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 the
content.
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

 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 the
company has applied an accounting policy or makes a display of restatement of items in
its 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 change
from 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 BAS
have been modified much more from the time of its commencement and the
standards are expected to advance even more in the future.