1.

Making a list of IAS and IFRS as adopted by Bangladesh

International Accounting Standards (IAS)

IAS Title Status of adoption by ICAB

No.

1 Presentation of Financial Statements Adopted

2 Inventories Adopted

7 Cash Flow Statements Adopted

8 Accounting Policies, Changes in Accounting Adopted

Estimates and Errors

10 Events after the Balance Sheet Date Adopted

11 Construction Contracts Adopted

12 Income Taxes Adopted.

16 Property, Plant and Equipment Adopted

17 Leases Adopted

18 Revenue Adopted

19 Employee Benefits Adopted

20 Accounting for Government Grants and Disclosure Adopted

of Government Assistance

21 The Effects of Changes in Foreign Exchange Rates Adopted

23 Borrowing Costs Adopted

24 Related Party Disclosures Adopted

26 Accounting and Reporting by Retirement Benefit Adopted

 Plans

27 Consolidated and Separate Financial Statements Adopted

28 Investments in Associates Adopted

29 Financial Reporting in Hyperinflationary Economies Not adopted - impractiable in

the Bangladeshi context

31 Interests in Joint Ventures Adopted

32 Financial Instruments: Presentation Adopted

33 Earnings per Share Adopted

34 Interim Financial Reporting Adopted

36 Impairment of Assets Adopted

37 Provisions, Contingent Liabilities and Contingent Adopted

Assets

38 Intangible Assets Adopted

39 Financial Instruments: Recognition and Adopted

Measurement

40 Investment Property Adopted

41 Agriculture Adopted

International Financial Reporting Standards (IFRS)

IFRS IFRS title Status of adoption by

No. ICAB

1 First-time Adoption of Adopted

International Financial Reporting
 Standards

2 Share Based Payment Adopted

3 Business Combinations Adopted

4 Insurance Contracts Adopted

5 Non-Current Assets held for Sale Adopted

and Discontinued Operations

6 Exploration for and Evaluation of Adopted

Mineral Resources

7 Financial Instruments: Disclosures Adopted

8 Operating Segments Adopted

9 Financial Instruments Not adopted

10 Consolidated Financial Statements Adopted

11 Joint Arrangements Adopted

12 Disclosure of Interests in Other Adopted

Entities

13 Fair Value Measurement Adopted

14 Regulatory Deferral Accounts Adopted

15 Revenue from Contracts with Adopted

Customers

16 Leases Adopted

17 Insurance Contracts Adopted

Source: ICAB Website

Disclosure Checklist:
My company name is Mozaffar Hossain Spinning Mills Limited. Here is the disclosure checklist
of relevant IAS/ IFRS as applicable for my studied company.
The following IASs and IFRS are applicable for the Financial Statements under audit:

IAS 1 Presentation of Financial Statements

IAS 2 Inventory
IAS 7 Statement of Cash Flows
IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors
IAS 10 Events after the Reporting Period
IAS 12 Income Taxes
IAS 16 Property, Plant and Equipment
IAS 18 Revenue
IAS 19 Employee Benefits
IAS 23 Borrowing Costs
IAS 24 Related Party Disclosures
IAS 32 Financial Instruments: Presentation
IAS 33 Earnings per Share
IAS 36 Impairment of Assets
IAS 37 Provisions, Contingent Liabilities and
Contingent Assets
IAS 39 Financial Instruments: Recognition and
Measurement
IFRS 7 Financial Instruments: Disclosures
IFRS 15 Revenue from contracts with customers

2. According to IAS 1, The components of financial statements:

Components of financial statements
A complete set of financial statements includes:
 a statement of financial position (balance sheet) at the end of the period.
  a statement of profit or loss and other comprehensive income for the period
(presented as a single statement, or by presenting the profit or loss section in a
separate statement of profit or loss, immediately followed by a statement
presenting comprehensive income beginning with profit or loss)
 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 and other
explanatory notes comparative information prescribed by the standard.
An entity may use titles for the statements other than those stated above. All financial statements
are required to be presented with equal prominence
Disclosure Checklist:
Mozaffar Hossain Spinning Mills Limited
Corporate Financial Statements and Reporting Financial Statements comprise of the followings:
a) Statement of Financial Position,
b) Statement of Profit or Loss and Other Comprehensive
c) Statement of Changes in Equity,
d) Statement of Cash Flows, and In format income,
e) Notes & explanatory materials covering accounting policies.

3. According to International Accounting Standard-1 (IAS-10) the minimum line items

that should be presented on the face of the statement of financial position (balance
sheet)
Line Items The line items to be included on the face of the statement of financial position are:
[IAS 1.54]
(a) property, plant and equipment
(b) investment property
(c) intangible assets
(d) financial assets (excluding amounts shown under (e), (h), and (i))
(e) investments accounted for using the equity method
(f) biological assets
(g) inventories
(h) trade and other receivables
(i) cash and cash equivalents
(j) assets held for sale
 (k) trade and other payables
(l) provisions
(m) financial liabilities (excluding amounts shown under (k) and (l))
(n) current tax liabilities and current tax assets, as defined in
(o) deferred tax liabilities and deferred tax assets, as defined in
(p) liabilities included in disposal groups
(q) non-controlling interests, presented within equity
(r) issued capital and reserves attributable to owners of the parent.

Disclosure Checklist:
Mozaffar Hossain Spinning Mills Limited
Information presented in the statement of financial position
SL Line Items Disclosure Amount
1 property, plant and equipment Yes 5,971,309,824
2 investment property No
3 intangible assets No
4 financial assets Yes 981,601,977
5 investments accounted for No
using the equity method
6 biological assets No
7 inventories Yes 160,118,082
8 trade and other receivables Yes 575,280,026
9 cash and cash equivalents Yes 8,295,939
10 assets held for sale No
11 trade and other payables Yes 26,269,533
12 provisions No
13 financial liabilities Yes 914,447,870
14 current tax liabilities and Yes 29,949,858
current tax assets, as defined in
15 deferred tax liabilities and No
deferred tax assets, as defined
in
16 liabilities included in disposal No
 groups
17 non-controlling interests, No
presented within equity
18 issued capital and reserves No
attributable to owners of the
parent.

4. According to IAS 37, The criteria for recognizing and measuring of provisions,
contingent assets, and contingent liabilities.

Recognition of a provision
An entity must recognise a provision if, and only if: [IAS 37.14]
a present obligation (legal or constructive) has arisen as a result of a past event (the
obligating event),
payment is probable ('more likely than not'), and
the amount can be estimated reliably.
An obligating event is an event that creates a legal or constructive obligation and,
therefore, results in an entity having no realistic alternative but to settle the obligation.
[IAS 37.10]
A constructive obligation arises if past practice creates a valid expectation on the part of a
third party, for example, a retail store that has a long-standing policy of allowing
customers to return merchandise within, say, a 30-day period. [IAS 37.10]
A possible obligation (a contingent liability) is disclosed but not accrued. However,
disclosure is not required if payment is remote. [IAS 37.86]

Measurement of provisions
The amount recognised as a provision should be the best estimate of the expenditure
required to settle the present obligation at the balance sheet date, that is, the amount that
an entity would rationally pay to settle the obligation at the balance sheet date or to
transfer it to a third party. [IAS 37.36]

Contingent liabilities
It requires that entities should not recognise contingent liabilities - but should disclose
them, unless the possibility of an outflow of economic resources is remote. [IAS 37.86]
Contingent assets Contingent assets should not be recognised - but should be disclosed
where an inflow of economic benefits is probable. When the realization of income is
virtually certain, then the related asset is not a contingent asset and its recognition is
appropriate. [IAS 37.31-35]
 Did your studied company report these in its annual reports?

No, Mozaffar Hossain Spinning Mills Limited did not provide for Provisions as well as
Contingent Assets and Contingent Liabilities.

5. According to IAS 18, what are the criteria of revenue recognition? How did your
company report this in the annual report?

Recognition of revenue:

Recognition, as defined in the IASB Framework, means incorporating an item that meets

the definition of revenue (above) in the income statement when it meets the following
criteria:
 it is probable that any future economic benefit associated with the item of revenue will
flow to the entity, and
 
 the amount of revenue can be measured with reliability
IAS 18 provides guidance for recognizing the following specific categories of revenue:

Sale of goods:

Revenue arising from the sale of goods should be recognised when all of the following
criteria have been satisfied: [IAS 18.14]

 the seller has transferred to the buyer the significant risks and rewards of ownership
 
 the seller retains neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the goods sold
 
 the amount of revenue can be measured reliably
 
 it is probable that the economic benefits associated with the transaction will flow to the
seller, and
 
 the costs incurred or to be incurred in respect of the transaction can be measured reliably

Rendering of services:
 For revenue arising from the rendering of services, provided that all of the following
criteria are met, revenue should be recognised by reference to the stage of completion of
the transaction at the balance sheet date (the percentage-of-completion method): [IAS
18.20]
 the amount of revenue can be measured reliably;
 
 it is probable that the economic benefits will flow to the seller;
 
 the stage of completion at the balance sheet date can be measured reliably; and
 
 the costs incurred, or to be incurred, in respect of the transaction can be measured
reliably.
When the above criteria are not met, revenue arising from the rendering of services
should be recognised only to the extent of the expenses recognised that are recoverable (a
"cost-recovery approach". [IAS 18.26]

Interest, royalties, and dividends:

For interest, royalties and dividends, provided that it is probable that the economic
benefits will flow to the enterprise and the amount of revenue can be measured reliably,
revenue should be recognised as follows: [IAS 18.29-30]
 interest: using the effective interest method as set out in IAS 39
 
 royalties: on an accruals basis in accordance with the substance of the relevant agreement
 
 dividends: when the shareholder's right to receive payment is established

How did your company report this in the annual report?

Revenue are recognized when goods are delivered from the Factory Warehouse and Delivery
Challan is issued. Monno Fabrics Limited measured its revenue at the fair value of the
consideration received or receivable.