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 Bangladesh 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 (Dhaka 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 REPORT 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 Md Fazlul Hoque FCA Dhaka Bank Ltd. 08 Proprietor Southeast Bank Ltd. Fazlul Hoque & Co. AB Bank Ltd. Chartered Accountants Janata Bank Ltd. 30 Bangabandhu Avenue (2nd floor) Social Islami Bank Ltd. Dhaka-1000 Sonali Bank Ltd.-UK Bank Asia and NRB Global Bank Snehasish Barua FCA 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