Many listed companies do not comply with the existing financial reporting law while preparing their reports with qualified professionals, the head of a watchdog said on Friday.
CQK Mustaq Ahmed, chairman of the Financial Reporting Council (FRC), said many renowned listed companies are mostly run by family members.
"Do they really maintain the (legal) requirement by employing skilled professionals? he asked.
"Things are even worse for non-listed companies. The Financial Reporting Council Act covers the issue but we're not following this," he said.
The FRC chair noted the council is trying its best to ensure the requirement with involvement of skilled professionals as part of the government plan to bring back discipline in the financial sector.
Mr. Ahmed made the remarks while speaking as the chief guest at a conference on the conceptual framework for financial reporting as issued by the International Accounting Standards Board (IASB).
The Institute of Chartered Accountants of Bangladesh (ICAB) organised the conference at the ICAB auditorium in the capital.
Mahmudul Hasan Khusru FCA, member council and ICAB vice president, moderated the conference.
Citing the example of vault scam in the Bangladesh Bank, Mr Ahmed said none believes that such an incident did not happen.
"People have trust deficit over the financial institutions (FIs). We have to work hard with integrity to bring back the confidence of the people," he added.
The FRC chairman said that the council might hire experts from abroad to bring discipline in the financial sector of the country.
The council will not take decision of its own, it will work with different stakeholders who are representing the FRC.
ICAB president Dewan Nurul Islam said the existing framework for financial reporting, issued by the IASB, is largely criticised due to a lack of clarity and exclusion of some of important concepts.
He said the definition of assets and liabilities in line with the new conceptual framework carries the significant weight and is useful for the stakeholders.
The framework also assists companies in developing accounting policies and helps stakeholders understand and interpret the standards.
This intensive discussion along with the panel remarks on the conceptual framework will add value to the knowledge of the users, according to panelists.
They also discussed in detail the concepts of financial and physical capital, its maintenance and determination of profits as well as capital maintenance adjustment.
Snehasish Barua FCA, Partner of Snehasish Mahmud & Co presented the keynote paper.
Sabbir Ahmed FCA, Partner of Hoda Vasi Chowdhury & Co, Md. Rokonuzzaman FCA, Partner of ACNABIN, Sk. Md. Tarikul Islam FCA, director, Audit & Advisory of Hoda Vasi Chowdhury & Co, Md. Sk. Ashik Iqbal ACA, and Wasequl Huq Reagan ACA, Partner of Mahfel Huq & Co were the panelists of the discussion.
