Experts and bankers on Saturday suggested strong collaboration between regulators in the banking sector to bridge the gap of financial statements of banks in the country.
Identifying a number of differences between the International Financial Reporting Standards and the local laws and regulations in preparing financial statements of banks, they said that strong collaboration was needed to adjust the requirements.
The differences and deviations include areas of financial statements components and presentation, cash and cash equivalents, cash flow statements, investment in debt securities, initial recognition and reclassification, provisioning loans and advances and recovery against impaired loans.
They made the suggestions at a virtual members’ conference on implementation status of IFRS in the banking sector in Bangladesh, organised by the Institute of Chartered Accountants of Bangladesh.
They also recommended formation of a cross regulators’ taskforce to ensure complete compliance with the IFRS.
The taskforce will review and identify the gaps between the IFRS and the local laws and regulations, they said.
Bangladesh Bank deputy governor Kazi Sayedur Rahman said confidence of local and foreign investors and depositors of banks and NBFIs is largely depended on the accounting system of a country.
If there is any deviation from the International standards specially IFRS, these should be addressed first, he said, adding that transparency, accountability and true fair information of financial statements definitely would increase the level of confidence.
‘Bangladesh Bank will sit together with ICAB and FRC to narrow down the gaps between the local laws and the international standards particularly IFRS so that a congenial atmosphere would be created to attract foreign direct investment,’ he said.
Agrani Bank managing director and chief executive officer Mohammad Shams-Ul Islam said that chartered accountants have the responsibility to ensure compliance with the IFRS in the accounting systems.
He said that compliance culture and regulatory environment must to be conducive to the international standards as the country was moving towards the developed one.
ICAB president Muhamudul Hasan Khusru said that compliance with the IFRS was mandatory for listed companies, banks and other financial institutions.
But in some cases, situations arise where IFRS requirements contradict applicable provisions in national laws and regulations, he said.
Mutual Trust Bank CEO Syed Mahbubur Rahman, ICAB vice-president, also chief financial officer of Standard Chartered Bank, Abdul Kader Joaddar, FRC executive directors M Anwarul Karim and Mohammad Mohiuddin Ahmed, among others, spoke at the programme.
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