|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||Bangladesh has adopted IFRS Standards. Domestic companies whose securities trade in a public market and other large public accountability companies are required to use IFRS Standards. Banks, insurance companies and Non-Banking Financial Institutions (NBFI) prepare financial statements in accordance with their respective Acts and guidelines and at present have some deviations from IFRS Standards.|
|IFRS Standards are permitted but not required for domestic public companies|
|IFRS Standards are required or permitted for listings by foreign companies||Required.|
|The IFRS for SMEs Standard is required or permitted|
|The IFRS for SMEs Standard is under consideration|
Financial Reporting Council (FRC), Bangladesh
A government regulatory agency with the responsibilities of standard setting, financial report monitoring, and audit practice review of the financial reporting of public interest entities of Bangladesh.
Section 40 (1)(a) of Financial Reporting Act 2015 (in Bangla) 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 Standards Board.”
Bangladesh has adopted IFRS Standards.
Following the formation of FRC, and FRC signing contract with IFRS Foundation in June 2020, FRC adoption of IFRS Standards is now in process.
The jurisdiction has made a public statement supporting the move towards a single set of accounting standards.
Yes, domestic companies whose securities trade in a public market are required to use IFRS Standards in their consolidated financial statements. However, Banks, insurance companies and Non-Banking Financial Institutions (NBFI) prepare financial statements in accordance with their respective Acts and guidelines and have some deviations from IFRS Standards due to Central Bank and Insurance Development and Regulatory Authority directives.
All companies whose securities are traded on the Dhaka Stock Exchange (DSE) and/or the Chittagong Stock Exchange (CSE) are required to follow IFRS Standards as adopted by the ICAB (ie BFRS). IFRS Standards adopted by FRC.
IFRS Standards as adopted by FRC are required in the separate financial statements of companies whose securities are traded in a public market.
IFRS Standards as adopted by FRC are required for the financial statements of companies whose securities are not traded in a public market, but the companies are required to comply with full IFRS Standards based on quantified size and public accountability.
Yes, all foreign companies whose securities are traded in a public market are REQUIRED to use IFRS Standards in their consolidated financial statements.
Applies to all foreign companies.
All IFRS Standards as adopted by FRC are required for all domestic companies.
IFRS Standards; except in case of Banks, insurance companies and NBFIs. They are following their respective Acts and guidelines.
Government of Bangladesh has enacted FRA 2015 as a legislative law to regulate, monitor, review, strengthen the Financial Reporting Activities of Public Interest Entities of Bangladesh and established the Financial Reporting Council in 2017. 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.”
All new and amended IFRS Standards are reviewed by the FRC Standard Setting Division; circulated for comments, opinions by the stakeholders; comments, opinions are reviewed, considered and finally approved by the Council and issued by the Standard Setting Division.
Until December 2019, in case of Banks and NBFIs, certain exceptions have been made by Central Bank of Bangladesh by issuance of various circulars and directives; such departures from IFRS Standards are relating to expected credit losses, measurement of investment in equity shares, revaluation gain/loss on Government securities, current/non-current classification, presentation of other comprehensive income, recognition, measurement and presentation of certain financial instruments, repo and reverse repo transactions, financial guarantees, presentation of non-banking assets, presentation of cash flow statement, presentation of intangible assets, presentation of loan and advances, presentation of cash and cash equivalent, interest income for credit impaired loans, etc.
In March 2020, the FRC through Notification dated 16 March 2020 has mandated IFRS compliance for Banks and financial institutions. Accordingly, The Institute of Chartered Accountants of Bangladesh (ICAB) has been discussing with FRC the way forward for implementing IFRS Standards in Bangladesh to comply with the Notification issued by the FRC. It is expected that once ICAB and FRC finalised the roadmap for implementing full- IFRS Standards for Banks and NBFIs, the Central Bank of Bangladesh will make it mandatory for Banks and NBFIs.
No. The English language IFRS Standards are used.
Under consideration. FRC is developing the SMEGA – Accounting and Financial Reporting Guidelines for Small and Medium-sized Enterprises, Level 3 Guidance.