2 10 No of Trophies 5 3 3 3 1 1 1 1 - - 4 5 4 1 32 4 No. of Certificate of 4 5 - - 1 7 4 21 Merit Total awards = 9 3 8 3 1 1 1 1 - - 5 12 8 1 53 No of participants = 12 3 17 3 2 1 3 1 - - 5 49 Minimum/ threshold marks 70% 60% 60% 60% 60% 60% 60% 60% 60% 60% 70% 80% 70% Total marks as per SAFA Criteria 140 120 120 130 120 100 120 120 100 140 100 100 150

Participation in SAFA ITAG Committee meetings and activities  Evaluated annual reports of 76 entities received from 4(four) SAFA countries including India, Pakistan, Sri Lanka & Nepal and sent the markings to the SAFA Committee for Improvement in Transparency, Accountability and Governance (ITAG) for their consideration.  As the member of the ITAG Committee, participated 3 virtual meetings and actively contributed to the agenda of the meeting and submitted: - ICAB’s recommendations to SAFA ITAG Committee on proposed SAFA criteria for Life Insurance and Non-Life Insurance. - Submitted analytical report to the SAFA ITAG Committee on which countries are getting awards in specific sectors and the reasons behind for getting the awards in previous years. Gratitude I would like to thank to the members and employees of the Institute who actively participated and contributed to the activities of the Committee during the year. My special thanks to the Evaluators who contributed sincerely ignoring the threat of COVID19. Without their inputs, dedicated services & relentless works, it would not be possible to carry out the activities of RCPAR successfully. My sincere thanks and gratitude to the Jury Board Members for their kind review and endorsement on the results prepared by this Committee. Conclusion RCPAR and its Sub-Committees worked hard during the year for the interest of the Institute and the nation as a whole. In view of the pandemic (COVID19 situation), tasks of the Committee were very challenging. However, with the help of dedicated members & ICAB officials, Committee successfully achieved its goal. May Allah (SWT) guide and grant us continued success.

Mohammed Humayun Kabir FCA Chairman Review Committee for Published Accounts & Reports (RCPAR) and Member Council & Past President-ICAB

The Institute of Chartered Accountants of Bangladesh | 127 ANNUAL REPORT 2020

18.0 REPORT OF THE AUDIT COMMITTEE

The Audit Committee of the Council of ICAB has been . Make internal audit department /section formed to assist the Council in discharging its function functional; and responsibilities with specific Terms of Reference . Oversee the Council’s Implementation of internal (ToR) so that the Committee can act independently. audit manual/ procedure; ToR of the Audit Committee has been revised and approved by the Council on 13 December 2017 This . Review of internal audit reports at regular intervals. revised ToR of the Committee includes the We did not find any internal audit reports. composition of the Committee with one of the Past . Complete review of 2017-18 Management Presidents of ICAB as the Chairman of the Committee, Reports, monitor implementation status and report two Council Members other than members of the to Council; and Executive Committee and at least four Independent . Members of the Institute. Any other item as may be identified by the committee on requirement from Council. The mandate of the Committee is to assist the Council in fulfilling its oversight responsibilities in respect of During the year 2020, the Audit Committee had 3 monitoring the financial operations of the Institute, meetings till October 2020.Those meetings already integrity of financial statements, risk management and held it conducted the following main businesses: internal control management, compliance with legal 1. Reviewed the management report of 2018-19 and and regulatory requirements, evaluation performance recommendations given to the Council for its of the Institute, review report of external auditors, consideration and also monitored the compliance of ICAB Bye-Laws & Council Directives, implementation status. and to carry out any other function(s) as may be 2. Reviewed the financial operations and the assigned to the Committee by the Council. Scope of financial statements of the Institute; responsibilities also includes: 3. Reviewed the risk and internal control 1. To assist, guide and support to the institution for its management; adequate internal control; 4. Reviewed the compliance with the legal and 2. To assist, develop and institutionalize risk matrix, regulatory requirements; report to the Council and monitor; 3. To give recommendation to appoint External The Minutes of the Audit Committee meetings Auditor. containing various suggestions and recommendations to the Management have been duly 4. To review internal audit plan and annual audit placed before the appropriate authorities for calendar. necessary actions at its end. The Audit Committee for 2020 consists of 20 On behalf of the Audit Committee, Members. A Past President of ICAB not being a council member is the Chairman, 1 Council Member and 18 are independent members. Technical Adviser of ICAB who is also a member of the Institute is the Member Secretary of the Committee.

The expectation from this committee in 2020 were are: A S M Nayeem FCA Chairman, Audit Committee . Complete ongoing activities/project; & Past President

128 | The Institute of Chartered Accountants of Bangladesh 19.0 ACKNOWLEDGEMENT

The Council sincerely puts on record its gratitude and External Audit, Performance Assessment and appreciation to all members of ICAB, in particular Fiduciary & Safeguard Compliance Assessment of those who spared their precious hours for the Institute Union Parishads under the Local Governance in various Committees and Sub-Committees of the Support Project (LGSP). The Council acknowledges year 2020. continuous support and collaboration of CAG Bangladesh, Bangladesh Bank, SEC, DSE, CSE, ICAB Council appreciates the sincere efforts of Fazlul IDRA, BIDA and other Government, Non-Government Hoque & Co. Chartered Accountants and Snehasish Organizations (NGO) and various other Professional Mahmud & Co. Chartered Accountants in auditing the Institutions. financial statements of ICAB for the year 2019-2020 as external auditors of the Institute. ICAB Council sincerely acknowledges the mutual cooperation and guidance of the International The Council acknowledges the contributions of the Federation of Accountants (IFAC), Confederation of respective Regional Committees and Chapters Asian & Pacific Accountants (CAPA) and the South Management Committees for their wholehearted Asian Federation of Accountants (SAFA) along with support in carrying out the activities of the Institute other Regional Professional Institutes. The Council throughout the year. extends its gratitude to the IFRS Foundation for their confidence in ICAB. The Council is sincerely grateful to the different Ministries of the Government for their support to ICAB The Institute also acknowledges the wholehearted and its causes support of ICAEW for its enduring partnership with ICAB. The Council also gratefully acknowledges the guidance and patronisation of Financial Reporting Last but not the least, the Council ICAB appreciates Council (FRC) to bring dynamism in auditing and ICAB officials and members of the staff for their team accounting profession. ICAB looks forward to working spirit and commitment to providing assistance to the with FRC more closely in the coming days. Council in discharging its duties and responsibilities and make 2020 another successful year. ICAB greatly appreciates the effort of NBR to materialise Document Verification System (DBS), a By the order of the Council. landmark step to bring financial discipline in the country. ICAB is thankful to the National Board of Revenue (NBR) and Bangladesh Bank (BB) for their alliance with ICAB in the mission of bringing financial discipline in the country, particularly their collaboration to make the Document Verification System (DVS) a reality.

ICAB Council takes this opportunity to convey its gratitude to the Local Government Division of the Shubhashish Bose Ministry of Local Government, Rural Development & Chief Executive Officer (CEO), ICAB Co-operative (LGRD & C) with regard to Annual

The Institute of Chartered Accountants of Bangladesh | 129 FINANCIAL HIGHLIGHTS The Institute of Chartered Accountants of Bangladesh STATEMENT OF FINANCIAL POSITION As at 30 June 2020 Taka in Thousand 2019-20 2018-19 2017-18 2016-17 2015-16 Financial Position Fixed Assets 116,466 101,833 100,210 84,538 92,763 Advances and Deposits 85,004 86,572 28,414 12,365 35,206 Current Assets 338,483 388,452 425,044 475,898 439,428 Current Liabilities 68,013 70,614 42,307 59,139 42,419 Net Current Assets 270,470 317,838 382,737 416,759 397,009 Net Assets 471,940 506,244 511,361 513,661 524,978 Represented by: Land & Building Fund 135,219 126,956 236,221 236,221 236,204 General Fund 274,824 310,789 212,120 210,986 224,118 Members’ Welfare Fund - - - - 89 Employees’ Gratuity Fund 53,793 60,501 56,581 59,512 57,741 Scholarship Fund 7,917 7,812 6,253 6,757 6,640 Relief Fund 186 186 186 186 186 Total 471,940 506,244 511,361 513,661 524,978 Cash Flows Operating Activities (60,920) 3,440 (49,610) 15,895 34,828 Investing Activities 15,125 (36,830) (20,348) 6,789 (43,588) Financing Activities 106 1,558 (503) (70) (803) Cash & Cash Equivalents at Year-end 80,957 126,647 158,479 228,940 227,389 Income & Expenditure Income 211,525 262,715 272,536 276,020 255,786 Expenditure 235,369 263,186 271,402 282,935 251,314 Operating Surplus (23,844) (471) 1,134 (6,915) 4,472

FIVE YEARS COMPARATIVE DATA

300,000 9 3 5 0 2 250,000 5 3 6 4 0 2 7 1 5 1 8 6 7 8 6 3 1 4 2 8 , 2 7 , 2 7 6 , 2 7 1 , 3 6 9 2 6 , 2 6 3 , 2 5 , 200,000 2 5 1 , 5 2 2 3 5 ,

150,000 2 1 ,

100,000

50,000 4 7 2 1 3 4 4 , 1 ,

- 2019-20 2018-19 2017-18 2016-17 2015-16 4 7 1 ) ( 9 1 5 ) 6 , ( (50,000) 8 4 ) 2 3 ,

( Income Expenditure Operating Surplus

The Institute of Chartered Accountants of Bangladesh | 131 ANNUAL REPORT 2020

FINANCIAL HIGHLIGHTS Five Years Data (Taka in Thousand)

Income Expenditure

300,000 300,000 250,000 250,000 200,000

272,536 200,000 276,020 262,715 282,935 271,402 255,786 263,186 150,000 150,000 251,314 211,525 235,369

100,000 100,000

50,000 50,000

- - 2019-20 2018-19 2017-18 2016-17 2015-16 2019-20 2018-19 2017-18 2016-17 2015-16

Operating Surplus Current Liabilities 10,000 80,000

5,000 4,472 70,000

1,134 60,000 - 70,614

50,000 68,013 (5,000) (471) (6,915) 40,000 59,139 (10,000) 30,000 42,419 (15,000) 42,307 20,000

(20,000) 10,000 (23,844) (25,000) - 2019-20 2018-19 2017-18 2016-17 2015-16 2019-20 2018-19 2017-18 2016-17 2015-16 (30,000)

Current Assets Cash & Cash Equivalents 500,000 450,000 250,000 400,000

200,000 350,000 475,898 439,428 300,000 425,044 227,389 228,940

150,000 388,452 250,000

200,000 338,483 100,000 158,479 150,000

50,000 126,647 100,000

80,957 50,000 - - 2019-20 2018-19 2017-18 2016-17 2015-16 2019-20 2018-19 2017-18 2016-17 2015-16

132 | The Institute of Chartered Accountants of Bangladesh FINANCIAL HIGHLIGHTS

Income 2019-20

0% 2%

10% 19% Members' fees 6% Training & workshops Income from academic services 4% 4% Grant income Income from events

Income from investment property 13% Interest on Bank deposits

Write backs of provisions & liabilities 57%42% Other income

Income 2018-19

0% 2% 10% 11% Members' fees 3% Training & workshops 5% Income from academic services 2% Grant income

Income from events 10% Income from investment property Interest on Bank deposits

Write backs of provisions & liabilities Other income 57%

The Institute of Chartered Accountants of Bangladesh | 133 ANNUAL REPORT 2020

FINANCIAL HIGHLIGHTS

Expenditure 2019-20 0% 1% 3% 1% 1% 2% Members' services

Training and workshop expenses

19% Academic services

Expenses for MoU with universities

Events & programs expenses

0% Contribution to Regional Committees 4% Administrative expenses

3% ICAB membership subscription & renewal fees 66% Media & branding expenses Impairment & write offs

Other expenses

Expenditure 2018-19

1% 3% 1% 2% 2% 2% Members' services

Training and workshop expenses

Academic services

Expenses for MoU with universities 23% Events & programs expenses Contribution to Regional Committees

Administrative expenses

CAB membership subscription & 0% renewal fees 4% Media & branding expenses 60% 2% Impairment & write offs Other expenses

134 | The Institute of Chartered Accountants of Bangladesh FINANCIAL HIGHLIGHTS Five Years Data

Vertical Analysis Taka in Thousand

Particulars 2019-20 % 2018-19 % 2017-18 % 2016-17 % 2015-16

Income & Expenditure Income 211,525 100 262,715 100 272,536 100 276,020 100 255,786 Expenditure 235,369 111 263,186 100 271,402 100 282,935 103 251,314 Operating Surplus (23,844) (11) (471) (0) 1,134 0 (6,915) (3) 4,472

Capital and Liabilities General Fund 274,824 51 310,789 54 212,120 38 210,986 37 224,118 Land & Building Fund 135,219 25 126,956 22 236,221 43 236,221 41 236,204 Members’ Welfare Fund ------89 Employees’ Gratuity Fund 53,793 10 60,501 10 56,581 10 59,512 10 57,741 Scholarship & Relief Fund 8,104 1 7,998 1 6,440 1 6,943 1 6,826 Current Liabilities 68,013 13 70,614 12 42,307 8 59,139 10 42,419 Total 539,953 100 576,858 100 553,668 100 572,800 100 567,397

Assets Fixed Assets (WDV) 116,466 22 101,833 18 100,210 18 84,538 15 92,763 Advances and Deposits 85,004 16 86,572 15 28,414 5 12,365 2 35,206 Current Assets 338,483 63 388,452 67 425,044 77 475,898 83 439,428 Total 539,953 100 576,858 100 553,668 100 572,800 100 567,397

Horizontal Analysis Taka in Thousand Change Change Change Change over Pre over Pre over Pre over Pre Particulars 2019-20 ceding 2018-19 ceding 2017-18 ceding 2016-17 ceding 2015-16 Year (%) Year (%) Year (%) Year (%) Income & Expenditure Income 211,525 (19) 262,715 (4) 272,536 (1) 276,020 8 255,786 Expenditure 235,369 (11) 263,186 (3) 271,402 (4) 282,935 13 251,314 Operating Surplus (23,844) 4,964 (471) (142) 1,134 (116) (6,915) (255) 4,472

Capital and Liabilities General Fund 274,824 (12) 310,789 47 212,120 1 210,986 (6) 224,118 Land & Building Fund 135,219 7 126,956 (46) 236,221 - 236,221 - 236,204 Members’ Welfare Fund ------(100) 89 Employees’ Gratuity Fund 53,793 (11) 60,501 7 56,581 (5) 59,512 3 57,741 Scholarship & Relief Fund 8,104 1 7,998 24 6,440 (7) 6,943 2 6,826 Current Liabilities 68,013 (4) 70,614 67 42,307 (28) 59,139 39 42,419 Total 539,953 (6) 576,858 4 553,668 (3) 572,800 1 567,397

Assets Fixed Assets (WDV) 116,466 14 101,833 2 100,210 19 84,538 (9) 92,763 Advances and Deposits 85,004 (2) 86,572 205 28,414 130 12,365 (65) 35,206 Current Assets 338,483 (13) 388,452 (9) 425,044 (11) 475,898 8 439,428 Total 539,953 (6) 576,858 4 553,668 (3) 572,800 1 567,397

The Institute of Chartered Accountants of Bangladesh | 135 AUDITORS’ REPORT FINANCIAL STATEMENTS 2019-2020 INDEPENDENT AUDITORS’ REPORT to the Members of The Institute of Chartered Accountants of Bangladesh

Opinion 1. Corporate History

We have audited the accompanying financial statements of The Institute of Chartered Accountants of Bangladesh The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the hereinafter referred to as “the Institute”, which comprise the statement of financial position as at 30 June 2020 and Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of the statement of income and expenditure, statement of changes in funds and statement of cash flows for the year accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices then ended, and a summary of significant accounting policies and other explanatory notes. in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively. In our opinion, the accompanying financial statements present fairly, in all material respect, the financial position of the Institute as at 30 June 2020 and its financial performance and its cash flows for the year then ended in ICAB is a permanent member of several international and regional accounting bodies including IFAC accordance with International Financial Reporting Standards (IFRSs) and other applicable laws and regulations. (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide. Basis for Opinion 1.1. Objectives and Nature of Activities We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard section of our report. We are independent of the Institute in accordance the International Ethics Standards Board for of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirement that are Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and 2. Summary of Significant Accounting Policies appropriate to provide a basis for our opinion. The principal accounting policies applied in the preparation of these financial statements are set out below. Responsibilities of Management and Those Charged with Governance for the Financial These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Statements and Internal Controls Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and Management is responsible for the preparation and fair presentation of the financial statements of the Institute in presentation of financial statements. accordance with IFRSs and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 2.1 Basis of Preparation of the Financial Statements

In preparing the financial statements of the Institute, management is responsible for assessing the Institute’s ability i) Accounting Standards to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going The financial statements have been prepared in accordance with International Financial Reporting Standards concern basis of accounting unless management either intends to liquidate the Institute or to cease operations, or (IFRS) and other applicable laws and regulations. has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Institute’s financial reporting process. ii) Accounting Convention Auditors’ Responsibilities for the Audit of the Financial Statements The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS). Our objectives are to obtain reasonable assurance about whether the financial statements of the Institute as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our iii) Compliances opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in The financial statements have been prepared and the disclosures of information made in accordance with accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate the economic decisions of users taken on the basis of these financial statements. audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: iv) Critical Accounting Estimates, Assumptions and Judgments

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from policies. fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

The Institute of Chartered Accountants of Bangladesh | 137

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% IAS 32 Financial Instruments: Presentation write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables 19: Employees Benefit. proper documentation received from the registration department during the period. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka. ANNUAL REPORT 2020

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Institute’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. 1. Corporate History

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of significant doubt on the Institute’s ability to continue as a going concern. If we conclude that a material accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on Australia respectively. the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Institute to cease to continue as a going concern. ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, (South Asian Federation of Accountants), CA worldwide. and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 1.1. Objectives and Nature of Activities

We communicate with those charged with governance regarding, among other matters, the planned scope and The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard timing of the audit and significant audit findings, including any significant deficiencies in internal control that we of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh identify during our audit. Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. Report on Other Legal and Regulatory Requirements 2. Summary of Significant Accounting Policies We also report that, The principal accounting policies applied in the preparation of these financial statements are set out below. a. We have obtained all the information and explanations which to the best of our knowledge and belief were These policies have been consistently applied to all the years presented, unless otherwise stated. The specific necessary for the purposes of our audit and made due verification thereof; Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and b. In our opinion, proper books of account as required by law have been kept by the Institute so far as it appeared presentation of financial statements. from our examination of those books; and 2.1 Basis of Preparation of the Financial Statements c. The statement of financial position and statement of income and expenditure dealt with by the report are in i) Accounting Standards agreement with the books of account. The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention Snehasish Barua FCA Md. Fazlul Haque FCA The financial statements have been prepared under the historical cost convention. The Institute classified the Auditor Auditor expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

Place: Dhaka The financial statements have been prepared and the disclosures of information made in accordance with Dated: 01 December, 2020 International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

138 | The Institute of Chartered Accountants of Bangladesh

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% IAS 32 Financial Instruments: Presentation write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables 19: Employees Benefit. proper documentation received from the registration department during the period. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka. The Institute of Chartered Accountants of Bangladesh Statement of Financial Position As at 30 June 2020 Figures in Taka As at 30 June Particulars Notes 1. Corporate History 2020 2019 Assets The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Non-current Assets Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of Property, plant & equipment 3 80,915,538 74,560,489 accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices Right-of-use assets 4 13,203,143 - in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Investment property 5 21,643,269 26,563,051 Australia respectively. Intangible assets 6 704,003 709,753 Advances and deposits (non-current portion) 7 85,003,519 86,572,316 ICAB is a permanent member of several international and regional accounting bodies including IFAC Total Non-current Assets 201,469,472 188,405,608 (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA Current Assets (South Asian Federation of Accountants), CA worldwide. Inventories 8 5,115,874 6,153,891 1.1. Objectives and Nature of Activities Receivables 9 23,181,401 19,707,073 Advances, deposits and prepayments (current portion) 10 5,403,904 7,043,079 The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to Short-term investment in Fixed Deposits Receipts (FDRs) 11 223,824,700 228,901,017 qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard Cash and cash equivalents 12 80,957,257 126,647,002 of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Total Current Assets 338,483,135 388,452,063 Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. Total Assets 539,952,607 576,857,671 2. Summary of Significant Accounting Policies Funds and Liabilities Funds The principal accounting policies applied in the preparation of these financial statements are set out below. General fund 13 274,823,825 310,788,774 These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Land and building fund 14 135,219,160 126,956,011 Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have Total Funds 410,042,985 437,744,785 a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and Long-term Liabilities presentation of financial statements. Employees' gratuity fund (non-current portion) 15 53,793,020 60,500,958 General scholarship fund 16 7,917,351 7,811,511 2.1 Basis of Preparation of the Financial Statements Relief fund 186,345 186,345 i) Accounting Standards Total Long-term Liabilities 61,896,716 68,498,814 Current Liabilities The financial statements have been prepared in accordance with International Financial Reporting Standards Grants received in advance 17 2,517,517 2,517,517 (IFRS) and other applicable laws and regulations. Payables & accruals 18 19,958,494 31,874,213 Advance fees, rent & deposits 19 7,850,665 23,633,801 ii) Accounting Convention Employees' gratuity fund (current portion) 15 5,388,981 2,453,540 The financial statements have been prepared under the historical cost convention. The Institute classified the Payable to ICAB-Members' Welfare Foundation (IMWF) 20 11,610,167 10,125,000 expense using the function of expense method as per International Financial Reporting Standards (IFRS). Reserve for members’ welfare fund 21 3,639,508 - Lease liabilities 17,037,575 - iii) Compliances Other liabilities 22 10,000 10,000 Total Current Liabilities 68,012,907 70,614,071 The financial statements have been prepared and the disclosures of information made in accordance with Total Funds and Liabilities 539,952,607 576,857,671 International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA The annexed notes 1 to 44 form an integral part of these financial statements. Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

Chief Financial Officer Chief Executive Officer Vice President President The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting Signed as per the annexed report of the same date. policies.

Snehasish Barua FCA Md. Fazlul Haque FCA Auditor Auditor Dated: 01 December, 2020

The Institute of Chartered Accountants of Bangladesh | 139

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% IAS 32 Financial Instruments: Presentation write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables 19: Employees Benefit. proper documentation received from the registration department during the period. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka. ANNUAL REPORT 2020

The Institute of Chartered Accountants of Bangladesh Statement of Income and Expenditure For the Year Ended 30 June 2020 Figures in Taka Year ended 30 June Particulars Notes 1. Corporate History 2020 2019 Income The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of Members' fees 23 39,288,400 27,925,500 accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices Training & workshops 7,710,176 8,664,500 in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Income from academic services 24 88,601,454 148,453,882 Australia respectively. Grant income 25 28,000,000 27,558,250 Income from events 26 8,709,583 5,215,240 ICAB is a permanent member of several international and regional accounting bodies including IFAC Income from investment property 27 12,785,232 14,007,478 (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA Interest on bank deposits 28 22,115,825 26,327,755 (South Asian Federation of Accountants), CA worldwide. Write backs of provisions & liabilities 29 - 596,950 1.1. Objectives and Nature of Activities Other income 30 4,313,936 3,965,422 Total Income 211,524,605 262,714,977 The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to Expenditure qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Members’ services 31 6,098,177 8,915,042 Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. Training and workshop expenses 4,950,514 5,473,176 Academic services 32 44,103,518 61,098,441 2. Summary of Significant Accounting Policies Expenses for MoU with universities 513,773 183,557 The principal accounting policies applied in the preparation of these financial statements are set out below. Events & programs expenses 33 9,737,160 10,402,488 These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Contribution to regional committees (DRC & CRC) 34 6,041,115 4,836,234 Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have Administrative expenses 35 152,985,588 156,763,813 a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and ICAB membership subscription & renewal fees 36 2,920,556 2,848,308 presentation of financial statements. Media & branding expenses 37 998,500 4,943,744 Impairment & write offs 38 3,535,731 5,089,390 2.1 Basis of Preparation of the Financial Statements Other expenses 39 3,484,278 2,631,603 i) Accounting Standards Total Expenditure 235,368,910 263,185,796 Excess of Expenditure over Income (23,844,304) (470,820) The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

The annexed notes 1 to 44 form an integral part of these financial statements. ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances Chief Financial Officer Chief Executive Officer Vice President President Signed as per the annexed report of the same date. The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate Snehasish Barua FCA Md. Fazlul Haque FCA audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial Auditor Auditor statements of these regional committees have not been consolidated in the accompanying financial statements.

Dated: 01 December, 2020 iv) Critical Accounting Estimates, Assumptions and Judgments The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

140 | The Institute of Chartered Accountants of Bangladesh

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% IAS 32 Financial Instruments: Presentation write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables 19: Employees Benefit. proper documentation received from the registration department during the period. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka. The Institute of Chartered Accountants of Bangladesh Statement of Changes in Funds For the Year Ended 30 June 2020 Figures in Taka Net 1. Corporate History Land & Particulars General Fund Income/ Total Building Fund (Deficit) The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of Balance as at 01 July 2018 318,032,541 120,308,064 - 438,340,605 accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Transferred to Building fund (6,647,947) 6,647,947 - - Australia respectively. Transferred to ICAB-Members' Welfare Foundation (IMWF) (125,000) - - (125,000) Excess expenditure over income - - (470,820) (470,820) ICAB is a permanent member of several international and regional accounting bodies including IFAC Transferred to general fund during the year (470,820) - 470,820 - (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA Balance as at 30 June 2019 310,788,774 126,956,011 - 437,744,785 (South Asian Federation of Accountants), CA worldwide.

Balance as at 01 July 2019 310,788,774 126,956,011 - 437,744,785 1.1. Objectives and Nature of Activities Adjustment for Right-of-use assets (2,993,329) - (2,993,329) The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to Restated opening balance as on 1 July 2019 307,795,445 126,956,011 - 434,751,455 qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard Transferred to Building fund (8,263,149) 8,263,149 - - of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Transferred to ICAB-Members' Welfare Foundation (IMWF) (864,167) - - (864,167) Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. Excess expenditure over income - - (23,844,304) (23,844,304) 2. Summary of Significant Accounting Policies Transferred to general fund during the year (23,844,304) - 23,844,304 - The principal accounting policies applied in the preparation of these financial statements are set out below. Balance as at 30 June 2020 274,823,825 135,219,160 - 410,042,985 These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

Chief Financial Officer Chief Executive Officer Vice President President i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

The Institute of Chartered Accountants of Bangladesh | 141

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% IAS 32 Financial Instruments: Presentation write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables 19: Employees Benefit. proper documentation received from the registration department during the period. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka. ANNUAL REPORT 2020

The Institute of Chartered Accountants of Bangladesh Statement of Cash Flows For the Year Ended 30 June 2020 Figures in Taka Year ended 30 June 1. Corporate History Particulars 2020 2019 A) Cash Flows from Operating Activities The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Receipts: Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices Members' fees 18,356,601 39,375,330 in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Training & workshops 7,135,176 7,832,078 Australia respectively. Income from academic services 88,784,298 149,152,532 Income from events 8,609,583 5,215,240 ICAB is a permanent member of several international and regional accounting bodies including IFAC Interest on bank deposits 8,653,333 6,152,546 (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA Government grant 28,000,000 27,558,250 (South Asian Federation of Accountants), CA worldwide. Less: Adjustments Salaries (26,941,000) (26,400,000) 1.1. Objectives and Nature of Activities Electricity, water and others (1,059,000) (1,158,250) - - The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to - - qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard Other Income 2,895,879 5,542,044 of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh 134,434,869 213,269,770 Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. Payments: Members’ services 6,098,177 8,915,042 2. Summary of Significant Accounting Policies Training and workshop expenses 4,950,514 4,942,141 The principal accounting policies applied in the preparation of these financial statements are set out below. Academic services 48,106,075 58,783,199 These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Expenses for MoU with universities 513,773 183,557 Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have Events & programs expenses 9,737,160 10,402,488 a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and Contribution to regional committees 6,041,115 4,851,234 presentation of financial statements. Administrative expenses 96,491,069 111,021,977 Rental payments 18,166,470 - 2.1 Basis of Preparation of the Financial Statements ICAB membership subscription & renewal fees 3,055,077 3,155,203 i) Accounting Standards Media & branding expenses 998,500 4,943,744 Other expenses 1,197,056 2,631,603 The financial statements have been prepared in accordance with International Financial Reporting Standards 195,354,987 209,830,188 (IFRS) and other applicable laws and regulations. Net cash generated from/(used in) operating activities (60,920,118) 3,439,582 ii) Accounting Convention B) Cash Flows from Investing Activities The financial statements have been prepared under the historical cost convention. The Institute classified the Acquisition of non-current assets (17,806,998) (72,832,655) expense using the function of expense method as per International Financial Reporting Standards (IFRS). Short-term investment in Fixed Deposits Receipts (FDRs) (20,000,001) (30,000,000) Encashment of short-term investment in FDRs 42,550,030 54,219,156 iii) Compliances Income from investment property 10,381,500 11,783,460 Net cash generated from / (used) in investing activities 15,124,532 (36,830,039) The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA C) Cash Flows from Financing Activities Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate General scholarship fund 105,840 1,558,342 audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial Net cash generated from /(used in) financing activities 105,840 1,558,342 statements of these regional committees have not been consolidated in the accompanying financial statements. D) Net Increase / (Decrease) (A+B+C) (45,689,746) (31,832,115) iv) Critical Accounting Estimates, Assumptions and Judgments E) Beginning Cash and Cash Equivalents 126,647,003 158,479,117 The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting F) Ending Cash and Cash Equivalents (D+E) 80,957,257 126,647,002 estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

Chief Financial Officer Chief Executive Officer Vice President President

142 | The Institute of Chartered Accountants of Bangladesh

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% IAS 32 Financial Instruments: Presentation write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables 19: Employees Benefit. proper documentation received from the registration department during the period. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka. The Institute of Chartered Accountants of Bangladesh Notes to the Financial Statements For the Year Ended 30 June 2020

1. Corporate History

The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide.

1.1. Objectives and Nature of Activities

The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

The Institute of Chartered Accountants of Bangladesh | 143

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% IAS 32 Financial Instruments: Presentation write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables 19: Employees Benefit. proper documentation received from the registration department during the period. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka. 1. Corporate History

The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide.

1.1. Objectives and Nature of Activities

The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

ANNUAL REPORT 2020

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% IAS 32 Financial Instruments: Presentation write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables 19: Employees Benefit. proper documentation received from the registration department during the period. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka.

144 | The Institute of Chartered Accountants of Bangladesh 1. Corporate History

The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide.

1.1. Objectives and Nature of Activities

The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% IAS 32 Financial Instruments: Presentation write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables 19: Employees Benefit. proper documentation received from the registration department during the period. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka.

The Institute of Chartered Accountants of Bangladesh | 145 1. Corporate History

The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide.

1.1. Objectives and Nature of Activities

The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

ANNUAL REPORT 2020

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% IAS 32 Financial Instruments: Presentation write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables 19: Employees Benefit. proper documentation received from the registration department during the period. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka.

146 | The Institute of Chartered Accountants of Bangladesh 1. Corporate History

The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide.

1.1. Objectives and Nature of Activities

The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% IAS 32 Financial Instruments: Presentation write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables 19: Employees Benefit. proper documentation received from the registration department during the period. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka.

The Institute of Chartered Accountants of Bangladesh | 147 1. Corporate History

The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide.

1.1. Objectives and Nature of Activities

The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

ANNUAL REPORT 2020

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% IAS 32 Financial Instruments: Presentation write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables 19: Employees Benefit. proper documentation received from the registration department during the period. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka.

148 | The Institute of Chartered Accountants of Bangladesh 1. Corporate History

The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide.

1.1. Objectives and Nature of Activities

The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund Figures in Taka on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. As at 30 June The following IASs and IFRSs are applicable for the financial statements for the year under review: Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are Notes property, plant and equipment no depreciation will be charged. 2020 2019 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in 3. Property, plant & equipment IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS Cost 219,388,623 190,974,313 IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the Less: Accumulated depreciation 138,473,086 116,413,825 IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of Written-down value 80,915,538 74,560,489 IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle A schedule of Property, plant & equipment is given in Annexure-"A" IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% IAS 16 Property, Plant and Equipment is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in Exterior glass work 25% 4. Right-of-use assets IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. Cost 31,492,291 - IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, Less: Depreciation charged during the year 18,289,148 - IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Written-down value 13,203,143 - IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events Electrical equipment 20% under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories Short-term Employee Benefits The written-down value of Right-of-Use assets with an aggregated amount of Tk. 13,203,143 at the reporting date. Air conditioners 20% embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans to net realizable value and all losses of inventories are recognized as an expense in the period that the Correspondingly, the lease liabilities have been accounted for an aggregated amount of Tk. 17,037,575 at the reporting Vehicle 25% Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. IAS 32 Financial Instruments: Presentation write-down or loss occurs. date (Ref: "Statement of Financial Position"). As this is the first year of the adoption of IFRS-16, hence an cumulative Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition effect of an aggregated amount of Tk. 2,993,329 has been taken into account with the opening balance of General Fund IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus of this year (Ref: Note 13). IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund An aggregated amount of Tk. 18,289,148 and Tk. 2,287,222 were charged as depreciation of Right-of-use assets and IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues finance charge on Right-of-use assets respectively during this year (Ref: Note 35 & Note 39). The cash outflows in IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise respect of the lease liabilities was an aggregated amount of Tk. 18,166,470 during this year (Ref: "Statement of Cash standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: Flows"). 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 5. Investment property 2.13 Financial Instruments Defined Contribution Plan contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Cost 35,929,248 44,653,274 Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the Less: Accumulated depreciation 14,285,978 18,090,223 investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. Written-down value 21,643,269 26,563,051 2.3 Functional and Presentation Currency ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination Details of the investment property are given below. At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right i) Receivables employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded Cost Price Particulars Floors Area (sqft) Current Market Price Per (Sqft) These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees Per (Sqft) lease payments made at or before the commencement date, plus any initial direct costs incurred and an 30 June 2020 30 June 2019 2.4 Foreign Currency Translation ii) Payables contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on th 19: Employees Benefit. proper documentation received from the registration department during the period. TK Bhaban 12 10,031 2,712 18,250 14,700 Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the CA Bhaban 1st 6,206 - 18,250 12,600 Defined Benefit Plan b) Examination Fees th accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. CA Bhaban 4 6,206 - 18,250 12,600 translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for Details of Investment property are stated in Annexure-"B" Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 6. Intangible assets 2.5 Reporting Period At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to academic campus respectively. The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the Cost 3,297,262 2,793,262 determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such c) Training Fees employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of Less: Accumulated amortization 2,593,259 2,083,509 These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is Written-down value 704,003 709,753 commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. Details of Intangible assets are stated in Annexure-"C" time. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 7. Advances and deposits (non-current portion) 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the Advances for land (Note 7.1) 79,758,260 79,758,260 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment Security deposits (Note 7.2) 5,245,259 5,599,605 It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, Rent for academic campus (adjustable within 60 months) (Note 7.3) - 1,214,451 property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. Closing balance 85,003,519 86,572,316 employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. 7.1 Advances for land v) Other Income West Tejturi Bazar (Note 7.1.1) 22,000,000 22,000,000 The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less 2.18 Government Grants Uttara, Purbachal and Chottogram (Note 7.1.2) 79,758,260 79,758,260 from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are 101,758,260 101,758,260 depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period Less: Provision against advance for land (Note 7.1.3) 22,000,000 22,000,000 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Total 79,758,260 79,758,260 Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka.

The Institute of Chartered Accountants of Bangladesh | 149 1. Corporate History

The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide.

1.1. Objectives and Nature of Activities

The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

ANNUAL REPORT 2020

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund 7.1.1 Advance against land-West Tejturi Bazar on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are Advance payment of Tk. 2.20 crore was made for purchasing land measuring 30.02 decimals located at 263, Kawran The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in Bazar (West Tejturi Bazar), Dhaka vide registered Baina Nama No. 3078 & 3084 dated 16 & 17 May 2010 respectively. Detecting disputes in the land, the Council in its meeting held on 22-09-2012 decided not to purchase the land rather IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS to put efforts to recover the advanced money since the vendors are not in a position to hand over the possession of IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the land to ICAB. IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk ICAB filed two Money Suits (Civil cases) No. 22/2013 and 23/2013 in the 4th Joint District Judge, Dhaka against the 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% vendors in 2013 to get back the money paid as advance for purchasing of 02 plots of land stated above. IAS 16 Property, Plant and Equipment is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in Exterior glass work 25% As regards Money Suit number 22/2013, the honorable Court (4th Joint District Judge Court, Dhaka) on 27-9-2016 IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. has given expert judgment (without cost) in favour of ICAB and directed the Vendor (Defendant) to pay Tk. 1.00 (one) IFRS 16 Leases Books and periodicals 20% 2.20 Provisions crore (advanced amount) to ICAB within 60 days of the judgment. The Court also issued decree in favour of ICAB and Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits against the defendant (Vendor). As per the Court Order, failure to pay the money to ICAB by the defendant within the Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% stipulated time, the plaintiff (ICAB) can be able to recover the money through the Court. As regards Money Suit costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits number 23/2013, the honorable Court (4th Joint District Judge Court, Dhaka) on 13-2-2017 has given expert judgment to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% (without cost) in favour of ICAB and directed the Vendors (Defendants) to pay Tk. 1.20 crore (advanced amount) to write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. ICAB within 60 days of the judgment. The Court also issued decree in favour of ICAB and against the defendants IAS 32 Financial Instruments: Presentation Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. (Vendors). As per the Court Order, failure to pay the money to ICAB by the defendant within the stipulated time, IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition IAS 37 Provisions, Contingent Liabilities and Contingent Assets advanced money can be recovered by the plaintiff (ICAB) through the Court. Festival Bonus Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the As regard the next course of actions of ICAB to get back the money paid as advance to the vendors, legal opinion was of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make taken from Mr. Sarder Md. Suruzzaman, Advocate, Supreme Court of Bangladesh (ICAB's lawyer on the land issue). As IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues per the legal opinion of Advocate Sarder Md. Suruzzaman, failing to pay the advanced money as mentioned above by IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise the defendants (Vendors) within 60 (sixty) days of Court Order, Execution case can be filed to the Court against the standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: Vendors (within 03 years) by ICAB. Failing to pay the advanced money within the stipulated time after filing execution 2.2 Statement of Cash Flows case (decree notification) case, land in questions and other properties in the possession of the defendants (vendors) Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan can be attached and sold out through the Court for realization of the ICAB's advanced money. contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the A team led by President ICAB consisting of Chairman, Real Estate Committee (REC), ICAB, Secretary and Deputy investing and financing activities. Provident Fund and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. Secretary-ICAB met with Mr. ABM Siddique, Managing Director of Kranti Housing Ltd. on 17 July 2017 who claimed himself as an owner of the land. As per decision of the Council-ICAB taken in its meeting held on 25-7-2017, Legal 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded Adviser of ICAB on land matters has been advised to initiate legal steps to obtain permanent injunction on said land, These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees which includes but not limited to, transfer of ownership, establishment of any structures (whether permanent or lease payments made at or before the commencement date, plus any initial direct costs incurred and an temporary), or utilization of said land in any form, in addition to lodging suits for realization of said advanced money. contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation ii) Payables For realization of advanced, money suite decree suit no 1/2018 and 2/2018 was filed on 8 March 2018. In May 2019, estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on 19: Employees Benefit. proper documentation received from the registration department during the period. the honorable 4th Joint District Judge Court issued a show cause notice to the Respondents mentioning that why the Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the said land should not be croked against an application made by the Institute in this regards on 23 January 2019. ICAB. Defined Benefit Plan b) Examination Fees accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement However, no response has been obtained from the respondents till to date. In this circumstances, the Institute is translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for advised by its legal advisor to make an application before the Court for auction of the aforesaid land. There is a Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. possibility to arrange an auction for sale of such land as on 20 January 2021. 2.5 Reporting Period At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the academic campus respectively. However, based on prudence, full provision for the said advanced amount has been made in the accounts. determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is Figures in Taka commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that amounts. Recoverable amount is the higher of net selling price and value in use. 2.6 Comparative Information employees eligible for this benefit. completed. As at 30 June time. Notes Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2020 2019 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the 7.1.2 Advance against land 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment Uttara (Note 7.1.2.1) 5,000,000 5,000,000 Purbachal (Note 7.1.2.2) 15,600,000 15,600,000 property is measured at cost price including directly attributable expenditures. All other day-to-day It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, iv) Rental Income The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees Chattogram (Note 7.1.2.3) 59,158,260 59,158,260 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. Total 79,758,260 79,758,260 the financial period in which they are incurred. 2.7.1 Tangible Assets 2.16 Financial Risk Management separation from employment. 7.1.2.1 Uttara 3rd phase Plot for ICAB academic campus Date v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged 19-Nov-13 2,500,000 2,500,000 Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. 21-Jan-18 2,500,000 2,500,000 cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. Total 5,000,000 5,000,000 items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 7.1.2.2 Purbachal plot for ICAB academic campus Date 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial 26-May-15 1,500,000 1,500,000 Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. 26-Dec-17 1,500,000 1,500,000 only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is 20-May-18 12,600,000 12,600,000 cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Total 15,600,000 15,600,000 Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka.

150 | The Institute of Chartered Accountants of Bangladesh 1. Corporate History

The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide.

1.1. Objectives and Nature of Activities

The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund 7.1.2.3 ICAB received an allotment letter for a plot of 12.18 katha located at Annonyna Residential Area, Oxyzen, opposite on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. site of Apollo Hospital Chittagong Vide letter dated 9 October 2018 from Chittagong Development Authority (CDA) Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management at a total price of Tk. 59,158,260. It is expected that the registration of the land in the name of the Institute will be 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in obtained in the upcoming year which will likely incur cost an amount of Tk. 20,000,000 (approx.). IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS 7.1.3 This provision was created based on prudence against advance for land at West Tejturi Bazar, Dhaka and in no way IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the diminish ICAB's legitimate claim on the amount as well as on the land for which payment was made. Advance was IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of made on 16 & 17 May 2010 and subsequently it was revealed that there are dispute over land ownership. ICAB filed IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle case to (Civil cases) No. 22/2013 and 23/2013 to competent court and the same is pending for disposal. IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in Figures in Taka IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. As at 30 June Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. Notes IFRS 16 Leases Books and periodicals 20% 2.20 Provisions 2020 2019 Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits 7.2 Security deposits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events ICAB Academic Campus, Dhaka (Equivalent to 3 months' rent)* 3,264,366 3,346,485 IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources ICAB Branch Office, Chattogram (Equivalent to 6 months' rent)* 1,313,836 1,495,188 IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the ICAB Library, Chattogram (Equivalent to 6 months' rent)* 658,357 749,232 IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. BTTB 6,700 6,700 IAS 32 Financial Instruments: Presentation Computers and IT equipment 25% IAS 36 Impairment of Assets within twelve months after the end of the period in which the employees render the related service. Dhaka Bank locker 2,000 2,000 Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition Total 5,245,259 5,599,605 IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities * The amount of security deposit has been measured at fair value as per IFRS 9 on 30 June 2020. IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues 7.3 Advance for academic campus rent IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise Opening balance - 2,214,459 standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: Adjustment made during the year - 1,000,008 2.2 Statement of Cash Flows Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees Closing balance - 1,214,451 2.13 Financial Instruments Defined Contribution Plan Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees Due to adoption of IFRS-16 for the first time during this year, the advance rent for academic campus has been taken investing and financing activities. exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Provident Fund into account with "Right-of-Use Assets". As such no balances and adjustment of the advances have been separately contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. and subscription received in advance are considered as liability. asset, the Institute applies the definition of a lease in IFRS 16. reported during this year. 2.3 Functional and Presentation Currency ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination i) Receivables 2020 2019 At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded 8. Inventories QTY QTY These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an Study manuals 4,475 4,902 1,705,006 1,719,228 contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables Suggested answer, question books, etc. 8,327 16,426 810,990 1,411,920 19: Employees Benefit. proper documentation received from the registration department during the period. IAS, ISA and Audit Practice Manual 4,284 5,365 2,244,693 2,641,042 Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees Sundry stationery 355,185 381,701 accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. Closing balance 5,115,874 6,153,891 translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for 9. Receivables Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period Annual fees from members: 14,425,785 11,049,996 academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees In practice (Note 9.1) 485,100 488,900 These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the Not in practice (Note 9.2) 13,940,685 10,561,096 indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that IDC penalty (Note 9.3) 2,050,000 3,350,000 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Rental income receivable (Note 9.4) 6,506,676 4,102,944 Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests Advertisement against National Award - 500,000 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the Local Governance Support Project (LGSP) 193,940 193,940 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment Receivable from members' welfare fund 5,000 510,194 It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, Closing Balance 23,181,401 19,707,073 property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 9.1 Ageing of receivables from practicing members 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. Current year 294,200 346,600 v) Other Income More than 1 year but less than 2 years 58,000 116,000 The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants More than 2 years but less than 3 years 132,900 26,300 from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are Total 485,100 488,900 depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period 9.2 Ageing of receivables from non-practicing members 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Current year 8,446,720 6,213,570 Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. More than 1 year but less than 2 years 3,814,353 3,093,100 only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of done to make the academic campus ready. As the building is a rented arrangement, the depreciation is initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed More than 2 years but less than 3 years 1,405,800 794,431 conference and subscription to professional bodies. There are no other transactions taking place in foreign 2.23 General More than 3 years 273,812 459,995 Income and Expenditure during the financial period in which they are incurred. chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the expenditures for the respective project. currencies. Therefore, ICAB is not exposed to any significant currency risk. Total 13,940,685 10,561,096 inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka.

The Institute of Chartered Accountants of Bangladesh | 151 1. Corporate History

The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide.

1.1. Objectives and Nature of Activities

The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

ANNUAL REPORT 2020

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund 9.3 The receivables consists of IDC monetary penalty imposed by the Council on eight (8) separate cases on different on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. occasions. Out of which the Hon'ble High Court Division in the Supreme Court of Bangladesh issued stay order against Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management writ petitions filed by the eight (8) petitioner on different dates over the previous years. As such the receivables are 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in yet to be realized. IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Figures in Taka Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the As at 30 June IAS 7 Statement of Cash Flows Land Nil award of the scholarship. Notes straight-line method. Amortization is charged from the month the assets are available for use at the rate of 2020 2019 IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle 9.4 Rent receivables IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in Media Star Ltd. (Note 9.4.1) 3,822,739 1,568,861 IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Premier Cement Ltd. - T K Bhaban 12th Floor (Note 9.4.1) 2,647,937 2,498,083 Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. Canteen rent of academic campus, Dhaka 36,000 36,000 IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, Total 6,506,676 4,102,944 IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events 9.4.1 These amounts have been realized subsequently. IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the 10. Advances, deposits and prepayments (current portion) IAS 26 Accounting and Reporting by Retirement Benefit Plans Vehicle 25% write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. Advances (Note 10.1) 5,303,904 6,921,890 IAS 32 Financial Instruments: Presentation Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. Security deposits with City filling station 100,000 89,530 IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition Prepaid insurance (net) - 31,658 IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities Closing balance 5,403,904 7,043,079 IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise 10.1 Advances standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: Advances to employees (Note 10.1.1) 3,657,889 3,024,376 2.2 Statement of Cash Flows Advances against goods and services (Note 10.1.2) 1,646,015 3,897,514 Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan Total 5,303,904 6,921,890 Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees investing and financing activities. exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Provident Fund contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. and subscription received in advance are considered as liability. 10.1.1 Advances to employees asset, the Institute applies the definition of a lease in IFRS 16. Against salary 1,666,000 2,536,616 2.3 Functional and Presentation Currency ICAB maintains contributory un-recognized provident fund for its permanent employees except for the i) Receivables ii) Education, Training and Examination Against renovation and other expenses 1,991,889 487,760 At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded Total 3,657,889 3,024,376 These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS 2.4 Foreign Currency Translation ii) Payables Income from Student Registration Fees is recognized based on the number of applications for registration with 10.1.2 Advances against goods and services estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on 19: Employees Benefit. proper documentation received from the registration department during the period. 37,580 Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Dhaka University and others 37,580 Defined Benefit Plan b) Examination Fees ERP Software - 504,000 accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. Renovation work for 5th floor (M/S Farhana Sharmin) - 220,000 translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for 2.14 Impairment of Assets Gratuity Fund Renovation work for ground floor-academic campus, Dhaka - 50,000 Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the Chittagong Regional Committee (CRC) 115,000 115,000 academic campus respectively. 1,258,914 determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees Advance to professional bodies (Note 10.1.2.2) 1,393,435 These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the Preparation of AV (Mengo) - 500,000 indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that Coffee table books (M/S Nymphea) - 430,500 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. Utility bills paid to land lord of academic campus, Dhaka - 550,886 Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests Switchgear for substation (M/S United General Electric) - 200,000 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the Consultancy fee for 9th floor (M/S. Structural Steel Building System) 100,000 - 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment Office stationeries (M/S Bashundhara Paper Mills Ltd.) - 30,634 property is measured at cost price including directly attributable expenditures. All other day-to-day It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, iv) Rental Income Closing balance 1,646,015 3,897,514 2.7 Property, Plant & Equipments and there was insignificant risk of changes in value of these current assets. The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 10.1.2.2 Advance to professional bodies 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. v) Other Income Advance subscription to: The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants Confederation of Asian and Pacific Accountants (CAPA) 182,748 95,062 from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are Chartered Accountants Worldwide (CAW) 631,200 623,724 depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period International Federation of Accountants (IFAC) 579,488 540,128 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Total 1,393,435 1,258,914 Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka.

152 | The Institute of Chartered Accountants of Bangladesh 1. Corporate History

The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide.

1.1. Objectives and Nature of Activities

The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund Figures in Taka on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. As at 30 June Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are Notes The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2020 2019 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in 11. Short-term Investment in Fixed Deposits Receipts (Maturity period of 6 to 12 months) IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS Fixed Deposit Receipts (FDRs) with Banks/NBFIs IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. Opening balance 228,901,017 234,804,553 straight-line method. Amortization is charged from the month the assets are available for use at the rate of Add: Investment made during the year 20,000,000 30,000,000 IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle Interest earned during the year 17,473,712 18,315,621 IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in 37,473,712 48,315,621 IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. Less: Encashment during the year 42,550,030 54,219,156 Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. Closing balance 223,824,700 228,901,017 IFRS 16 Leases Books and periodicals 20% 2.20 Provisions IAS 19 Employee Benefits Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, Details of sources for fixed deposits receipts Office equipment 20% 2.17 Employee Benefits Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The ICAB's unrestricted fund 6,256,515 21,053,999 Electrical equipment 20% under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories Short-term Employee Benefits Land and building fund 135,219,160 126,956,009 Air conditioners 20% embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the IAS 26 Accounting and Reporting by Retirement Benefit Plans to net realizable value and all losses of inventories are recognized as an expense in the period that the Employees' gratuity fund 59,182,000 62,954,498 Vehicle 25% Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. IAS 32 Financial Instruments: Presentation write-down or loss occurs. ICAB-Members' welfare foundation 15,249,675 10,125,000 Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition Scholarship fund 7,917,351 7,811,511 IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus Closing Balance 223,824,700 228,901,017 IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities Investment period grouping of fixed deposits receipts with Banks/NBFIs IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund Six (6) months 105,605,256 95,301,368 IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues Twelve (12) months 118,219,444 133,599,650 year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise IAS 40 Investment Property Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the Total 223,824,700 228,901,017 standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: 2.2 Statement of Cash Flows Bank-wise breakup of fixed deposits receipts with Banks/NBFIs Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or 2.13 Financial Instruments i) Membership Fees Defined Contribution Plan Brac Bank Ltd. 10,919,410 10,087,671 Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees Delta Brac Housing Finance Corporation Ltd. 26,259,968 23,991,632 investing and financing activities. exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Provident Fund and subscription received in advance are considered as liability. IDLC Finance Ltd. 27,031,693 24,686,429 asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. LankaBangla Finance Ltd. 52,044,644 88,654,117 2.3 Functional and Presentation Currency i) Receivables ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded NRB Bank Ltd. 35,765,498 33,066,332 These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees Shahjalal Islami Bank Ltd. 11,189,940 10,463,940 lease payments made at or before the commencement date, plus any initial direct costs incurred and an Southeast Bank Ltd. 40,406,424 37,950,896 2.4 Foreign Currency Translation ii) Payables contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on 19: Employees Benefit. The City Bank Ltd. 20,207,123 - proper documentation received from the registration department during the period. Total 223,824,700 228,901,017 Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees 12. Cash and cash equivalents accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. Cash in hand 336,258 201,517 translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for 2.14 Impairment of Assets Gratuity Fund Cash with bank 80,620,999 126,445,485 Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 2.5 Reporting Period Current accounts (Note 12.1) 4,167,008 20,490,291 academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such c) Training Fees Savings accounts (Note 12.2) 3,903,090 4,877,363 These financial statements cover one year starting from 01 July 2019 to 30 June 2020. employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of The lease liability is initially measured at the present value of the lease payments that are not paid at the indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable Fixed deposits receipts (Note 12.3) 72,550,901 101,077,832 their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is Closing Balance 80,957,257 126,647,002 commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. time. 12.1 Current accounts Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests Dhaka Bank Ltd.-General fund 2,130,900 18,284,237 2.8 Investment Property financial statements and the narrative and descriptive information where it is relevant for understanding of the Southeast Bank Ltd.-Exam fees fund 588,655 1,039,970 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment Sonali Bank Ltd. London Branch, UK (Note 12.4) 605,860 605,860 property is measured at cost price including directly attributable expenditures. All other day-to-day It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, iv) Rental Income Bank Asia Ltd.-General fund 839,593 560,223 The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees Agrani Bank Ltd. 2,000 - 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. Dhaka Bank Ltd.-Exam fees fund 1 1 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. Total 4,167,008 20,490,291 v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged 12.2 Savings accounts Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. Dhaka Bank Ltd. - Chittagong land project (STD A/C) 13,681 15,916 cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are depreciation will be charged. AB Bank Ltd. - Employee Gratuity fund 42,757 41,892 items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period AB Bank Ltd. - ICAB Center for Professional Excellence 692,506 2,775,559 2.9 Renovation of Rented Academic Campus expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, i) Currency Risk for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial AB Bank Ltd. - ICAB IDC Penalty Deposit Account 1,325,169 294,049 Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. AB Bank Ltd. - ICAB Scholarship fund account 10,998 5,755 only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are done to make the academic campus ready. As the building is a rented arrangement, the depreciation is Social Islamic Investment Bank Ltd. - Chattogram 195,479 230,220 cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the AB Bank Ltd. -MJ Abedin Scholarship Fund FDRs (Custodian) 1,622,500 1,513,973 Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. Total 3,903,090 4,877,363 inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka.

The Institute of Chartered Accountants of Bangladesh | 153 1. Corporate History

The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide.

1.1. Objectives and Nature of Activities

The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

ANNUAL REPORT 2020

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund Figures in Taka on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. As at 30 June Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are Notes The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management 2020 2019 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in 12.3 Fixed deposit receipts (FDRs) with Banks/NBFIs* IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS Opening balance 101,077,832 150,996,625 IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the Add: Interest earned during the year 5,245,520 8,136,528 IAS 7 Statement of Cash Flows Land Nil award of the scholarship. straight-line method. Amortization is charged from the month the assets are available for use at the rate of 106,323,352 159,133,154 IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Building 2% iii) Liquidity and Interest Rate Risk 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle Less: Encashment during the year 33,772,451 58,055,322 IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% Closing balance 72,550,901 101,077,832 is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in IAS 16 Property, Plant and Equipment Exterior glass work 25% IFRS 15 Revenue from Contracts with Customers does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. *Fixed Deposits Receipts (FDRs) with maturity period up to three (3) months are reported under cash & cash equivalent. Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. IFRS 16 Leases Books and periodicals 20% 2.20 Provisions Bank-wise breakup of fixed deposits receipts with Banks/NBFIs: Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, IAS 19 Employee Benefits Office equipment 20% 2.17 Employee Benefits Delta Brac Housing Finance Corporation Ltd. - 33,472,592 Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Electrical equipment 20% Social Islami Bank Ltd. 2,333,620 2,194,476 costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits Southeast Bank Ltd. 70,217,281 65,410,764 IAS 26 Accounting and Reporting by Retirement Benefit Plans to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the Total 72,550,901 101,077,832 Vehicle 25% Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. IAS 32 Financial Instruments: Presentation write-down or loss occurs. 12.4 Sonali Bank Ltd has issued a letter to ICAB on 11 September 2017 relating to the closure of the Sonali Bank UK branch Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition due the closure of Sonali Bank (UK) Ltd. Subsequently, having carried out correspondence with the Sonali Bank Uk branch, it came to know that all the unclaimed retail deposits of the bank has been taken by Trustees "R W J LONG IAS 37 Provisions, Contingent Liabilities and Contingent Assets Festival Bonus IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities AND N H SINCLAIR (SBUK)". However, the reported amount of Tk. 605,860 has been received in Bangladesh on 14 IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund September 2020 through our operational bank account from the aforesaid Trustees. IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues 13. General fund IAS 40 Investment Property year using the modified retrospective approach recognizing the cumulative effect of initial application of the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise Opening balance before adjustment of Right-of-use assets 310,788,774 318,032,541 standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. recognition policies are briefly described as under: Less: Adjustment for Right-of-use assets 2,993,329 - 2.2 Statement of Cash Flows Opening balance after adjustment of Right-of-use assets 307,795,445 318,032,541 Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan Less: Excess of expenditure over income 23,844,304 470,820 contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees Transferred to building fund 8,263,149 6,647,947 exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the investing and financing activities. Provident Fund and subscription received in advance are considered as liability. Transferred to Members' Welfare Foundation 864,167 125,000 asset, the Institute applies the definition of a lease in IFRS 16. contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. Closing balance 274,823,825 310,788,774 2.3 Functional and Presentation Currency ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right i) Receivables 14. Land and building fund employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded 14.1 Land fund These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any a) Student Registration Fees Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the Kawran Bazar land 981,489 981,489 lease payments made at or before the commencement date, plus any initial direct costs incurred and an contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with Uttara land project 5,000,000 5,000,000 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables 19: Employees Benefit. proper documentation received from the registration department during the period. Purbachal land project 15,600,000 15,600,000 Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Chattogram land project 59,158,260 59,158,260 Defined Benefit Plan b) Examination Fees Closing Balance 80,739,749 80,739,749 accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for 14.2 Building fund Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. Opening balance 46,216,262 39,568,315 2.5 Reporting Period academic campus respectively. At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the Add: Addition during the year 8,263,149 6,647,947 determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees Closing balance 54,479,411 46,216,262 These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the Total Land and building fund 135,219,160 126,956,011 indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. Land and building fund was created for the permanent establishment of Dhaka campus and Chittagong regional time. office. Initially, this fund was build up by some contributions from the Council members and corporate bodies. Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property Subsequently, the fund was build up with appropriation of General fund. financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Leave Encashment Interest Income on Bank Deposits is recognized on accrual basis. 15. Employees' gratuity fund current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Opening balance 62,954,498 58,049,440 It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, property is measured at cost price including directly attributable expenditures. All other day-to-day iv) Rental Income Add: Provision for the year (2,329,818) 6,594,043 2.7 Property, Plant & Equipments The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. 60,624,680 64,643,483 employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. Less: Payments to retired employees (Note 15.1) 1,442,680 1,688,985 v) Other Income Closing balance 59,182,000 62,954,498 The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants Maturity grouping of the fund is as under from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are Current liabilities 5,388,981 2,453,540 depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period Non-current liabilities 53,793,020 60,500,958 expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Total 59,182,000 62,954,498 2.9 Renovation of Rented Academic Campus i) Currency Risk Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial 15.1 Payment to retired employees Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are Mr. Md. Anisur Rahman 1,161,680 - done to make the academic campus ready. As the building is a rented arrangement, the depreciation is Mr. Hamidur Rahman Molla 281,000 - cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Mr. Tayab Ali - 1,465,365 Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka. Mr. Rana (Deceased) - 223,620 Total 1,442,680 1,688,985

154 | The Institute of Chartered Accountants of Bangladesh 1. Corporate History

The Institute of Chartered Accountants of Bangladesh (ICAB or the Institute) was established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chattogram and overseas chapters namely UK, North America & Asia Pacific in London, Toronto & Australia respectively.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants), CA worldwide.

1.1. Objectives and Nature of Activities

The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of IAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other applicable laws and regulations.

ii) Accounting Convention

The financial statements have been prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per International Financial Reporting Standards (IFRS).

iii) Compliances

The financial statements have been prepared and the disclosures of information made in accordance with International Financial Reporting Standards (IFRS). Pursuant to the Sub section-3 of Section 100 of the CA Bye-Laws 2004, the financial statements of the regional committees of the Institute are subject to a separate audit and shall be adopted the same at its respective Annual General Meetings (AGMs). Therefore, the financial statements of these regional committees have not been consolidated in the accompanying financial statements.

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies.

v) Application of Standards Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation Air-Conditioner, Furniture and Fixture, Computer and IT Equipments were depreciated at the rate as specified in ii) Credit Risk 2.19 General Scholarship Fund In earlier years, provision for employees' gratuity fund was accounted for by applying best judgement of the on additions is charged from the month on which the asset is available for use and on the month of disposal of note 2.7 as those assets can be used even after the completion of contract. managment. However, the employees' gratuity fund has been measured and accounted for at fair value based on the Some of the Past-presidents of ICAB, Chartered Accountants Firms, Senior ICAB Members and Foundations are The following IASs and IFRSs are applicable for the financial statements for the year under review: property, plant and equipment no depreciation will be charged. Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management actuarial investigation carried out on 30 June 2020 by a professional valuer namely "Z. Halim & Associates". According 2.10 Intangible Assets covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The sponsoring scholarship to the articled students to promote the Chartered Accountancy Profession in to the report, the value of liability stood at Tk. 59,182,000 and hence no additional provision was required during this IAS 1 Presentation of Financial Statements The rates of depreciation applied are as follows: majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults Bangladesh. The Scholarship Fund is created with their financial contribution. The eligibility criteria for getting year and excessive provision made in earlier years has been reversed and adjusted with the head of Salaries & Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under IAS IAS 2 Inventories Particulars Rate of counterparts and incorporate this information into credit risk policies. scholarship are determined by the respective sponsors but ICAB is entrusted in all matters in connection with the Allowances during the year (Ref: Note-35). 38: Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the IAS 7 Statement of Cash Flows Land Nil award of the scholarship. 16 General scholarship fund IAS 8 Accounting policies, Changes in Accounting Estimates and Errors straight-line method. Amortization is charged from the month the assets are available for use at the rate of iii) Liquidity and Interest Rate Risk Building 2% Sl. No. Name of scholarship Opening Contribution Interests Disbursement Closing balance Closing balance 33.33% per annum. Intangible assets consist of office software and ERP software. Development of ERP software ICAB is operating Scholarship Fund through separate savings bank account with AB Bank Limited. The idle as at 30 June, 2020 as at 30 June, 2019 IAS 10 Events after the Reporting Period Civil and other works (including renovation) 10% IAS 16 Property, Plant and Equipment is in progress. ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it amount of this fund is normally invested in FDR in favor of respective sponsors. The interest income generated in a ACNABIN Scholarship 905,412 - 68,402 129,000 844,814 905,412 Exterior glass work 25% does not have significant exposure to liquidity risk. Liquidity position is monitored on day-to day basis to fulfill the savings account is allocated amongst the sponsor’s available balance. b ABM Azizuddin Scholarships 639,679 10,000 49,308 90,000 608,987 639,679 IFRS 15 Revenue from Contracts with Customers c - 24,000 - 24,000 Furniture and fixture 10% 2.11 Inventories short-term needs. Excess funds are invested in appropriate interest bearing deposits. AKM Mizanur Rahman Scholarship - - IFRS 16 Leases Books and periodicals 20% 2.20 Provisions d Bhola Foundation 1,097,715 - 92,481 48,000 1,142,196 1,097,715 IAS 19 Employee Benefits Inventories consist of Study Materials, IAS, ISA and Audit Practice Management Guide, Sundry Stationery, e Hawlader Yunus Scholarship - - - - Office equipment 20% 2.17 Employee Benefits f M.J. Abedin Scholarship 1,621,973 - 108,527 103,500 1,627,000 1,621,973 IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Suggested Answers, etc. and are valued at the lower of cost and net realizable value under IAS 2: Inventories. The Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events Electrical equipment 20% g ICAB Scholarship 193,937 - 17,086 211,023 193,937 costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories under IAS: 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources IAS 21 The Effects of Changes in Foreign Exchange Rates Air conditioners 20% Short-term Employee Benefits h Masihur Rahman Memorial Scholarship 312,288 - 27,513 339,801 312,288 IAS 26 Accounting and Reporting by Retirement Benefit Plans to net realizable value and all losses of inventories are recognized as an expense in the period that the embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the i RRH Scholarship 612,004 - 43,214 121,500 533,718 612,004 Vehicle 25% 120,000 IAS 32 Financial Instruments: Presentation write-down or loss occurs. Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled obligation can be made. j Syful Shamsul Alam Scholarship - 771 111,250 9,521 - Computers and IT equipment 25% within twelve months after the end of the period in which the employees render the related service. k SF Ahmed Foundation Scholarship 19,346 120,000 2,365 112,500 29,211 19,346 IAS 36 Impairment of Assets Intangible assets 33.33% 2.12 Advances, Deposits and Prepayments 2.21 Revenue Recognition l Sena Kallayan Sangstha Scholarship 3,341 - 294 3,635 3,341 IAS 37 Provisions, Contingent Liabilities and Contingent Assets m President Scholarship Fund 2,405,818 - 207,879 46,250 2,567,447 2,405,818 Festival Bonus - IAS 38 Intangible Assets 2.7.2 Right-of-use Assets ICAB recognizes advances, deposits and pre-payments as assets and discloses them at their book value in the Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities n RRH Associates Scholarship - - - - o A F Mujibur Rahman Foundation - - - - - IFRS 9 Financial Instruments: Recognition and Measurement categories of long term and short-term advances, deposits and pre-payments. Short term advances, deposits ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make of the ICAB when those inflows result in increases in fund, other than increases relating to contributions from fund Total 7,811,511 274,000 617,840 786,000 7,917,351 7,811,511 IFRS 7 Financial instruments: Disclosures Right-of-use Assets are accounted for according to IFRS 16 “Leases”. The standard has been adopted during this and prepayments are those which are expected to be settled or recovered within the 12 months’ period from the such payments as a result of past events and a reliable estimate of the obligation can be made under IAS 19: participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues year using the modified retrospective approach recognizing the cumulative effect of initial application of the are recognized following the conditions of IFRS 15: Revenue from Contracts with Customers. Major item-wise Details of disbursement from scholarship fund are stated in "Annexure-D" IAS 40 Investment Property date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the Figures in Taka standard with General Fund. The details impact of changes in the financial statements has been disclosed in Note 4. recognition policies are briefly described as under: or more unless there is any significant doubt of recovery for which appropriate provision are made. payment. As at 30 June 2.2 Statement of Cash Flows Notes Pursuant to this standard the Institute assess whether a contract is, or contains, a lease. A contract is, or i) Membership Fees 2.13 Financial Instruments Defined Contribution Plan 17. Grants received in advance 2020 2019 Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the Income from fees and subscriptions is recognized in the accounting period to which the services are related. Fees Opening balance 2,517,517 2,517,517 investing and financing activities. exchange for consideration. To assess whether a contract conveys the right to control the use of an identified Provident Fund contractual provisions of the instruments under IFRS 9 Financial Instruments: Recognition and Measurement. and subscription received in advance are considered as liability. Add: Government grant received during the year (Note 17.1) 28,000,000 27,559,000 asset, the Institute applies the definition of a lease in IFRS 16. 30,517,517 30,076,517 2.3 Functional and Presentation Currency ICAB maintains contributory un-recognized provident fund for its permanent employees except for the ii) Education, Training and Examination At the lease commencement date, the Institute recognizes a right-of-use asset and a lease liability. The right i) Receivables Less: Transferred to income (Note 25) 28,000,000 27,559,000 employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded Closing balance 2,517,517 2,517,517 These financial statements are presented in Taka, which is the Institute’s functional currency. of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end. by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the a) Student Registration Fees lease payments made at or before the commencement date, plus any initial direct costs incurred and an The closing balance represents the unutilized balance of the fund received from world bank for implementing the contribution payable to provident fund when an employee has rendered service to ICAB during a period under IAS Income from Student Registration Fees is recognized based on the number of applications for registration with 2.4 Foreign Currency Translation estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on ii) Payables "Strengthening Financial Reporting Framework and Audit Practice Project" and from Information and Communication 19: Employees Benefit. proper documentation received from the registration department during the period. Technology Division for developing CAAT software an amount of Tk. 1,417,518 and Tk. 1,100,000 respectively. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in which it is located, less any lease incentives received. Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the Defined Benefit Plan b) Examination Fees 17.1 Government assistance accordance with IAS 21: The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are The right-of-use asset is subsequently depreciated using the straight-line method from the commencement ICAB. translated at the exchange rate ruling on the date of transaction. Encashment dates date to the end of the lease term as the existing lease does not transfer ownership of the underlying asset to the 2.14 Impairment of Assets Gratuity Fund Examination fees income is recognized twice in a year at the time of examination based on the applicable fees for 2019-2020 2018-2019 Institute by the end of the lease term. The rates of depreciation are 50% and 20% for Chittagong office and individual examinees as determined by the Council from time to time. 8-Aug-19 30-Sep-18 7,000,000 6,889,750 2.5 Reporting Period At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to The ICAB also maintains an unfunded unrecognized gratuity scheme for its permanent employees except for the academic campus respectively. 31-Dec-19 4-Nov-18 7,000,000 6,889,750 determine whether there is any indication of impairment under IAS 36 Impairment of Assets, if any such employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of c) Training Fees These financial statements cover one year starting from 01 July 2019 to 30 June 2020. The lease liability is initially measured at the present value of the lease payments that are not paid at the 24-Feb-20 25-Feb-19 7,000,000 6,889,750 indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable their minimum five years’ service equivalent to 2 months last basic pay for each completed year in respect of the Income from training fees is recognized on accrual basis in the accounting period to which the training is commencement date discounted using the Schedule Bank’s Incremental borrowing rates are in effect at that 31-May-20 30-May-19 7,000,000 6,889,750 2.6 Comparative Information amounts. Recoverable amount is the higher of net selling price and value in use. employees eligible for this benefit. completed. Total 28,000,000 27,559,000 time. 18. Payables and accruals Comparative information in respect of the previous year have been presented in all numerical information in the An impairment loss is recognized as an expense in the statement of Income and Expenditure. However, the management has formed trustees during this year for managing these funds in statutory manner. iii) Bank Interests 2.8 Investment Property Remuneration of resource personnel 3,306,575 5,343,300 financial statements and the narrative and descriptive information where it is relevant for understanding of the 2.15 Cash and Cash Equivalents Interest Income on Bank Deposits is recognized on accrual basis. Salaries & allowances 197,615 1,020,622 current year’s financial statements. The Investment Property is accounted for under Cost Model in compliance with IAS-40: Investment Property. The Leave Encashment It includes cash in hand, cash at bank and short term bank deposits for use by the ICAB without any restriction, Printing and stationery expenses 324,167 818,428 property is measured at cost price including directly attributable expenditures. All other day-to-day The ICAB also maintains a leave encashment scheme for its permanent employees except for the employees iv) Rental Income Advertisement expenses 198,113 326,273 2.7 Property, Plant & Equipments expenditures including repair & maintenance are charged to the Statement of Income and Expenditure during and there was insignificant risk of changes in value of these current assets. employed on contractual basis. Employees are entitled to receive leave encashment benefit at the time of Rental Income is recognized on accrual basis. Utility bills 567,945 792,491 2.7.1 Tangible Assets the financial period in which they are incurred. 2.16 Financial Risk Management separation from employment. Office rent and others 73,990 359,362 v) Other Income The Investment Property is depreciated using straight-line method @ 2%. Depreciation on additions is charged Articled students 30,000 - Tangible assets are accounted for according to IAS 16: Property, Plant and Equipment, at historical cost less ICAB management directly controls day-to-day policies and operations. The Council takes regular update on any 2.18 Government Grants from the month on which the asset is available for use and on the month of disposal of investment property, no Other Income is recognized when ICAB’s right to receive such income has been reasonably determined. Withholding tax payable 2,935,531 6,181,889 cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are Invigilators remuneration - 3,039,000 depreciation will be charged. items. summarized below. ICAB receives funds from Bangladesh Government for salaries & allowances of ICAB employees and utility 2.22 Events after the Reporting Period Audit fees 477,000 609,500 expenses. In addition, the World Bank and ICT Division of the Peoples Republic of Bangladesh granted ICAB Fund Holding tax (13th floor of TK bhaban) 438,513 438,513 2.9 Renovation of Rented Academic Campus i) Currency Risk Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, for implementing projects. The Government Grant has been accounted for in accordance with IAS 20: Events after the reporting period have been accounted for under IAS-10: Events after the statement of financial Legal and professional fees payable 28,000 298,000 Institute has rented a building to be used as academic campus from 01 September 2015. A renovation work was position date. Those which are not adjusting events are disclosed. only when it is probable that future economic benefits associated with the item will flow to the institute and the The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, Accounting for Government Grants and Disclosure of Government Assistance. Government Grants received are Examination hall rent/ auditorium rent 206,850 201700 done to make the academic campus ready. As the building is a rented arrangement, the depreciation is cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of conference and subscription to professional bodies. There are no other transactions taking place in foreign initially recorded as Grants Received in Advance. Grant Income is recognized to equal to the allowed 2.23 General Provision for leave encashment (Note 18.1) 6,071,574 5,825,998 chargeable upto the period of rent contract (5 years) i.e. @ 20% for all civil, interior and exterior works (the Income and Expenditure during the financial period in which they are incurred. currencies. Therefore, ICAB is not exposed to any significant currency risk. expenditures for the respective project. Sundry payables and accruals 5,102,622 6,619,138 inseparable units). Except the above-mentioned assets other assets purchased for academic campus such as The figures appearing in the financial statements have been rounded off to the nearest Taka. Closing balance 19,958,494 31,874,213

The Institute of Chartered Accountants of Bangladesh | 155 ANNUAL REPORT 2020

Figures in Taka As at 30 June Notes 2020 2019 18.1 Provision for leave encashment Opening balance 5,825,998 8,241,041 Add: Provision for the year 245,576 - less: Payment during the year - 2,415,043 Closing balance 6,071,574 5,825,998

As per Employees Service Rules, 1998 of the Institute of Chartered Accountants of Bangladesh (ICAB), every employee is entitled to earned leave on full basic pay at the rate of thirty (30) days for each calendar year and a maximum of three (3) months' earned leave can be accumulated. As such, provision for leave encashment has been made on the basis of the lower of maximum three (3) months and actual accumulated earned leave at the reporting date.

19. Advance fees, rent and deposits Annual fees from members: 4,566,204 19,907,184 In practice 2,389,719 11,635,200 Not in practice 2,176,485 8,271,984 Students' association fees 1,014,323 811,479 Against tenants and others 2,036,138 2,036,138 Advance training and workshop fees - 575,000 Security deposits 162,000 212,000 Special coaching class fees 72,000 92,000 Closing balance 7,850,665 23,633,801

20 Payable to ICAB-Members' Welfare Foundation (IMWF) Opening balance 10,125,000 10,000,000 Add: Interest earned on FDR during the year (Netted off bank charges & taxes) 864,167 - Transferred from Member Welfare Fund (Note 21) 396,000 - Subscription fee directly deposited into ICAB General Fund Account 225,000 125,000 1,485,167 125,000 Closing balance 11,610,167 10,125,000

As per decision taken at the Council Meeting held on 16 April 2019, an amount of Tk. 10,000,000 is to be transferred to the Members' Welfare Foundation from the ICAB General Fund. This fund will be of endowment nature and accordingly the amount shall not be spent for any purpose of the foundation, however the income arising from the fund shall be spent for any purpose as cited in its constitution. As the fund is yet to be transferred to the foundation, hence the fund and income could have been earned by the foundation from a safe and secure investment have been taken into account as liability of the Institute. 21. Reserve for members' welfare fund Opening balance - - Add: Members' contributions 5,046,700 1,738,000 5,046,700 1,738,000 Less: Disbursements during the year 1,011,193 1,738,000 Transferred to Members' Welfare Foundation (Note 20) 396,000 - 1,407,193 1,738,000 Closing balance 3,639,508 -

The Members' welfare fund was created at the beginning of the year by way recognizing annual membership fees of the members on accrual basis with a view to carrying out humanitarian or charitable program for the members of the Institute. Pursuant to the decision taken at the council, the fund of the current year shall be transferred to the Members' Welfare Foundation on realization basis of those who has already obtained membership of the Members' Welfare Foundation till to the reporting date. As such an aggregated amount of Tk. 396,000 (132 members @ Tk. 3,000) is to be transferred to the Members' Welfare Foundation and hence shown as payable to the foundation (Ref.: Note 20).

22. Other liabilities CAAT fund 10,000 10,000 Closing balance 10,000 10,000

156 | The Institute of Chartered Accountants of Bangladesh Figures in Taka Year ended 30 June Notes 2020 2019 23. Members' fees Annual fees from members 35,926,300 24,766,800 Admission and other fees 2,582,100 2,618,700 Firms inspection fee 780,000 540,000 Total 39,288,400 27,925,500

24. Income from academic services Coaching classes registration fees 25,773,000 30,498,500 Student registration fees 10,026,100 14,166,400 Exam registration fees 42,940,175 87,849,900 Library card and ID card charges 3,218,900 4,587,900 Transcripts fees 277,000 283,000 Sale of study manuals 4,112,774 7,693,456 Sale of suggested answers 1,914,025 2,868,608 Sale of IFRS, IAS, ISA and audit practice manual 333,700 491,026 Sale of syllabus and list of firms 5,780 15,092 Total 88,601,454 148,453,882

25. Grant income Government assistance 28,000,000 27,558,250 Total 28,000,000 27,558,250

26. Income from events National awards advertisement 5,953,583 3,963,740 National awards sponsorship 558,000 504,000 National awards members contribution 1,657,000 118,000 Annual dinner members contribution 541,000 629,500 Total 8,709,583 5,215,240

27. Income from investment property CA Bhaban ground floor Media Star Ltd. - 372,024 CA Bhaban 1st floor Media Star Ltd. - 446,832 CA Bhaban 4th floor Media Star Ltd. 4,840,680 4,840,680 CA Bhaban 5th floor Media Star Ltd. - 403,390 TK Bhaban 12th floor Premier Cement Ltd. 7,944,552 7,944,552 Total 12,785,232 14,007,478

28. Interest on bank deposits Interest on fixed deposits (Note 28.1) 19,290,133 20,624,785 Interest on other deposits (Note 28.2) 362,609 64,577 Total interest realized 19,652,742 20,689,363 Add: Accrued interest (Note 28.3) 4,935,586 8,319,123 24,588,328 29,008,486 Less: Tax deducted at source 2,472,503 2,680,731 Total 22,115,825 26,327,755

The Institute of Chartered Accountants of Bangladesh | 157 ANNUAL REPORT 2020

Figures in Taka Year ended 30 June 2020 2019 28.1 Interest on fixed deposits Name of Bank/NBFI FDR Number Rate Delta Brac Housing Ltd. FDR-71000150306 7.5 1,139,254 935,648 Delta Brac Housing Ltd. FDR-71000155819 9.75 477,984 246,077 Delta Brac Housing Ltd. FDR-57737/71000173006 10.75 - 404,580 IDLC Finance Ltd. FDR-10252204231801 8 1,192,622 977,652 IDLC Finance Ltd. FDR-10252204231803 10 356,183 259,008 IDLC Finance Ltd. FDR-10552204231802 10.75 - 1,243,584 LankaBangla Finance Ltd. TDR-0009 20100000105 10.5 222,472 522,450 LankaBangla Finance Ltd. TDR-0009 20100000106 10.5 222,472 522,450 LankaBangla Finance Ltd. TDR-0009 20100000107 10.5 222,472 522,450 LankaBangla Finance Ltd. TDR-0014 22800000171 11 4,909,853 4,410,395 LankaBangla Finance Ltd. TDR-0019 29200000 001 11 - 296,918 LankaBangla Finance Ltd. TDR-0009 22800000934 9.75 533,081 1,300,727 NRB Global Bank Ltd. FDR-04738/1013030097442 6 2,714,412 2,567,250 One Bank Ltd. FDR-0124120028139 8.5 - 840,348 Southeast Bank Ltd. FDR-7101698/24500011343 7 56,390 53,720 Southeast Bank Ltd. FDR-7101915/24500011809 10 - 450,157 Southeast Bank Ltd. FDR-7149139/24500012230 7 50,750 46,768 Southeast Bank Ltd. FDR-7149140/24500012231 7 101,742 93,702 Southeast Bank Ltd. FDR-7149141/24500012232 7 99,011 91,189 Southeast Bank Ltd. FDR-7149142/24500012233 7 101,742 93,702 Southeast Bank Ltd. FDR-7149143/24500012234 7 101,742 93,702 Southeast Bank Ltd. FDR-7149144/24500012235 7 101,742 93,702 Southeast Bank Ltd. FDR-7149239/24500012257 6 70,094 64,012 Southeast Bank Ltd. FDR-7149315/24300012089 6 575,522 385,961 Southeast Bank Ltd. FDR-7149362/24300012125 6 735,767 493,750 Southeast Bank Ltd. FDR-7149799/24300012387 6 638,443 430,414 Southeast Bank Ltd. FDR-7149800/24300012388 6 318,245 214,609 Southeast Bank Ltd. FDR-7164161/24300012715 10 - 251,548 Southeast Bank Ltd. FDR-7164162/24300012716 10 - 251,548 Southeast Bank Ltd. FDR-7164539/24300012943 6 540,492 366,320 Southeast Bank Ltd. FDR-7164540/24300012944 6 540,492 366,320 Southeast Bank Ltd. FDR-7164541/24300012945 6 540,492 366,320 Southeast Bank Ltd. FDR-7164542/24300012946 6 540,492 366,320 Southeast Bank Ltd. FDR-7317016/24300013254 6 79,365 59,462 Southeast Bank Ltd. FDR-7317046/24300013278 6 134,845 72,766 Southeast Bank Ltd. FDR-7377842/24400003731 6 666,167 343,566 Social Islami Bank Ltd., Ctg. FDR-28213 7 61,143 71,370 Social Islami Bank Ltd., Ctg. FDR-33941 6 53,813 45,763 Shahjalal Islami Bank Ltd. FDR-326698 7 57,776 285,987 Shahjalal Islami Bank Ltd. FDR-326699 7 204,065 122,566 Brac Bank Ltd. FDR-1547304309833001 5.8 928,995 - 19,290,133 20,624,785 28.2 Interest on other deposits Name of Bank/NBFI Type of A/c A/c Number AB Bank Ltd. Savings 4002 089 478 301 1,472 1,600 AB Bank Ltd. Savings 4002 792 795 441 307,188 47,713 AB Bank Ltd. Savings 4002 792 454 441 35,862 5,657 AB Bank Ltd. Savings 4002 792 456 441 576 4,214 Bank Asia Ltd. Current 063 3600 0059 17,083 5,393 Dhaka Bank Ltd. STD 2071500000477 428 Total 362,609 64,577

158 | The Institute of Chartered Accountants of Bangladesh Figures in Taka Year ended 30 June Notes 2020 2019 28.3 Accrued interest Name of Bank FDR Number Rate Brac Bank Ltd. FDR-1547304309833001 5.8 55,244 87,671 Delta Brac Housing Ltd. FDR-71000150306 7.5 114,571 118,889 Delta Brac Housing Ltd. FDR-71000155819 9.75 784,466 503,254 Delta Brac Housing Ltd. FDR-57737/71000173006 10.8 - 2,758,967 IDLC Finance Ltd. FDR-10252204231801 8 102,619 143,592 IDLC Finance Ltd. FDR-10252204231803 10 811,835 667,492 LankaBangla Ltd. TDR-0009 20100000105 10.5 - 164,293 LankaBangla Ltd. TDR-0009 20100000106 10.5 - 164,293 LankaBangla Ltd. TDR-0009 20100000107 10.5 - 164,293 LankaBangla Ltd. TDR-0014 22800000171 11 296,312 269,689 LankaBangla Ltd. TDR-0009 22800000934 9.75 - 299,692 NRB Bank Ltd. FDR-04738/1013030097442 6 297,349 411,540 Shahjalal Islami Bank Ltd. FDR-326699 7 38,793 32,672 Shahjalal Islami Bank Ltd. FDR-326698 7 - 76,269 Social Islami Bank Ltd., Ctg FDR-28213 7 24,221 2,476 Social Islami Bank Ltd., Ctg FDR-33941 6 14,739 13,908 Southeast Bank Ltd. FDR-7149239/24500012257 6 22,865 31,544 Southeast Bank Ltd. FDR-7317016/24300013254 6 10,652 10,000 Southeast Bank Ltd. FDR-7317046/24300013278 6 10,120 33,699 Southeast Bank Ltd. FDR-7101698/24500011343 7 113,035 105,494 Southeast Bank Ltd. FDR-7149139/24500012230 7 104,684 94,942 Southeast Bank Ltd. FDR-7149140/24500012231 7 209,987 190,337 Southeast Bank Ltd. FDR-7149141/24500012232 7 204,348 185,229 Southeast Bank Ltd. FDR-7149142/24500012233 7 209,987 190,337 Southeast Bank Ltd. FDR-7149143/24500012234 7 209,987 190,337 Southeast Bank Ltd. FDR-7149144/24500012235 7 209,987 190,337 Southeast Bank Ltd. FDR-7149315/24300012089 6 102,828 138,903 Southeast Bank Ltd. FDR-7149362/24300012125 6 112,153 153,357 Southeast Bank Ltd. FDR-7149799/24300012387 6 112,487 154,086 Southeast Bank Ltd. FDR-7149800/24300012388 6 56,066 76,820 Southeast Bank Ltd. FDR-7164539/24300012943 6 93,886 130,450 Southeast Bank Ltd. FDR-7164540/24300012944 6 93,886 130,450 Southeast Bank Ltd. FDR-7164541/24300012945 6 93,886 130,450 Southeast Bank Ltd. FDR-7164542/24300012946 6 93,886 130,450 Southeast Bank Ltd. FDR-7377842/24400003731 6 123,581 172,911 City Bank Ltd. FDR-4432878998001 7 207,123 - Total 4,935,586 8,319,123

29. Write backs of provisions & liabilities Liabilities written back (Note 29.1) - 596,950 - 596,950

29.1 Liabilities written back Some liabilities have been carried forward in the accounts for long. There has been no claims for the amounts and the respective parties became untraced. As such the long time unclaimed amounts have been written back to income. Details are as follows:

Liability for repair & maintenance - 17,000 Liability for video documentary - 323,250 Refundable/Payable to article students - 256,700 - 596,950

The Institute of Chartered Accountants of Bangladesh | 159 ANNUAL REPORT 2020

Figures in Taka Year ended 30 June Notes 2020 2019 30. Other income Auditorium rent - 80,000 Advertisement income through journal - 237,600 IDC penalty 800,000 400,000 QAD penalty - 185,000 Sale of nomination papers for Council Election 2018 - 840,000 Hall rental income from Chattogram Regional Office - 30,768 Proceeds from sale of old & wastage goods - 28,500 Miscellaneous income 3,513,936 2,163,554 Total 4,313,936 3,965,422

31. Members’ services CPD seminar expenses 1,432,316 1,933,964 Firm inspection expenses 500,000 840,000 Journal and news bulletin 1,574,159 2,846,886 Entertainment for meetings 2,274,502 3,055,812 Reception of new members 317,200 238,380 Total 6,098,177 8,915,042

32. Academic services Examination hall rentals and entertainment 2,553,598 3,679,457 Remuneration to resource personnel 33,919,135 32,445,082 Printing materials (Note 32.1) 3,202,034 1,971,491 Academic campus rent - 17,693,828 Advertisement 62,790 62,790 Grant, scholarship and other payment to BCACP (Note 32.2) 3,319,305 3,314,540 Others (education, training & exam expenses) 1,046,656 1,931,253 Total 44,103,518 61,098,441

32.1 Printing materials Opening stock* 5,772,190 3,968,225 Add: Purchased during the year 2,190,532 7,246,451 Less: Closing stock-before written off 4,760,689 9,243,185 Consumption during the year 3,202,034 1,971,491 * Opening stock of the last year has been taken into account after adjustment of written-off (Ref: Note 38).

32.2 Grant, scholarship and other payment to BCACP General grant 840,000 840,000 Scholarship 1,680,000 1,680,000 Office rent and utilities 799,305 794,540 Total 3,319,305 3,314,540

33. Events & programs expenses National awards 7,104,410 6,595,149 Other cultural programme 249,950 195,292 Annual dinner & cultural function 2,382,800 2,877,943 CA Women's Forum - 734,104 Total 9,737,160 10,402,488

160 | The Institute of Chartered Accountants of Bangladesh Figures in Taka Year ended 30 June Notes 2020 2019 34. Contribution to regional committees (DRC & CRC) Contribution to Dhaka Regional Committee (DRC) (Note - 34.1) 5,287,315 3,732,764 Contribution to Chittagong Regional Committee (CRC) (Note - 34.2) 753,800 1,103,470 Total 6,041,115 4,836,234

34.1 Contribution to Dhaka Regional Committee (DRC) ICAB-DRC Annual Picnic 2,000,000 2,000,000 Celebration of Mujib Century 25,900 - Indoor game tournament 256,000 - Celebration of International Accounting Day 800,000 800,000 Distribution of warm cloths 250,000 250,000 DRC-ICAB Quiz Biz & Elocution Contest 734,415 - Mock Test 440,000 - Celebration of International Mother Language Day 31,000 331,935 Celebration of Independence Day - 50,829 Celebration of Pohela Boishakh - 300,000 Celebration of Bijoy Dibosh 400,000 - Annual General Meeting of DRC 350,000 - Total 5,287,315 3,732,764

34.2 Contribution to Chittagong Regional Committee (CRC) CRC Annual Picnic 550,000 550,000 Celebration of Boishakhi Milon Mela - 153,470 International Accounting Day 14,800 - ICAB CRC Fellowship Night - 400,000 Annual General Meeting of CRC 189,000 - Total 753,800 1,103,470

35. Administrative expenses Salaries and allowances (Note - 35.1) 96,178,076 103,488,932 Office expenses (Note - 35.2) 7,525,925 10,751,113 Rent, rates and taxes (Note - 35.3) 364,317 5,526,489 Legal and professional fees (Note - 35.4) 886,722 1,054,190 Travelling and conveyance (Note - 35.5) 3,009,321 8,884,420 Electricity and water 5,546,688 8,112,726 Repairs and maintenance 2,420,624 2,483,735 Depreciation - Property plant and equipment 17,536,432 15,142,852 Depreciation-Right-of-use assets* 18,289,148 - Depreciation - Investment property 718,584 893,065 Amortization of intangible assets 509,750 426,291 Total 152,985,588 156,763,813

*The depreciation has been resulted due to compliance with IFRS-16 "Leases" during this year. In earlier periods, the rentals of academic campus was reported under the Note No. 32 "Academic Services". As IFRS-16 has been adopted during this year, therefore the amount of depreciation charged on "Right-of-use assets" has been reported as Depreciation under the head of "Administrative Expenditure".

35.1 Salaries and allowances Regular employees 86,881,737 89,400,851 Outsourced employees 9,296,339 14,088,081 96,178,076 103,488,932

The Institute of Chartered Accountants of Bangladesh | 161 ANNUAL REPORT 2020

Figures in Taka Year ended 30 June Notes 2020 2019 35.2 Office expenses Drinking water 524,125 660,423 Printing & stationeries (Note-35.2.1) 2,718,340 3,569,604 Fuel and power 259,464 388,972 Telephone, internet and fax 848,805 787,023 Annual General Meeting (AGM) of ICAB 237,275 234,330 Postage and courier 407,423 472,305 Advertisement (general) 806,137 1,482,872 Newspaper and periodicals 53,553 206,168 Office entertainment 1,216,809 1,927,385 Insurance premium 31,658 239,819 Photography & videography 34,900 55,200 MoU Ceremony Expenses 140,037 34,888 Employee medical expenses 4,370 19,405 Employee training expenses 47,530 114,220 Miscellaneous expenses 195,499 558,499 Total 7,525,925 10,751,113 35.2.1 Printing & stationeries Opening stock 381,701 381,499 Add: Cost incurred during the year 2,691,824 3,569,806 Less: Closing stock 355,185 381,701 Consumption during the year 2,718,340 3,569,604 35.3 Rent, rates and taxes City corporation tax 364,317 364,317 Chattogram Branch office rent and utility - 3,438,936 Chattogram Branch office library rent and utility - 1,723,236 Total 364,317 5,526,489 35.4 Legal and professional fees Audit fees 609,500 609,500 Legal fees 277,222 444,690 Total 886,722 1,054,190 35.5 Travelling and conveyance Foreign travel (participation in SAFA, CAPA and IFAC events) 2,080,743 8,176,228 Local travel 928,578 708,192 Total 3,009,321 8,884,420 36. ICAB membership subscription & renewal fees Confederation of Asian and Pacific Accountants (CAPA) 277,810 193,365 Chartered Accountants Worldwide (CAW) 1,254,873 1,204,837 International Federation of Accountants (IFAC) 1,096,503 922,130 International Financial Reporting Standards (IFRS) 104,370 340,976 South Asian Federation of Accountants (SAFA) 187,000 187,000 Total 2,920,556 2,848,308 37. Media & branding expenses Media & branding advisory fee - 2,400,000 Audio visual 500,000 15,000 Souvenir of Bangladesh Administrative Service Association 50,000 - CA brochure, note and coffee table book 448,500 138,575 Complimentary gifts - 1,113,745 Celebrating International Women's Day - 83,400 ICAB promotional shopping Bags - 87,500 ICAB social media page maintenance charge - 326,299 ICAB Student Summit Documentary - 70,000 ICAB lift door branding - 16,170 Seminar on career excellence - 693,055 Total 998,500 4,943,744

162 | The Institute of Chartered Accountants of Bangladesh Figures in Taka Year ended 30 June Notes 2020 2019 38. Impairment & write offs Membership fees receivable (Note-38.1) 2,035,731 240,100 Inventories - Stock of books & study materials (Note-38.2) - 3,470,995 Receivables (Note-38.3) 1,500,000 1,014,880 Advances (Note-38.4) - 363,415 Total 3,535,731 5,089,390

38.1 Membership fees receivable Deceased members (6 members) - 240,100 Delisted members (31 members) 2,035,731 - Total 2,035,731 240,100

38.2 Inventories - Stock of books & study materials Due to revision of International Standards on Auditing and change of syllabus, previously printed BSA/ISA and study materials such as manuals and suggested answers, etc. for all level of CA examination became obsolete. As such the stock of such obsolete/out dated items has been written off. Details are given below:

Bangladesh Standards on Auditing (BSA) - 540,080 Study manual - Knowledge Level - 1,235,070 Study manual - Application Level - 1,678,025 Study manual - Advanced Level - 17,820 Total - 3,470,995 38.3 Receivables This long outstanding receivables have become unrealizable as the parties concerned are out of reach for long time. Hence, the said long outstanding receivables considering bad have been written off. Details are as follows:

Utility expenses reimbursement - 9,880 Auditorium rent receivable - 30,000 Welfare Fund receivable - 75,000 BPA Advertizement receivable 400,000 - IDC penalty receivable* 1,100,000 600,000 Scholarship Fund receivable - 300,000 Total 1,500,000 1,014,880

* Due to non payment of IDC monetary penalty imposed by the Council on two (2) practicing members within the three (3) months from the date of communication of the Disciplinary Order, the council has suspended their membership for different periods on different occasions. As such the IDC monetary penalty has been written off.

38.4 Advances Advances given to different suppliers remained unrealized/unadjusted for many years. These suppliers are now out of reach. As a result, these advances have been written off. 39. Other expenses Bank charges 227,456 290,723 Finance charge on Right-of-use Assets 2,287,222 - Donation and CSR 519,600 190,000 Contribution to employees' picnic 450,000 450,000 Illumination of CA Bhaban-independence and victory days - 110,000 Election expenses - 1,487,280 Recruitment Service (Outside) - 103,600 Total 3,484,278 2,631,603

The Institute of Chartered Accountants of Bangladesh | 163 ANNUAL REPORT 2020

Figures in Taka Year ended 30 June Notes 2020 2019 40. Financial risk management

40.1 Liquidity risk The liquidity risk is measured as per following basis: a. Cash and cash equivalent on the basis of their term; b. Advance, Deposits and Prepayments on the basis of their term of maturity; c. Receivable and Inventories on the basis of their maturity period and past trend; d. Non-current Assets are on the basis of their useful lives; e. Advance fees and rent on the basis of their trend and contract; f. Various fund on the basis of their behavioral past trend and adjustment.

40.2 Credit risk The maximum exposure to credit risk at the reporting date is as follows: Advance against land 22,000,000 22,000,000 Annual membership fees 14,425,785 11,049,996 Rental dues 6,511,676 4,102,944 Total 42,937,461 37,152,940

Analysis of receivable and advances is as follows: Domestic receivables 42,937,461 37,152,940 Total 42,937,461 37,152,940

The ageing of receivables Not past due 15,252,596 10,663,114 Past due 1-2 year 3,872,353 3,209,100 More than 2 year 23,812,512 23,280,726 Total 42,937,461 37,152,940

Bank balances including fixed deposits are held only in reputable banks with high quality credit rating.

40.3 Market risk The Institute does not expose to any significant interest rate risk or exchange rate risk.

41. Re-arrangement of last years figure Previous year's figures in some places have been rearranged to conform current year's presentation.

42. Capital commitment As at 30 June 2020, there are no such capital commitments which required to be made disclosure.

43. Events after reporting period No such significant favorable or unfavorable event has been occurred between the end of the reporting period and the date of financial statements are authorized for issues which requires to be made disclosure.

44. The Council of the Institute of Chartered Accountants of Bangladesh in its meeting held on 1 December 2020 approved the financial statements for the year ended 30 June 2020 and authorized the same for issue.

Chief Financial Officer Chief Executive Officer Vice President President

164 | The Institute of Chartered Accountants of Bangladesh 1 1 - - 148,486 981,489 544,050 564,490 2,311,184 4,300,711 7,353,617 3,301,970 4,750,437 5,289,192 2,776,750 8,081,676 3,877,988 7,955,047 2,239,658 2,642,697 9,702,586 14,093,507 80,915,538 74,560,489 Value as at

Figures in Taka 30 June 2020 Written Down - - 53,894 ANNEXURE-A 658,467 1,198,474 3,281,374 1,453,973 2,475,412 7,401,677 1,227,839 1,420,405 7,594,725 1,823,990 5,478,003 14,797,124 6,846,507 16,767,337 10,676,437 13,729,942 25,146,923 16,440,584 As at 30 June 2020 116,413,825 138,473,086 ------from 4,522,829 Property Investment 4,522,829 Transferred - - - 4,222 20,238 674,317 471,507 715,936 195,344 761,869 657,443 610,682 658,467 949,872 450,044 990,303 980,629 1,371,447 during Depreciation 2,060,118 4,266,313 1,697,682 the Year Charged 15,142,852 17,536,432 - - - 33,656 470,533 748,430 779,656 1,166,547 2019 5,341,559 1,227,839 2,565,438 5,865,878 11,307,073 5,282,659 6,604,422 2,003,905 10,672,215 13,425,677 12,032,260 16,005,468 20,880,609 As at 1 July 116,413,825 101,270,973 - 2% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 25% 25% 25% 20% 20% 20% 20% 20% Rate - 981,489 202,380 6,743,165 7,159,362 4,715,070 1,227,840 2020 6,574,427 9,502,081 17,331,827 9,623,257 4,500,444 6,022,053 11,702,388 33,101,970 10,361,053 17,108,308 10,237,422 21,083,559 10,676,438 30,534,090 190,974,313 219,388,623 As at 30 June ------from 8,724,026 Property 8,724,026 Investment Transferred For the Year Ended 30 June 2020 Ended For the Year ------Cost 13,440 80,122 521,880 183,000 802,534 3,111,850 3,364,311 Year 1,521,670 1,028,150 9,063,327 Addition 17,785,818 during the 19,690,284 - Schedule of Property, Plant and Equipment 981,489 202,380 9,101,377 5,941,931 2019 6,743,165 1,297,726 7,159,362 4,715,070 1,227,840 6,574,427 9,488,641 8,338,077 9,434,888 17,148,827 4,500,444 21,810,064 10,676,438 15,586,638 29,990,120 20,055,409 As at 1 July The Institute of Chartered Accountants Bangladesh 173,188,495 190,974,313 floor) th & 8 th , 7 th , 6 th , 5 rd , 3 nd Description 30 June 2019 CA Bhaban (Gr, 2 Major renovation: Exterior (including glass) Land Building: Renovation - Ground Floor Renovation - 3rd Floor Revnovation-5th Floor Renovation - 8th Floor Renovation - 7th Floor Renovation - New Academic Campus Renovation - 2nd Floor Renovation - 6th Floor Furniture & Fixture Books and Periodicals Computers & IT Equipment's Renovation - CRC Library Renovation - CRC Members' Corner Electrical Equipments Vehicle (Microbus) Office Equipment's Air-conditions 30 June 2020

The Institute of Chartered Accountants of Bangladesh | 165 ANNUAL REPORT 2020 4,026,716 17,616,554 26,563,051 21,643,269 Figures in Taka June 2020 Value as at 30 Written Down Written ANNEXURE-B 4,697,310 2020 9,588,668 14,285,978 18,090,223 As at 30 June - - 4,522,829 4,522,829 & equipment Transferred to Property, plant 174,480 544,104 718,584 during Depreciation 893,065 the Year Charged 2019 9,044,564 9,045,659 17,197,158 As at 1 July 18,090,223 2% 2% Rate Investment Property 2020 8,724,026 27,205,222 44,653,274 35,929,248 As at 30 June As at - - For the Year Ended 30 June 2020 Ended For the Year plant & 8,724,026 8,724,026 equipment Schedule of to Property, Transferred - - - Cost Year Addition during the The Institute of Chartered Accountants Bangladesh 2019 17,448,052 27,205,222 As at 1 July 44,653,274 44,653,274 Description 30 June 2020 30 June 2019 TK Bhaban (12th floor) CA Bhaban (1st and 4th floor)

166 | The Institute of Chartered Accountants of Bangladesh 1 504,000 200,002 709,753 704,003

Figures in Taka Value as at Value as 30 June 2020 Written Down Written - ANNEXURE-C 1,339,260 1,253,999 2,593,259 2,083,509 As at 30 June 2020 - - - - - Year during the Disposals/ Adjustments - 409,750 100,000 during 426,291 509,750 the Year Charged Depreciation - 844,249 2019 1,239,260 1,657,218 2,083,509 As at 1 July Rate 33.33% 33.33% 504,000 As at 30 1,539,262 1,254,000 June 2020 3,297,262 2,793,262 - - - - - For the Year Ended 30 June 2020 Ended For the Year Year during the Disposals/ Adjustments Schedule of Intangible Assets - - - Cost Year 504,000 300,000 Addition during the - The Institute of Chartered Accountants Bangladesh 2019 1,539,262 1,254,000 2,793,262 2,493,262 As at 1 July Description 30 June 2020 30 June 2019 Computer software ERP Software WIP (ERP Software)

The Institute of Chartered Accountants of Bangladesh | 167 ANNUAL REPORT 2020

ANNEXURE-D

The Institute of Chartered Accountants of Bangladesh Statement of Disbursement of Scholarship Fund For the Year Ended 30 June 2020

Amount in Total Amount Sl. No. Particulars Name & Reg No. Date Taka in Taka 1 ACNABIN Scholarship Md. Majbahuddin Sarker, 30337/18 29-Feb-20 18,000 Ms. Khadiza Akter, 30398/18 29-Feb-20 18,000 Ms. Fariha Tabassum, 29138/18 29-Feb-20 12,000 Mr. Miraj Ibne Nazmul, 29232/18 15-Sep-19 27,000 Mr. Badrul Islam, 28227/17 30-Sep-19 18,000 Ms. Nusrat Kabir, 29670/18 15-Sep-19 36,000 129,000

2 ABM Azizuddin Scholarship Md. Nur-A-Kibria, 30210/18 29-Feb-20 42,000 Mr. Abdullah Bin Jasim, 28507/17 30-Sep-19 48,000 90,000

3 AKM Mizanur Rahman Scholarship Mr. Mohammad Hafijur Rahman, 31066/19 29-Feb-20 24,000 24,000

4 Bhola Foundation Mr.Md. Salam Morshadi, 28662/17 15-Sep-19 48,000 48,000

5 RRH Scholarships Md. Khaled, 31455/19 29-Feb-20 22,500 Mr. Shariful Islam Sojib, 31294/19 29-Feb-20 27,000 Md. Aminul Islam, 30669/18 29-Feb-20 36,000 Ms. Tasnima Rahman Akhi, 31021/19 29-Feb-20 36,000 121,500

6 Syful Shamsul Alam Scholarship Mr. Jahudil Ahasan, 29851/18 29-Feb-20 27,500 Ms. Nudrat Sayeeda, 31306/19 29-Feb-20 30,000 Ms. Soma Akter, 30684/19 29-Feb-20 30,000 Mr. Promit Debnath,28134/17 29-Feb-20 23,750 111,250

7 S F Ahmed Foundation Scholarship Mr. Ibrahim Khan, 31464/19 29-Feb-20 52,500 Mr. Sk. M Shahadat Hossain, 30795/19 29-Feb-20 60,000 112,500

8 President Scholarship Fund Mr. Noor Hossain, 31292/19 29-Feb-20 22,500 Md. Ashikul Alam, 31305/19 29-Feb-20 23,750 46,250

9 M.J. Abedin Scholarship Ms. Tahsina Jamal Fariha, 30086/18 29-Feb-20 36,000 Mr. Naim Udin Chy, 31463/19 29-Feb-20 31,500 Ms. Sakia-Tu-Fatima, 31355/19 29-Feb-20 36,000 103,500

Total 786,000

168 | The Institute of Chartered Accountants of Bangladesh www.icab.org.bd