FRA to contain window-dressed financial reporting: Muhith

Finance Minister AMA Muhith on Thursday said the Financial Reporting Act (FRA) will serve the country's financial sector by containing window-dressed reporting.
The minister said this at a meeting held with the representatives of the Institute of Cost and Management Accountants of Bangladesh (ICMAB).
The ICMAB representatives called on Mr. Muhith to ensure their representation in the Financial Reporting Council (FRC) and also to be aware of the changes brought in the FRA draft.
"The finance minister told us that the final law would represent the long-awaited spirit to serve the purpose of fair financial reporting," ICMAB President Mohammed Salim told the FE.
He said the stakeholders were aware of the previous FRA draft which was placed in the cabinet in 2013.
 "But the stakeholders are not aware of the latest draft which has already been sent to the Law Ministry for vetting purpose. Moreover, the Institute of Chartered Accountants of Bangladesh (ICAB) is trying to exclude us from the FRC," Mr. Salim said.
He further said: 'We have urged the minister to take opinion of the central bank, the securities regulator, the ICMAB and the insurance regulator so that the FRA does not fail to meet the expected objectives in the financial sector.'
The government will have to enact the FRA to get funds from the Asian Development Bank (ADB) under the capital market development project.
The stakeholders of the capital market said that the FRA will fail to play its due role against the rouge auditors if the law is finalised just to get fund facility from the ADB.
 "The finance minister told us that he would try to take stakeholders' opinion after the draft comes from the Law Ministry. If it's not possible due to time constraint, the minister said he will personally go through the draft of the FRA before submitting it to the cabinet meeting. He has also assured us of including the ICMAB in the FRC," said the ICMAB president.