Department of International

University of Dhaka

Course Title & Code: International Accounting and Auditing

IB-401
Assignment on
The IFRS Journey in Bangladesh: Application and Historical
Evaluation

Prepared to

Dr. Muhammad Shahin Miah CPA

Assistant Professor,
Department of International Business
Faculty of Business Studies
University of Dhaka.

Prepared By

Roki Hassan
ID No: BE-030-001
Batch- 10th
Section: A

Submission Date: 26 January 2020.

 Contents

The IFRS Journey in Bangladesh: Application and Historical Evaluation..................................... 3

Use and application of IFRS ........................................................................................................... 3
Evaluation of IFRS in Bangladesh .................................................................................................. 4
Flowchart ........................................................................................................................................ 5
The IFRS Journey in Bangladesh: Application and Historical Evaluation

IFRS mostly known as International Financial Reporting Standard is a universal body intend to set
up the institutionalization and harmonization of bookkeeping report everywhere. International
Accounting Standards Board set up in April 2001, London, England as the descendant to the
International Accounting Standards Committee (IASC). It is generally the distinguishable
obligation and responsibility of the IASB for creating and actualizing International Financial
Reporting Standards (was known as the IAS) by its part nations around the globe. The adjustment
procedure began in Bangladesh in 1999 and detail will be talked about in the letter part.

Use and application of IFRS

The use and application of IFRS have been emerged over the time. The world is turning out to be
Global Village and Globalization depends on worldwide institutionalization. To expel this sort of
issue IFRS is acquainted with fit the bookkeeping report. This is the application not for Bangladesh
yet additionally around the globe. IFRS Standards giving a great, universally perceived
arrangement of bookkeeping norms that bring straightforwardness, responsibility and
effectiveness to money related markets far and wide. IFRS Standards bring straightforwardness by
upgrading the worldwide equivalence and nature of budgetary data, empowering financial
specialists and other market members to settle on educated monetary choices. In this way, every
field attempts to set a worldwide standard that perceives the world over and the case is the
equivalent for bookkeeping and bookkeeping detailing norms. For instance, in the event that a
British speculator needs to put resources into a Bangladeshi organization, at that point he/she
should need to assemble satisfactory data about the whether the organization is going to benefit or
misfortune, should not something be said about the absolute resource and risk, instalment of profit,
etc. Every one of those data can get from the bookkeeping report, particularly from the yearly
report. In any case, the issue emerges when there inconsistency in the bookkeeping report and it
might be a language issue, design and so forth. As a wellspring of internationally equivalent data,
IFRS Standards are additionally of essential significance to controllers around the globe. What's
more, IFRS Standards add to monetary effectiveness by helping financial specialists to recognize
openings and dangers over the world, subsequently improving capital designation. For
organizations, the utilization of a solitary believed bookkeeping language brings down the expense
of capital and decreases worldwide detailing costs. It reinforces responsibility in Bangladesh as
well as everywhere throughout the world who part nation by diminishing the data hole between
the suppliers of capital and the individuals to whom they have depended their cash. It additionally
gives data that is expected to consider the board answerable.
Evaluation of IFRS in Bangladesh
With many phases and development of stages, IFRS have been adapted and introduced in the
Bangladesh. The procedure of adjustment of IFRS in Bangladesh began in 1999. This procedure
can be separated into three stages. At absolute first, in 1999 administration of Bangladesh began
the IAS's appropriation procedure and The IASs selection process was started in August 1999 after
a US $ 200,000 World Bank award to the Bangladeshi Government for the advancement of
Accounting and Auditing Standards in Bangladesh and this likewise before the finish of that
specific year 16 stages were getting looked at. The World Bank's Institutional Development Fund
(IDF) award was focused at upgrading the institutional limit of the ICAB for the appropriation of
IASs in the nation. On its part, the ICAB was required to give the extra US $ 20,000 required to
help achieve this errand. The Government at that point appointed the procedure to the Securities
and Exchange Commission (SEC) as the primary organization answerable for regulating the
procedure. Following a few years after the fact in 2005, all privately recorded organizations were
required to utilize IFRS Accounting Standards. Later toward the finish of 2005, Bangladesh
Financial Reporting Standards (BFRS) embraced IFRS 3 and IFRS 5. Besides, in 2008 BFRS again
took reception of IFRS 1, 4, 7 and 8 (ICAB, 2007). At that point following the year 2009 BFRS
led with 8 periods of IFRS and 26 periods of IASs. All through this time, the preparing of IFRS
selection in a continuous program ICAB still intends to keep up this progressing procedure until
June 2010. Thereafter, while the gauges are reconsidered and affirmed, the Instituted of Chartered
Accountant of Bangladesh (ICAB) gave another named Bangladesh Accounting Standard. It is
likewise referenced that, the majority of these duplicates of the first IAS's.
Flowchart

Selection process was started in August 1999 with

the collaboration of Bangladeshi Government for
the advancement of Accounting and Auditing
Standards

In the period of 2005, Bangladesh Financial

revealing Standards (BFRS) embraced IFRS 3 and
IFRS 5

2008 BFRS again took selection of IFRS 1, 4, 7

and 8

2009 BFRS led with 8 periods of IFRS and 26

periods of IASs