Presentation AK WSD 14

World Standards Day (WSD)
14th October, 2023
Seminar on
“Financial Reporting Standards
– Activities in Bangladesh”
DEFINITION OF STANDARD
Standards are ‘something

set up and established by
authority as a rule for
measuring quantity,
weight, extent, value, or
quality.’
Background of WSD
World Standards Day is celebrated internationally each year on 14
October. The day honors the efforts of the thousands of experts who
develop voluntary standards within standards development organizations
such as the American Society of Mechanical Engineers (ASME),
International Electrotechnical Commission (IEC), International Financial
Reporting Standards (IFRS) Board, International Ethics Standards
Board for Accountants (IESBA), International Organization for
Standardization (ISO).
World Standards Day aims to raise awareness among regulators,

academicians, industry, and consumers as to the importance of
standardization to the global economy.
Background of WSD
 14 October was specifically chosen to

mark the date, in 1946, when delegates
from 25 countries first gathered in
London and decided to create an
international organization focused on
facilitating standardization.
Role of Standards
 Standards build trust
 Standards – the world’s common language
 International standards ensure positive change
 Less waste, better results – Standards increase
efficiency
 International Standards – Creating confidence globally
 Shaping a more sustainable future
 Standards level the playing field
Role of Standards
 Standards make the world accessible to all

 Standards and the citizen: Contributing to society
 Standards: big benefits for small business
 Standards connect the world
 Global standards for the global information society
 One Standard, one Audit, accepted everywhere
 International Standards for peace and prosperity
Types of Standards
 Principle-Based Standards- General guidelines, IFRS, ISAs
 Rule-Based Standards- Specific guidelines, US GAAP
 Sector-Based Standards
1. Engineering
2. Telecommunication
3. Consumer Product
4. Financial Reporting
5. Audit & Assurance
6. Ethical
7. Religion
8. Management
DEVELOPING, SETTING STANDARDS- NEED of THE HOUR
 Due to the globalization of businesses, and the information age,
harmonization in Financial Reporting Standards across the globe is a need of
the hour. The good news is that FASB and IASB are working on it.
 As the population grows, knowledge expands, and complexity accelerates
through innovation, we find ourselves rushing towards a new global village of
interconnected systems, processes, and behaviors. As such, it makes common
sense that standardization becomes increasingly essential.
 If we continue to develop our standards for our own little village, then we
will end up increasing complexity, frustration, cost, and waste, ultimately
slowing progress.
 Plugs and sockets are an excellent example of where local standards remain
in the village/country system. We have plugs and sockets for the UK,
America, Europe, and many other countries have their own or a combination.
Any international traveler will understand the frustration of having to deal
with different plugs, sockets, and devices.
High-Quality International Standards Setting Process
 In-depth Research
 Process through Technical Committee
 Ensuring Stakeholder Participation
 Consultative
 Transparent Process
 Consensus Basis
 Simplification of the Standard
 User friendly
 Global Recognition/ Acceptance
 Publication and Promotion
 Sufficient Time Based- Sometimes takes two years to develop one
standard.
IFRS DEVELOPMENT PROCESS
High Quality, Transparent, Independent FRC, Bangladesh
Standard Setting Process
 In-depth Research
 Present Proposal for Council approval
 Form a Technical Committee
 Prepare Draft
 Get approval from the Council on Draft
 Pre-publication of the draft in two national dailies for comment from
all stakeholders, individuals
 Present final draft with comments from pre-publication ad for council
approval
 Final approval from the Council
Accounting & Financial Reporting
Standards- Activities in Bangladesh
Chronological events of Accounting Standards in Bangladesh
1995 - IAS Adoption in Bangladesh – Institutions involved – Government of

Bangladesh, World Bank, The Institute of Chartered Accountants of
Bangladesh (ICAB).
1997 - Securities and Exchange Commission (SEC) issued

rule requiring listed companies for compliance of
IAS, although this requirement did not have the
force of law.
14
Chronological Events of Accounting Standards in Bangladesh
ROSC Report (2003) Recommendations-
1. Central Bank and Insurance Authority regulated financial
reporting by banks and Insurance companies are not in
consistent with IAS.
2. Quality of financial reporting is a concern to investors and other
users of financial statements.
3.Improve the statutory accounting and auditing framework
through a Financial Reporting Act.
4. Repeal of provisions on accounting, auditing in Companies
Act 1994, Bank Companies Act 1991, Insurance Act 1938, and
other related regulations.
15
Chronological Events of Accounting Standards in
Bangladesh
ROSC (2003) Recommendations (Cont.)
5. Establish an independent oversight body to monitor and

enforce accounting and auditing.
6. Strengthen capacity of the regulatory bodies.
7. Strengthen capacity of ICAB by twinning arrangements.
8.Improve curriculum and teaching in accounting programs of

universities and colleges
2009-10- ICAB entered into a twinning contract with ICAEW; all ICAB
study materials as well as audit practice procedures fully aligned with
IFRS and ISAs. 16
Chronological Events of Accounting Standards in Bangladesh
ROSC (2015) Recommendations-
1. Except for initiatives taken by ICAB, other regulators capacity were not
strengthened yet.
2. Banking sector is the main source of private sector investment. Financial

reporting requirements for banks are set out in the Bank Companies Act 1991.
3. BSEC struggling to deliver results due to lack of capacity.
4. RJSC’s capacity to perform its mandate remains very weak.
5. Professional accountancy bodies face ongoing challenge to attract high quality

graduates.
17
FRC STANDARD- SETTING ACTIVITIES
What positive differences did the FINANCIAL REPORTING ACT
bring IN BANGLADESH
 Independent Body other than Preparer or Auditors
 Consultative approach
 Transparent Process
 Standards included in National Law
 Global acceptability increased
 Centralized one Standard issuing authority- FRC- amendments in
 Companies Act, Banking Co. Act, ICAB Order, ICMAB Ordinance,
 Finance Institution Act, Insurance Act, MRA Act.
➢ First time Government access to oversight, monitoring of corporate

financial reporting
➢ Legal Mandate and Availability of Financial Supports
Thank You

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World Standards Day (WSD)

14th October, 2023

Standards are ‘something

World Standards Day aims to raise awareness among regulators,

 14 October was specifically chosen to

 Standards make the world accessible to all

1995 - IAS Adoption in Bangladesh – Institutions involved – Government of

1997 - Securities and Exchange Commission (SEC) issued

5. Establish an independent oversight body to monitor and

6. Strengthen capacity of the regulatory bodies.

7. Strengthen capacity of ICAB by twinning arrangements.

8.Improve curriculum and teaching in accounting programs of

ROSC (2015) Recommendations-

2. Banking sector is the main source of private sector investment. Financial

3. BSEC struggling to deliver results due to lack of capacity.

4. RJSC’s capacity to perform its mandate remains very weak.

5. Professional accountancy bodies face ongoing challenge to attract high quality

➢ First time Government access to oversight, monitoring of corporate

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