Tour Report - COMPLIANCE OF ACCOUNTING STANDARDS OF PADMA OIL COMPANY LIMITED

C HAPTER -01
INTRODUCTION
Definition of Accounting Standards:
Accounting standard can be defined as following as…………….
Accounting standard are rules on how act a command to have in
this away if such commands make life run move smoothly they
may well be good standards.
Note: kholer L “A dictionary of Accountants”- p.400.
 Accounting standard are the Norms of Accounting policies and
practices issued by the accounting bodies for the guidance of their
members regarding the treatment of the items, which makes up the
financial statements and their disclosure therein.
 Accounting standard may be defined as” . . . Uniform rules a external
financial reporting applicable either to all a to certain class of entity”
Objectives of the Accounting Standards:

The following are the objectives of accounting standards:
To serve as a working basis for the different institutions.
To standardize accounting policies principles and practices.
To introduce highly exports opinions and the examined best
practices.
To reduce controversies regarding principles and practices of
accounting and bring about greater agreement a uniformity.
To enable all who are affected by an interested in accounting
information to setter understand purposes contents
characteristics and limitation of information provide by
accounting and reporting.
To increase the usefulness of and confidence in financial
statements as well as the uses ability to use the accountings
information effectively.
The Narrowing of difference and variety in accounting
principles.
The discloser of accounting basis.
The discloser of departures from established definite standards.
The wider espouser of major new proposals.
Continuing program for encouraging improved accounting
standard.
Make wider the recognition of generally accepted accounting
principles.
Established international harmony.
To recommend whenever possible one a more alternative
procedures as using definitely superior to other procedures.
To increase rationality and reduce conflicts between different
parties.
To enhance comparability at accounting data both nationally
and internationally.
The process of Setting Standards

The Accounting standards committee (ASC) identifies the following
fifteen stages in the process of setting accounting standards
1. Identification of topics
2. Planning sub-committee
3. Research
4. Formation of a working party
5. Consultative documents
5.1 Discussion paper
5.2 Statement of intent
5.3 Exposure draft
6. Initial feedback to the ASC
7. Consultation Plan
8. Technical drafting
9. Involvement of the CCAB
11. Exposure period
12. Towards a standard
13. Finalization and issue of standard
14. Guidance notes, appendices to standards and Technical
releases
15. Reviews and revision of standards
Advantages of Accounting Standards

Standards of measurement are of great help in all spheres of business
life. These are stated below:
1. Provide Information
2. Resolve conflict:
3. Narrow the Choice:
4. Draw Boundaries:
5. Bring Uniformity:
6. Comparability:
.
C HAPTER -02
INTERNATIONAL ACCOUNTING STANDARDS (IAS)

In 1973, International Accounting Standard committee was
established. This committee published 41 standards. In 1977,
Bangladesh got the membership of that committee. As of December
2006, 29 IAS is in circulation, out of which 27 IAS have been adopted
by ICAB as BAS.
International Accounting Standards & Standards Adopted in
Bangladesh with status.
IAS Particulars of IAS IAS Present Title Present Status

No. No.
01 Presentation of Financial 01 Presentation of Adopted Original
Statements Financial Statements Version Since
Superseded by
revised IAS – I
02 Inventories 05 Inventories Adopted latest
version
03 Replaced by IAS – 27 Consolidated financial Adopted original
and IAS – 28 statements version but no
longer effective
04 Depreciation Accounting 04 Depreciation Adopted original
Accounting version
05 Replaced by IAS – I 02 Information to be Adopted original
disclosed in financial version since
statements merged with revises
IAS – I
06 Replaced by IAS – 15 Accounting responses, Adopted original
to changing prices version but no
longer effective
07 Cash Flow Statement 06 Cash Flow Statement Adopted original
version
08 Net profit and loss for 08 Net profit and loss for Adopted original
the period, fundamental the period, version
errors and changes in fundamental errors and
Accounting policies changes in Accounting
policies
09 Research and 10 Research and Adopted original
No. No.
Development Costs. Development Costs. version
10 Events after the balance 11 Contingencies and Adopted original
sheet date. events occurring after version
the balance sheet date
11 Construction contracts 09 Construction contracts Adopted latest
version
12 Income taxes 13 Income taxes Adopted original
version
13 Replaced by IAS – I 07 Presentation of current Adopted original
assets and current version since merger
liabilities with revised IAS – I
14 Reporting Financial Nil Nil
Information by segments
15 Information reflecting Nil Nil
the effects of changing
prices.
16 Property Plant and 03 Property Plant and Adopted original
Equipment Equipment version
17 Leases Nil Nil
18 Revenue Recognition 12 Revenue Recognition Adopted latest
version
19 Employee benefits Nil Nil
20 Accounting for govt. 17 Accounting for Govt. Adopted latest
grants and disclosure of grants and disclosure version
govt. assistance of govt. assistance
21 The effects of changes in 15 Nil Nil
foreign exchange rate
22 Business combinations Nil Nil
23 Borrowing cost 14 Borrowing costs Adopted Original
version
24 Related party disclosures 16 Nil Nil
25 Accounting for Consolidated financial Adopted latest
investment statements and version
accounting for
investment subsidiaries
26 Accounting and Nil Nil
reporting by retirement
benefits plants
27 Consolidated financial Financial reporting in Not applicable in the
statements and Hyper Inflationary present context of
accounting for economics Bangladesh
investment subsidiaries
28 Accounting for Nil Nil
investment in
No. No.
subsidiaries
29 Financial reporting in Nil Nil
Hyper inflationary
economics
30 Disclosure in the Nil Nil
financial statements of
Banks and similar
financial institutions
31 Financial reporting of Nil Nil
interests in joint venture
32 Financial instruments Nil Nil
disclosure and
presentation
33 Earnings per share Nil Nil
34 Interim financial Nil Nil
reporting
35 Discontinuing operations Nil Nil
36 Impairment of Assets Nil Nil
37 Provision, contingent Nil Nil
liabilities and contingent
assets.
38 Intangible assets Nil Nil
39 Financial Instruments Nil Nil
40 Investment property Nil Nil
41 Agriculture Nil Nil
IAS Under Consideration for Adoption in Bangladesh
IAS no. Particulars
14 Segment reporting
15 Information reflecting the effects of changing prices
17 Accounting for leases
19 Employee benefit
21 The effects changes foreign exchange rate
22 Business combination
24 Related party disclosures
26 Accounting and reporting by retirement benefit plans
31 Financial reporting of interests in joint ventures
32 Financial instrument disclosure and presentation
35 Discounting operation
36 Impairment of assets
C HAPTER -03
BANGLADESH ACCOUNTING STANDARDS (BAS).

Bangladesh Accounting Standard -1
Presentation of Financial Statement
Objective:
The objective of this standard is to prescribe the basis for presentation
of general-purpose financial statements, to ensure comparability both
with the entity financial statement of previous period and with the
financial statement of other entities.
Scope:
This standard shall be applied to all general purpose financial
statements prepared to all general purpose financial statements
prepared and presented in accordance with Bangladesh Financial
Reporting Standards (BFRSs) and
Bangladesh Accounting Standards (BASs)
Purpose of Financial Statements:
Financial Statement is a structured representation of the financial
position and financial performance of an entity.
To meet this objective financial statements provide information about
an entity’s
a. Assets
b. Liabilities
c. Equity
d. Income and expenses including gains and losses
e. Other changes in equity; and
f. Cash flow.
Component of Financial Statements:
A complete set of financial statements comprises
a. A balance sheet
b. An income statement
c. A statement of changes in equity showing either:
d. All changes in equity or
e. Changes in equity other than those arising from transaction
with equity holders acting in their capacity as equity holders;
f. A cash flow statements
g. Notes, comprising a summary of significant accounting policies
and other explanatory notes.
Overall considerations:
Fair Presentation and Compliance with BFRSs Financial statement
shall present fairly the financial position, financial performance and
cash flow of an entity. Fair presentation requires the faithful
representation of the effects of transactions.
Going Concern
When preparing financial statements. Management shall make an
assessment of an entity’s ability to continue as a going concern
Financial statements shall be prepared on a going concern basis
unless managements either intends to liquidate the entity or to cease
trading, or has no realistic alternative but to do so.
Accrual Basis of Accounting
An entity shall prepare its financial statements, except for cash flow
information, using the accrual basis of accounting.
Identification of the Financial Statements:
The financial statement shall be identified clearly and distinguished
from other information in the same published documents.
Reporting Period:
Financial statements shall be presented at least annually. When an
entity’s balance sheet date chance and the annual financial
statements are presented for a period longer or shorter that one year,
and entity shall disclose, in addition to the period covered by the
financial statements: -
I. The reason for using longer or shorter period and
II. The facts that comparative amounts for the income
Statement,
Statement of changes in equity, cash flow statement and related
notes are not entirely comparable Balance sheet (Current /Non-
current distinction)
Current Assets:
An asset shall be classified as current when it satisfies any of the any
of the following criteria.
a. It is held primarily for the purpose of being traded.
b. It is expected to be realized within twelve months after the
balance sheet date.
c. It is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months
after the balance sheet date.
All other assets shall be classified as non-current.
Current Liabilities:
A liability shall be classified as current when it satisfies any of the
following criteria:
a. It is expected to settle in the entity’s normal operating cycle.
b. It is held primarily for the purpose of being traded
c. It is due to be settled within twelve months after the balance
sheet date.
d. The entity does not have and unconditional for at least twelve
months after the balance sheet date.
All other liabilities shall be classified as non-current liabilities.
Income Statement
Profit or Loss for the Period
All items of income and expenses recognized in a period shall be
included in profit or loss unless a standard or interpretation require
otherwise.
As a minimum, the face of the income statement shall include line
items that present the following amounts for the period.
a. Revenue
b. Finance cost
c. Share of the profit or loss of associated and joint venture
accounted for using the equity method.
d. Tax expenses
e. Profit or loss
Statement of Changes in Equity:
An entity shall present a statement of changes in equity showing on
the face of the statement;
a. Profit or loss for the period.
b. Each item of income and expense for the period that, as
required by other standards or by interpretations, is recognized
directly equity, and the total of these items
c. Total income and expense for the period showing separately the
total amounts attributable to equity holder of the parent and to
minority interest; and
d. For each component of equity, the effects of changes in
accounting policies and corrections of errors recognized in
accordance with BAS 8.
Cash Flow Statement:
Cash flow information provides users of financial statements with a
basis to access the ability of the entity to generate cash and cash
equivalents and the needs of the entity to utilize those cash flows.
Disclosure of Accounting Policies:
An entity shall disclose in the summary of significant accounting
policies:
a. The measurement basis used in preparing the financial
statements; and
b. The other accounting policies used that are relevant to an
understanding of the financial statements.
Compliance with International Accounting Standards (IAS):

Compliance with this BAS ensures compliance in all material respect
with International Accounting Standard (IAS)-1.
Bangladesh Accounting Standard-2
Inventories
Objective:
The objective of this standard is to prescribe the accounting treatment
for inventories. This standard provides guidance on the determination
of cost and its subsequent recognition as an expense, including any
write-down to net realizable value; it also provides guidance on the
cost formulas that are used to assign cost to inventories.
Scope:
This standard applies to all inventories, except:
a. Work progress arising under construction contracts including
directly related service contracts
b. Financial instruments; and
c. Biological assets related to agricultural activity and
agricultural produce at the point of harvest.
Definition:
The following terms are used in this standard with the meaning
specified:
Inventories are assets:
a. Held for sale in the ordinary course of business
b. In the process of production for such sale; and
c. In the form of materials or supplies to be consumers in the
production process or in the rendering of services.
Measurement of Inventories:
Inventories shall measure at the lower of cost and net realizable value;
Disclosure:
The financial statement shall disclose:
a. The accounting policies adopt in measuring inventories
including the cost formula used;
b. The total currying amount of inventories and the carrying
amount in classification appropriate to the entity.
c. The carrying amount of inventories carried at fair value less
cost to sell;
d. The amount of inventories recognized as an expenses during
the period.
e. The carrying amount of inventories pledged as security for
liabilities.
Compliance with International Accounting Standard (IAS):
Compliance with this BAS ensures compliance in all material respects
Bangladesh Accounting Standrad-7

Cash Flow Statement
Objective:
Information about the cash flows of an entity is useful in providing
users of financial statements with a basis to assess the ability of the
entity to generate cash and cash equivalents and the needs to the
entity to utilize those cash flows.
Scope:
An entity shall prepare a cash flow statement in accordance with the
requirements of this standard and shall present it us an integral part
of its financial statements for each period for which financial
statements are presented.
Definition:
specified:
Cash: Comprises cash on hand and demand deposit.
Cash equivalents: are on short term, highly liquid investments that
are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
Cash flows are inflows and outflows of cash and cash equivalents
Operating activities are the principal revenue producing activities of
the entity and other activities that are not investing or financing
activities.
Investing activities are the acquisition and disposal of long -term
assets and other investments not included in cash equivalents?
Financing activities are activities that result in changes in the size
and composition of the contributed equity and borrowings of the
entity.
Presentation of Cash Flow Statement:
The cash flow statement shall report cash flows during the period
classified by operating, investing and financing activities,
Taxes on Income:
Cash flow arising from taxes on income shall be separately disclosed
and shall be classified as cash flows from operating activities unless
they can be specifically identified with financing and investing
activities.
Other Disclosure:
An entity shall disclose, together with a commentary by management,
the amount of significant cash and cash equivalent balances held by
the entity that is not available for use by the group.

Accounting policies changes in Accounting Estimates
and Errors.
Objective:
The objectives of this standard is to prescribe the criteria for selecting
and changing accounting policies, together with the accounting
treatments and disclosure of changes in accounting policies, changes
in accounting estimates and correction of errors.
Scope:
This standard shall be applied in selecting and applying accounting
policies, and accounting changes for changes in accounting policies,
changes in accounting estimates and correction of prior period errors.
Definition:
specified.
Accounting policies are the specific principles, bases, conventions
rules and practices applied by an entity in preparing and presenting
financial statements.
A change in accounting estimate is an adjustment of the carrying

amount of an asset or a liability, or the amount of the periodic
consumption of an asset, that results from the assessment of the
present status of and expected future benefits and obligations
associated with, assets and liabilities.
Prior period errors are omission from, and misstatements in the

entity’s financial statements for one or more prior periods arising from
a failure to use, or misuse of reliable information that:
a. Was available when financial statements for those periods were
authorized for issue; and
b. Could reasonably b expected to have been obtained and taken
into account in the preparation and presentation of those
financial statements.
Disclosure:
An entity shall disclose the mature and amount of a change in an
accounting estimated that has an effect in the current period or is
expected to have an effect in future periods, except for the disclosure
of the effect on future periods when it is impracticable to estimate that
effect.
If the amount of the effect I future periods is not disclosed because
estimating it is impracticable, an entity shall disclose that fact.

Events after the balance sheet date
Objective:
The objective of this standard is to prescribe:
a) When an entity should adjust its financial statement for events
after the balance sheet date; and
b) The disclosure that an entity should give about the date when
the financial statements were authorized for issue and about
events after the balance sheet date.
Scope:
This standard shall be applied in the accounting for, and disclosure of
events after the balance sheet date.
Definition:
specified:
Events after balance sheet date are those events favorable and
unfavorable that occurs between the balance sheet date and the date
when the financial statements are authorized for issue. Two types of
events can be identified:
a. Those tat provide evidence of conditions that existed at the
balance sheet date; and
b. Those that is indicative of conditions that arose after the
balance sheet date.
Compliance with this BAS ensures compliance in all materials respect
Construction Contracts
Objective:
of revenue and cost associated with construction contracts.
Scope:
This standard shall be applied in accounting for construction
contracts in the financial statements of contractors.
Definition:
specified.
A construction contract is a contract specifically negotiated for the
construction of an asset of a combination of asset that are closely
interrelated or interdependent in terms of their design, technology and
function or their ultimate purpose or use.
A fixed price contract is a construction contract in which the
contractor agrees to a fixed contract price or a fixed rate per unit of
output, which in some cases is subject to cost escalation clause.
A cost plus contract is a construction contract which the contractor is
reimbursed for allowable or otherwise defined costs, plus a percentage
of these cost or a fixed fee.
Disclosure:
An entity shall disclose
a. The amount of contract revenue recognized as revenue in
period;
b. The methods used to determine the contract revenue recognized
in the period; and
c. The methods used to determine the stage of completion of
contracts in progress.
Compliance with International Accounting Standard (IAS)
with international Accounting Standard (IAS)-11.
Income Taxes
Objective:
for income taxes.
Scope:
This standard shall be applied in accounting for income taxes.
Definition:
specified.
Accounting profit is or loss for a period before deduction tax expense.
Taxable profit is the profit for a period determined in accordance with
the rules established by the taxation authorities, upon which income
taxes are payable.
Tax expense is the aggregate amount included in the determination of
profit or loss for the period respect of current tax and deferred tax.
Current tax is the amount of income taxes payable in respect of the
taxable profit for a period.
Deferred tax liabilities are the amounts of income taxes payable in
future periods in respect of taxable temporary differences.
Deferred tax assets are the amounts of income taxes recoverable in
future periods in respect of
a. Deductible temporary differences;
b. The carry forward of unused tax losses; and
c. The carry forward of unused tax credits.
Compliance with this GAS ensures compliance in all material respect
Segment Reporting
Objective:
The objective of this standard is to establish principles for reporting
financial information by segment- information about the different
types of products and services an entity produces and the different
geographical areas in which it operates to help users of financial
statements:
a. Better understand the entity’s past performance;
b. Better assess the entity’s risks and returns; and
c. Make more informed judgments about the entity as a whole.
Scope:
This standard shall be applied in complete sets of published financial
statements that comply with Bangladesh Financial Reporting
Standards.
Definition:
Definitions of Business Segment and Geographical Segment:
A business segment is a distinguishable component of an entity that
is engaged in providing an individual product or service of a group of
related products or services and that is subject to risks and returns
that are different from those of the business segments. Factors that
shall be considered n determining whether products and services are
related include:
a. The nature of the products or services;
b. The nature of the production processes;
c. The type or class of customer for the products or services; etc.
A geographical segment is a distinguishable component of an entity
that is engaged in providing products or services within a particular
economic environment and that is subject to risks and returns that
are different from those of components operating in other economic
environments. Factors that shall be considered in identifying
geographical segments include:
a. Similarity of economic and political conditions;
b. Relationships between operations in different geographical
areas;
c. Proximity of operations; etc.
Definitions of Segment Revenue, Expense, Result, Assets and
Liabilities:
Segment revenue is revenue reported in the entity’s income
statement that is directly attributable to a segment and the relevant
portion of entity revenue that can be allocated on a reasonable basis
to a segment, whether from sales to external customers of from
transactions with other segments of the same entity.
Segment expense is expense resulting from the operating activities of
a segment that is directly attributable to the segment and the relevant
portion of an expense that can be allocated on a reasonable basis to
the segment, including expenses relating to sales to external
customers and expenses relating to transactions with other segments
of the same entity.
Segment result is segment revenue less segment expense. Segment
result is determined before any adjustments for minority interest.
Segment assets are those operating assets that are employed by a
segment in its operating activities and that either are directly
attributable to the segment or can be allocated to the segment on a
reasonable basis.
Segment liabilities are those operating liabilities that result from the
operating activities of a segment and that either is directly attributable
to the segment of can be allocated to the segment on a reasonable
basis.
Segment accounting policies are the accounting policies adopted for
preparing and presenting the financial statements of the consolidated
group or entity as well as those accounting policies that relate
specifically to segment reporting.
Property, plant and Equipment
Objective:
for property, plant and equipment so that users of the financial
statements can discern information about an entity’s investment in its
property, plant and equipment and the change in such investment.
Scope:
This standard shall be applied in accounting for property, plant and
equipment except when another standard requires or permits a
different accounting treatment.
Definition:
The following terms are used in this standard with the meanings
specified:
Carrying amount is the amount at which an asset is recognized after
deducting any accumulated depreciation and accumulated
impairment losses.
Depreciable amount is the cost of an asset, or other amount
substituted for cost, less its residual value.
Fair value is the amount for which an asset could be exchanged
between knowledgeable, willing parties in an arm’s length transaction.
Compliance with this BAS Ensures compliance in all material respects
Leases:
Objectives:
The objective of this standard is to prescribe for leases and lessors the
appropriate accounting policies and disclosure to apply in relation to
leases.
Scope:
This standard shall be applied in accounting for all leases other than:
a) Leases to explore for or use minerals, oil, natural gas and
similar non-regenerative resources; and
b) Licensing agreements for such items as motion picture film,
video recordings, plays, manuscripts, patents and copyrights.
However, this standard shall not be applied as the basis of
measurement for:
a. Property held is lessees that are accounted for as investment
property.
b. Investment property provided by lessors under operating leases.
c. Biological assets held by lessees under finance leases.
d. Biological assets provided by lessors under operating leases.
Definitions:
specified:
A lease is an agreement whereby the lessor conveys to the lessee in
return for a payment or series of payments the right to use an asset
for an agreed period of time.
A financial lease is a lease that transfers substantially all the risks
and rewards incidental to ownership of an asset title may or may not
eventually be transferred
An operating lease is a lease other than a financial lease.
Lease in the Financial Statements of Leases
Finance Leases
Initial Recognition:
At the commencement of the lease term, lessees shall recognize
finance lease as assets and liabilities in their balance sheets at
amounts equal to the fair value of the lease property or if lower, the
present value of the minimum lease payments, each determined at the
inception of the lease. The discount rate to is used in calculating the
present value of the minimum lease payments is the interest rate
implicit in the lease, if this is practicable to determine; if not, the
lessee’s incremental borrowing rate shall be used. Any initial direct
costs of the leases are added to the amount recognized as an asset.
Subsequent Measurement:
Minimum lease payment shall be apportioned between the finance
charge and the reduction of the outstanding liability. The finance
charge shall be allocated to each period during the lease term so as to
produce a constant periodic ate of interest on the remaining balance
of the liability. Contingent rents shall be charged as expenses in the
periods in which they are incurred.
Operating leases:
Lease payment under an operating lease shall be recognized as an
expense on a straight-line basis over the lease term unless another
systematic basis is more representative of the time pattern of the
user’s benefit.
Leases in the Financial Statements of Lessors
Finance Lease
Initial Recognition:
Lessors shall recognize assets held under a finance lease is their
balance sheets and present them as a receivable at an amount equal
to the ret investment in the lease.
Subsequent Measurement:
The recognition of finance income shall be based on a pattern
reflecting a constant periodic rate of return on the lessor’s net
investment in the finance lease.
Operating leases:
Lease income from operating leases shall be recognized in income on a
straight-line basis over the lease term, unless another systematic
basis is more representative of the time pattern in which use benefit
derives from the leased asset is diminished.
Sale and lease back Transactions:

A sale and lease back transaction involves the lease of an asset and
the leasing back of the same assert. The lease payment and the sale
price are usually interdependent because they are negotiated as a
package.

Bangladesh Accounting Standard 18
Revenue
Objective:
Income is defined in the Framework for the preparation and
presentation of financial statement as increases in economic benefits
during the accounting period in the form of inflows or enhancements
of assets or decreases of liabilities that result in increase in equity,
other than those relating to contributions from equity participants.
Scope:
This statement shall be applied in accounting for revenue arising from
the following transactions and events:
a) The sale of goods
b) The rendering of services and
c) The use by other of entity assets yielding interest, royalties and
dividends.
Definitions:
Revenue is the gross inflow of economic benefits during the period
arising in the course of the ordinary activities of an entity when those
inflows result in increases inequity other than increases relating to
contributions from equity participants
Measurement of Revenue:
Revenue shall be measured at the fair value of the consideration
received or receivable.
Sale of Goods:
Revenue from the sale of goods shall be recognized when all the
following conditions have been satisfied:
a) The entity has transferred to the buyer the significant risks and
rewards of ownership of the goods.
b) The amount of revenue can be measured reliably
c) It is probable that the economic benefits associated with the
transaction will flow to the entity; and
d) The costs incurred or to be incurred in respect of the
transaction can be measured reliably.
Rendering of Services:
The outcome of a transaction can be estimated reliably when all the
following conditions are satisfied:
a. The amount of revenue can be measured reliably
b. It is probable that the economic benefits associated with
the transaction will flow to the entity
c. The stage of completion of the transaction at the balance
sheet data can be measured reliably and
d. The cost incurred for the transaction and the costs to
complete the transaction can be measured reliably.
Disclosure:
The amount of each significant category of revenue recognized during
the period including revenue arising from:
I. The sale of goods.
II. The rendering of services
III. Interest
IV. Royalties
V. Dividends
Compliance with International Accounting Standards (IAS)
Employee Benefits
Objective:
Objectives of this standard are to prescribe the accounting and
disclosure for employee benefits. The standard requires an entity to
recognize:
a. A liability when an employee has provided service in
exchange for employee benefits to be paid in the future
and
b. An expense when the entity consumers the economic
benefit arising from service provided by an employee in
exchange for employee benefits.
Scope:
c. This standard shall be applied by an employer in
accounting for all employee benefits except those to which
BFRS2 share-based payment applies.
d. Employee benefits include:
e. Short-term employee benefits.
f. Post-employment benefits.
g. Other long-term employee benefits and
h. Termination benefits.
i. Employee benefits include benefits provided to either
employees or their dependants.
Definitions:
Employee benefits are all forms of consideration given by an entity in
exchange for service rendered by employees.
Balance Sheet:
The amount recognized as a defined benefit liability shall be the net
total of the following amounts:
a) The present value of the defined benefit obligation at the
balance sheet date.
b) Plus any actuarial gain
c) Minus any past service cost not yet recognized.
d) Minus the fair value at the balance sheet date of plan assets (If
any) out of which the obligations are to be settled directs.
Income statement:
An entity shall recognize the net total of the following amounts as
expense or income except to the extent that another standard requires
or permits their inclusion in the cost of an asset:
a) Current service cost
b) Interest cost
c) The expected return on any plan assets
d) The effect of any curtailments or settlements
The Effects of changes in Foreign Exchange Rates
Objective:
1. An entity may carry on foreign activities in two ways. It
may have transactions in foreign currencies or it may
have foreign operations.
2. The principal issues are which exchange rate to use and
how to report the effects of changes in exchange rates in
the financial statements.
Scope:
This standard shall be applied:
a. In accounting for transactions and balances in foreign
currencies.
b. In translating the results and financial position of foreign
operations that are included in the financial statements of
the entity by consolidation proportionate consolidation or
the equity method.
c. In translating an entity’s results and financial position
into a presentation currency.
Borrowing Costs
Objectives:
The objective of this standard is to prescribe the accounting for
borrowing costs. This standard generally requires the immediate
expensing of borrowing costs.
Scope:
1. This standard shall be applied in accounting for
borrowing costs.
2. This standard does not deal with the actual or imputed
cost of equity.
3. Including preferred capital not classified as a liability.
Definition:
Borrowing costs are interest and the costs incurred by an entity in
communication with the borrowing of funds.
Disclosure:
The financial statement shall disclose:
a. The accounting policy adopted for borrowing costs
b. The amount of borrowing costs capitalize during the
period and
c. The capitalization rate to determine the amount of
borrowing costs eligible for capitalization.


Related Party Disclosures
Objective:
The objective of this standard is to ensure that an entity’s financial
statement contain the disclosures necessary to draw attention to the
possibility that its financial position and profit or loss may have been
affected by the existence of related parties and by transactions and
outstanding balances with such parties.
Scope:
This standard shall be applied in:
a) Identifying related party relationships and transactions
b) Identifying outstanding balances between an entity and its
related parties.
c) Identifying the circumstances in which disclosure of the items
in a). And b) is required and
d) Determining the disclosures to be made about those items.

with International Accounting Standard (IAS)-24

Accounting for Investments
Scope:
This standard should be applied in accounting for and disclosure of
investments.
Definitions:
An investment is an asset held by an enterprise for the accretion of
wealth through distribution (Such as interest, royalties dividends and
rentals), for capital appreciation or for other benefits to the investing
enterprise such as those obtained through trading relationships.
Income statement:
The following should be included in income:
a) Investment income arising from:
i. Interest, royalties, dividends and rentals or long-term and
current investments.
ii. Profit and losses and disposal of current investments
iii. Unrealized gains and losses on current investments
carried at market value,
iv. Reductions to market value and reversals of such
reductions required to state current investments at the
lower of cost and market value
a) Reduction of the carrying amount for other than a temporary
decline in value of long-term investment and reversals of men
reductions.

Bangladesh Accounting Standard – 26

Accounting and reporting by retirement benefit plans
Scope:
This standard shall be applied in the financial statements of
retirement benefit plans where such financial statements are
prepared.
Definitions:
The following terms are used in this standard with the meaning specified.
Retirement benefit plans: Are arrangements whereby an entity
provides benefits for employees on or after termination of service
(either in the form of an annual income or as a lump sum) when such
benefits, or the contributions towards them, can be determined or
estimated in advance of retirement from the provisions of a document
or from the entity’s practices.
Defined contribution plans: are retirements benefit plans under which

amounts to be paid as retirement benefits are determined by
contributions to a fund together with investment earnings there on.
Defined benefit plans are retirement benefit plans under which
amounts to be paid as retirement benefits are determined by reference
to a formula usually based on employees’ earnings and/ or years of
service.
Compliance with international accounting standards (IAS)

Compliance with this Bangladesh accounting standards (BAS) ensures
compliances in all material respects with international Accounting
standard - (IAS)-26

Consolidated and Separate Financial Statements:
Scope:
This standard shall be applied in the preparation and presentation of
consolidated financial statements for a group of entities under the
control of a parent.
This standard shall also be applied in accounting for investments in

subsidiaries, jointly controlled entities and associates when an entity
elects, or is required by local regulations, to present separate financial
statements.
Definitions:
specified:
Consolidated financial statements are the financial statements of a
group presented as those of a single economic entity.
Control is the power to govern the financial and operating policies of

an entity so as to obtain benefits from its activities.
The cost method is a method of accounting for an investment whereby
the investment is recognized at cost. The investor recognizes income
from the investment only to the extent that the investor receives
distributions from accumulated profits of the invitee arising after the
date of acquisition. Distributions as a recovery of investment and are
recognized as a reduction of the cost of the investment.
Separate financial statements are those presented by a parent, an

investor in an associate or a venture in a jointly controlled entity, in
which the investments are accounted for on the basis of the direct
equity interest rather than on the basis of the reported results and net
assets of the investees.

with international Accounting standard (IAS) –27.
Bangladesh Accounting standard – 28

Investment in Associates
Scope:
This standard shall be applied in accounting for investments in
associates. However, it does not apply to investments in associates
held by:
(a) Venture capital organizations, or
(b) Mutual funds, unit trusts and similar entities including
investment-linked insurance funds. That upon initial
recognition is designated as at fair value through profit or loss
or is classified as held for trading. With changes in fair valve
recognized in profit or loss in the period of the change.
Definitions:
specified:
An associate is an entity, including an unincorporated entity such as
a partnership. Over which the investor has significant influence and
that is neither a subsidiary nor an interest in a joint venture.
Significant influence is the power to be the power to participate in the
financial and operating policy decisions of the investee but is not
control or joint control over those policies.

Compliance with this Bangladesh Accounting Standards (BAS)
ensures compliance in all material respects with International
Accounting standard (IAS)-28

Disclosures in the financial statements of Banks and
similar financial institutions.
Scope:
This standard shall be applied in the financial statements of banks
and similar financial institutions (Subsequently referred to as banks).
For the purposes of this standard, the term “bank” includes all
financial institutions, one of whose principal activities is to take
deposits and borrow with the objective of lending and investing and
which are within the scope of banking or similar legislation. The
standard is relevant to such entities whether or not they have the
word ‘bank’ in their name.
A bank shall present an income statement which group income and
expenses by name and discloses the amounts of the principal types of
income and expenses in conformity with the bank company act and
amendments made these to.
A bank shall present a balance sheet that groups assets and liabilities
by nature and lists them in an order that reflects their relative
liquidity.
A bank shall disclose the fair values of each class of its financial
assets and liabilities.

Compliance with this Bangladesh Accounting Standards (BAS)
ensures compliance in all material respects with international
Accounting standard (IAS)-30.

Interests in Joint Ventures.
Scope:
This standard shall be applied in accounting for interests in joint
ventures and the reporting of joint venture assets, liabilities, income
and expenses in the financial statements of ventures and investors,
regardless of the structure or forms under which the joint venture
activities take place. However, it does not apply to ventures, interests
in jointly controlled held by:
(a) Venture capital organizations, or
(b) Mutual funds, unit trusts and similar entities including
investment linked insurance funds that upon initial recognition
are designated as at fair value through profit or loss or are
classified as held for trading and accounted for with changes in
fair valve recognized in profit or loss in the period of the change.
Definitions:
An investor in a joint venture is a party to a joint venture and does not
have joint control over that joint venture.
Joint control is the contractually agreed sharing of control over an
economic activity, and exists only when the strategic financial and
operating decisions relating to the activity require the unanimous
consent of the parties sharing control (The ventures).
A joint venture is a contractual arrangement whereby two or more
parties undertake an economic activity that is subject to joint control.
A venture is a party to a joint venture and has joint control over that
joint venture.
Compliance with international accounting standards (IAS):

with international accounting standards (IAS)-31.

Earnings Per Share.
Objectives:
The objective of this standard is to prescribe principles for the
determination and presentation of earnings per share, so as to
improve performance comparisons between different entities in the
same reporting period and between different reporting periods for the
same entity.
Scope:
This standard shall be applied by entities whose ordinary shares or
potential ordinary shares are publicly traded and by entities that are
in the process of issuing ordinary shares or potential ordinary shares
in public matters.
An entity that discloses earnings per share shall calculate and
disclose earnings per share in accordance with this standard.
Definitions:
specified:
Options, warrants and their equivalents are financial instruments that
give the holder the right to purchase ordinary shares.
An ordinary share is an equity instrument that is subordinate to all
other classes of equity instruments.
A potential ordinary share is a financial instrument or other contract

that may entity its holder to ordinary shares.


Interim financial reporting.
Objectives:
The objective of this standard is to prescribe the minimum content of
an interim financial report and to prescribe the principles for
recognition and measurement in complete or condensed financial
statements for an interim period. Timely and reliable interim financial
reporting improves the ability of investors, creditors, and others to
understand an entity’s capacity to generate earnings and cash flows
and its financial condition and liquidity.
Definitions:
specified:
Interim period is a financial reporting period shorter than a full
financial year.
Interior financial report means a financial report containing either a
complete set of financial statements or a set of condensed financial
statements for an interim period.

Compliance with this BAS ensures compliance in a material respects

Impairment of Assets.
Objectives:
The objective of this standard is to prescribe the procedures that an
entity applies to ensure that its assets are carried at no more than
their recoverable amount. An asset is carried at more than its
recoverable amount if its carrying amount exceeds the amount to be
recovered through use or sale of the asset. If this is the case, the asset
is described as impaired and the standard requires the entity to
recognize an impairment loss. The standard also specifies when an
entity should reverse an impairment loss and prescribes disclosures.


Provisions contingent liabilities and contingent assets:
Scope:
This standard shall be applied by all entities in accounting for
provisions, contingent liabilities and contingent assets, except:
(a) Those resulting from execratory contracts, except where
the contract is onerous: and
(b) Those covered by another standard.
Definitions:
specified:
A provision is a liability of uncertain timing or amount.
A contingent liability is
(a) A possible obligation that arises from past events and whose
existence will be confirmed only by the occurrence or non-
occurrence of one or more uncertain future events not wholly
within the control of the entity; or
(b) A present obligation that arises from past events but is not
recognized because:
i) It is not probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation; or
ii) The amount of the obligation cannot be measured with
sufficient reliability.
A contingent asset is a possible asset that arises from past events and
whose existence will be confirmed only by the occurrence or non-
occurrence of one or more uncertain future events not wholly within
the control of the entity.

Intangible Assets
Scope:
This standard shall be applied in accounting for intangible assets,
except:
(a) Intangible assets that are within the scope of another standard;
(b) Financial assets.
(c) Mineral rights and expenditure on the exploration for, or
development and extraction of, minerals, oil, natural gas and
similar non-regenerative resources.

Investment Property
Objectives:
The objectives of this standard are to prescribe the accounting treatment
for investment property and related disclosure requirements.
Scope:
This standard shall be applied in the recognition, measurement and
disclosure of investment properly.
Definitions:
specified:
Investment property is property (Land or building or part of a building
or both) held (by the owner or by the lessee under a finance lease) to
earn rentals or for capital appreciation or both, rather than for:
(a) Use in the production or supply of goods or services or for
administrative purpose; or
(b) Sale in the ordinary course of business.

C HAPTER -04
COMPLIANCE OF ACCOUNTING STANDARDS OF

PADMA OIL COMPANY LIMITED (POCL).
“Padma Oil Company Limited” is a publicly traded company. Its

shares are listed with both the Chittagong and Dhaka Stock Exchange
Company. So it has to follow some rules and regulations in case of
maintaining accounts and books. Their financial statements have been
drawn up in accordance with requirements of the Schedule to the
securities and exchange rules 1987, inconformity with the companies Act
1994 and the International Accounting Standards (IAS.) as adapted by the
Institute of Chartered Accountant of Bangladesh (ICAB.) based on
historical cost convention following consistently Generally Accepted
Accounting Principles (GAAP).
By studying the accounting systems and methods of the company we

assure that they have followed the rules and regulations of the accounting
standards adopted by Institute of Chartered Accountant of Bangladesh
(ICAB.)
The points by which I take decision that the company properly maintain
the rules, regulations, and proposal of accounting standards are describes
chronologically in next………….
Following is the table shows that compliance with the accounting
standards proposed by the Bangladesh accounting standards (BAS)
……………
Title & Compliance

No of standards status
Presentation of Financial Statement-1 COMPLIED

Inventories-2 COMPLIED
Cash Flow Statement-7 COMPLIED
Accounting policies changes in Accounting Estimates and COMPLIED
Errors.-8
Events after the balance sheet date-10 COMPLIED
Construction Contracts-11 COMPLIED
Income Taxes-12 COMPLIED
Property, plant and Equipment-16 COMPLIED
Revenue-18 COMPLIED
Employee Benefits-19 COMPLIED
The Effects of changes in Foreign Exchange Rates-21 COMPLIED
Borrowing Costs-23 COMPLIED
Related Party Disclosures-24 COMPLIED
Accounting for Investments-25 COMPLIED
Accounting and reporting by retirement benefit plans-26 COMPLIED
Consolidated and Separate Financial Statements-27 COMPLIED
Investment in Associates-28 COMPLIED
Disclosures in the financial statements of Banks and similar
financial institutions.-30
Interests in Joint Ventures.-31 COMPLIED
Earnings Per Share.-33 COMPLIED
Interim financial reporting.-34 COMPLIED
Impairment of Assets.-36 COMPLIED
Provisions contingent liabilities and contingent assets-37 COMPLIED
Intangible Assets-38 COMPLIED
Investment Property-40 COMPLIED
Presentation of Financial Statement.
(Bangladesh Accounting Standard-1)
From the Financial statements we see that it presents data in separate

heads and describes about the presentation in several notes fairly. It
makes the financial statements easily understandable and it is proposed
by the accounting standards.
The heads are ………
 Gross earnings on petroleum products

 Net earnings on petroleum products
 Overheads
 Trading profit on petroleum treading
 Operating profits
 Net operating profits
 Profit before income tax
 Net profit available for appropriation
 Earning per shares
It is also clear to understand about the compliance of accounting

standards by the note to the financial statements. (Basis of accounting (3))
Basis of accounting (3)

“The financial statements have been drawn up, in accordance with
relevant requirements of the schedule to the securities & exchange rules
1987,inconformity with the companies Act 1994 And international
accounting standard as adopted by the institute of Charter Accountants of
Bangladesh Based on historical cost convention following consistently
generally accepted accounting principles (GAAP).”
Balance sheet:
From the balance sheet we see that it presents data in separate heads and
describes about the presentation in several notes fairly which make the
financial statements easily understandable and it is proposed by the
accounting standards.
The balance sheet is noted below;
Padma oil company ltd.

Balance sheet as at 30th june2007
Application of funds taka in thousand
Tangible fixed assets 438,868

Current assets
Stocks 5,646,558
Debtors 21,619,460
Advances, deposits & prepayments 89,064
Income tax -refund receivable 137,795
Cash and bank balances 2,091,817
29,584,694
Current liabilities and provisions
Creditors and accruals 28,839,316
Dividend
Unclaimed 5,157
Proposed 29,400
34,557
28,873,873
Net Current assets 710,821
Total assets less Current liabilities 1,149,689
Deferred tax liabilities -40,917
Net assets 1,108,772
Sources of fund
Share capital 49,000
Reserves
General reserve 1,059,772
Shareholders' funds 1,108,772
Inventories:
In case of inventories we see that they maintain the accounting standards

properly. One of their points is remarkable here.
Notes to the financial statements:
‘Stocks of stores and spares are valued at moving average cost whereas
those of stock in trade are valued at eh lower of cost and net estimated
realized value. Statutory charges (like the custom duty and or VAT) and
freight attributable to stock in trade are carried forward and added to the
value of the stocks. However cost comprises procurement cost and
attributed overheads to bring g the goods to their respective state at which
they were on the balance sheet date.’
So we can say that they also follow the accounting standards here.
Income tax
It provided Current tax on the estimated taxable profit.

Deferred tax,
Provision for deferred taxation has been made under liabilities method
considering all temporary differences, using the tax rate enacted
therewith.
Employees’ retirement benefits:

Bangladesh Accounting Standard-12)
The company contributes to the provident funds at the specified rate and
its legal Obligation is limited up to the extent.
contributes to the provident funds for pension and gratuity benefits is
made at the rate as determined on the basis of valuation certificate by an
actuary after every three years.
Conclusion
In conclusion I can say that the company flow the international
accounting standard. Most of the remarkable notes on this point are noted
below……….
Auditors’ report to the shareholders:

“We conducted our audit in accordance with Bangladesh standards on
auditing (BSA). Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from materials mismanagement.”
“In our opinion, subject to the note 4.3 & 4.6 and its consequential effect
on the financial statements, we report that financial statements were
prepared in accordance with Bangladesh Accounting Standards (BSA),
given a true and fair view of the state of the Company’s affairs as of 30 th
June2007 and of the result of it’s operations and it’s cash flows for the
year then ended and comply with the companies Act 1994,the Securities
and Exchange Rules1987 and other applicable laws and regulations.”
Notes of the financial Statements

Basis of accounting (3)
“The financial statements have been drawn up, in accordance with
relevant requirements of the schedule to the securities & exchange rules
1987,inconformity with the companies Act 1994 And international
accounting standard as adopted by the institute of Charter Accountants of
Bangladesh Based on historical cost convention following consistently
generally accepted accounting principles (GAAP).”
Auditors’ report to the shareholders:

Conclusion note (b)
“In our opinion, proper books of account as required by law have been
kept By the Company so far as it appeared from our examination of those
books”.
Conclusion note (c)
“The company’s balance sheet and profit and loss accounts dealt with by
this report are in agreement with the books of accounts”.
Conclusion note (d)
“The expenditure incurred was for the purposes of the company’s
business.”
Reference:
 Accounting theory: D. Monjur Morshed Mahamud, Dr.

Kanchan Kumar Purohit, Milon Kummer Bhattacharjee.
 Annual Report: PADMA OIL COM.LTD 2006-07.
 Anthony Hopewood and Michacl Page The form of
accounting standard Accounting sept.1987.
 Bangladesh Accounting Standard. Published by ICMA.
 Binoy Krishna Sharma, “Conceptual Frame work of
accounting Cuittagery university studies (Commerce
volume 3.1897)
 Financial Accounting by Shahidul Islam (ICMA).
 Keventh. S.most. Accounting theory. Grid publishing inc.
1982
 Md. Abdul Hye, Accounting Standard and Bangladesh the
Bangladesh Accountant July -September 1985.
 Michal Bramwich. The economics of Accounting Standard
setting.
 Questionnaire for Application of international accounting
standard by Md. Salim Uddin Associate Professors C.U.
LETTER OF SUBMISSION
Monday, October 12, 2020.
To
Professor Amal Bhusan Nag.
Professor
Department of Accounting & Information Systems.
University Of Chittagong.
Subject: Submission of Industrial Tour Report.
Dear Sir,
With an immense pleasure, I would like to submit my Industrial Tour
Report on “Padma Oil Company Limited” to you. With my limited
scope and knowledge, I have tried my best to gain practical experience
and tried to reflect the same in the report. I want your sincere cooperation
in this respect.
I wish to thank you for your excellent coordination and efficient direction
to make the program a success.
Yours sincerely.
(------------------------------)
Md. Masud Mia
4th Year B.B.A (Hons)
Class Roll-3867
Exam. Roll-2002/07
Department of AIS.
University of Chittagong.
PREFACE
In order to acquire perfect education a student must have practical

knowledge along with syllabus-oriented education. So before joining in
the substantial field we need to acquire knowledge about the real
environment. Industrial tour is a scope for acquiring substantial
knowledge after participating of academic classes. The course is designed
with excellent combination of theoretical and practical aspects to provide
an opportunity to the student on the job exposure.
Industrial tour report is a part of our fourth year B.B.A program. As a part
of that we have visited “Padma Oil Company Limited” along with our
coordinator ‘Professor Amal Bhusan Nag’. I have got the opportunity to
visit all departments including the main accounts of ‘Padma Oil
Company Limited’. From my Practical observation I have prepared this
report.
At the time of preparing this industrial tour report, I tried my level best to
make the report meaningful. Yet there may be few errors in the report. I
am wholeheartedly sorry, for all of my unintentional mistakes and your
fair glance is highly expected about the matter.
ACKNOWLEDGEMENT
At first grateful thanks to almighty I have completed my industrial tour &

tour report successfully.
I am gratitude to the ‘Professor Amal Bhusan Nag’, department of AIS,

University of Chittagong, for his proper guidelines and consultant.
Without his proper coordination it was difficult to arrange industrial tour
program and prepare this report.
I am very much indebted to the various sectors of Officers, Managers,
Executives, and personnel team of ‘Padma Oil Company Limited,
(POCL).’ for supplying us adequate information about the Company &
spending valuable time from their busy schedule for our guidance at
POCL.
I am also indebted to the Account manager & AGM for their help to
supply financial data on accounting. The Term Paper cannot be
successful without their proper guidance and kind co-operation.
OBJECTIVE OF THE STUDY:
The main objective of this industrial tour is to gather the practical

knowledge about the accounting systems of 'Padma Oil Company,
(POCL)' The other objectives of this report can be summarized as
.
follows:
 To analyze the practical Accounting methodology

of an organization.
 To know the Application of international

accounting standard (IAS), in an organization.
 To reduce the gap between the practical and theoretical

knowledge.
 Directly visit accounting section of a company.
 To know the application of accounting in an

organization practically.
 To identify the accounting problems so that we can offer

alternative solutions for them.
 The remarkable objective is to fulfill the academic course of

4th year B.B.A.
METHODOLOGY OF THE STUDY
The current study is conducted primarily in participatory research

analysis method and secondary on practical and theoretical analysis. The
tour supervisor selected the company and place. Practical visit took place
subsequently. Primary and secondary data was collected from every
possible source.
The primary sources are as follows:

 Observation of the every section of the 'Padma Oil Company,
(POCL)' company.
 Face-to-face conversation with respective officers and managers,
executives and personnel, stuffs of the office.
 Face-to-face conversation with accountants of the company.
 Piratical experience in the different desk of the department of the
company.
 Briefing of the managers, executives, staffs.
 Practical observation of the main documents of accounts
The secondary sources of data and the information are:

 Annual report-2006-07
 Web site address- (www.pocl.gov.bd)
 Book basis articles
Brochure provided by the company etc.
LIMITATION OF THE STUDY
We have tried our best to collect the maximum information from the
authority, management, and accounting department. But we have faced
the following problems:
i) To make a report it is very trouble full to collect the information

from various personal for the job constrain.
ii) Accounting departments has a large volume of data so it is not
possible to find out all the data at short time.
iii) Time is not sufficient for various activities to prepare a report.
iv) Information was not provided due to business secrecy.
v) Lack of adequate knowledge about research by new employee
vi) Non-availability of secondary data.
vii) Difference of theoretical & practical knowledge.
viii) Large-scale study was not possible due to time constraints.
ON
PADMA OIL COMPANY LIMITED.
TOPIC: ‘COMPLIANCE OF ACCOUNTING

STANDARDS OF PADMA OIL COMPANY LIMITED’.
DATE OF SUBMISSION: APRIL 22, 2008.

INDUSTRIAL TOUR REPORT
ON
PADMA OIL COMPANY LIMITED.
TOPIC: ‘COMPLIANCE OF ACCOUNTING STANDARDS

OF PADMA OIL COMPANY LIMITED’.
Submitted To:
Professor Amal Bhusan Nag.

Professor
Department of Accounting & Information Systems.
University Of Chittagong.
Submitted By:
Md. Masud Mia
th
4 Year B.B.A (Hons)
Class Roll-3867
Exam. Roll-2002/07
Department of AIS.
University of Chittagong.
CONTENTS
1. i
Letter of submission :
2. ii
Preface :
3. Acknowledgement : iii
4. Objective of the study : iv
6. Methodology of the study : v
7. Limitation of the study : vi
8. Chapter -1: Introduction : 1
9. Chapter – 2: International : 4
Accounting Standard
10. Chapter – 3: Bangladesh : 8
Accounting Standard
11. Chapter – 4: Compliance of : 41
Accounting Standard of
Padma Oil Company
Limited.
Conclusion : 46

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C HAPTER -01

Objectives of the Accounting Standards:

The process of Setting Standards

Advantages of Accounting Standards

INTERNATIONAL ACCOUNTING STANDARDS (IAS)

IAS Particulars of IAS IAS Present Title Present Status

BANGLADESH ACCOUNTING STANDARDS (BAS).

Compliance with International Accounting Standards (IAS):

Bangladesh Accounting Standrad-7

Bangladesh Accounting Standard-8

A change in accounting estimate is an adjustment of the carrying

Prior period errors are omission from, and misstatements in the

Bangladesh Accounting Standard-10

Sale and lease back Transactions:

Compliance with International Accounting Standard (IAS)

Compliance with International Accounting Standard (IAS):

Bangladesh Accounting Standard 24

Compliance with International Accounting Standard (IAS):

Bangladesh Accounting Standard 25

Compliance with International Accounting Standard (IAS):

Bangladesh Accounting Standard – 26

Defined contribution plans: are retirements benefit plans under which

Compliance with international accounting standards (IAS)

Bangladesh Accounting Standard – 27

This standard shall also be applied in accounting for investments in

Control is the power to govern the financial and operating policies of

Separate financial statements are those presented by a parent, an

Compliance with International Accounting Standards (IAS):

Bangladesh Accounting standard – 28

Compliance with International Accounting Standards (IAS)

Bangladesh Accounting Standard – 30

Compliance with International Accounting Standards (IAS)

Bangladesh Accounting Standard – 31

Compliance with international accounting standards (IAS):

Bangladesh Accounting Standard – 33

A potential ordinary share is a financial instrument or other contract

Compliance with international accounting standards (IAS):

Bangladesh Accounting Standard – 34

Compliance with international accounting standards (IAS):

Bangladesh Accounting Standard – 36

Compliance with international accounting standards (IAS):

Bangladesh Accounting Standard – 37

Bangladesh Accounting Standard – 38

Bangladesh Accounting Standard – 40

Compliance with international accounting standards (IAS):

COMPLIANCE OF ACCOUNTING STANDARDS OF

“Padma Oil Company Limited” is a publicly traded company. Its

By studying the accounting systems and methods of the company we

Title & Compliance

Presentation of Financial Statement-1 COMPLIED

From the Financial statements we see that it presents data in separate

The heads are ………

 Gross earnings on petroleum products

It is also clear to understand about the compliance of accounting

Basis of accounting (3)

Padma oil company ltd.

Tangible fixed assets 438,868

In case of inventories we see that they maintain the accounting standards

It provided Current tax on the estimated taxable profit.

Employees’ retirement benefits:

Auditors’ report to the shareholders:

Notes of the financial Statements

Auditors’ report to the shareholders:

 Accounting theory: D. Monjur Morshed Mahamud, Dr.