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Discussion on Bangladesh Accounting Standards

Accounting standards determines the country's accounting regulations and policies

which recommends the content that should be reported in a company's financial

statements within that expanse. The core reason for implementing accounting

standards is to ensure nationwide adaptation of dependable and consistent

accounting approaches. The benefit of applying accounting standards is that it

reduces the chances of material misstatement in accounts. Also, it provides

comparable information which helps the investor in making better decisions.

Accounting standards are set out by a country's law and all the companies existing

within the country must maintain them.

In Bangladesh, the accounting and reporting standard followed by the companies

are BFRS and BAS. Every company within the country, except few exceptions is

entailed to apply the standards. Both private and public companies in Bangladesh

are controlled by the companies Act 1994, which holds the fundamental rules to be

followed by the companies. The institute of chartered Accountants in Bangladesh

has set down the financial reporting standards which are called Bangladesh

Financial Reporting standards (BFRS) that also includes Bangladesh Accounting

standards (BAS). BFRS is a close representation of International Accounting

Standards (IAS) which was issued by the International Accounting Standards

Board. Initially, the BFRS was built up using older International standards as a

basis. At recent times, it has accepted the more updated IASB standards as BFRS.

Bangladesh Accounting Standards (BAS) suggests the foundation for the

preparation of financial statements as to ensure the information is comparable with

the organizations financial statements from prior years of operations and as well

with other companies. It provides the requirements of presenting financial

statements, principles and rules for the structure and the minimum requisite for thecontent.

In accordance to the BAS, a complete set of financial statement must include:

A statement of financial position at period end

A statement of comprehensive income for the period

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A statement of changes in equity for the period

A statement of cash flows for the period

Notes, comprising a summary of significant accounting policies andother

explanatory information

A statement of financial position as at the beginning of the first period when thecompany has applied an accounting policy or makes a display of restatement of items inits financial statements, or when it re categorizes items in its financial statements

A company should clearly identify each of the required financial statement along

with the notes. Furthermore, in order to make the information provided useful and

easily understandable, an entity must give significance to including the following

information:

Name or other identification of the reporting organization and any changefrom previous year must be notified.

It should be mentioned whether the reports belong to an entity or a group of entities.

Date of the end period

Presentation in currency

The rounding that has been used to present the values in preparing the financial accounts.

Bangladesh accounting standards plays a vital role in regulating the accounting

system in our country. It is important for the procedures to run smoothly and it is

greatly helpful to the users of financial reports. The standards displayed by BAShave been modified much more from the time of its commencement and the

standards are expected to advance even more in the future.