Journey Towards Good to Great
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VOLUME XLV NUMBER 01 JANUARY-FEBRUARY 2017 06 12 Young Representation Members' 06 12 in Regional and Empowerment International Accounting 01 Forums Widening 07 Cost Audit and Other Practicing Horizon 07 Women Members' 05 Empowerment 11 01 15 05 11 Members' Social Capacity Branding Building 15 Continue on-going 02 Projects/Activities Branding CMAs 02 08 13 and Promoting CMA Profession 08 13 Governance Research and Development 04 10 14 03 Strengthen Enhancing 03 Financial International 09 10 14 Sustainability Collaboration Service 04 Delivery of the Institute Academic System of Excellence 09 the Institute Members' Welfare ICMAB 16th National Council 2017- 2019 Journey towards Good to Great The Institute of Cost and Management Accountants of Bangladesh (An autonomous professional institution under the Ministry of Commerce, GOB) Bi-monthly Journal of the ICMAB ISSN 1817-5090 I VOLUME XLV I NUMBER 01 JANUARY-FEBRUARY 2017 Contents 01 Editorial EditorMr. Naba Krishna Muni FCMA [email protected] 02 PRESIDENT'S Message Associate EditorsMr. Shawkat Hossain FCMA Mr. R. Tareque Moudud FCMA 03 Journal and Publication Environmental Reporting Practices and it's Relationship Committee with Corporate Characteristics: An Evidence from ChairmanProf. Dr. Swapan Kumar Bala FCMA Manufacturing Companies Listed in Dhaka Stock Vice-ChairmanMr. Roomee Tareque Moudud FCMA Exchange (DSE) MembersProf. Mamtaz Uddin Ahmed FCMA Mr. Mohammed Salim FCMA 12 Mr. Md. Abdur Rahman Khan FCMA Sustainability and Climate Change Challenge: Mr. M. Abul Kalam Mazumdar FCMA Are We Ready? Mr. Abu Bakar Siddique FCMA Mr. A. K. M. Delwer Hussain FCMA 16 Mr. Arif Khan FCMA Impact of advertisement & promotional cost: Study on Mr. Md. Munirul Islam FCMA Marketing Cost of Pharmaceutical Industry in Kazi Muhammad Ziauddin FCMA Bangladesh Mr. Md. Yusuf FCMA Mr. Hamid Monirul Azam FCMA 28 Mr. S.M. Elias Amin FCMA E-waste management: A study on legal framework and Mr. Md. Shafiqul Islam FCMA institutional preparedness in Bangladesh Mr. Muhammad Shahid Ullah FCMA Sk. A.H. Md. Imtiaz Hossain FCMA 36 Mr. Mohammad Nazrul Islam FCMA An Analysis of Liquidity Position of Non-Bank Financial Mr. Sabbir Ahmed FCMA Institutions: A Study on Some Selected Non-Bank Mr. Syed Kabir FCMA Financial Institutions in Bangladesh Mr. Mohammad Abul Mansur FCMA Mr. Hasan Faisal ACMA 45 Mr. Md. Mizanur Rahman ACMA Financial Performance & Customer Satisfaction of Islamic Kazi Md. Siddikul Azam ACMA and Conventional Banks in Bangladesh: Mr. Saleh Ahmmad ACMA A Comparative Study Dr. Anup Kumar Saha ACMA Mr. Mohammad Siful Islam ACMA 55 Mr. Shah Aziz ACMA Key Performance Index: A Tool to Upgrade Teachers' Mr. Mohammad Rabioul Hasan ACMA Skills and Produce Quality Professionals Kazi Ruhul Amin ACMA SecretaryMr. Mohammed Mizanur Rahman 56 Additional Director (R & P) CMAs Working in the Co rporate World- An Interview PublisherMr. Md. Mahbub-Ul-Alam Executive Director, ICMAB 58 Update on IFRS, IAS, IFRIC and SIC All supervisionMr. Mohammed Mizanur Rahman for Professional Accountants Photog raphyMr. Md. Moslem Uddin 63 Design & Print Orchi Logistics Update on Income Tax 159, Arambag (1st floor), Motijheel, Dhaka-1000. Ph.: +88 02 7192152, email: [email protected] 68 Editorial OfficeThe Institute of Cost and Update on Dhaka Stock Market Management Accountants of Bangladesh ICMA Bhaban, Nilkhet, Dhaka-1205. 71 GPO Box No. 2629 CMA Students' World Tel.: 9615460 & 9611799 [email protected] 73 [email protected] ICMAB News All rights reserved. No part of this publication may be reproduced, duplicated or copied by any means without the prior consent of the holder of the copyright, requests for which should be addre ssed to the publisher. Bi-monthly Journal of the ICMAB ISSN 1817-5090 I VOLUME XLV Editorial NUMBER-1, JANUARY-FEBRUARY 2017 Visionary CMA Profession aking ICMAB (The Institute of Cost and accountant but also 'value for money' creating MManagement Accountants of Bangladesh) into a world accountant. CMAs will not only to give you something class professional institute to serve and build a better to drink but also make you thirsty. They will put you on Bangladesh is the top most priority of the present time. a path to success in the long run. In the Vision 2021 of Bangladesh Government ICMAB has strongly stressed on maintaining 'global highlighted that "Our final goal is, people's socio- standards' in forming the proposed Financial Reporting economic emancipation and build a poverty and hunger- Council (FRC) in order to materialize the purposes of free developed prosperous country," and to make its establishment. The FRC will be the supreme body Bangladesh a' mid-level-income' country. But, in a under the proposed Financial Reporting Act (FRA) country, where there are so many crises prevailing in 2015. ICMAB expects FRC will be formed with Bangladesh, which is mainly due to politics without composition of diversified stakeholders of money and principles, wealth without hard work, knowledge capital market consisting representatives from bar without character, commerce without morality and association, Bangladesh Securities Exchange pleasure without conscience. By building an ethical CMA Commission, economists, non-practicing accountants profession for Bangladesh, ICMAB intends to support to from ICAB/ICMAB, university professors and regulators. the journey of the Government to build a better Among all the stakeholders, ICMAB is considered one Bangladesh and to achieve Vision 2021 and Rupokalpa of the prime stakeholders in the above mentioned 2041. Good governance, people's capability and group and its inclusion in the FRC is important to empowerment should be the guiding principles of this strengthening institutions and establishing good robust journey. governance, transparency and accountability in the The cost and management accounting profession has money and capital market in Bangladesh. In a democratic emerged as a highly prestigious profession and country, government's decision making is characterized positioned as a critical component of the market by openness and transparency to prevent discrimination economy. When Government has been providing legal and promotes equal opportunity for all. ICMAB's and institutional support by creating professional founder, Ruhul Kuddus, FCMA who established this accounting bodies (ICMAB and ICAB) with rules and institute in 1977 with a hope to build CMA profession acts to support economic growth of the country, then to become number one profession in the country and cost and management accounting profession has also we all have been working to implement his dream and played a critical role in establishing oversight by transform it into action every day. reporting to various stakeholders like shareholders, ICMAB has been in process of transformational investors, entrepreneurs, civil society and the leadership. In 2014, the institute has been under the Government at large. leadership of Mr. Mohammed Salim, FCMA who initiated ICMAB has been producing CMAs since its ince ption. A and signed Memorandum of Understanding (MoU) CMA is an agent of positive change in the field of CMA between ICMAB and CIMA, UK and implemented CIMA profession covering business, trade, commerce, curriculum. In 2015, the institute has been under the industries and economics. A CMA is an entrepreneur leadership of Mr. A.S.M. Shaykhul Islam, FCMA who who could change everyone including every assisted the Government to approve FRA from stakeholders in the society. CMAs could be the prime Bangladesh Parliament. In 2016, Mr. Arif Khan FCMA has mover of building Bangladesh in the era of rapid global been leading ICMAB to become as a world class competition in the business environment worldwide. professional institute. In 2017, ICMAB has been under CMA profession is an ethical and val ue driven life time the leadership of Mr. Jamal Ahmed Choudhury, FCMA, a profession that could influence every one including young and inclusive leader who promised to keep corporate, NGOs and Government sectors covering continue ICMAB's Journey Towards Good to Great. We Ministry of Finance, Ministry of Commerce, Ministry of always address where there is darkness, let there be Industries, Ministry of Planning, Ministry of Information, light and keep continue the legacy of former leaders of Ministry of Law, Ministry of Education, Ministry of ICT, ICMAB as candle bearers. Let's make CMA profession Ministry of Women and Child Affairs and Ministry of as number one profession in the country, together. Youth. Cost and Management Accounting is more that we think because the environment is continuously changing. So, CMAs are connected to a dynamic Naba Krishna Muni FCMA profession. CMAs are not only cost and management Editor, The Cost & Management THE COST AND MANAGEMENT 01 ISSN 1817-5090, VOLUME-45, NUMBER-1, JANUARY-FEBRUARY 2017 PRESIDENT'SPRESIDENT'S MESSAGEMESSAGE Respected member of the CMA profession There has been a significant change in our academic It is indeed a great privilege for me to represent you as curriculum as part of our education and President of ICMAB for the year 2017. This is certainly examination reform initiatives. This time we need to one of the greatest honor I have ever been bestowed concentrate on question setting and assessment with. I express my deep gratitude to you all for giving process as well as training of the teachers and me the opportunity to serve such a prestigious others associated with assessment to make it more profession. Your unceasing support and co-operation in aligned with international standards. every endeavor is my biggest strength to carry out the Student enrollment in recent years has improved; new responsibility. more attention however, needs to be given to further increase our intake especially, we need to The economy of Bangladesh has got a spectacular devise strategies to attract brilliant students to the record of growing at the rate of six percent plus for profession. Gender diversification is also a matter to over a decade. It is now poised to become a middle be taken care of. Out of 1263 members, so far we income country by 2021.