People, especially the investors engaged in the capital as well as financial markets often suffer from lack of trust due to absence of transparency and accountability in the audited reports of various companies.
In order to restore the people’s confidence, emphasize should be given on ensuring proper financial reporting. Absence of proper implementation of financial reporting guidelines hampers growth of the financial as well as capital market as it gives a scope for generation of dishonest gatekeepers in every sector.
This was highlighted at a conference organised by the Institute of Chartered Accountants of Bangladesh (ICAB).
The members’ conference on ‘The Conceptual Framework for Financial Reporting as issued by the International Accounting Standards Board (IASB)’ was held at ICAB Auditorium in Dhaka on Friday.
C. Q. K. Mustaq Ahmed, Chairman of Financial Reporting Council (FRC) Bangladesh was present as the chief guest.
The conceptual framework sets out fundamental concepts for financial reporting that provides useful information for stakeholders. It also assists companies in developing accounting policies and helps stakeholders to understand and interpret the standards, it was discussed at the conference.
The FRC chairman said that the council may hire expertise from abroad to bring discipline in the financial sector of the country. It will not take decision of its own rather will work upon participation of different stakeholders who are making representation in the Financial Reporting Council (FRC).
ICAB is relentlessly working to make abreast its members of updates of accounting and auditing standards made by relevant authority, he observed.
ICAB President Dewan Nurul Islam FCA delivered welcome speech while Mahmudul Hasan Khusru FCA, Member Council and Vice President ICAB moderated the conference.
Snehasish Barua FCA, Partner, Snehasish Mahmud & Co, Chartered Accountants presented the key not paper. Sabbir Ahmed FCA, Partner, Hoda Vasi Chowdhury & Co, Md. Rokonuzzaman FCA, Partner, ACNABIN, Sk. Md. Tarikul Islam FCA, Director, Audit & Advisory, Hoda Vasi Chowdhury & Co, Md. Sk. Ashik Iqbal ACA, CPA and Wasequl Huq Reagan ACA, Partner, Mahfel Huq & Co were the panelists of the discussion.
ICAB President Dewan Nurul Islam said that due to lack of clarity and exclusion of some of important concepts, the existing framework for financial reporting which is issued by International Accounting Standard Board (IASB) is largely criticized. It requires updating time to time for further improvement and the definition of assets and liabilities carry the significant effects and very useful for the users, he added.
The paper presenter discussed the different aspects of financial reporting framework and the changes required for improvement. He discussed in detailed the concepts of financial and physical capital, its maintenance and determination of profits as well as capital maintenance adjustment. The IASB decided that updating the discussion of capital and capital maintenance could have delayed the completion of framework significantly.