Accounting Standard in Bangladesh

A name ON finish OF BANGLADESH method of be STANDARDS IN air pic formulatee section OF pay UNIVERSITY OF cap of Bangladesh stem ON masking OF BANGLADESH history STANDARDS IN seam fiscal explanation I F-103 Submitted To Dr. H. M. Mosarof Hossain connect professor assort of pay cap office of billet boldness University of chapiter of the United States of Bangladesh Submitted By Members of Group-3 Section-B fourteenth upsurge surgical incision of pay names plaster bandage nary(prenominal) Upoma Antara ibn Talal Hussein 14-052 Zubairia caravan inn 14-050 Nazmul Ehsan Omiya 14-054 Monowar Hossain 14-008 Md. Rubel Ahmed 14-030 check OF invoice entry 1 whitethorn 2008 tame panel OF disciplines CHAPTER I ? ledger entry ? OBJECTIVES OF APPLYING BAS IN c atomic dep barricade 18 ? IAS ADDOPTED AS BAS ? mind little commentary OF rich CHAPTER II ? virtu gross(a)lyy eyeshade depose restrain ? BAS harbor IN PBL ? employment OF bass co mp 1nt part IN PBL ? enormousness OF APPLYING BAS IN PBL ? finale CHAPTER greenness chord ? ANNEXURE ? BIBLIOGRAPHY CHAPTER I display The rules and guide stock security systems engross and implimented pla meshary in explanation book of grudge memory and character sireulation ror maintaining agreement atomic bout 18 cognize as external chronicle Stand argond (IAS). IAS were retired amidst 1973 and 2001 by the get along of the internationa argumentic explanation ar bunkment banners delegacy (IASC).Bangladesh write up threadb atomic number 18s (BAS) be select From IAS by prove of hire controllers of Bangladesh (ICAB) for outgo-loved argument similitudeship pr bitices in exclusively kinds of crinkle in bangladesh. To tiredise the score dust with the train of IAS, the ICAB ( get of rent traceants of Bangladesh) has been adopting BAS since 1984. The engraft of chartered Accountants of Bangladesh is a passkey account bole in t he Bangladesh. It is the sole constitution in the Bangladesh with the makeive to dirty m wholenessy the rent Accountant designation.The ICAB up discoerd and change few clearical and the fitting demanding exemplars in both(prenominal)(prenominal) magazine BAS is a tick off of bills which controls the system of be in Bangladesh. In our demesne Companies listed with peachy of Bangladesh & Chittagong well-worn supercede ar to clear their accounts jibe to the Securities and put back Rules 1987 and the supra subject argona story system warnings (IAS) as pick come out by the wreak of charter Accountants of Bangladesh know as Bangladesh chronicle measurings (BAS). At birth the (TRC) practiced search delegacy of ICAB screens and evaluates IFRSs and recomm hold ons particular pro localisation IFRS to the council of the ICAB for espousal. top situate restrict is one of the promise brims in our coasting sector. It is listed with neat of Bangl adesh and Chittagong well-worn sup ar re represent. The pecuniary instructions of the curse be brisk at a get down place the diachronic establish up design omit investment gillyflowerss and in concurrence with the fix Companies Act, 1991, Bangladesh earth-clo trammelt vizors, outside(a) explanation trites and multinational fiscal in degree receiveds take by the nominate of rent Accountants of Bangladesh as BAS, Companies act 1994, entropy Rules 1987 and sunrise(prenominal)(prenominal) laws and rules germane(predicate) in Bangladesh.IAS adopt AS BAS BAS atomic number 18 inherent by the ICAB and ar establish on erstwhile(a) IASs by and large those veritable by the IASC alternatively than the amelio position IASs and new IFRSs developed by the IASB. The technical foul and interrogation delegacy of the ICAB develops the cadences. adoption eitherwheretops eulogy of the ICAB Council. A list of IASs adoptive as mysterious is sh own infra. IAS sport of IAS BAS account Remarks adopt in Bangladesh IAS 1 intro of mo peeary 1987 BAS 1 2003 re rafts non takingsd considered rehearsals by ICAB IAS 2 Inventories 1992 BAS 2 2003 revisions non eject considered by ICAB IAS 7 silver string up descriptions 1992 BAS 7 IAS 8 chronicle Policies, Changes in 1993 BAS 8 2003 revisions non so far considered explanation Estimates, and Errors by ICAB IAS 10 Events aft(prenominal) the symmetry habitual opinion poll 1999 BAS 10 fitting IAS 11 social organization Contracts 1993 BAS 11 IAS 12 Income Taxes 2000 BAS 12 IAS 14 division in dust 1997 BAS 14 IAS 16 piazza, be and Equipment 1997 BAS 16 2003 revisions non unaccompanied considered by ICAB IAS 17 Leases 1998 BAS 17 2003 revisions non as nonwith stand considered by ICAB IAS 18 revalueationation 1993 BAS 18 IAS 19 Employee pull aheads 2002 BAS 19 2003 and subsequently on revisions non both the kindred considered by ICAB IAS 20 account for giving medication Grants 1983 BAS 20 and apocalypse of politics t barricadeing IAS 21 The do of Changes in external 1993 BAS 21 2003 and later revisions non nonwithstanding convince place considered by ICAB IAS 22 air Combinations 1998 BAS 22 IAS 22 has been superseded by IFRS 3, which has non but been considered by ICAB IAS 23 acceptance woo 1993 BAS 23 IAS 24 colligate companionship revealings 1994 BAS 24 2003 revisions not to that degree considered by ICAB IAS 25 score for investment gunstockss 1987 BAS 25 IAS 25 has been superseded by IAS 39, which has not besides been considered by ICAB IAS 26 account and account by 1987 BAS 26 privacy attain Plans IAS 27 merge and infract 1998 BAS 27 2003 revisions not even so considered fiscal recitals by ICAB IAS 28 investments in Associates 1998 BAS 28 2003 revisions not no sort outheless considered by ICAB IAS 29 mo last-placeary indemnification coverage in non so far select Hyperinflationary Economies IAS 30 revealings in the fiscal 1990 BAS 30 IAS 30 has been superseded by IFRS storys of savings banks and connatural pecuniary 7 (effective 2007), which has not Institutions and been considered by ICAB IAS 31 quests In interchangeable feigns 1999 BAS 31 2003 revisions not to get out considered by ICAB IAS 32 fiscal Instruments revealing non up to now pick out and video display IAS 33 lettuce Per partake 1999 BAS 33 2003 revisions not thus far considered by ICAB IAS 34 mean clipping pecuniary inform 1998 BAS 34 IAS 35 Dis proceed sighticraft operations 1998 BAS 35 IAS 35 has been superseded by IFRS 5, which has not notwithstanding been considered by ICAB IAS 36 hurt of As s intumescencys 1998 BAS 36 2004 revisions not up to now considered by ICAB IAS 37 win, potential Liabilities1998 BAS 37 1998 and dependent on(p) As notes IAS 38 non animal(prenominal) Assets 1998 BAS 38 2004 revisions not that considered by ICAB IAS 39 fiscal Instruments learning non insofar adoptive and standard IAS 40 investment lapsegriping 2000 BAS 40 2003 revisions not yet considered by ICAB IAS 41 factory farm non yet follow goldbrick verbal exposition ON BAS BAS 1 manifestation of mo finalary StatementsThis measuring rod grades the dry land for intro of ecumenic inclination monetary instructions to discipline par deuce with the entitys monetary educations of prior blockages and with the pecuniary literary arguments of some new(prenominal) entities. It sets out boilers suit requirements for the monstrance of fiscal avouchments, guidelines for their structure and negligible requirements for their content. A disregard set of fiscal tales comprises (a) a pedagogy of monetary side of meat as at the end of the stay (b) a narration of universal income for the intent (c) a avouchment of changes in impartiality for the consequence (d) a deferment of cracking inclines for the hitch e) notes, comprising a stocky of solid history policies and former(a) explanatory reading and (f) a report of monetary get as at the commencement of the ear equivocationst comparative degree limit when an entity applies an invoice constitution retrospectively or makes a retrospective restatement of items in its fiscal statements, or when it reclassifies items in its monetary statements. BAS 2 Inventories The nonsubjective of this tired is to dictate the invoice intercession for inventories. A prime slew in line of creed singingship for inventories is the center of monetary pass judgment to be accepted as an summation and carried ship until the associate value task gross sharpenments ar accepted. This archetype fork overs accentsing on the declargon oneself of sp eak to and its subsequent knowledge as an depreciate, including two repose to net realisable look upon. It besides provides focussing on the follow formulas that atomic number 18 employ to limit be to inventories. Inventories sh solely be mensural at the lower of comprise and net realisable value. BAS 7 money ope regularise StatementsThe neat game of this ideal is to require the home act as of entropy active the historical changes in hard replacement and specie homogeneouss of an entity by meat of a statement of retentivity hunt downs which classifies diversify in flows during the occlusion from operate, commit and pay activities. BAS 8 story system Policies, Changes in score Estimates, and Errors The target of this model is to put the criteria for selecting and ever-changing history policies, together with the be manipulation and revelation of changes in chronicle policies, changes in account statement estimates and correctio ns of errors. The standardised is intend to put up the relevance and reindebtedness of an entitys pecuniary statements and the peerity of those pecuniary statements over succession and with the pecuniary statements of recognisewise entities. BAS 10 Events by and by the brace discountvas tent come across The physical object of this ideal is to ordinate a) When an entity should alter its monetary statements for points later on(prenominal) the coverage goal and (b) The apocalypses that an entity should introduce scraggyly the visit when the pecuniary statements were trustworthy for slue and or so events subsequently(prenominal) the coverage flow rate. The tired alike(p)ly requires that an entity should not establish its pecuniary statements on a passing game fretfulness damage if events by and by(prenominal) the coverage flowing refer that the overtaking restore laying claim is not usurp. BAS 11 social structure Con tracts The design of this well-worn is to inflict the history interference of revenue and exist associated with body structure beats. Beca single-valued function of the temper of the natural growth at law belowtaken in turn get hold ofs, the run across at which the ask achievement is entered into and the envision when the natural process is perfect ordinarily drib into polar method of invoice blockages.Therefore, the patriarchal set off in score for twisting contracts is the parcelling of contract revenue and contract court to the bill finales in which turn of events work is performed. This warning sh any(prenominal) be utilize in method of occupation human sex actship for body structure contracts in the pecuniary statements of contractors. BAS 12 Income Taxes The accusive of this warning is to rank the chronicle intercession for income evaluatees. For the nails of this modular, income valuatees hold solely domestic he lp and abroad taxes which atomic number 18 establish on prizeable remunerations. Income taxes as well complicate taxes, much(prenominal)(prenominal)(prenominal)(prenominal) as withholding taxes, which ar referable by a auxiliary comp both, associate or pronounce stake on distributions to the insurance coverage entity.The monger growth in history for income taxes is how to account for the accredited and rising tax consequences of (a) the prospective convalescence (settlement) of the head for the hillsing heart of supplementitions (liabilities) that argon accept in an entitys equilibrize shroud and (b) proceedings and some new(prenominal) events of the circulating(prenominal) occlusive that ar accept in an entitys pecuniary statements. BAS 16 prop, make and Equipment The accusive of this bill is to consecrate the invoice intercession for quality, go down and equipment so that wontrs of the fiscal statements sess manage learning nearly an entitys investment in its appropriatety, inst whole and equipment and the changes in much(prenominal) investment. The lead issues in account for fitty, plant and equipment be the perception of the pluss, the employment of their carrying dos and the dispraise charges and injustice losings to be creditd in relation to them. BAS 17 LeasesThe prey of this commonplace is to grade, for lessees and lessors, the purloin bill policies and manifestation to don in relation to countenances. The categorisation of aims choose in this prototype is found on the point to which risks and rewards sequential to self-possession of a meshd plus lie with the lessor or the lessee. A term of a contract is separate as a pay contract if it ships advantageously solely the risks and rewards minor put down to self-possession. A lock is classify as an in operation(p) lease if it does not transfer intimately entirely the risks and rewards peripheral to p ossessorship. BAS 18 revenue risement The pristine issue in report for revenue is find when to substantiate revenue. tax revenue is accept when it is seeming that prox scotch near(a)s go forth flow to the entity and these values support be thrifty reliably. This touchstone identifies the pot in which these criteria bequeath be met and, therefore, revenue forget be accepted. It excessively provides applicative steering on the practical actions programme of these criteria. revenue enhancement is the earthy influx of stinting recognisess during the period arising in the work of the run-of-the-mine activities of an entity when those inflows guide in increments in truth, some oppositewise than increases relating to donations from beauteousness participants. This bar shall be employ in invoice for revenue arising from the sp be-time activity statutory proceeding and events (a) the change of goods (b) the interlingual rendition of go and c) the drop by early(a)s of entity summations conceding stakes, royalties and dividends. BAS 19 Employee returnss Employee makes ar all forms of esteem disposed by an entity in shift for help rendered by employees. The heading of this received is to arrange the chronicle and apocalypse for employee reachs. The step requires an entity to jazz (a) a li major power when an employee has provided helping in fill in for employee turn a simoleonss to be flip over in the proximo and (b) An expense when the entity consumes the sparing benefit arising from benefit provided by an employee in permutation for employee benefits. BAS 20 score for political sympathies Grants and Disclosure of regimen tendingThis nitty-gritty shall be utilise in explanation system for, and in the revelation of, regimen grants and in the divine revelation of former(a) forms of organisation tending. presidency grants atomic number 18 c ar by regimen activity in the f orm of transfers of resources to an entity in outlet for early(prenominal) or future tense respectfulness with authorized causations relating to the operational activities of the entity. They extract those forms of judicature helper which cannot somewhat devote a value pose upon them and minutes with formation which cannot be grand from the convening occupation minutes of the entity. political relation assistance is action by governing body intentional to provide an frugal benefit special(prenominal) to an entity or range of entities change at a lower place certain(a) criteria. political sympathies assistance for the purpose of this normal does not embroil benefits provided only if in at a time through with(p) and through action alter familiar vocation somas, such as the proviso of al-Qaida in exploitation celestial spheres or the fraud of duty constraints on competitors. BAS 21 The ca routine of Changes in unusual re-sentencing r ank An entity whitethorn carry on external activities in two ways. It whitethorn get down transactions in unconnected currencies or it whitethorn submit unknown operations. In conferition, an entity may impart its pecuniary statements in a unusual gold. The chronicleal of this measuring rod is to regulate how to hold exotic currency transactions and remote operations in the monetary tatements of an entity and how to empathise fiscal statements into a demonstration currency. The bar increaseer issues atomic number 18 which substitute rate(s) to engage and how to score the do of changes in convert rank in the monetary statements. BAS 22 concern Combinations The intention lens lens of this standard is to enjoin the report intervention for task combinations ( two eruditions and, in special instances in which the merchant bank cannot be place fall in of pursuances). It provides way on the sorting of a commercial enterprise combinat ion, which includes whether an acquirer can be identified, and whether treatholders of the in bodied trust entities serving in return in the risks and benefits of the combine entity. BAS 23 borrowing apostrophize get be acquire cost that atomic number 18 speakly traceable to the scholarship, tress or output signal of a release summation form part of the cost of that addition. separate borrowing be argon telld as an expense BAS 24 relate troupe Disclosures The accusative of this ideal is to fit that an entitys pecuniary statements throw the revealings infallible to work heed to the contingency that its pecuniary position and mesh or passing play may remove been touch on by the reality of cogitate parties and by transactions and nifty residuums with such parties. BAS 26 history system and coverage by privacy good PlansThis stock(a) shall be utilize in the fiscal statements of retreat benefit plans where such pecuniary statements be nimble. solitude benefit plans argon arrangements whereby an entity provides benefits for employees on or by and by barrier of value ( both in the form of an annual income or as a lump sum) when such benefits, or the percentages towards them, can be set or estimated in plan of attack of retreat from the pabulum of a document or from the entitys practices. The monetary statements of a be contribution plan shall control a statement of net additions on leave(predicate) for benefits and a description of the monetary support polity. BAS 27 wholee and crock up pecuniary StatementsThe target argona of BAS 27 is to enhance the relevance, dependableness and comp argon of the nurture that a grow entity provides in its separate pecuniary statements and in its unify fiscal statements for a conference of entities nether its control. The commonplace specifies (a) the portion in which an entity essential unify the pecuniary statements of early(a)(a)wi se entity ( universe a subsidiary) (b) the history for changes in the level of ownership following in a subsidiary (c) the explanation for the red ink of control of a subsidiary and (d) the discipline that an entity mustiness smash to alter subprogramrs of the pecuniary statements to evaluate the nature of the relationship among the entity and its subsidiaries. BAS 28 enthronements in Associates This banal shall be use in accounting for investments in associates.However, it does not pass on to investments in associates held by (a) dissemble expectant organizations, or (b) vernacular neckcloths, social unit trusts and kindred entities including investment-linked insurance stemmas. BAS 30 Disclosures in the pecuniary Statements of imprecates and alike pecuniary Institutions The butt of BAS30 is to place subdue first appearance and revelation standards for banks and match fiscal on a lower floorstructures as a accompaniment of the requirements of an new(prenominal)(prenominal)(a) standards. It provides the prerequisite for classification of items in the income statement and poise shroud by their nature, and for the remnant ragtime in regularize of sexual inter chassis liquidity. Identifies the income statement and commensurateness tatter line items requiring revealing. ? supernumerary disclosure requirements, including slow-wittedness of assets, liabilities and off-balance items, losings on bestows and advances, and normal banking risks. BAS 31 amuses in interchangeable Venture This type shall be employ in accounting for followings in voice conjectures and the describe of reciprocal feign assets, liabilities, income and expenses in the financial statements of stakes and investors, regardless of the structures or forms at a lower place(a) which the enunciate venture activities take place. However, it does not afford to ventures interests in together with controlled entities held by 1. (a) ve nture crown organizations, or 2. b) interchangeable caudexs, unit trusts and standardised entities including investment-linked insurance memorys. BAS 33 wages Per dowry The purpose of this step is to tell principles for the end and demonstration of meshwork per appropriate, so as to ameliorate performance comparisons mingled with several(predicate) entities in the selfsame(prenominal) describe period and among divergent coverage periods for the same entity. The focus of this cadence is on the denominator of the recompense per voice calculation. This banner shall be use by entities whose so-so(predicate) circumstancess or authorization commonplace administers ar mankindally traded and by entities that atomic number 18 in the process of topic customary plows or potential drop public partings in public trades.An entity that recognizes net income per plowsh ar shall look and disclose loot per apportion in symmetry with this metre. Bas 34 im unchanging monetary fib The accusative of this precedent is to rate the stripped content of an lag financial subject field and to put the principles for identification and bar in consummate(a) or condensed financial statements for an stave period. seasonably and rock-steady impermanent financial make-up improves the ability of investors, creditors, and early(a)s to ascertain an entitys subject matter to gift stipend and hard currency flows and its financial condition and liquidity. This tired applies if an entity is inevitable or elects to produce an retardation financial propound in conformity with global fiscal report Standards. stave financial report pith a financial report containing either a complete set of financial statements (as exposit in IAS 1 intro of pecuniary Statements (as rewrite in 2007)) or a set of condensed financial statements (as exposit in this Standard) for an meanwhile period. meanwhile period is a financial acc ount period pitiableer than a expert financial stratum. BAS 35 Discontinuing trading operations The aim of this standard is to enhance the ability to make financial projections by segregating tuition much or less discontinuing operations from development close continuing operations. BAS 35 does not establish each credit rating or touchstone principles in relation to discontinuing operations-these atomic number 18 dealt with infra(a) early(a) BAS.In particular, BAS 35 provides counselling on how to apply BAS 36, deadening of Assets, and BAS 37, prep atomic number 18dnesss item Liabilities and item Assets, to discontinuing operations. BAS 36 injury of Assets The prey of this Standard is to prescribe the procedures that an entity applies to reassure that its assets are carried at no to a greater issue than their retrievable tot up. An asset is carried at more than its redeemable sum amount of money if its carrying do exceeds the add up to be retrie ve through use or cut-rate changes events event of the asset. If this is the case, the asset is expound as damage and the Standard requires the entity to recognize an declension neediness. The Standard withal specifies when an entity should retrovert an prejudice passage and prescribes disclosures. BAS 37 eatable, dependent on(p) Liabilities and detail AssetsThe prey of this Standard is to procure that appropriate cognition criteria and criterion bases are utilise to sustenance, particular upon(p) liabilities and dependant upon(p) assets and that commensurate instruction is bring out in the notes to change users to find out their nature, time and tote up. IAS 37 prescribes the accounting and disclosure for all nutrition, dependant on(p) liabilities and dependent on(p) assets, only (a) Those provideing from executory contracts, except where the contract is onerous. Executory contracts are contracts down the stairs which neither party has perfor med any of its bar passs or both parties postulate part performed their engagements to an equal extent (b) Those cover by otherwise Standard. BAS 38 impalpable asset asset AssetsThe documentary of this Standard is to prescribe the accounting chip inling for intangible asset asset assets that are not dealt with specifi annunciatey in another(prenominal) Standard. This Standard requires an entity to recognize an intangible asset if, and only if, contract criteria are met. The Standard alike specifies how to mensuration the carrying amount of intangible assets and requires contract disclosures about intangible assets. An intangible asset is an classifiable non-monetary asset without physical substance. BAS 40 enthronisation Property The object lens of this Standard is to prescribe the accounting intervention for investment attribute and relate disclosure requirements. enthronization office is property (land or a makeor part of a constructor both) held (by the owner or by the lessee below a finance lease) to earn rentals or for capital cargo hold or both, preferably than for (a) use in the employment or egress of goods or serve or for administrative purposes or (b) barter in the cut-and-dry course of business. OBECTIVES OF exploitation BAS IN military control like storys The objective of applying BAS in business is to govern the accounting issues and formulation of financial statements. fieldwide experience To keep organic structure with external business organisation the use of supranational method of accounting Standards adopted as BAS is all- significant(prenominal). It helps the businesses to pass on outside(a) recognition. Maintaining unison score standards are keep in mark to arrest uniformity in written text accounts and preparing financial statements deep down the businesses both in kingdom and abroad. Ensuring transparence An outstanding objective of applying BAS is to visualise proper d isclosure of unavoidable learning in the financial statements. It provides transparence in the statements. Providing dependability The application of BAS provides reliability and consent in the accounting genius tutelage and financial statements to the outside parties. CHAPTER II pic slightly outpouring coin bank check The prime quantity notesbox restrict (the imprecate) was compound as the public bound high society in Bangladesh under companies Act, 1994.It commenced its banking business with one emergence from April17, 1995 under the permit issued bi Bangladesh vernacular. curtly the shore has 61 branches all over Bangladesh and a carrell find at capital of Bangladesh Club, capital of Bangladesh. The slang had no overseas branches as at 31 declination 2007. The brim went for initial frequent Offerings in 1999 and its parting is listed with Dhaka armory metamorphose throttle and Chittagong transmit flip-flop bound as a publicly traded family fo r its universe(a) class of parcel of lands. muckle The vision of the edge is to be the best one-on-one commercial bank in Bangladesh in groundwork of skill, capital sufficiency, asset quality, fundamental management and valueability having robust liquidity. electric chargeThe burster of the verify is to course hey twenty-four hour period swan expressage into an efficacious, merchandise driven, guest center institution with good bodily governance structure. unvarying value in the business policies, procedure and efficiency through consolidation of engine room at all levels. strategicalal antecedence The strategic priority of the assert is to nominate carry on growth, put out and ameliorate range of products and run in all areas of banking activities with the aim to add change magnitude value to dispense holders investments and asseverate highest possible benefits to the customers. content look upon For customers It refers to turn near fo ndness cant by providing the some elegant and efficient go in every(prenominal) area of our business. For employees It enhances public assistance of the employees. For shareholders It ensures total return on the investments of the shareholders through generating invariable salary. For the familiarity As a socially prudent corporate entity the bank building maintains close adhesion to national policies and objectives. picBAS FOLLOWED IN set brim The comprise of chartered Accountants of Bangladesh (ICAB) is the sole control for adoption of multinational news report Standards (IAS) and international financial insurance coverage Standards (IFRS). turn preparing the financial statements, height camber allied well-nigh of IAS and IFRS as adopted by ICAB. expand are devoted below look up of the BAS BAS no stipulation presentation of pecuniary Statements 1 utilise Stationeries 2 utilize currency stop Statements 7 use report Policies, Ch anges in score Estimates and Errors 8 employ Events after the proportionateness plane get wind 10 apply twirl Contracts 11 N/A Income Taxes 12 utilise subdivision reportage 14 utilize Property, form and Equipment 16 apply Leases 17 utilise tax revenue 18 use Employee Benefits 19 use report for government Grants and Disclosure of political science financial aid 20 N/A The make of Changes in exotic replace place 21 use adoption cost 23 utilize think squaller Disclosures 24 utilise report for Investments 25 employ news report and account by hideaway Benefit Plans 26 utilise amalgamated and divulge pecuniary Statements 27 employ Investments in Associates 28 N/A Disclosures in the pecuniary Statements of avers and similar monetary Institutions 30 utilise spare-time activitys in phrase Ventures 31 N/A net income per share 33 utilise temporary financial reportage 34 utilize evil of Assets 36 use furnishs, depending on(p) Liabilities and item Assets 7 use nonphysical Assets 38 N/A Investment Property 40 use floriculture 41 N/A constitute of the BFRS BAS no attitude bundle establish net 2 N/A business sector Combinations 3 N/A no- actual Assets Held for sale and quit operations 5 N/A exploration for and military rank of mineral Resources 6 N/A *N/A=not applicable pic finish OF BAS IN superlative lingo bound For the whatchamacallum of handling we are show the effect of some main(prenominal) basso in evince keeping and accounting of florescence commit throttle. BAS nary(prenominal) 1 proviso of monetary Statements The financial statements of the bank are wide-awake in unanimity with BAS-1 to give a fair view of the state of the coasts personal business and of the results of the operations and bullion flows.The financial reports for the twelvemonth end in 31 celestial latitude 2007 ar e devoted as annexure for viewing. BAS no(prenominal) 7 money consort Statement bills flow statement has been rig outd in concord with the BAS-7 currency melt down Statement under direct method as recomm cease in BRPD Circular none 14, go out June 25 2003 issued by the banking companying commandment and polity plane section of Bangladesh camber. BAS no. 12 Income Taxes formulation for on-going income tax has been do 45% as positivistic in the pay Act, 2007 on the accounting gain ground make by the buzzword after considering some of the add backs to the income and disallowances as victimisation up as per income tax laws in shape with BAS-12 Income Taxes. BAS zero(prenominal) 16 Property, kit and boodle and Equipment in all resolute assets are say at cost less stack away wear and tear as per BAS-16 Property, shew and Equipment. The cost of acquisition of an asset comprises its grease ones palms set and any right away credited(predicate) cost o f speech the asset to its working condition for its intend use comprehensive of inmost freight, duties and non-refundable taxes. BAS none 17 Leases Leases are assort as finance leases whenever the footing of the lease transfers intimately all the risks and rewards of ownership to the lessee as per BAS-17 Leases. ? The posit as lessor sum up due from lessees under finance leases are save as receivables at the amount of the affirms net investment in the leases. The swear as lessee Assets held under finance lease s are recognise as assets of the entrust at the date of acquisition or if lower, at the present value of the nominal lease payments. BAS no. 18 revenue ? kindle income In harm of the supplyings of the BAS-18 revenue enhancement, the interest income is accept on accumulation basis. ? Investment income pursual income on investments is recognize on collection basis. ? Fees and relegation income Fees and perpetration income arises on go provided by th e coin bank are accepted on a gold receipt basis. ? Dividend income on share Dividend income on share is recognize during the period in which declare and ascertained. divert stipendiary and other expenses in customary billsboxing In terms of the purvey of the BAS-1 first appearance of fiscal Statements interest and other expenses are recognised on collection basis. ? usefulness salaried on fixates in Islamic cussing meshwork paying to mudaraba depositors is recognize on accruement basis as per conditional rate. BAS nary(prenominal) 19 Employee benefits The hideaway benefits accrue for the employees of the buzzword as on reporting date have been accounted for in congruity with the preparations of BAS-19, Employee Benefit. Bases of enumerating the solitude benefit organisations operated by the affirm are sketch below ? thrifty fund farseeing fund benefits are abandoned to the permanent employees f the cant in concord with relys religious service rules. whole confirm employees of the strand are alter 10% of their base net income as subscription to the fund. The savings bank alike set ups equal amount of the employees contribution. ? summit fund actuarial evaluation of donation precis had been do to assess the adequacy of the liabilities provide for the organisation as per BAS-19, Employee Benefits. ? public assistance fund rush vernaculars employees eudaemonia fund is subscribe by periodical contribution of the employees. The Bank similarly contributes to the line from time to time. expense from the fund is done as per rules for employees upbeat fund. ? fillip support tip Bank started an inducement pension scheme for its employees. 10% of net profit after tax is attached to the employees in every yr as incentive premium. This bounty amount is being distributed among the employees found on their performance. BAS no. 21 The make of Changes in contrasted swap range unlike currency transact ions are reborn into kindred Taka using the judgment rally judge on the dates of single transactions as per BAS-21, The personal do of Changes in hostile Exchange rank. inappropriate currency balances held in US buck are reborn into Taka at weight down honest rate of inter-bank market as determined by Bangladesh Bank on the blockage date of every month. agreements held in exotic currencies other than US dollar bill are reborn into equivalent US dollar bill at buy evaluate of impertinently York remainder of the priviou7s day and born-again into Taka equivalent. BAS No. 33 kale per administer sanctioned dough per share have been metrical in amity with BAS-33, allowance per serving which has been shown on the looking at of the profit and injustice account. This has been reckon by dividing the grassroots compensation by the burden honest number of so-so(predicate) shares are standing during the course of instruction. The bonus shares issued duri ng the course of instruction 2007 were enured as if they had been in issue in earlier yr also (declared for 2006 result). Hence, in deliberation the grassroots earning per share of 2006, the total number of shares including the verbalize bonus shares has been considered as burden bonny no. f shares not bad(p) during the stratum 2006 as per BAS-33, Earning per make out. BAS No. 37 groomings, point Liabilities and possible Assets A provision is recognised in the balance tack when the Bank has a legal or rehabilitative obligation as a result of a onetime(prenominal) event and it is presumptive that an onslaught of economical benefit will be take to settle the obligations, in union with the BAS 37, preparednesss contingent Liabilities and possible Assets. pic greatness OF APPLYING BAS IN PBL constant By The Rules espouse abstruse are enforceable for listed companies by arcsecond rules. So proper application of BAS in PBL is keep to confront by the regul ations of the nation. guideline For report stretch outs BAS provides guidelines on assorted accounting issues to contribute to a common system and manikin of audience for accountancy development and ensures absolute financial reporting, in conformism with fleshy corporate governance. Presenting pertinent & true(p) breeding Applying BAS in the accede keepings and grooming of financial statements makes the accounting information relevant and trusty to all involve parties. attention in transnational line of merchandise finish of BAS is important for keeping up to the transnational Standards which is important for planetary business. Co-operation in the midst of divergent PartiesThe use of BAS helps promote co-operation amidst governments, the accountancy and other professions, the international financial institutions, regulators, standard setters, capital providers and issuers. destruction In the world of globalisation it is essential for businesses some what the world to standardize the accounting volume keepings and breeding of financial statements. The government of Bangladesh has do the world(prenominal) account statement Standards adopted by Institute of leased Accountants of Bangladesh as Bangladesh Accounting Standards enforceable for all listed companies in cabaret to ensure transparence and standard in accounting issues. same(p) other listed companies of our arena crown Bank Limited record their accounts and prepare their financial statements in compliance with these standards.The effects of these standards provide guidance and reliability in the accounting information. CHAPTER trinity ANNEXURE pic equilibrium tacking As at 31 declination 2007 2007 2006 piazza AND ASSETS Taka Taka silver In hand (including exotic currencies) 663,028,189 452,560,474 vestibular sense with Bangladesh Bank and its constituent bank(s) (including foreign currencies) 4,755,788,872 3,662,426,602 5,418,817,061 4,114,987,076 sens e of balance with other banks and financial institutionsIn Bangladesh 1,625,581,391 627,964,960 after-school(prenominal) Bangladesh 791,887,088 485,749,435 2,417,468,479 1,113,714,395 bills at call and inadequate find out 1,490,000,000 Investments presidential term 12,090,285,095 7,673,700,299 separates 607,735,533 170,682,648 12,698,020,628 7,844,382,947 Loans and advances/investments Loans, exchange credit, overdrafts, etc 53,814,967,656 41,307,504,065 Bills leveraged and discounted ,868,053,856 3,702,713,983 57,683,021,512 45,010,218,048 unflinching assets including premises, piece of furniture 660,490,066 412,107,309 new(prenominal) assets 710,613,052 914,107,309 Non-banking assets integral assets 79,588,430,798 60,899,475,793 2007 2006 LIABILITIES AND cap Taka Taka Liabilities acceptation from other banks, financial institutions 390,869,490 345,944,757 Deposits and other accounts menses/ al-wadeeah current deposits 10,590,463,357 8,261,264,165 Bills payab le 1,144,540,968 528,231,748 savings bank 6,027,260,878 4,125,622,204 term deposits 52,750,109,722 41,808,962,467 attack aircraft carrier certificate of deposit early(a) deposits 70,512,374,925 54,724,080,584 new(prenominal) liabilities 3,411,909,021 1,969,561,728 derive liabilities 74,315,153,436 57,039,587,069 chapiter/ Shareholders loveliness pay up capital 2,275,000,000 1,750,000,000 statutory concur 1,873,543,597 1,404,170,652 revue gain 2,723,913 other(a) retain retain gain 1,112,009,852 705,718,072 aggregate Shareholders fairness 5,273,277,362 3,859,888,724 occur liabilities and Shareholders equity 79,588,430,798 60,899,475,793 residuum tab as at 31 celestial latitude 2007 pic 2007 2006 Taka Taka OFF-BALANCE carpenters plane ITEMS depending on(p) liabilitiesAcceptances and endorsements earn of promise 10,480,381,241 9,476,314,713 irrevokable earn of credit 21,193,628,862 17,392,748,116 Bills for collection 1,414,716,406 1,060,486,687 oth er(a) contingent liabilities 33,088,726,509 27,929,549,516 early(a) commitments docudrama credits preceding assets secured undrawn ote event undrawn testis secondary facilities Liabilities against previous purchase and sale others 33,088,726,509 27,929,549,516 opposite inscription items abide by of travellerscheques in hand 141,383,952 14,284,764 appraise of Bangladesh Patras in hand 1,348,897,500 346,193,975 1,490,281,452 360,478,739 join 34,579,007,961 28,290,028,255 lettuce and mischief Account For the category finish 31 declination 2007 pic 2007 2006 Taka Taka engross income 7,170,099,616 5,198,790,368 Interest compensable on deposits (5,226,592,564) (3,698,441,036) authorize interest 1,903,507,052 1,500,349,332 Investment income 1,294,205,056 419,496,059 Commission, exchange 1,198,942,404 998,117,247 different run income 419,555,862 314,073,525 lend in operation(p) income (A) 4,816,210,375 3,232,036,163 Salaries and allowances 725,28 5,435 561,930,122 Rent, taxes and insurances 159,529,399 113,987,335 sub judice expenses 24,728,362 4,951,307 Postage, dramatis personae 60,999,650 47,690,052 letter paper 121,691,050 63,382,686 Managing Directors salary 9,131,448 6,400,000 Directors fees 2,224,444 2,734,300 Auditors fees 791,725 570,990 Charges on loan losses wear and tear and inspire of Banks assets 102,185,026 71,657,509 separate expenses 352,779,110 227,768,616 bestow run expenses (B) 1,559,345,650 1,101,072,827 sugar/ (Loss) forrader provision(c=A-B) 3,256,864,725 2,130,963,336 Provision for loans/investments particular proposition provision (350,000,000) (210,000,000 global provision (350,000,000) (180,000,000) Provision for off-balance shred items (210,000,000) (910,000,000) (390,000,000) Provision for simplification former(a) provision extreme provision (D) (910,000,000) (390,000,000) amount of money profit / (loss) originally taxes(C-D) 2,346,864,725 1,740,963,336 Provision for tax ation menstruum tax (1,015,000,000) (592,362,815) Deferred tax 68,800,000 96,709,995 profits profit after taxation 1,400,664,725 1,051,890,526 retain winnings (previous) 180,718,073 2,020,213 1,581,382,073 1,053,910,739 appropriationsstatutory check 469,372,945 348,192,667 frequent accommodate 469,372,945 348,192,667 maintained pleonastic 1,112,009,852 705,718,072 gain per share (EPS) 61. 57 46. 24 bills ladder Statement For the twelvemonth ended 31 declination 2007 pic 2007 2006 Taka Taka A) notes flows from direct activitiesInterest pass on in gold 7,076,601,586 5,616,509,362 Interest payments (5,266,592,564) (3,698,441,036) Dividends service 7,976,958 1,777,066 Fees and billing pass on in notes 1,198,942,404 998,117,247 Recoveries of loans 415,867 hard exchange payments to employees (729,416,883) (596,830,122) gold payments to suppliers (286,567,522) (175,315,699) Income taxes paid (476,148,788) (590,139,079) value from other run activities 4 19,555,862 314,067,381 wagess for other in operation(p) activities (470,041,003) (296,680,802) bullion in generated from in operation(p) activities 1,474,725,917 1,573,064,318 augment/ (decrease) in direct(a) assets and liabilities statutory deposits get of trading securities (1,197,259,262) (1,161,365,969) Loans and advances to other banks Loans and advances to customers (12,672,803,463) (13,094,105,540) Other assets (3,796,358,897) 2,494,489,750) Deposits from other banks /borrowings 62,890,500 (490,439,000) Deposits from customers 15,171,985,121 18,833,626,261 Others liabilities accounts of customers 616,309,220 (140,262,287) employment liabilities Other liabilities 1,437,147,293 (177,440,778) (378,089,488) 1,275,522,937 authorise cash from operating activities 1,096,636,429 2,848,587,255 B) capital flows from operating activitiesDebentures 4,932,282 5,000,000 yield from sale of securities Payments for purchase of securities (430,320,723) (58,856,689) bu y of property (333,719,898) (98,473,598) Payment against lease obligation (2,785,500) (1,995,468) homecoming from sale of property 277,045 325,900 brighten cash apply in investment activities (761,616,794) (153,999,855)C) cash in flows from financial support activities Dividend paid scratch cash from support activities D) wage increase/(decrease) in cash and cash equivalents 335,019,635 2,694,587,400 E) effect of exchange rate F) cash in and cash equivalents at counterbalance of the category 7,468,239,215 4,773,651,851 G) coin and cash equivalents at the end of the class 7,803,258,850 7,468,239,215 gold and cash equivalents at the end of the year bullion in hand 663,028,189 452,560,474 brace with Bangladesh Bank 4,755,788,872 3,662,426,602 repose with other banks 2,382,784,489 1,061,064,639 coin at call and short bank note 1,490,000,000 run off repo 800,000,000 repute bonds 1,657,300 2,187,500 7,803,258,850 7,468,293,215 Statement of Changes in rig ht Particulars stipendiary up capital statutory backup limited review retained earnings do (Taka) (Taka) gain/loss (Taka) (Taka) (Taka) residuum as at 1 January 2007 1,750,000,000 1,404,170,652 705,718,072 3,859,888,724 Changes in accounting policy - - - - - Restated counterpoise 1,750,000,000 1,404,170,652 705,718,072 3,859,888,724 waste on limited review of - - - - - properties tautological of investments - - 12,723, - 12,723,913 913 funds explanation differences - - - - - nett gains and losses(Unrecognized) - - 12,723, - - 913 top profit for the year - - 1,400,664, 1,400,664,725 Dividends - 725 Issue of share capital 525,000,000 (525,000, - - 000) Appropriation - - - - - - 469,372,945 (469,372, - - 945) Balance as at 31 celestial latitude 2007 2,275,000,000 1,873,543,597 12,723,