All listed entities encompassing banks, non-banking financial institutions (NBFIs) and insurance sectors should follow the international financial reporting standards (IFRS) to ensure transparency and accountability.
"There is no scope to avoid such global standards as practiced in other countries. If there is any dualism or contradiction of the country's existing laws, rules and regulations, the government is required to be approached to resolve the problem," C. Q. K. Mustaq Ahmed, Chairman, Financial Reporting Council (FRC), made the remarks on Saturday.
He was addressing a Members' Conference on 'Changes in Accounting Standards Effective from 1 January 2019' organized by the Institute of Chartered Accountants of Bangladesh (ICAB).
The FRC chairman said, all listed companies under banking, non-banking and insurance sectors should obey and comply with the IFRS and its relevant changes in their companies as applicable for ensuring transparency and accountability. The IFRS has already been made mandatory for listed entities and financial institutions.
Accountants specially the chartered accountants and the auditors have a major role to ensure the full implementation of IFRS in Bangladesh, he added.
He further added that the accountants should keep in touch with the changes in IFRS. He also urged the stakeholders to abide by the rules and regulations and the existing laws of the land with a view to create business friendly environment.
ICAB President Muhammad Farooq FCA said, both the preparers and the auditors of financial statements have to be well conversant with the recent changes in IFRS.
He said, IFRS 16 "Leases" will affect primarily the accounting by lessees and will result in the recognition of almost all leases on balance sheet. Mentioning other changes of IFRS, he added that there are few amendments also made through Annual Improvements to IFRS Standards between 2015 to 2017.
Members should keep abreast with these changes of accounting and auditing standards as well for their own benefits in ever changing business environment of the world, he further added. Later, a floor discussion was opened for the members.
Akhtar Sohel Kasem FCA, Council Member & Past President-ICAB and Senior Partner, A Qasem & Co. Chartered Accountants conducted the session as the Session Chairman while Sabbir Ahmed FCA, Vice President-ICAB and Partner, Hoda Vasi Chowdhury & Co. Chartered Accountants presented the keynote paper.
ICAB President Muhammad Farooq FCA delivered address of welcome. Mohammed Forkan Uddin FCA, Vice President, ICAB, offered vote of thanks.