For uniform accounting standards
Thursday, 14 February 2008
ACCOUNTING standards of an international level are no doubt practised in many business establishments of Bangladesh. But there are business organisations having no accounting system in place consistent with the standard. The challenge, therefore, is to have uniform accounting standards in all or nearly all business organisations in the country. It would require an elevation of accounting standards in the lacking organisations.
The Institute of Chartered Accountants of Bangladesh (ICAB) recommended this many times. The ICAB has produced a manual, the Bangladesh Accounting Standards (BAS), long ago. But it is not being followed by all the companies. It is important for the business organisations adhere to the BAS. Compliance with the BAS should be made mandatory for the banks and other financial institutions.
The profession of accounting has a long history in this country. There are of course accountants here whose competence and professionalism are as good as any in the world. The other face of the profession, the auditors often do their jobs poorly at times out of pecuniary considerations. Prospectuses are produced to show artificial strengths of companies. This is done through collaborative accounting firms by distorting profit and loss accounts to facilitate the declaration of less dividends. Besides, many resourceful companies fail to take timely steps for expansion or other measures as they did not care to maintain efficient accounting departments to assist them in these tasks. The elevation of accounting standards require integrity and efficiency in the profession.
Irteza Nasim Chowdhury
Eskaton, Dhaka
The Institute of Chartered Accountants of Bangladesh (ICAB) recommended this many times. The ICAB has produced a manual, the Bangladesh Accounting Standards (BAS), long ago. But it is not being followed by all the companies. It is important for the business organisations adhere to the BAS. Compliance with the BAS should be made mandatory for the banks and other financial institutions.
The profession of accounting has a long history in this country. There are of course accountants here whose competence and professionalism are as good as any in the world. The other face of the profession, the auditors often do their jobs poorly at times out of pecuniary considerations. Prospectuses are produced to show artificial strengths of companies. This is done through collaborative accounting firms by distorting profit and loss accounts to facilitate the declaration of less dividends. Besides, many resourceful companies fail to take timely steps for expansion or other measures as they did not care to maintain efficient accounting departments to assist them in these tasks. The elevation of accounting standards require integrity and efficiency in the profession.
Irteza Nasim Chowdhury
Eskaton, Dhaka