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Extent of IFRS applicationStatusAdditional Information
IFRS Accounting Standards are required for domestic public companies Bangladesh has adopted IFRS Accounting Standards. Domestic companies whose securities trade in a public market and other large public accountability companies are required to use IFRS Accounting Standards.

Certain modifications have been made to IFRS Accounting Standards for banks, insurance companies and Non-Banking Financial Institutions in accordance with their respective Acts and Guidelines.

Other large public accountability companies are also required to use IFRS Accounting Standards.

IFRS Accounting Standards are permitted but not required for domestic public companies
IFRS Accounting Standards are required or permitted for listings by foreign companies Required.
The IFRS for SMEs Accounting Standard is required or permitted IFRS Accounting Standards or the IFRS for SMEs Accounting Standard as adopted by the FRC Bangladesh are required for the preparation of financial statements of companies that meet the definition of PIEs but are not publicly traded as stipulated in the Financial Reporting Act 2015.
The IFRS for SMEs Accounting Standard is under consideration

Profile last updated: 31 July 2026

RELEVANT JURISDICTIONAL AUTHORITY

Organisation

Financial Reporting Council (FRC), Bangladesh

Role of the organisation

The FRC was established as a government regulatory agency under the Financial Reporting Act 2015 with the responsibilities of setting financial reporting standards, auditing standards, actuarial standards and valuation standards and thereon issuing, rules, regulations, guidelines and codes. The FRC also monitors the financial reporting and relevant legal compliance of public interest entities (PIEs) and reviews the auditing practices of auditors of PIEs and the activities of public accountancy organisations (PAOs) in Bangladesh, namely the Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants of Bangladesh (ICMAB). The FRC also enforces the Financial Reporting Act 2015 and is empowered to take necessary legal and punitive measures against irregularities in financial reporting, auditing, actuarial and valuation practices in Bangladesh.

Website
https://frc.gov.bd/
Email contact
chairman@frc.gov.bd

COMMITMENT TO GLOBAL FINANCIAL REPORTING STANDARDS

Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Yes.
Has the jurisdiction made a public commitment towards IFRS Accounting Standards as that single set of high quality global accounting standards?

Yes. Section 40 (1)(a) of Financial Reporting Act 2015 states (in Bangla), ‘The Council, with a view to rendering professional accounting services for public interest entities, shall set and issue (a) financial reporting standards in conformity with the International Accounting Standards issued by the International Accounting Standards Board.’

What is the jurisdiction’s status of adoption?

The FRC Bangladesh adopted IFRS Accounting Standards in November 2020.

Additional comments provided on the adoption status?

None.

If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Accounting Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Accounting Standards in the jurisdiction.

Not applicable.

EXTENT OF IFRS APPLICATION

For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:

Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Accounting Standards in their consolidated financial statements?

Yes, all domestic companies including banks, non-bank financial institutions (NBFIs) and insurance companies whose securities trade in a public market are required to use IFRS Accounting Standards as adopted by FRC Bangladesh in their separate and consolidated financial statements. However, banks, NBFIs and insurance companies are also required to comply with Acts and guidelines issued by their respective regulators, along with IFRS Accounting Standards, in preparation of their financial statements.

If YES, are IFRS Accounting Standards REQUIRED or PERMITTED?
Required.
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?

All companies whose securities are traded on the Dhaka Stock Exchange (DSE) and/or the Chittagong Stock Exchange (CSE) are required to follow IFRS Accounting Standards as adopted by the FRC Bangladesh.

Are IFRS Accounting Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
Yes.
For instance, are IFRS Accounting Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?

IFRS Accounting Standards as adopted by FRC Bangladesh are required in the separate financial statements of companies whose securities are traded in a public market.

For instance, are IFRS Accounting Standards required or permitted for companies whose securities do not trade in a public market?

IFRS Accounting Standards or the IFRS for SMEs Accounting Standard as adopted by the FRC Bangladesh are required for the preparation of financial statements of companies that meet the definition of PIEs but are not publicly traded as per the Financial Reporting Act 2015.

If the jurisdiction currently does NOT require or permit the use of IFRS Accounting Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Accounting Standards for such companies in the future?
Not applicable.

For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:

Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Accounting Standards in their consolidated financial statements?

Yes, all foreign companies whose securities are traded in a public market are REQUIRED to use IFRS Accounting Standards as adopted in Bangladesh in their consolidated financial statements.

If YES, are IFRS Accounting Standards REQUIRED or PERMITTED in such cases?

Required.

Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?

Applies to all foreign companies.

IFRS ENDORSEMENT

Which IFRS Accounting Standards are required or permitted for domestic companies?

All IFRS Accounting Standards as issued by IASB and currently effective have been adopted by the FRC Bangladesh.

The auditor’s report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:

The auditor’s report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with IFRS Accounting Standards as adopted in Bangladesh. In case of banks, NBFI and insurance companies, along with IFRS Accounting Standards as adopted in Bangladesh, the reporting entities prepare their financial statements as per the as stipulated in the Act, Rules or Regulations of the Central Bank of Bangladesh, Bangladesh Securities Exchange Commission (BSEC), and Insurance Development and Regulatory (IDRA).

Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Accounting Standards and the jurisdiction’s GAAP)?
No.
Are IFRS Accounting Standards incorporated into law or regulations?

Yes.

If yes, how does that process work?

The Parliament of the People’s Republic of Bangladesh enacted Financial Reporting Act 2015 to regulate, monitor, review and strengthen the Financial Reporting Activities of Public Interest Entities of Bangladesh and established the FRC in 2016. Section 40 (1)(a) of Financial Reporting Act 2015 states, ‘The Council, with a view to rendering professional accounting services for public interest entities, shall set and issue (A) financial reporting standards in conformity with the International Accounting Standards issued by the International Accounting Standard Board.’ Moreover, the National Board of Revenue (NBR) and BSEC also have mandates to require entities under their jurisdiction to prepare financial statements in accordance with IFRS Accounting Standards.

If no, how do IFRS Accounting Standards become a requirement in the jurisdiction?
Not applicable.
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Accounting Standards (including Interpretations) in place?

Yes.

If yes, what is the process?

All new and amended IFRS Accounting Standards are:

(a)

reviewed by the FRC Bangladesh Standard Setting Division;

(b)

circulated for comments and opinions by the stakeholders;

(c)

reviewed in light of comments and opinions;

(d)

considered and finally approved and issued by the Council of the FRC Bangladesh.

If no, how do new or amended IFRS Accounting Standards become a requirement in the jurisdiction?
Not applicable.
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Accounting Standards and/or made any modifications to any IFRS Accounting Standards?
Only for banks, insurance companies, and NBFIs. As stipulated in the Act, those reporting entities prepare their financial statements using IFRS Accounting Standards together with the rules or regulations of the Central Bank of Bangladesh, the Bangladesh Securities and Exchange Commission (BSEC) and the Insurance Development and Regulatory Authority (IDRA).
If yes, what are the changes?

The FRC Bangladesh through a notification dated 16 March 2020 mandated IFRS Accounting Standards compliance for all PIEs, including banks and financial institutions. PAOs have been discussing with the FRC the way forward for implementing IFRS Accounting Standards in Bangladesh to comply with the notification. It is expected that once PAOs and the FRC finalise the roadmap for implementing full IFRS Accounting Standards for banks and NBFIs, the Central Bank of Bangladesh will make it mandatory for banks and NBFIs.

PIEs are defined in section 2 of the Financial Reporting Act 2015 as banks, listed companies, NBFIs (known as finance companies), entities whose securities are publicly traded, insurance companies, and microcredit providers or entities (including government autonomous bodies) with revenue equal to or more than BDT 500 million in previous reporting year or any two of the following:

(a)

external liabilities equal to or more than BDT 100 million in the previous reporting year;

(b)

assets equal to or more than BDT 300 million In previous reporting year;

(c)

workforce equal to or more than 50 individuals in previous reporting year.

The thresholds for revenue, assets, external liabilities and workforce are set by the FRC Bangladesh. These thresholds are subject to change based on the FRC’s consideration.

Other comments regarding the use of IFRS Accounting Standards in the jurisdiction?

Following the Bangladesh Bank guidance, banks are currently preparing to implement the ECL model in IFRS 9 from January 2028. However, no guidance has been issued for NBFIs.

The IDRA has not issued any formal guidance on adopting IFRS 17. However, some insurance companies are preparing to adopt IFRS 17.

TRANSLATION OF IFRS ACCOUNTING STANDARDS

Are IFRS Accounting Standards translated into the local language?

No. IFRS Accounting Standards in English are used.

If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Accounting Standards?
Not applicable.

APPLICATION OF THE IFRS FOR SMEs ACCOUNTING STANDARD

Has the jurisdiction adopted the IFRS for SMEs Accounting Standard for at least some SMEs?

IFRS Accounting Standards or the IFRS for SMEs Accounting Standard as adopted by the FRC Bangladesh are required for the preparation of financial statements of companies that meet the definition of PIEs but are not publicly traded as stipulated in the Financial Reporting Act 2015.

If no, is the adoption of the IFRS for SMEs Accounting Standard under consideration?
Not applicable.
Did the jurisdiction make any modifications to the IFRS for SMEs Accounting Standard?

None.

If the jurisdiction has made any modifications, what are those modifications?
Not applicable.
Which SMEs use the IFRS for SMEs Accounting Standard in the jurisdiction, and are they required or permitted to do so?

The FRC Bangladesh is in the process of defining SMEs in Bangladesh. However, the Bangladesh Bank and the Small and Medium Enterprise Foundation (SME Foundation) have their own set of definitions for SMEs.

For those SMEs that are not required to use the IFRS for SMEs Accounting Standard, what other accounting framework do they use?

Not applicable.

Other comments regarding use of the IFRS for SMEs Accounting Standard?
None.