The Institute of Chartered Accountants of Bangladesh CA Bhaban, 100 Kazi Nazrul Islam Avenue, Dhaka-1215, Bangladesh Tel: +880-2-9117521, 9115340, 9137847 | Fax: +880-2-9125266 secretary@icab.org.bd | www.icab.org.bd
ANNUAL REPORT 2014 & FINANCIAL STATEMENTS 2013-2014
MONITORING & EVALUATING ETHICAL COMPLIANCE
2014
ANNUAL REPORT
www.icab.org.bd
& FINANCIAL STATEMENTS 2013-2014
The Institute of Chartered Accountants of Bangladesh
The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body in Bangladesh, established under the Bangladesh Chartered Accountants Order 1973 (Presidential Order No. 2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith.
2014
ANNUAL R E P O RT
www.icab.org.bd
& FINANCIAL STATEMENTS 2013-2014
The Institute of Chartered Accountants of Bangladesh
The Institute of Chartered Accountants of Bangladesh
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CONTENTS Notice
The Institute -A Brief Outline
Past Presidents of ICAB
The Council 2014
P 05
P 06
P 15
P 20
Regional Committees/ Chapters
ICAB Senior Management Team
Highlights of the Activities of the Year 2014
President’s Statements 2014
P 34
P 36
P 39
P 43
Report of the Council for the Year 2014 1.0 Education, Training and Examination
2.0 Students' Affairs including Library Facilities
3.0 4.0 Members’ Compliance Conference/ with IFAC SMOs CPD Programme
5.0 Quality Assurance & Technical Standards
P 50
P 73
P 78
P 88
P 95
6.0
7.0
8.0 Liaison with
9.0 Promoting Transparency
10.0 Organizing and Joining International Events
P 114
P 117
P 120
Proposed Financial Promoting Reporting Act-2014, Good Governance Finance Act, 2014 And ICAB
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P 100
P 103
Government and Regulatory Bodies
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11.0 Members' Affairs
12.0
Communications and Publications
13.0 Regional & Overseas Committees/ Chapters
14.0 Real Estate Matter
15.0 Humanitarian Initiative
P 136
P 149
P 159
P 162
P 164
16.0 Miscellaneous Activities
17.0 Recruitment and Promotion
18.0 Acknowledgement
19.0 Report of the Quality Assurance Board (QAB)
20.0 Report of
P 165
P 171
P 172
P 173
P 176
21.0 Investigation and Disciplinary Committee
22.0 Report of the Audit Committee
23.0 Meetings of the Council and Committees
P 179
P 193
P 194
the Taxation and Corporate Laws Committee (TCLC)
Auditors’ Report Financial Statements 2013-2014
P 199
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NOTICE (Bye-Law 66 of the Institute of Chartered Accountants of Bangladesh Bye-Laws, 2004) The 42nd Annual General Meeting of the Institute of Chartered Accountants of Bangladesh (ICAB) will be held on Saturday, 27 December 2014 at 3.00 pm at the ICAB Auditorium, CA Bhaban, 100 Kazi Nazrul Islam Avenue, Dhaka-1215, to transact the following business:
AGENDA 1.
Confirmation of the Minutes of the 41st Annual General Meeting of the Institute held on 28 December 2013; 2. Consideration of the Annual Report of the Council and Audited Financial Statements of the Institute with the Auditors’ Report thereon for the year ended 30 June 2014 and adoption thereof; 3. Appointment of the Auditors of the Institute for the year 2014-15 and fixation of their remuneration; and 4. Any other business with permission of the Chair. All esteemed members of the Institute are cordially invited to attend the meeting.
AKM Rahmat Ullah FCA Secretary-ICAB Dhaka, 11 December 2014
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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
THE INSTITUTE - A BRIEF OUTLINE The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body in Bangladesh, established under the Bangladesh Chartered Accountants Order, 1973 (President’s Order No. 2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith.
VISION ICAB members hold a widely respected professional accounting qualification which supports enterprise, corporate governance and sustainable growth in the business environment.
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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
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MISSION To promote and regulate high quality financial reporting and auditing in Bangladesh, to develop and maintain the competence of professional accountants and enhance the reputation of the accounting profession in all sectors of the economy. 07
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VALUES > Integrity
ICAB members uphold the highest professional integrity and ethical standards. > Expertise ICAB members conduct their professional responsibilities with a high level of knowledge, competency and skill. > Transparency ICAB members conduct their activities in a clear and transparent way. > Accountability ICAB members must be completely responsible for their actions.
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STRATEGIC GOALS > Grow ICAB Student and Membership numbers, and the financial strength of the Institute. > Align with Members’ Careers - ensure that ICAB’s activities are focused on the needs of members and students throughout their careers and are equally supportive of members working in the business, practice and public sectors. > Increase ICAB’s profile within Bangladesh and Internationally - promote ICAB’s reputation nationally and ultimately achieving international recognition of the Institute. Work towards achieving reciprocity with other professional bodies. > Further enhance the reputation for professionalism and high standards – develop, uphold and promote the highest standards of probity, integrity and professionalism as defining characteristics of membership. > Ensure ICAB become compliant with requirements of IFAC (International Federation of Accountants) membership – in particular the Statements of Membership Obligations (SMOs).
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AIMS & OBJECTIVES TO ACCOMPLISH ITS ABOVE MENTIONED MISSION & STRATEGIC GOALS AND TO ACHIEVE THE AIMS AND OBJECTIVES, ICAB HAS BEEN ENDEAVORING TO: > Regulate the Accountancy Profession and matters connected therewith in the country > Administer is members and students > Ensure sound professional ethics and code of conduct by its members > Provide specialized training and professional expertise in Accounting, Auditing, Taxation, Corporate Laws, Management Consultancy, Information Technology and related subjects > Impart Continuing Professional Development (CPD) training to its members;
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> Foster acceptance and observance of International Accounting Standards/International Financial Reporting Standards (IAS/IFRS) and International Standards on Auditing/International Auditing Practices Standards (ISA/IAPS) and adopt the same in Bangladesh as Bangladesh Accounting Standards/Bangladesh Financial Reporting Standards (BAS/BFRS) and Bangladesh Standards on Auditing/Bangladesh Auditing Practices Standards (BSA/BAPS) respectively; > Keep abreast of the latest developments in Accounting techniques, Audit methodology, Information technology, Management consultancy and related fields; and > Liaise with international and regional organizations to influence the development of efficient capital markets and international trade services.
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The Institute of Chartered Accountants of Bangladesh ADMINISTRATIVE MINISTRY The Ministry of Commerce, Government of the People’s Republic of Bangladesh is the Administrative Ministry of the Institute of Chartered Accountants of Bangladesh.
GOVERNANCE The Council-ICAB is the supreme authority responsible for the administration and management of the Institute in accordance with the ICAB Bye-Laws 2004 subject to the provisions of P.O. No. 2 of 1973. The Council is composed of twenty members elected by the members of the Institute from its two regional constituencies in Bangladesh for every three years. The President and the Vice-Presidents of the Institute are elected by the Council every calendar year to manage the affairs of the Institute. The President who is the Chief Executive of the Institute heads the Council. The Council is assisted by various Standing and Other (Non-Standing) Committees and Boards. For the purpose of assisting the Council and the committees/Boards in matters concerning their functions, the Council is empowered to constitute Regional Committees, the members of which are elected by the general members of the respective constituencies. Currently there are two Regional Committees in Dhaka, Chittagong and Overseas Chapters, London-based UK Chapter Management Committee and Toronto-based North American Chapter. The day to day running of the Institute is delegated to the Secretariat, headed by the Secretary.
MEMBERSHIP As of 01 July 2014, the Institute had 1499 members of whom 1347 are residing in Bangladesh and 152 in abroad. There are 862 Fellows and 637 Associates enrolled with the Institute as of 1st July 2014. Out of 1499 members, 368 are practicing as public accountants and the rest 1131 are either serving in various key positions in public and private organizations, both at home and abroad, and self employed running their own business. However, the total number of the members is now 1512.
SERVICES RENDERED While almost all the non-practicing chartered accountants serve in key positions of various government and non-government organizations, banks, autonomous & semi-autonomous bodies, listed and other types of corporate and non-corporate entities, educational institutions, etc. within the country and abroad, the practicing
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Chartered Accountants mainly carry out audits of financial statements of various enterprises as public accountants under the banners of various CA firms approved by the Institute. Apart from specialization in traditional accounting and auditing services, CA Firms are also engaged in:
• • • •
Taxation services Information Technology Statutory and Liquidation services Management consultancy services encompassing, inter alia, the following areas; > Valuation of business and shares; > Designing of accounting, internal control and operational systems for organizations; and > Rendering of miscellaneous services like maintaining computerized financial accounts of companies business process re-engineering, management selection and recruitment, disinvestments of government enterprises, etc. > Due diligence study, feasibility study etc.
INTERNATIONAL AFFILIATION ICAB is an active member of the following international and regional accounting bodies: The International Federation of Accountants (IFAC) The International Accounting Standards Board (IASB) The Confederation of Asian and Pacific Accountants (CAPA) The South Asian Federation of Accountants (SAFA)
MoU & MRA
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Currently ICAB has effective Memorandum of Understanding (MoU) and the Mutual Recognition Arrangement (MRA) with some national & international organizations. Some of those key relationships are as follows: > MoU with the Institute of Chartered Accountants in England & Wales (ICAEW) > MRA with CPA Ireland > MoU for Local Governance Support Project in Bangladesh > MoU with Office of the Comptroller & Auditor General of Bangladesh (OCAG) Agreement with IFRs Foundation, UK
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ICAB PUBLICATIONS ICAB publications include, inter alia, a quarterly Journal titled ‘The Bangladesh Accountant’ and a monthly mouthpiece ‘ICAB News Bulletin’. The Journal provides primary opportunity to publish articles by the Members of the Institute and fellow academics elsewhere. Articles on different aspects of Auditing, Accounting, Financial and Economic issues, the latest ICAB events and news items of national and international importance, particularly relevant to Accounting profession and Bangladesh economy, are published in the ICAB News Bulletin. ICAB also publishes books and booklets on accounting profession and research materials.
WEBSITE (www.icab.org.bd) ICAB website provides the following useful information to its users: Home: About ICAB, Who we are, What we do, Where we are, Who we work with, The Council, Present President & Vice-Presidents, Past Presidents, Standing and Others Committees, Regional Committees, Find a Chartered Accountant, International membership, MoU with ICAEW Join Us: Why join ICAB, Pathways to Membership, Train For The ACA, Find Our CA Firms Students: ICAB Entry Criteria, ICAB Curriculum Policy, CA Articleship, Allowances for articled Students, Awards and Scholarship, CA Syllabus, Examinations, Available study materials, Past Question Papers, Available suggested answers, ICAB Tution, Exam Fees, Exam Result Members: How to become a member, Find a member, Practice Regulation, Public Practice, Conditions for COP, Code of Ethics, CPD Criteria, Prescribed Fees, Members' Handbook, ICAB Bye-Law, Members and Firms Statistics, Mutual Recognition with ICAB & ICAEW Technical Resources: Publications (News Letter, The Accountants), SAFA BPA Awards Criteria, Standards, IFAC Code of Ethics, SA FA Code of Ethics, Quality Assurance (BSQC I, Audit Practice Manual, Quality Assurance Requirements, Guidance for Members in Practice) Notice Board: Presidents Communications, Circulars, Notices, News & Events, Press Releases, Career Opportunities The website is also enriched with the incorporation of WEB TV, through which Members or anybody from anywhere can access the ongoing events like Conferences, Seminars, Workshops or any events of their interest.
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EXTERNAL RESOURCES Legal Advisors Barrister Mahbub Shafique Advocate, Bangladesh Supreme Court, Dhaka Md. Suruzzaman Advocate, Judge Court, Dhaka
Auditors Md. Enamul Haque Choudhury FCA S. F. Ahmed & Co. Chartered Accountants & Md. Shamsul Huda FCA Huda Hossain & Co. Chartered Accountants
Bankers Dhaka Bank Ltd. Southeast Bank Ltd. AB Bank Ltd. Sonali Bank Ltd. Social Islami Bank Ltd.
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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
PAST PRESIDENTS
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1st President
2nd President
3rd President
1972
1973-74
1974-75
4th President
5th President
6th President
1975-76
1976-77
1978
7th President
8th President
9th President
1979
1980
1981
Mr. Abul Qasem FCA Deceased Enrolment No. 02
Mr. Zahir Uddin Ahmed FCA Deceased Enrolment No. 10
Mr. Muhammad Masihur Rahman FCA Deceased Enrolment No. 06
Mr. Md. Muffazzal H. Chowdhury FCA Deceased Enrolment No. 05
Mr. Md. Anowar Hossain Miah FCA Deceased Enrolment No. 13
Mr. Mohammad Jainul Abedin FCA Enrolment No. 09
Mr. Mohammad Saifur Rahman FCA Deceased Enrolment No. 18
Mr. Noor Mohammad Howladar FCA Enrolment No. 14
Mr. Zahir Uddin Ahmed FCA Deceased Enrolment No. 10
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10th President
11th President
12th President
1982
1983
1984
13th President
14th President
15th President
1985
1986
1987
16th President
17th President
18th President
1988
1989
1990
Mr. AKM Mosharraf Hossain FCA Enrolment No. 37
Mr. Mohammed Toha FCA Enrolment No. 31
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PAST PRESIDENTS
Mr. Abdul Hafiz Choudhury FCA Enrolment No. 41
Mr. Kazi Kamrul Hoda FCA Deceased Enrolment No. 17
Mr. Kamal Ziaul Islam FCA Enrolment No. 24
Mr. Jamal Uddin Ahmad FCA Enrolment No. 19
Mr. Mohammad Yunus FCA Deceased Enrolment No. 20
Mr. AKM Rafiqul Islam FCA Enrolment No. 30
Mr. ABM Azizuddin FCA Enrolment No. 46
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
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19th President
20th President
21st President
1991
1992
1993
22nd President
23rd President
24th President
1994
1995
1996
25th President
26th President
27th President
1997
1998
1999
Mr. M A Quadir Mollah FCA Enrolment No. 73
Mr. Howlader Mahfel Huq FCA Enrolment No. 105
Mr. Anil Chandra Nath FCA Enrolment No. 53
Mr. Jamal Uddin Ahmad FCA Enrolment No. 19
Mr. Badrul Ahsan FCA Enrolment No. 59
Mr. Abbas Uddin Khan FCA Enrolment No. 439
Mr. Muhammed Abdul Halim Gaznavi FCA Enrolment No. 97
Mr. Abu Nasar Altaf Hussain Siddiqui FCA Enrolment No. 60
Mr. Md. Anisur Rahman FCA Enrolment No. 226
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28th President
29th President
30th President
2000
2001
2002
31st President
32nd President
33rd President
2003
2004
2005
34th President
35th President
36th President
2006
2007
2008
Mr. Abul Khair Chowdhury FCA Enrolment No. 52
Mr. A.K.Gulam Kibria FCA Enrolment No. 392
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PAST PRESIDENTS
Mr. A.S.M.Nayeem FCA Enrolment No. 353
Mr. Anwaruddin Chowdhury FCA Enrolment No. 343
Mr. Akhtar Sohel Kasem FCA Enrolment No. 328
Mr. Muhammed Farhad Hussain FCA Enrolment No. 452
Mr. Mohamed Abdul Baree FCA Enrolment No. 482
Mr. Sheikh A. Hafiz FCA Enrolment No. 110
Mr. Md. Humayun Kabir FCA Enrolment No. 462
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PAST PRESIDENTS
37th President
38th President
39th President
2009
2010
2011
Mr. Nasir Uddin Ahmed FCA Enrolment No. 535
Mr. Jamaluddin Ahmed Ph.D, FCA Enrolment No. 498
40th President
41st President
2012
2013
Mr. Md. Syful Islam FCA Enrolment No. 615
Ms. Parveen Mahmud FCA Enrolment No. 632
Mr. Md Abdus Salam FCA Enrolment No. 570
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THE
COUNCIL
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The Institute of Chartered Accountants of Bangladesh 20
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THE COUNCIL 2014
The Institute of Chartered Accountants of Bangladesh
PRESIDENT
Mr. Showkat Hossain FCA
Mr. Showkat Hossain FCA is President of the
Institute of Chartered Accountants of Bangladesh for 2014. He is a partner of Hoda Vasi Chowdhury & Co Chartered Accountants. He was born in 1949. He is an Independent Director of the Chittagong Stock Exchange (CSE) nominated by the Government. The Chittagong born Chartered Accountant is currently holding the post of Director of Union Bank Ltd, a board member of South Asian Federation Accountant (SAFA) and a Rotarian & Past President of Rotary Club of Islamabad, Chittagong.
Mr. Hossain Represents ICAB in the Board of CWASA, BICM and NAPD, Dhaka and is member of various organizations like Finance Sub-Committee of Chittagong Club Ltd, Member of the Advisory Committee in respect of Financial & Taxation of Chittagong Chamber of Commerce & Industries Limited, Member, Advisory Board of BNSB, Chittagong. He became an Associate Member in 1977 and Fellow Member in 1986 of ICAB. Mr. Hossain has been in the Council since 2004 and served as Vice President in the years 2004, 2006, 2007, 2009, 2012 and 2013. He has been actively involved with various capacities of ICAB for many years.
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VICE PRESIDENT (Technical & Research) Mr. Kamrul Abedin FCA
Mr. Kamrul Abedin FCA is a partner of M. J.
Abedin & Co., Chartered Accountants, which is an independent member firm of Moore Stephens International Limited. He is serving this 49-year-old firm for more than 28 years. After having his Masters in Accounting from the University of Dhaka he joined M. J. Abedin and Co. as articled student. In the year 1986 right after becoming Associate Member of
ICAB, he joined the firm as partner. In the year 1992, he became Fellow Member of ICAB. Presently Mr. Abedin is serving as Vice-President (T & R) of ICAB. Earlier he served Dhaka Regional Committee (DRC)-ICAB for consecutive 2 terms 1995-1997 and 1998-2000 and was Honorary Chairman of DRC-ICAB in 1998 and Honorary Secretary in 1995.
VICE PRESIDENT (Finance & Accounts) Mr. Nasim Anwar FCA
Mr. Nasim Anwar FCA was born in 1966. He
became an Associate Member in 1993 and Fellow Member in 1998 of ICAB. He is a Partner of Syful Shamsul Alam & Co. Chartered Accountants. Before starting Public Practice, Mr. Anwar served the T.K. Group of Companies as a Finance Director.
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Mr. Anwar has been in the Council since 2007. He was the Vice President of ICAB in the years 2008, 2010 and 2011. He has been serving the ICAB for its different standing and non-standing Committees for many years. He is also a Director of Telephone Shilpa Sangstha Limited.
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VICE PRESIDENT (Education & Training) Mr. Dewan Nurul Islam FCA
Mr. Dewan Nurul Islam FCA was born in 1964. He
obtained his MBA in Finance with distinctions from the University of Technology Sydney (UTS), Australia, became an Associate Member in 1990 and a Fellow Member of ICAB in 1995. Mr. Dewan is the Managing Director of Grant Thornton Consulting Bangladesh Limited, a leading global professional services firm in the world. He is Director and Vice-Chairman of National Assets Management Ltd., Board Director & Audit Committee Chairman of Bangladesh Development Bank Ltd. (BDBL) and
was a Board Director of Jamuna Oil Company Ltd. Earlier he served the Development Capital Corporation, Sydney, an investment bank in Australia as Senior Consultant, Beximco Textile Division as Finance Director and DHL Worldwide Express as Country Finance Manager. He has been serving the ICAB as a Council Member since 2013. He regularly participates on TV programs as capital markets and business analyst and contributor to leading national dailies on business and economy.
COUNCIL MEMBER Mr. Akthar Sohel Kasem FCA
Mr. Akthar Sohel Kasem FCA was born in 1955. He
became an Associate Member in 1981 and Fellow Member in 1986 of ICAB. Prior to that, he completed his articles with Coopers & Lybrand, London and became a member of ICAEW in 1981. He is also an Associate Member of the Institute of Chartered Accountants of Ontario, Canada. He is currently the Senior Partner of A Qasem & Co., Chartered Accountants. Mr. Kasem is a Council Member of ICAB since 1995. He served as the President of ICAB in 2004 and the
Vice President in 2001. He has been working for different Standing and Non-standing Committees of ICAB and SAFA for many years. Mr. Kasem was also a Board Member of Dhaka Stock Exchange Ltd (DSE) and Power Grid Company Bangladesh Ltd, as well as a member of the DSE Expert Panel. He is a former President of Rotary Club of Dhaka Central and Treasurer of the Bangladesh Squash Rackets Federation.
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COUNCIL MEMBER Mr. Masih Malik Chowdhury LLB, FCA
Mr. Masih Malik Chowdhury had his school and
college education in Sylhet. Son of Dr Malikur Raza Chowdhury he did his Honors and Masters degrees from Economics Department, University of Dhaka and became an ACA in 1981. A fellow since 1986 he is the founder Partner of Masih Muhith Haque & Co., Chartered Accountants on June 1, 1985. Priorly he had served GEC of Bangladesh as Controller of Accounts and BCIC as Additional Chief Accountant between 1981 to 1985. A member of ICAB Council since 2004 he was a Vice President of ICAB in 2005The Treasurer of Bangladesh Economic Association, he presented papers in Seminars on national and professional issues under BEA, SAFA and ICAB among others. He has been Secretary General of Polli Shishu Foundation of Bangladesh, a national NGO. He is a life member in many associations including BEA, BUP, DUEDAA, Azad Sporting Club, Sandhani,
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Asiatic Society, Muslim Shahitto Shongshod & Sylhet Ratno Foundation only to name a few. Mr. Chowdhury is an Entrepreneur and Chairman/ Director in few Private Companies in merchant banking, capital market, telecom, healthcare & education. A charter member of Rotary Club of Motijheel he is a PP & MPHF. He is also a GoB nominee in BOD of few Govt. Bodies like MRA, SDF & BWDB. As passion he contributes to Journals and Dailies infrequently. Mr. Chowdhury is a former Dhaka University Senator and authored 10 books 1) ivRbxwZ
I ev‡RU, 2) wbe©vPb, A_©bxwZ I ¯^‡`k wPš—v, 3) evsjv‡`k : Dbœqb fvebv, 4) ey‡ki mv‡i½xev`K †K?, 5) Budget: Tool
for Development Resources, 6) Views on Development Resources, 7) Economy, Election and Politics, 8) Own Resources for Development, 9) kªxjsKv I gvjØx‡c 9 w`b, 10) A‡óªwjqv I gvjqwkqv Ny‡i ¯^‡`k.
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COUNCIL MEMBER Mr. Anwaruddin Chowdhury FCA
Mr.
Anwaruddin Chowdhury FCA is a Past President (2001) and currently Member Council of the ICAB. He is a Director of the Confederation of Asian and Pacific Accountants (CAPA) Board for the term 2011-15 and serves as Bangladesh Representative on CAPA PSFM Committee. He served as a Technical Advisor to the IFAC Board (2000-01) and was Executive Secretary SAFA (1995). He served on SAFA CITAG and is now as Member of SAFA PAIB Committee. He served on the UNCTAD ISAR Advisory Committee for 3 consecutive years and was Chairman of ISAR’s Corporate Governance Workshop in 2001. He drafted the ICAB CPE Document and pioneered the Introduction of ICAB National Awards for BPAR. He is the DTL and Challenge Fund Manager of the UK DFID funded 5 year “Business Finance for the Poor in Bangladesh” Programme. Anwaruddin is the founder Managing Director and presently serves as Technical Advisor to Credit Rating Agency of Bangladesh (CRAB) Ltd He is a Director of Amtras Ltd. He is a founder Partner of ACNABIN and served as a Partner of Aziz Halim Anwar & Co for several years. He served as a Director of Dhaka Stock Exchange and of several corporates in the private and public sectors. He served as Challenge Fund Manager of DFID funded RPP Project (2007-11) which effected the automation of Bangladesh Bank
and implemented significant innovations in the financial sector. Anwaruddin is a Financial Management Specialist, with varied experience in the corporate, financial services and development sectors, and in the fields of professional training and academia. He specializes in economic, financial and management consultancies; corporate reporting; audit and advisory services. A dedicated academic, he has been serving as a faculty for over two decades, specializing in Advanced Auditing and Professional Issues, Financial Reporting and Financial Management. He has prepared several technical manuals and conducted training programmes for public and private sector entities, professional bodies and financial institutions He served as a resource person and presented many Technical Papers and Reports in various national and international conferences and seminars on contemporary financial, macro-economic topics and professional issues. A strong proponent for harmonization of financial reporting and audit practices, Anwaruddin is now focused on strengthening PSFM and implementation of sustainability and integrated reporting in the financial and corporate sectors of Bangladesh.
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COUNCIL MEMBER Mr. A. S. M. Nayeem FCA
Mr. A. S. M. Nayeem FCA has been in the ICAB
Council for 17 years. He served the ICAB as Vice President for 03 years and the President of ICAB in 2006. He is now the Chairman of Committee on Professional Ethics & Independence, South Asian Federation of Accountants (SAFA) and the Chairman of Quality Assurance Board, ICAB. After completion of his B.Com. (Hons.) and M.Com in Accounting, Mr. Nayeem joined Chittagong University as a Lecturer. He did his M.Sc. from UK. He is a Fellow Member of ACCA (UK). He is also an Associate Member of the Institute of Chartered Accountants in England and Wales (ICAEW). He became an Associate Member of ICAB in 1982 and Fellow Member in 1987.
Currently Mr. Nayeem is a Partner of ACNABIN, Chartered Accountants. He was Managing Director of K&T Logistics, Additional Managing Director of Karnaphuli Group of Companies, Director of ICAB, National Expert of UNDP and Controller of Accounts of Bangladesh Biman. Currently Mr. Nayeem is the Chairman of Finvest Services Ltd., and a Director of Grameen Fund, Grameen Knitwear Ltd., Holy Crescent Hospital Ltd. and K&T Logistics Ltd. He is a former Director of Chittagong Stock Exchange Ltd., Republic Insurance Company Ltd., Sonali Bank Ltd. and Agrani Bank Ltd. He is also a former Chairman of Bangladesh Shipping Agents Association and Port Users Forum.
COUNCIL MEMBER Dr. Md. Abu Sayed Khan FCA
Dr. Md. Abu Sayed Khan FCA was born in 1958. He
completed B.Com. (Hons) in Accounting and M. Com. (in Accounting) from University of Dhaka obtaining first class in both the examinations. Mr. Khan started studying Chartered Accountancy course in 1980 and qualified as Chartered Accountant in 1982 (Nov-Dec term). He also obtained the ICAB medal in CA (Inter) Exam held in November, 2001. He became the Associate Member in 1983 and fellow member in 1988. He conducted academic research, availing the prestigious Commonwealth Scholarship, at the University of Bradford, Business School (UK) on Public Sector Accounting and Financial Reporting practices in the Developing Countries. He was awarded PhD degree from the University of Bradford in 1996.
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After qualification as a Chartered Accountant, he worked with S F Ahmed & Co, Chartered Accountants in their different consulting assignments. He joined Bangladesh Krishi Bank in 1983 as Assistant General Manager. He joined the then Bangladesh Telegraph and Telephone
Board (BTTB) as Chief Accounts Officer in 1988. He served BTTB (now BTCL) for a long time and promoted to Acting Managing Director in 2011. Afterward, he was transferred to Telephone Shilpa Sangstha Ltd. (TSS), a government owned company, as Managing Director. Now he has back to BTCL as Member (Finance). Dr. Khan has been serving the ICAB since 1998. He was Secretary of Dhaka Regional Committee for two terms i.e., 1999 and 2000. He has been in the Council since 2001 and Vice President for two terms in 2002 and 2003. He has been serving with the different standing and non-standing committees for many years such as, Executive Committee, Examination committee, Public Sector Committee, etc. Dr. Khan was in the Board of many companies as director such as, Teletalk Bangladesh Ltd. Bangladesh Cable Shilpa Ltd., DESCO, North West Power Generation Company Ltd., TSS. He is a member of Officers Club, Dhaka and currently holding the position of Chairman, Sirajgonj Zilla Samity in Dhaka.
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COUNCIL MEMBER Mr. Abbas Uddin Khan FCA
Mr. Abbas Uddin Khan FCA became an Associate
Member in 1984 and Fellow Member in 1989 of ICAB. He is the Managing Partner of ABBAS KHAN & CO., Chartered Accountants. He has been in the Council for 24 years since 1989. He was the Vice President of the ICAB in 1997 and President in 1998 of the ICAB. Former Chairman of Bangladesh Agricultural Development Corporation (BADC), Mr. Khan is a Fellow Member of the Royal Institute of Public Administration (RIPA), UK.
He held the position of Director of Bangladesh Biman Corporation. He was also the Commissioner of Bangladesh Securities & Exchange Commission. Renowned sports organizer, Mr. Khan is also a social worker and patronizer of education. He attended large number of Conferences, Board and Committee meetings in many countries in Europe, U.S.A, Middle East and South Asia.
COUNCIL MEMBER Mr. Muhammed Farhad Hussain FCA
Mr. Muhammed Farhad Hussain FCA was born in
1954. He completed his SSC and HSC from Mirzapur Cadet College, "A" Levels from Greenmore College, Birmingham UK and ICAEW Foundation Course from City of Birmingham Polytechnic, Birmingham. He completed his Articleship training from Calthorpes, Chartered Accountants, Birmingham. He became an Associate Member in 1984 and Fellow Member in 1989 of the ICAB. Mr. Hussain has been a Council Member of the ICAB since 2001. He was the Vice President in 2003 & President in 2007 of ICAB. He is now the Chairman of the Editorial Board of Bangladesh Accountant. He has been
working for different standing and Non-standing Committees of the ICAB for many years. Before starting public practice, Mr. Hussain served as Manager, Accounts and Personnel of IPDC Bangladesh Ltd for 6 years and Executive Director of Bengal Jute Division for 6 years. Presently, he is the Managing Partner of Hussain Farhad & Co, Chartered Accountants since 1997. He is serving as a director Dhaka WASA, independent director of Matin Spinning Mills Ltd. and Member of SMP Committee of SAFA. He was a Board Member of CAPA and Director, Agrani Bank Ltd. He is also a Member of Dhaka Club and Cadet College Club.
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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
COUNCIL MEMBER Mr. Mohammed Humayun Kabir FCA
Mr. Mohammed Humayun Kabir FCA was born in
1960 and completed B. Com (Hon's) and M.Com in Accounting from University of Dhaka. He also studied on International Capital Market at St. Catherine's College, Oxford, UK. He became an Associate Member of ICAB in 1984 and Fellow Member in 1989. Mr. Kabir is a Council Member of ICAB since 2001 and was a Vice President in 2002 and finally the President in 2008 of the Institute. He has been involved with the ICAB as Chairman of different standing and non-standing Committees for last 13 years. Mr. Kabir, at present is Chief Executive of Beximco Jute Division and Shinepukur Ceramics Ltd. He has been working for professional (CA) Firm, Financial Institutions and Industries for the last 34 years. He is
involved with FBCCI as a Convener/Co-Convener of different standing and non-standing Committees. He is also involved with NBR as a facilitator of ADR. He is a member of Management Committees of Bangladesh Employers' Federation (BEF) and Bangladesh Jute Spinners Association (BJSA). Earlier Mr. Kabir was elected Director of Shippers Council of Bangladesh and Vice-Chairman of Bangladesh Jute Goods Association. He was the Board of Director of Shadharan Bima Corporation, Bangladesh Telecommunication Company Ltd, West Zone Power Distribution Company Ltd and Dhaka Stock Exchange Ltd. Mr. Kabir has been recognized thrice as a CIP (Export) in 2007, 2011 & 2012 and awarded JatiyoParibeshPadak in 2010 by the Government of Bangladesh.
COUNCIL MEMBER Mr. A F Nesaruddin FCA
Mr. A F Nesaruddin FCA was born in 1956. After
completing B. Com (Hon's) and M.Com in Finance from University of Dhaka, he started studying Chartered Accountancy in 1981. He became an Associate Member in 1984 and Fellow Member of ICAB in 1989. He is a Fellow Member of ICSB as well.
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Mr. Nesaruddin is a partner of Hoda Vasi Chowdhury & Co., Chartered Accountants since 1998. He has been working for different standing and non-standing Committees of ICAB for many years since 1984. Before starting public practice in 1998, Mr. Nesaruddin served in senior executive positions with Duncan Brothers and associate companies
and also was in the employment for one year with an investment company in Saudi Arabia. He is a regular contributor to leading national dailies specially on taxation, corporate governance and other professional interests. He is a member of the Board of Rural Electrification Board (REB) and an Independent Director of IIDFC Securities Ltd. He is a former director of Sonali Bank Ltd and nominated by the Government. He is a Past President and Assistant Governor in Rotary, member Kurmitola Golf Club and Army Golf Club as a passionate golfer and involved with a number of social and charitable organizations in various capacities.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
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COUNCIL MEMBER Mr. Muhammad Farooq FCA
Mr. Muhammad Farooq FCA was born in 1958. He
became an Associate Member of ICAB in 1986 and Fellow Member in 1991 of ICAB. He is currently the Managing Partner of Howladar Yunus & Co. Chartered Accountants. Mr. Farooq, has been in the Council since January 2013 and elected as Vice President-ICAB for this year. He has also been
serving the Institute as member Executive Committee, Chairman of Professional Development Committee (PDC) and Co-Chairman of Investigation and Disciplinary Committee (IDC) of the Council-ICAB since January 2013. He served the ICAB as Member in Examination Committee in 2012 and in Articled Students Committee in 2010.
COUNCIL MEMBER Mr. Nasir Uddin Ahmed FCA
Mr. Nasir Uddin Ahmed FCA was born in 1961. He
obtained B. Com (Hon's) degree with first class from the University of Dhaka and M.Com in Accounting from the same University. He was awarded ICAB Medal in CA Intermediate Examination held in May 1985. He passed CA final examination in Nov-Dec 1986 and became an Associate Member of ICAB in 1987 and Fellow Member in 1992. Currently Mr. Ahmed is a practicing Chartered Accountant and a Partner of MABS & J Partners, Chartered Accountants. Mr. Ahmed worked for more than two decades in two British MNCs, British American Tobacco Bangladesh and Coats Bangladesh. He left corporate jobs in 2010 as the Finance Director and started public practice. He attended many Management Development Programs at various business schools including Cranfield School of Management, Asian Institute of Management (AIM), Singapore Institute of Management etc. He has been serving ICAB as Council Member since 2001. He was Vice President of ICAB for two consecutive terms in 2003 and 2004. He was the President of ICAB in 2009 and had the privilege to sign the first ever MoU with the Institute of Chartered
Accountants in England & Wales (ICAEW). Mr. Ahmed was a Board Member of South Asian Federation of Accountants (SAFA). He was a Board Member and Chairman, Board Audit Committee of Bangladesh Commerce Bank Ltd., Commerce Bank Securities and Investment Ltd, Board Member of Dhaka Stock Exchange Ltd., Bangladesh Telecommunication Co. Ltd. (BTCL), Bangladesh Institute of Capital Market, SME Foundation and Bangladesh Academy for Planning & Development. Currently he is in the Board and Chairman, Board Audit Committee of Bangladesh Submarine Cable Co. Ltd., LEADS Corporation Ltd and Color City Ltd. He worked as member of the Expert Panel and Jury Board of Dhaka Stock Exchange Ltd. He was General Secretary of Dhaka University Accounting Alumni and served for a term of two years He is also a Member of ICSB, ISACA-USA, IIA-Bangladesh Chapter, Institute of Internal Auditors-Singapore and Institute of Management Consultants Bangladesh (IMCB).
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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
COUNCIL MEMBER Mr. Md Abdus Salam FCA
Mr. Md Abdus Salam FCA, FCS was born in 1954.
After completion of B. Com (Hons’) and M. Com in Accounting from the University of Dhaka, he started Chartered Accountancy Course with the support of two scholarships: Burmah Eastern and Bangladesh Chemical Industries Corporation awarded to the CA profession. He became an Associate Member of ICAB in 1989 and Fellow Member in 1994.
The President of ICAB for year 2013, Mr. Salam has been in the Council since 2010 and served as the Vice President, (Education and Training) from 2010 to 2012. Furthermore, he has been actively involved in different standing and non-standing Committees for several years since the commencement of his Membership into this profession in 1989. Former Hon'y Secretary of Dhaka Regional Committee (DRC) and a Member of SAFA Education Committee for the years 2010-2012, Mr. Salam is a life Member of Bangladesh Economic Association. He is also an Independent Board Director of Islami Bank Bangladesh Ltd and Independent Director of IBN Sina Pharmaceuticals Industry Ltd. He was the Board Director of DSE, CSE and the SME Foundation
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for 2013, the Past President of Lions Club of Meghna. He is a regularly contributing writer in the National Dailies and professional Journal The Bangladesh Accountant. Mr. Salam is one of the Fellow Founding Council Member of the Institute of Chartered Secretaries of Bangladesh (ICSB) since its inception. He served the ICSB in the elected capacity of Treasurer for the years 2004-05 and the Vice President for years 2005-2006. Mr. Salam is a partner of ARTISAN, Chartered Accountants. Before starting Public Practice, Mr. Salam was the Technical Adviser of the World Bank Project-ICAB and Finance Expert of ADB-PLU for Primary Education Development Program-2 of 11 Development Partners including the World Bank and the Asian Development Bank and Director Accounts (In charge) of Bangladesh Power Development Board (BPDB). He visited extensively the countries of Australia, United Kingdom, Canada, Kingdom of Saudia Arabia, Italy, Switzerland Geneva, Thailand, India, Pakistan, and Srilanka as official Nominees.
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COUNCIL MEMBER Mr. Md. Syful Islam FCA
Mr. Md. Syful Islam FCA was born in 1960. Soon
after completing B.Com (Hon's) and M.Com in Accounting from the University of Dhaka, he started studying Chartered Accountancy from The Institute of Chartered Accountants of Bangladesh (ICAB). He became an Associate Member in 1991 and Fellow Member in 1996 of ICAB. Mr. Islam has beenin the ICAB Council since 2007. He was the President of ICAB for 2012 and Vice President for 2008 and 2009. He was the Chairman of Dhaka Regional Committee (DRC) in 2003. He was, and still is the Chairman of the Article Student Committee (ICAB) for 2008 & 2013. He has been involved in different Committees (both standing and non-standing) of ICAB for several years. Mr. Islam is the Managing Partner of Syful Shamsul Alam & Co., Chartered Accountants. Before starting public practice, he was the General Manager of Shamsul Alamin Group. Mr. Islam is a Board Member of SAFA for the year 2012; Director-Rupali Bank Ltd (2007-2013); Chairman, Audit Committee, Rupali Bank Limited (2012 – 2013); Director-DSE (2012), Chairman – Audit Committee, Dhaka Stock Exchange (2012); BTCL (2012-2013); Director of Khulna Water Supply
& Sewerage Authority (2008 – 2011); Director – Bangladesh Cable Shilpa Sangstha (2009 – 2011) and Director, SME Foundation (2011-2012). He is also a Fellow Member of ICMAB, LCCIA (UK) and CEA (UK). He has also presented a paper on Finance & Money Laundering in Banking Sector-Bangladesh Perspective. He worked in collaboration with Bangladesh Financial Intelligence Unit (BFIU) for establishment of Guidelines on Prevention of Money Laundering and Combating Financing of Terrorism for Designated Non-Financial Business and Professions (DNFBPs) and has attended seminars and workshops regarding various aspects for financial institutions and other industries organized by various reputed organizations including World Bank as well as provided several CPD seminar papers. Mr. Islam also has considerable experience for working in corroboration with various regulatory authorities, including, but not limited to, Bangladesh Bank, Dhaka Securities & Exchange Commission, The Institute of Chartered Accountants of Bangladesh, etc. Mr. Islam is also a principal (Qualified Person Responsible for Training - QPRT) of ACCA (UK) Member for ICAEW ACA students in Bangladesh.
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COUNCIL MEMBER Mr. Adeeb Hossain Khan FCA
Mr.
Adeeb Hossain Khan FCA became an Associate Member in 1992 and Fellow Member in 1998 of ICAB. Mr. Khan is the Senior Partner of Rahman Rahman Huq, Chartered Accountants, and is also a Fellow Member the Institute of Chartered Accountants in England and Wales.
He has been working for different standing and non-standing Committees of ICAB for many years, currently chairing the SAFA, CAPA & International Affairs Committee. He is also a Member of the governing Committee of MCCI (and Chairman of its Taxation Sub-Committee). Mr. Khan was a Director of Biman Bangladesh Airlines and Electricity Generation Company of Bangladesh.
COUNCIL MEMBER Mr. Md. Shahadat Hossain FCA
Mr. Md. Shahadat Hossain FCA was born in 1965.
He completed his Master in Accounting from University of Dhaka. He became Associate Member in 1993 and Fellow Member 1998 of ICAB. He is a partner of Shahadat Rashid & Co., Chartered Accountants. A Council Member of ICAB since 2007, Mr. Hossain was the Vice President of ICAB in 2009 & 2011. He was the Secretary of Dhaka Regional Committee (DRC)-ICAB in 2004. He was the Chairman of Technical & Research Committee (TRC) of the Council ICAB in 2011. He has been working for different standing and non-standing Committees of ICAB for last ten years and also worked in the
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Committee of the Board of South Asian Federation of Accountants (SAFA). He took part in the Board of Directors of Bangladesh Cable Shilpa Sangtha (An enterprise of Government of Bangladesh) and Haripur Power Plant (A Strategic Business unit of Bangladesh Power Development Board). He was also involved in different law framing Committees like Direct Tax Act, Companies Act, Multi Level Marketing Act, Society Registration Act etc. He writes for the different Daily News Papers and Journals on Banking, Budget, Accounting, Education and Agriculture etc. He presented papers on Bangladesh Financial Reporting Standards, Tax and Banking Issues.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
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COUNCIL MEMBER Mr. Gopal Chandra Ghosh FCA
Mr. Gopal Chandra Ghosh FCA was born in 1969.
Mr. Ghosh is currently employed as Group CFO of Anwar Group of Industries. Previously he worked as Director Consulting of Atik Khaled & Co. Chartered Accountants, Chief Financial Officer (CFO) of Viyellatex Group and as Financial Controller and Head of Internal Audit of Lafarge Surma Cement Ltd. Earlier; he worked as Deputy Director of Studies (Technical & Research) and Project Director of ICAB. Previous to that, he worked as Manager, Audit
& Consulting of ACNABIN & Co, Chartered Accountants. Mr. Ghosh completed B. Com. (Hon's) and M. Com. (Accounting) from the University of Dhaka. Mr. Ghosh has been in the Council since January 2013. He is a Fellow member of ICAB, ICMAB and IPA. He is also Secretary General of The Institute of Internal Auditors, Bangladesh (IIAB). He is a founder member of ISACA Dhaka Chapter and was Secretary of the Chapter.
SECRETARY Mr. AKM Rahmat Ullah FCA
Mr. AKM Rahmat Ullah FCA is the Secretary of the
Institute of Chartered Accountants of Bangladesh (ICAB). He started his career with the Bangladesh Agricultural Research Institute (BARI) as the Section Head of Internal Audit in 1985. He served the Bangladesh Bank as the General Manager (Accounts & Budgeting Dept.). He was Financial Management Specialist (Consultant) in Bangladesh Arsenic Mitigation Water Supply Project (BAMWSP) of DPHE, General Manager of Social Development Foundation (SDF) under the Ministry of Finance, GoB and Deputy Director (Audit) in Bangladesh Open University. He was born in 1960. He did his Masters of Commerce in Accounting from the University of
Dhaka in 1981. He is also a Fellow Member of the Institute of Chartered Accountants of Bangladesh (ICAB). He conducted many Professional Trainings as Resource Person and also credited many Professional Trainings through his 28 years in service both home and abroad. The trainings are on Distance Education Administration and Financial Management in Canada, Fiduciary Management Training of Community Driven Development Project, ILO Italy and Liquidity Risk Management and Stress Testing under IFSB Standard by the Islamic Financial Services Board in Malaysia, Modern Office Management and Moral Development from the Bangladesh Institute of Administration and Management (BIAM) and a number of workshops.
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REGIONAL COMMITTEES/CHAPTERS DHAKA & CHITTAGONG Currently The Institute has got two regional committees to run different activities of the members smoothly. They are Dhaka Regional Committee (DRC) and Chittagong Regional Committee (CRC). The Committee consists of a Chairman, Secretary and seven other Members' for DRC and three for CRC who are elected by the Members.
Dhaka Regional Committee (DRC) Mr. Mohammad Khairul Alam FCA
Chairman
Mr. Md. Yasin Miah FCA
Secretary
Mr. Md. Fokrul Islam FCA
Member
Mr. Md. Eftekhar Ali FCA
Member
Mr. Md. Selim Reza FCA
Member
Mr. Mizanur Rahman FCA
Member
Mr. Mohammed Sabir Ahmed FCA
Member
Mr. Md. Zakaria FCA
Member
Mr. Monzur Alam FCA
Member
Address: CA Bhaban (3rd Floor),100 Kazi Nazrul Islam Avenue, Kawran Bazar, Dhaka-1215
Chittagong Regional Committee (CRC) Mr. Abdul Awal FCA
Chairman
Mr. Mohammad Saif Uddin FCA
Secretary
Mr. Sarwar Uddin FCA
Member
Mr. Arup Chowdhury FCA
Member
Mr. Mohammed Reazul Kabir FCA
Member
Address: HBFC Building (3 rd Floor),
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1/D, Agrabad Com. Area, Chittagong
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OVERSEAS CHAPTERS Beside the two Regional Committees, the Institute has two Overseas Chapters located in UK and Canada. The chapters Management Committee run through a Chairman, Secretary and three other Members.
ICAB UK CHAPTER MANAGEMENT COMMITTEE Mr. AKM Fazlur Rahman FCA
Chairman
Mr. A Malek Sharif FCA
Secretary
Mr. ABM Badrul Alam FCA
Member
Mr. Fazlur Rahman FCA
Member
Address: Kingswood Business Centre, Suite 204 London, 31-39 Miles Road, Mitcham, Surrey, CR4 3DA, UK Tel : +44 20 868 22905, Mobile : +44 797 3404833 E-mail : frahman101@aol.com
ICAB-NORTH AMERICAN CHAPTER Mr. A K M Asaduzzaman FCA
Chairman
Mr. Mohammad Atique Ullah FCA
Secretary
Mr. Kamal Uddin Ahmed FCA
Member
Mr. Md. Nazml Karim FCA
Member
Mr. Obed Pandit FCA
Member
Address: 54 Pharmacy Avenue, Scarborough, ON M1L 3E5, Canada Tel : +416 690 3547
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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
ICAB SENIOR MANAGEMENT TEAM Name
Designation
Mr. AKM Rahmat Ullah FCA
Secretary
Mr. Mahbub Ahmed Siddique FCA
Director, Technical
Mr. Md. Afzal Hossain
Controller of Examinations
Mr. Sheikh Abdul Halim
Additional Director (Academic Campus)
Sqn Ldr (Rtd) S M Abu Nayem Ahmed, psc Senior Deputy Secretary
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Mr. Md. Saiful Islam ACA
Senior Deputy Director (Professional Conduct)
Ms. Khayrun Nahar
Chief Librarian
Ms. Sayma Banu
Deputy Director (LPD)
Mr. Md Afsar Uddin ACA
Deputy Director (QAD)
Ms. Yesmin Hosna ACA
Deputy Director (LPD)
Mr.Mohammad Gulam Shahriar ACA
Deputy Director (F & A)
Mr. Deloar Hossain
Database System Manager
Mr. Md. Nasrat Hasan
Deputy Secretary & SAFA Nodal Officer
Mr. S M Sekandar
Deputy Secretary (Exams)
Mr. Md. Iqbal Qasim
Deputy Secretary (Registration)
Mr. Md. Shafiqul Islam
Deputy Secretary
Mr. Md. Shahjahan Siraz
Deputy Secretary
Mr. Md. Mokteruzzaman Khan
Deputy Secretary
Ms. Ayesha Rahman ACA
Deputy Director
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HIGHLIGHTS
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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
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HIGHLIGHTS OF THE ACTIVITIES OF THE YEAR 2014 The followings are the eventful activities beginning from the month of January to December 2014. MONTH
January
• • • • •
February
• • • • • • • • • • • • • • •
March
• • • • • • • • • • • • • • • •
ACTIVITIES ICAB President Mr. Showkat Hossain FCA attended SAFA meetings in Colombo ICAB Team joined at Roundtable Discussion with IFAC President and other SAFA delegates in Colombo ICAB President attended ICMAB Convocation ICAB Member Council and Past President Nasir Uddin Ahmed FCA participated in ATN Business & Finance Program ICAB Past President Dr. Jamaluddin Ahmed attended Business talk in Bangla Vision ICAB Organized Training for NGOs-MFIs’ Officials ICAB and World Bank Discussed on Progress of Ongoing Project CRC Holds CPD Seminar on ‘BFRS-13: Fair Value Measurement’ in Chittagong ICAB Member Council and Past President Humayun Kabir FCA Spoke on Demutualization of DSE, CSE in R-Tv ICAB Team Paid Courtesy Call on Commerce Secretary ICAB Team Met Finance Secretary ICAB observed International Mother Language Day in Dhaka and Chittagong ICAB Technical Director Joined ICAEW Tutor Conference ICAB President got Govt. Nomination as Director of CSE SAFA Conference Marking Session & ITAG Committee Meeting held in Dhaka ACCA Country Manager met ICAB President ICAB President became Jury Board Member of Daily Star-DHL Bangladesh Business Awards ICAB President Chaired 1st Board Meeting of CSE ICAB President and other Board of Directors of CSE met BSEC Chairman ICAB Member Council and Past President M Farhad Hussain FCA Joined in ATN Business & Finance live program Members’ Conference on ‘‘Women in the Accountancy Profession in Bangladesh’’ held in Dhaka Members’ Conference on ‘‘Conducting Audit in an Automated Environment’’ held ICAB Team attended SAFA Board Meeting & CFO Conference in Pakistan ICAB Member Council and Past President Humayun Kabir FCA in Ekushey Tv Business program Workshop on ‘How to Maintain Quality in Audit and Assurance’ held in Dhaka ICAB Member Council and Past President Anwaruddin Chowdhury FCA participated in CAPA Manila Events ICAB Delegation Met Law Minister Corporate Reporting Conference held ICAB President attended Daily Star- DHL Bangladesh Business Awards ceremony ACCA Team Visited ICAB ICAB organized workshop on “The Art of Leadership” ICAB President attended in Annual Outing-2013 of Hoda Vasi Chowdhury & Co. CA Hostel Anniversary held ICAB President attended Installation Ceremony of Executive Committee of BCACP Renovated 8th Floor of CA Bhaban was inaugurated by honorable Commerce Minister, GoB ICAB Annual Picnic 2014 organized by DRC and CRC separately
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HIGHLIGHTS OF THE ACTIVITIES OF THE YEAR 2014 MONTH
April
ACTIVITIES • • • • • • • • • • • • • • • • • • • •
May
• • • • • • • • • • • •
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World Bank workshop on ‘Strategic Public Private Partnership” held in Dhaka CPD Seminar on 'IAS-1: Presentation of Financial Statements' held in Chittagong ICAB Organized Anti-money Laundering Workshop Training on ‘Public Sector Financial Management’ conducted Workshop on "The Art of Leadership" held in Dhaka CPD Seminar on 'Salient Features of Bank Company Act, Recent Amendments & Issues' held in Chittagong. Forkan Uddin FCA appeared at live Ekushey Business Program on Capital Market ICAB President attended discussion session on ICAEW’s Curriculum ICAEW Representative Justin West and Jonathon Worrell demonstrated ICAEW Students’ Seminar at ICAB Meeting held with ICMAB Delegates UPGP & LGSP-II organized training for reviewing CA Firms for Union Parishad Audit Farewell Program in Honour of Outgoing Secretary organized A Milad and Doa Mahfil for Late ICAB Members organized ICAEW Consultants David Brookfield attended ICAB Examinations Subcommittee Meeting BCACP Ad-hoc Committee met ICAB President WTO Team visits ICAB World Bank Delegates visited ICAB ICAEW Representative Jonathon Worrell attended an urgent Council Meeting Meeting with DRC Delegates held ICAB submitted Proposals on Tax and VAT Policies to NBR Regarding Budget 2014-15 ICAB-Prothom Alo Roundtable on Pre-Budget Discussion held Workshop on ‘The Art of Leadership’ held ICAB President presented papers in ‘FRED’ Conference and ICAB Team attended CAPA events in Negombo, Sri Lanka Members’ Conference on ‘‘An Analysis on Macroeconomic Performance of Bangladesh’’ held ICAB-CRC organized CPD Seminar on ‘Harmonization of Financial Reporting and Audit Practices: Bangladesh Perspective’ in Chittagong Workshop on ‘Anti Money Laundering and Terrorist Financing’ held in Dhaka Organized training for ICAB’s Professionals, Tomorrow’s Chartered Accountants and Representatives of CA firms at NAPD ADB team visited ICAB Meeting with RAJUK Chairman New Office Bearers of DRC Paid courtesy call on ICAB President ICAB team participated in SAFA Board Meeting, SAFA BPA Awards giving ceremony, RSS Conference in Islamabad 34th AGM of Dhaka Regional Committee held
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HIGHLIGHTS OF THE ACTIVITIES OF THE YEAR 2014 MONTH
ACTIVITIES
June
• • • • • •
ICAB organized IFRS & IAS Training for Bangladesh Bank Officials ICAB arranged Recruitment Test for Pubali Bank Meeting with Finance Minister & Finance Secretary ICAB organized CFO Meeting on SAFA BPA Criteria ICAB organized training program on Public Sector Auditing Standards Members Conference on 'Amendments to the Bank Company Act, 1991 Implications on External Audit of Bank' held
July
•
ICAB held Discussion Meeting on Proposed Finance Act, 2014 and Financial Reporting Act (FRA) ICAB President attended ATN Business & Finance Program ICAB Team attended SAFA International Conference and SAFA Board Meeting in Nepal ICAB President gave an Interview with the Financial Express Members' Meeting organized by ICAB-CRC in Chittagong ICAB organized Meetings on LGSP- II Audit 2012-’13 ICAB Congratulated Mustafa Kamal FCA for being Elected as ICC President ICAB President appeared in ATN Bangla Talk show ICAB Organized Training on ERP Software ICAB team visited ICAEW and ACCA, London for meetings on various professional issues and mutual collaboration Meeting on Draft ROSC 2014 held ICAB President participated in meeting of Ministry of Commerce on ICT ICAB President visited World Bank Office, Dhaka ICAB President met Public Works Minister for Permanent Campus of ICAB ICAB Member Council and Past President M Farhad Hussain FCA appeared in Talk show in ATN Bangla ACCA Regional Head of Education visited ICAB BCACP New Office Bearers met ICAB President Disciplinary Actions taken by ICAB against 10 CA Firms/Members for Professional Misconduct under ICAB Bye-laws 2004 ICAB arranged Press Conference on the Eve of SAFA International Conference ICAB successfully organized ‘SAFA International Conference 2014 and SAFA meetings in Dhaka Members’ Conference on “An analytical study of significant amendments made by the Finance Act (# 04) 2014 and SROs there under on Stamps, Customs, Income-tax, VAT and Sur-charges regulations” held ICAB President and Technical Director attended World Standards Setters Conference in London ICAB Signed Copyright Agreement with IFRS Foundation in London, UK CPD Seminar held in Chittagong ICAB organized Training on SAP ERP-FI/CO ICAB organized Workshops on Art of Leadership Workshop on Anti-Money Laundering Compliance held 35th SAFA Board Meeting held in Dhaka
• •
August
• • • • • • • • • • • • • • •
September •
• • •
• • • • • •
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HIGHLIGHTS OF THE ACTIVITIES OF THE YEAR 2014 MONTH
October
ACTIVITIES • • • • • • • • • • •
November • • • • • • • • • •
December • • • • • • • •
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ICAB organized Members’ Conference on Global Audit Reforms- Challenges and Opportunities ICAB Member Council and Past President Nasir Uddin Ahmed FCA and A F Nesaruddin FCA appeared in ATN Business & Finance Program ICAB Delegates Led by Showkat Hossain participated in SAFA Events and Regional SMP Forum in Delhi ICAB Team met Senior Secretary, MoC ICAB Advisory Committee Meeting held ICAB organized Training on ERP Software President ICAB Joined Bi-Annual Review Meeting on Performance of ACNABIN students in CA Exams as Chief Guest ICAB President met Public Works Minister for Permanent Campus ICAB President attended in CSE Internet Trade Fair ICAB President attended International Conference of ICC-Bangladesh ICAB President participated in Prothom Alo Roundtable discussion ICAB Awarded Companies, Public Entities for Best Presented Annual Reports 2013 Last Part of Second Phase Training on Preparation of Financial Statements for NGO-MFI completed ICAB delegates led by President visited Italy and participated in ICAEW CAW Summit, World Congress of Accountants Conference 2014, IFAC, CAPA, World Bank’s events ICAB signed MoU with ICAEW in Rome, Italy for a further period ICAB Team met ACCA and CPA Team separately in Rome Closing ceremony of Training on ERP Software for ICAB Members held ICAB president participated in Academic Committee meeting of BICM CIMA Country Manager met ICAB President ACCA Country Manager visited ICAB ICAB President appeared in TV talk show Training on Preparation of Financial Statements for NGO-MFI inaugurated ICAB organized Mock Election through Electronic Voting Members’ Conference on “Enhance Practice Management and New Service Opportunities in SME Sector: held in Dhaka ICAB President chaired session-2 of SAFA International Seminar attended SAFA BPA Awards ceremony in India ICAB conducted "Workshop on Code of Ethics for ICAB Members" held Workshop on "IT General Control" held Third batch training on ERP Software began Brilliant Children Award giving ceremony organized by ICAB
2014
ANNUAL R EPORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
The Institute of Chartered Accountants of Bangladesh
PRESIDENT’S STATEMENTS 2014
I
welcome you all to the 42nd Annual General Meeting of the Institute of Chartered Accountants of Bangladesh (ICAB) and feel privilege to present the audited Financial Statements 2013-14 and Annual Report for the year 2014.
As the President of ICAB my tenure shall be end from beginning of New Year and new President will be sworn in as the President of the office of ICAB for the year 2015. With profound sense of the weight of responsibility that will fall on New President’s shoulders tomorrow and, therefore, of the understanding, the patience, the cooperation he will need from you all the Council Members and the Members of the Institute.
I want to express my special gratitude to those who stood with me and joined in supporting the cause of the Institute. I am eternally grateful for the support specially On my half I can say that I the Members of Council -ICAB, shall continue to work for other Members and the staff of the great cause to which I the Institute. have dedicated throughout
“
the years’ attachment with
On my half I can say that I shall continue to work for the great cause to which I have dedicated throughout the years’ attachment with the Institute. I urged all the members now join together in affirming that common commitment and in helping our new President succeed for the benefit of ICAB.
Since assuming the Office In the Institute. I urged all the January 2014, I have always tried members now join together to do what was best for the in affirming that common Institute. I made sacred commitment and in helping commitment to consecrate my our new President succeed office, my energies, and all the for the benefit of ICAB.” wisdom I can summon to the cause of the IACB. Throughout the tenure of my My effort was continued to keep you all updated presidency, I have felt it was my duty to persevere about the ICAB activities and gave brief about my and work hard to make every possible effort to initiatives taken for the betterment of ICAB through complete the tasks that I bestowed from my the publication of my Monthly Communication. predecessor. However, a brief of my accounts is as follows:
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2014
ANNUAL REP ORT
& FINANCIAL STATEMENTS 2013-2014
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
We had sent three ICAB Representatives to participate in the Bangladesh Bank organized Seminar for private sector stakeholders to prepare a ‘National Risk Assessment (NRA) Report’ on Money Laundering and Terrorist Financing in Bangladesh. In international aspect, we maintained very good relationship with ICAEW and invited the resource person from the English Institute to conduct trainings and classes. On our invitation, Mr. Jonathan Worrell, Tutor-KAPLAN, UK and Mr. Justin West took “working sessions on ICAEW ACA Advanced Stage Classes-2014” for the members this year.
Training and workshops ICAB is always eager to bring professional excellence to its members through arranging specialized trainings and workshops and continue its persistent efforts to update the ICAB members on contemporary matters. We have organized a good number of member’s conference under Continuing Professional Development (CPD) programs in Dhaka and Chittagong along with trainings, seminars and workshops. Country’s business scholars, renowned ICAB members and experts were the chief guests and the special guests in the programs. We also invited foreign experts to conduct the seminars, trainings and workshops as well. On the other hand, I specially tried to introduce the ICAB as recognized training provider/centre to government, NGOs, MFIs, NBR, OCAG, Bangladesh Bank, etc round the year by organizing training on ‘Financial Management’ for NGO-MFI Officials registered under Microcredit Regulatory Authority (MRA), trainings on ERP Software on ‘SAP-FICO’, Workshop on ‘Anti Money Laundering Compliance’ Training on ‘Public Procurement Rules and Public Finance Management (Treasury Rules, General Financial Rules, Budget etc.)’ under the World Bank financed Project ‘Promoting Public Private Partnership for Improved Quality Audit & Assurance’, Workshop on ‘The Art of Leadership’, QAD Workshop on How to Maintain Quality in Audit and Assurance ,IFRS & IAS Training for Bangladesh Bank Officials and Workshop on "Public Financial Management (PFM) Systems and Regulatory Framework".
44
In addition, we organized total 16 number of member’s conference under Continuing Professional Development (CPD) programs to update the ICAB members on technical & professional issues. Of which nine CPD seminars were held in Dhaka.
Nation building and promoting transparency From out of the box, ICAB encouraged the public and private entities to bring discipline in business management and to take step for wealth creation. As part of our regular exercise, ICAB submitted its proposals with comments/justifications regarding VAT and Income Tax towards National Budget 2014-15 to National Board of Revenue (NBR) through its Taxation & Corporate Laws Committee (TCLC) pointing out Tax Policies of 58 areas and VAT policies of 37 areas which would increase government revenue, remove procedural flaws and ensuring social justice. On the eve of the announcement of the National Budget 2014-15, the ICAB and the Daily Prothom Alo jointly organized a Pre-Budget Roundtable discussion. Prominent Chartered Accountants, Economists, Budget Analysts, former Advisers of the Caretaker government, Journalists participated in the discussion. Like previous years, ICAB awarded ICAB National Award to banks, insurance companies, non-government organisations and public sector entities for their Best Presented Annual Reports 2013. Hon’ble Finance Minister AMA Muhith, MP was present as Chief Guest. The RCPAR through stringent evaluation selected total 43 listed
2014
ANNUAL R EPORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
companies & NGOs under 10 categories who received Awards and Certificate of Merits. ICAB National Award encourages and implements Best Practices in Financial Reporting within the realm of International Financial Reporting Standards. It reflects ICAB's firm commitment in promoting a global accountancy profession and thereby accelerating the sustainable economic growth in Bangladesh.
Relation with donor agencies We have maintained good relation with the World Bank. A team of ICAB headed by myself held several meetings with the World Bank Senior Representatives and discussed on the implementation status of WB financed project regarding ‘Promoting Public Private Partnership for Improved Quality Audit & Assurance’ at WB Bangladesh office and Office of ICAB. The World Bank organized a Policy Note Dissemination Workshop on ‘Promoting Public Private Partnership for Improved Public Sector Auditing in Bangladesh’ where OCAG Bangladesh and ICAB agreed to work closely in the field of accounting profession. ICAB is also closely working with the Aisan Development Bank. I believe, by overcoming the challenges, the Partnership with the donor agencies will leave profound impact in the Audit and Assurance Quality.
Communication with government To ensure best use of professional excellence and for bringing greater participation in National economy, we were concerned to maintain due relationship with different Ministries, Regulatory Bodies, and Stakeholders. We reminded them on our Professional issues and ICABs’ contribution towards the development of Accounting and Reporting framework for the interest of the Public and Private sectors in the national context. A series of Courtesy calls to Ministry of Finance, Commerce, Law and other Ministries were made to mitigate various professional impediments. To foster better cooperation with LGRD, NBR, OCAG, Bangladesh Bank, SEC along with other corporate bodies, different National, International Donor agencies, we ran up and down. We further strengthen cooperation with different national bodies in many professional avenues.
& FINANCIAL STATEMENTS 2013-2014
IDC function This year ICAB took action against the audit firm for their professional misconduct. We suspended licence of one audit firm and four practicing members for two years and reprimanded five CA Firms with monetary penalty. This year the council of ICAB took decision to publish disciplinary actions in the ICAB Website and ICAB News Bulletin.
Finance Bill 2014 and FRA Besides our stride for professional excellence, during my presidency I had to spend much time to the issue of FRA and the recent inclusion of CMAs as Auditor in the Finance Bill 2014 which compelled me to divert time and energy to address these issues in fast hand. Inclusion CMAs in Auditor’s definition in Section-35 of the Finance Bill was another big challenge to the ICAB. At last our timely effort had paid a good result, the government understood our points and omitted the CMAs in auditor’s definition from Finance Bill 2014. I was confronting with the issue of FRA streaking from the last few years. Our stand is very clear regarding FRA and ICAB to accept FRA & FRC with little modifications as proposed to the Government. The senior members of the Institute have worked very hard and held discussions with hon’ble Minster of Finance, Commerce, Law & Parliamentary Affairs, Planning ministries as well as the hon’ble Secretary of those ministries to convey government about ICAB’s proposals. Indeed, I gave highest priority to that issue and finally convinced the government for proper consultation with ICAB before enactment of the FRA in January 2015. I want to extend my special gratitude to our Past Presidents and Council Members for their persistent attachment with these issues. ICAB is hopeful that the FRA will be passed in the Parliament with incorporation of ICAB’s recommendations. Another hurdle was surfaced during my presidency regarding the examination of PE-III students and the issue was prudently settled down without giving opportunity for examination under ICAB’s old syllabus.
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2014
ANNUAL REP ORT
& FINANCIAL STATEMENTS 2013-2014
International events In spite of all the odds, ICAB successfully organized SAFA International conference 2014 with the theme “Accountants for Growth– Perspective South Asia” and subsequently hosted the 35th SAFA Board Meeting and other Committees/Task Forces meetings in Dhaka. Representatives from SAFA member bodies participated in above meetings and shared their thoughts. During last year, relation between ICAB and International bodies and associations including IFAC, IASC and CAPA and SAFA has come up to a new height. ICAB participated in a number of Conferences /Seminars/Workshops organized under the auspices of International and regional bodies. A part from participation in SAFA & CAPA board meetings, this year ICAB took effective roles in CFO Conference, SAFA BPA Awards giving ceremony, RSS Conference held in Islamabad and ICAP CFO Conference on “From Conformance to Leadership-Evolving Role of CFOs” held in Karachi, Workshop on ‘Realizing the Power of Professional Accountancy Organizations, Financial Reporting & Economic Development(FRED) Conference and CAPA Events held in Sri Lanka, SAFA Seminar on 'Efficiently Managing SMPs' in Maldives, SAFA International Conference in Nepal, and Regional SMP Forum, SAFA Best Presented Annual Report Awards & SAARC Anniversary Awards for Corporate Governance Disclosures Ceremony 2013 and SAFA International Seminar on ‘Integrated Reporting’ held in India.
Fostering mutual cooperation with ICAEW, CPA Ireland, ACCA and CIMA To foster our development in academic curriculum
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
we have meaningful relations with ICAEW, UK. Recently I have signed a Memorandum of Understanding (MoU) with the Institute of Chartered Accountants in England and Wales, UK in Rome, Italy in continuation of MoU signed in 2009 to enhance existing good relations and cooperation between the two institutes. For the first time ICAB delegates headed by myself met President Cormac Fitzgerald and CEO Eamonn Siggins of CPA Ireland at Westin Excelsior Hotel in Rome, Italy. The main agenda of the meeting was strengthening the existing collaboration between the two Institutes based on the signed MRA and the way forward. We cordially welcomed CIMA Bangladesh and ACCA delegates in ICAB in several occasions who have intention to work with ICAB in the fields of technical and academic matters. ACCA has shown their interest to sign a MoU with ICAB to foster mutual cooperation. We agreed to work together on it and will sit again to explore possible avenues in this regard. I hope the collaboration between the Institutes both home and abroad will be continued in the days to come and get a new momentum.
Agreement signing with IFRS Foundation We have a remarkable achievement this year that I wanted to share with you is that ICAB have signed an agreement with the International Financial Reporting Standards (IFRS) Foundation which empowers only ICAB in Bangladesh for supplying of data for development and publication of Bangladesh Financial Reporting Standards (BFRS), Bangladesh Accounting Standards (BAS) and BFRS for SMEs. Under this agreement, ICAB has got the copyright license to publish both in print and online electronic editions of BFRS, BAS and BFRS for SMEs using IFRS, IAS and IFRS for SMEs as issued by the International Accounting Standards Boards (IASB) and to distribute English language version of these standards in Bangladesh.
IT combination Considering the country’s perspective and rapid expansion of e-service, The Institute of Chartered Accountants of Bangladesh (ICAB) has taken various initiatives to modernize and develop
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2014
ANNUAL R EPORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
and cleaning the outfit glass & aluminum composite panels of CA Bhaban. In consideration of safety requirements, ICAB recruited fire safety advisor. To ensure better utility service to our students, ICAB replaced some accessories & stationary materials in CA Hostel.
ICAB-Chittagong office
technology based services. ICAB has developed a dynamic & resourceful website, automated library management system, student’s database & registration system, Online-Payment Gateway Service, high speed fibre optic broad band & WiFi internet connection, own email server & mobile messaging service. ICAB conducted mock electronic voting for Council Election 2015 successfully. For capacity building, ICAB sent two IT officials for training on ‘Oracle based data base application design’ organized by National Academy for Training & Development.
Strengthening human resources We appointed full time Secretary and two Advisors who worked in the high rank profile of Government to bring dynamism in day to day operational activities. ICAB is being benefited from their wisdom and knowledge. ICAB also increased its manpower through recruiting a number of professionals and nonprofessionals in IDC, LPD & QAD departments. Now the administrative composition is tuned with good management culture and better practice of good governance. Expectantly, the recruitment process will be continued by the next Office Bearers to make ICAB more efficient and competent.
Renovation works Commerce Minister Mr. Tofail Ahmed, MP inaugurated the renovated 8th floor of CA Bhaban and the renovation works of 3rd floor and Library is under process. Measures have been taken to give new look of ICAB hired campus building in Dhaka
Office of ICAB Chittagong Regional Committee has maintained excellent teamwork and correspondence with the Dhaka office in arrangement of coaching classes, examinations and CPD seminars this year. It has organized seven CPD seminars where renowned academicians and CA professionals were the chief guests and the specials guests. ICAB Council has decided to purchase 5 Katha land in Chittagong for establishment of permanent campus. The Secretary and the other Senior Officials of the Institute have already visited the site and official procedures to purchase the land including verification of documents are in progress. Hope we will be able to purchase the land very soon.
Other activities Like other years, ICAB inspired the children of the ICAB Members and Employees for their brilliant results through awarding them in an Award Giving Ceremony 2014 in a grand festive mode. For the first time, ICAB arranged Hepatitis-B Virus (HBV) vaccination program free of cost for the ICAB staff and employees at the Institute premises this year. As President of ICAB, I have participated in several TV talk show and TV Interviews regarding concurrent issues including FRA and the Capital Markets. Different print media also covered my interview with due importance in their pages. Some incidents have made me remorseful in the year 2014; we have lost a number of our fellow members. With due solemnity, we have paid condolence to the bereaved family. Through the arrangement of Milad – Doa Mahfil, we prayed to Almighty Allah for the eternal peace of the departed soul.
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2014
ANNUAL REP ORT
& FINANCIAL STATEMENTS 2013-2014
Foreword Standing at the end of my presidency, I would say I tried my best to contain and continue the image of our noble profession. However, I believe, there is always better way of doing things. It is important that we pursue our objectives with wisdom. I am sincerely grateful to the Council ICAB and the Office Bearers 2014 for their cooperation, brilliant guidance and ideas that made the year 2014 eventful. I am profoundly thankful to all ICAB members including the UK and North American Chapter for their effort and cooperation. Sincerely, I like to acknowledge the support of ICAEW for their continuous technical assistance and forwarding their guidance throughout the year 2014 to make ICAB taking bold initiative with confidence. I would like to extend my indebtedness to the Government of Bangladesh, World Bank and other Stakeholders for supporting ICAB during my tenure. I am honestly grateful to the ICAB officials in Dhaka and Chittagong office who have worked hard and
48
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
endowed with their untiring efforts supporting my vision. I appreciate ICAB Secretariat and Directorate for their perseverance and attachment to this institute. As we continue our endeavors, we will see vast strides of accomplishments and new developments at the Institute over the next years. I wish the Institute of Chartered Accountants of Bangladesh will step onwards with giant initiatives in future to hand round the professional excellence and make effective contribution to the nation as a whole and I wish to join myself with this journey. To conclude here, I would like to thank all of you again for giving me this opportunity to present the Annual Report of the Institute of Chartered Accountants of Bangladesh (ICAB) for the year 2014 and the Financial Statements for the year ended June 30, 2014.
Showkat Hossain FCA
President-ICAB
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
2014
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
REPORT OF THE COUNCIL FOR THE
YEAR 2014
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2014
ANNUAL REP ORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
1.0
EDUCATION, TRAINING AND EXAMINATION
1.1 EDUCATION ICAB is commited to help the members and CA students with the most up-to-date and relevent knowledge, skills and training. To expand the education and training, the LPD Section of ICAB took an active interest in education policy issues and as well as enhancing the capacity and capability of the profession. Throughout 2014, the Board of Studies of the Council initiated the process of revisiting the education and training scheme of the Institute through the LPD. The education system has been framed with multi dimensional approach combining efficiency with effectiveness in providing standard education and services to add more value. By updating the study Manuals, making available all the previous and current examinations suggested answares,LPD tried his best to make 2014 a fruitful year.
Study Manuals All the Study Manuals of the Professional Stage Knowledge Level and Professional Stage Application Level and Advanced Stage were printed and made available to the students. Study Manual on Taxation -I & Taxation-II were updated two times by covering Finance Act 2013 & 2014 in this year, So that the students can get the maximum benifit for their education from ICAB. Study Manuals for all Levels as follows are available in counceling centre:
50
Professional Stage (Knowledge Level) Assurance
Professional Stage (Application Level) Audit & Assurance
Accounting
Financial Accounting
Business & Finance Management Information Taxation-1
Business Strategy Financial Management
Business & Commercial Law IT Knowledge IT Knowledge Reading List
Corporate Laws and Practice IT Application Taxation-II
Advance Stage Financial and Corporate Reporting Advanced Audit and Assurance Business Analysis Case Study
2014
ANNUAL R EPORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
Suggested Answers 2014 is the benchmark for LPD to make available all the suggested answers with backlog from 2011 for the students. LPD team gave their best effort under the strong guidance of Vice President (education & Training) to make available the suggested answers within three weeks after completion of the examination of November-December, 2013 & May-June, 2014 while most of the CA Institute of other countries makes it within one month. In the year 2014 all the suggested Answers of all previous examination of all levels under new syllabuses up to the last examination, May-June, 2014 are now available for the students. Following is the present status of Suggested Answer: Sl. No.
Stage
Level
Examination Session/Year
01.
Professional Stage
Knowledge Level
May-June, 2011 to May-June ,2014
02.
Professional Stage
Application Level
May-June, 2011 to May-June, 2014
03.
Advanced Stage
Advanced
May-June, 2011 to May-June, 2014
Question Bank The Question Bank of Application Level under the New Syllabus is available to the concerned students.
1.2. TRAINING & WORKSHOPS ICAB has now become the Centre of Excellence for Training ICAB believes that training is a key element of the development approach which focuses on empowerment of human competence. Training has been introduced as an essential element of ICAB’s invention strategy. Realizing the important of training, ICAB has developed a Learning Division to address its own training needs as well as that of government, non-government and other autonomous organizations. In order to respond appropriately to diversity and organizational needs the training wing of LPD’s specific objectives are as follows: -
Make ICAB training wing a centre of excellence for training on financial management and leadership skills.
-
Provide capacity building support to Members and other financial organization.
-
Establish partnership and networks with other national, regional and international training institute to continuously improve training faculties and competence.
To develop the of education and training to its excellence, the following Workshop, Training & program has successfully been completed by the LPD throughout the year of 2014:
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2014
ANNUAL REP ORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
Records of Training /Workshop Organized by ICAB, at the Year of 2014 AT A GLANCE Sl. # 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
52
Name of the Training Financial Management for The Officials of NGOs-MFIs-1st Batch Financial Management for The Officials of NGOs-MFIs-2nd batch Financial Management for The Officials of NGOs-MFIs-3rd Batch Financial Management for The Officials of NGOs-MFIs -4th Batch Financial Management for The Officials of NGOs-MFIs-5th Batch Financial Management for The Officials of NGOs-MFIs-6th batch QAD Workshop
Workshop on "The Art of Leadership" (1st Batch) Workshop on "Anti-Money Laundering" -1st Batch Working session on ICAEW ACA Advanced Stage Classes -2014 Training Programme on Public Financial Management (Treasury Rules, Genera l Financial Rules, Budget etc.) (1st batch) for Qualified CAs of ICAB
Period & Duration 1-2 February, 2014, 2 Days
No of Participants Officials of NGOs-MFIs 40 (Forty)
Core Content s Financial Management
4-5 February, 2014, 2 Days
Officials of NGOs-MFIs 40 (Forty)
Financial Management
ICAB Members
8-9 February, 2014, 2 Days
Officials of NGOs-MFIs 40 (Forty)
Financial Management
ICAB Members
11-12 February, 2014, 2 Days
Officials of NGOs-MFIs 40 (Forty)
Financial Management
ICAB Members
15-16 February, 2014, 2 Days
Officials of NGOs-MFIs 40 (Forty)
Financial Management
ICAB Members
18-19 February, 2014, 2 Days
Officials of NGOs-MFIs 40 (Forty)
ICAB Member s
08-09 March 2014, 2 Days
ICAB Members & Article Students 25 (Twenty five) ICAB Members 33 (Thirty three)
Financial Management for The Officials of NGOs-MFIs How to Maintain Quality in Audit and Assurance "The Art of Leadership"
Prothom Alo Jobs & ICAB Members
Anti-Money Laundering & Terrorist Financing ICAEW ACA Advanced Stage Classes 2014 Public Financial Management
Trainer of The Bangladesh Bank, Dhaka
29-30 March 2014, 2 Days Long 7 April 2014, 1 Day 9 April 2014, 1 Day 11–13 April, 2014
ICAB Members 54 (fifty four) ICAB Members, No.16 (Sixteen) ICAB Members & Partly Qualify Student, No.40 (Forty)
Facilitators ICAB Members
ICAB Members
Mr. Jonathan Worrell, Tutor KAPLAN, UK Resource Persons, NAPD
2014
ANNUAL R EPORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
Sl. # 12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
Name of the Training Public Financial Management (Treasury Rules, General Financial Rules, Budget etc.) (3rd Batch) for tomorrow’s members Working session on ICAEW ACA Advanced Stage Classes-2014 Worksho p on "The Art of Leadership" (2nd Batch) Training Programme on Public Financial Management (Treasury Rules, General Financial Rules, Budget etc.) (5th Batch) for Qualified CAs of ICAB Worksho p on "The Art of Leadership" (3rdBatch) "Anti-Money Laundering" -2nd Batch "Anti-Money Laundering" -3rd batch "Anti-Money Laundering" -4t Batch ICAEW ACA Case Study Classes,2014 IFRS & IAS Training for Bangladesh Bank Officials Written test for the post of Audit Officer for Pubali Bank Ltd. Public Public Procurement Rules (Advance level from the Audit Perspective), (9th Batch)
& FINANCIAL STATEMENTS 2013-2014
Period & Duration 18 – 20 April, 2014
No of Participants ICAB Members & Partly Qualify Student, No. 40 (Forty)
Core Contents Public Financial Management
18 April 2014, 1 Day
ICAB Members,No. 26 (Twenty six) ICAB Members 31 (Thirty)
ICAEW ACA Advanced Stage Classes2014 "The Art of Leadership"
06-08 Ma y 2014
ICAB Members & Partly Qualify Student 40 (Forty)
Public Financial Management
24-25 Ma y 2014, 2 Days
ICAB Members 33 (Thirty three)
"The Art of Leadership"
ICAB Members
27 May 2014, 1 Day
ICAB's Employees 29 (twenty five) ICAB Members 51 (Fifty one)
Anti-Mone y Laundering & Terrorist Financing Anti-Mone y Laundering & Terrorist Financing Anti-Mone y Laundering & Terrorist Financing Case Stud y for ICAEW advanced Stage IFRSs & IASs
Trainer of The World Bank, Dhaka, Bangladesh Trainer of The World Bank, Dhaka, Bangladesh Trainer of The World Bank, Dhaka, Bangladesh ICAB Members
26-27 April 2014, 2 Days
28 May 2014, 1 Day 29 May 2014, 1 Day
ICAB Members 43 (Forty three)
30thMay15th July,2014,
ICAB Members
01 June to 26 June, 2014, 3 days 06 June 2014, 1 day
Bangladesh Bank Officials, 35 (Thirty five) Total Number of Candidate 108
06, 07 & 13 June 2014, 3 days
ICAB Members & Partly Qualify Student 40 (Forty)
Written test for the post of Audit Officer
Facilitators Resource Persons, NAPD
Mr. Justin West, Tutor-KAPLAN, UK ICAB Members & resource persons from Prothom Alo Jobs Resource Persons, NAPD
ICAB Members
ICAB Members and Employees
Public Procurement Rules
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ANNUAL REP ORT
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& FINANCIAL STATEMENTS 2013-2014
Sl. # 24.
25.
26.
Period& Duration 20 June 2014, 1 day
No of Participants Total Number of Candidate 76
Core Contents "Public Sector Auditing Standards"
Worksho p on "Public Financial Management (PFM) Systems and Regulatory Framework". "ERP Software (SAP-FICO)" -1st batch
21 June 2014, 1 day
Total Number of Candidate 35
09 August to 05 September 2014, 12 days 20 September 2014, 01 day
Total Number of Candidate 20
"Public Financial Management (PFM) Systems and Regulatory Framework". SAP Trainin g
27.
Worksho p on "Anti Money Laundering Compliance"-5th Batch
28.
Worksho p on "The Art of Leadership"5th Batch "ERP Software (SAP-FICO)" -2nd batch
29.
30.
31.
32.
33.
34.
54
Name of the Training Public Procurement Rules (Advance level from the Audit Perspective), (10th Batch) for Qualified CAs of ICAB
Financial Management for The Officials of NGOs-MFIs-7th Batch Financial Management for The Officials of NGOs-MFIs-8th Batch Financial Management for The Officials of NGOs-MFIs Financial Management for The Officials of NGOs-MFIs -9th batch Financial Management for The Officials of NGOs-MFIs-10th Batch
Facilitators Mr. Burhanuddin Ahmed FCA, Project Adviser, ICAB Bob Shambler, Consultant, OCAG Rajesh Dayal, International Consultant Mr. Mohammad Muslim Chowdhury Director (Additional Secretary) ICAB Members & SAP Trainer
Total Number of Candidate 53
Anti Mone y Laundering Compliance
ICAB Members 25 (twenty five)
"The Art of Leadership"
Total Number of Candidate 21
SAP Trainin g
ICAB Members & SAP Trainer
Officials of NGOs-MFIs 40 (Forty)
Financial Management
ICAB Members
9-10 November, 2014, 2 Days
Officials of NGOs-MFIs 42 (Forty two)
Financial Management
ICAB Members
16-17 November, 2014, 2 Days 23-24 November, 2014, 2 Days
Officials of NGOs-MFIs 42 (Forty two) Officials of NGOs-MFIs 42 (Forty two)
Financial Management
ICAB Members
Financial Management
ICAB Members
26-27 November, 2014, 2 Days
Officials of NGOs-MFIs 42 (Forty two)
Financial Management
ICAB Members
27-28 September 2014, 2 Days 17 October to 15 November 2014, 13 days 1-2 November, 2014, 2 Days
Mr. Mohammad Abdur Rab, Mohammad Mahbub Alam & Md. Mamun Hossain, Bangladesh Bank Prothom Alo Jobs & ICAB Members
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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
Sl. # 35.
36.
37.
38.
39.
Name of the Training Financial Management for The Officials of NGOs-MFIs-11 Batch Financial Management for The Officials of NGOs-MFIs-12th batch Financial Management for The Officials of NGOs-MFIs-13th Batch Financial Management for The Officials of NGOs-MFIs-14th Batch Worksho p on "Code of Ethics"
& FINANCIAL STATEMENTS 2013-2014
Period& Duration 30 November 1 December 2014, 2 Days 8-9 December 2014, 2 Days
No of Participants Officials of NGOs-MFIs 42 (Forty two)
Core Contents Financial Management for The Officials of NGOs-MFIs
Officials of NGOs-MFIs 42 (Forty two)
13-14 December 2014, 2 Days
Officials of NGOs-MFIs 42 (Forty two)
17-18 December 014, 2 Days
Officials of NGOs-MFIs 42 (Forty two)
05 December 2014
ICAB Members 52 (fifty two)
Financial Management for The Officials of NGOs-MFIs Financial Management for The Officials of NGOs-MFIs Financial Management for The Officials of NGOs-MFIs General Application of the Code, Professional Accountants in Public Practice & Professional Accountants in Business General IT Controls & Application Controls: What to Consider When Performing an Audit of Financial Statements?
40.
Worksho p on "General IT Controls & Application Controls: What to Consider when performing an Audit of Financial Statement"
06 December 2014
ICAB Members 45 (fifty two)
42.
Financial Management for The Officials of NGOs-MFIs-15th Batch
21-22 December 2014, 2 Days
Officials of NGOs-MFIs 42 (Forty two)
Financial Management for The Officials of NGOs-MFIs
Facilitators ICAB Members
ICAB Members
ICAB Members
ICAB Members
ICAB Members
Mr.. Sk.. Ashik Iqbal, Manager Audit & Advisory Services, KPMG
ICAB Members
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1.3 SALIENT FEATURES OF TRAININGS AND WORKSHOPS ICAB Organized the Training for 800 NGOs-MFIs’ Officials in 15 Batches; The Institute of Chartered Accountants of Bangladesh organized two-day training on 'Financial Management' for the officials of Non Government Organizations (NGOs) and Micro Finance Institutions(MFIs).The first phase of the aforesaid training program was started on 01 February 2014 at Institute’s training room. A total no. of 800 officials received the training consecutively. Md. Abdul Karim, Managing Director, Palli Karma Sahayak Foundation (PKSF) inaugurated the first batch training program as Chief Guest on Saturday. Showkat Hossain FCA, President-ICAB presided over the ceremony while and ICAB Vice President Dewan Nurul Islam FCA and Director of Microcredit Regulatory Authority Ms. Fawzia Zafreen were present. Total 40 officials participated in the first batch of training. The resource persons of the training are Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA, Masih Malik Chowdhur FCA, Dr.Abu Sayed Khan FCA, Muhammad Farooq FCA, Gopal Chandra Ghosh FCA, Ajit Kumar Paul FCA, Eftekhar Ali FCA & Mr. Bibhuti Bushan Biswas FCA. Training was given on different topics related to accounting i.e. accounting cycle, accounting concepts, convention, assumptions, principles ad
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policies, cash Vs accrual basis of accounting, income and expenditure recognition under accrual basis, cash book, bank book, general ledger, loan ledger, maintenance of books of accounts-subsidiary registers, special register, statements and reports for microfinance management, conceptualization of international/ Bangladesh Accounting Standards (BAS), Bangladesh Financial Reporting Standard (BFRS), application of MFIs. Of BAS, BFRS, preparation of financial statements (balance sheet, income statement, cash flow statement, changes in equity statements and notes to the accounts), nature of errors and rectification of errors, preparation of debit voucher, credit and journal voucher, preparation of trial balance, preparation of receipts and payments accounts, bank reconciliation statement, accounting for depreciation/ loan loss provision and write off issues, fixed assets schedule (BAS-16), internal audit of MFIs, internal control system and verification of assets liabilities, external audit of MFIs, accounting for government grant (IAS-20),financial ratio analysis and calculating effective rate of interest.
ICAB holds five batches of workshop on “The Art of Leadership” for 150 numbers of ICAB members. The Institute of Chartered Accountants of Bangladesh (ICAB) has completed two-day long workshop on "The Art of Leadership" on Sunday, 30 March 2014. A total number of 33 members of ICAB participated in the workshop. The objectives of workshop were to orient ICAB members with different leadership tactics and techniques observed in corporate environment. A wide range of topics covering communication skills including public speaking, leadership theory & practices, interviewing skills, leadership scope of finance manager and
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career progress on skills. ICAB president Showkat Hossain FCA awarded certificate to the participants after completion of the workshop.
In response to the ‘call for action’ to strengthen public sector accounting and auditing, a strategic Public Private Partnership can help realising that objective.
ICAB Vice President Dewan Nurul Islam FCA, Past President & Council Members Muhammed Farhad Hussain FCA, Md. Humayun Kabir FCA, Council Member Gopal Chandra Ghosh FCA, Human Resource (HR) Experts Masud Khan, Humaira Sharmeen and Md. Moinul Islam were resource persons of the workshop.
Showkat Hossain FCA, President of the Institute of Chartered Accountants of Bangladesh said this at the dissemination workshop of Bank’s Policy Note titled “Public Private Partnership for Improved Public Sector Auditing in Bangladesh” organized by The World Bank, Dhaka organized on Tuesday, April 29, 2014 at Bangabandhu International Conference Centre, Dhaka.
‘Strategic Public Private Partnership is Way forward to strengthen public Sector Financial Management’ Showkat Hossain says at World Bank’s Workshop
Masud Ahmed, Comptroller and Auditor General of Bangladesh graced the program as the Chief Guest, while Showkat Hossain, President of the Institute of
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Chartered Accountants of Bangladesh attended the program as the Special Guest. Showkat Hossain said that the Institute of Chartered Accountants of Bangladesh (ICAB) has been working as the Consulting Body under this project aiming at a strategic and technical partnership between the Institute of Chartered Accountants of Bangladesh (ICAB) and the Office of the Comptroller and Auditor General (OCAG). He further said that ICAB has already gained experience being partners in learning partnership with the Institute of Chartered Accountants in England and Wales (ICAEW) under the World Bank supported Twining Project. He expects that continuous support of the World Bank in Strengthening Accounting and Auditing Standards and Practices in Corporate Sector in Bangladesh will boost capacity building of ICAB. Mr. Showkat recalled the Policy Note Presentation of the project held on 07 November 2012 where National Audit Office of UK, ICAEW, DFID and specially the OCAG- Bangladesh participated and extended their support and guidance to frame out a strategic Memorandum of Understanding (MoU) which was signed between ICAB and OCAG on the same day. He said, actually out of longing for robust mechanism to ensure transparency and accountability in financial management for achieving the economic success, the Project launched with many more challenges addressing the accounting and auditing practices for Improving Audit Assurance Quality in Public and Private Sectors. About limitations of ICAB towards strengthening Public Private Partnership, ICAB president said that in Bangladesh the Supreme Audit Institution –the OCAG is doing the job with many impediments both internally and externally with limited capacity and resources. And, on the other hand, one of the key constraints facing by the ICAB professionals is perceived to their limited exposure to public financial management.
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Ms. Suraiya Zannath, Sr. Financial Management Specialist, the World Bank presented the key note paper. Johannes Zutt, Country Director, The World Bank, Dhaka delivered introductory speech. Anwaruddin Chowdhury FCA and Deputy Comptroller
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& Auditor General Dr. Shyamal Kanti Chowdhury placed their valuable and visionary comments on the keynote. Fily Sissoko, Manager, South Asia Regional Financial Management, The World Bank made concluding remarks. To overcome the challenges, he said that the Public Private Partnership is the way forward to ensure a greater impact in the Audit and Assurance Quality. ICAB is equally keen to exchange its views and share its knowledge with OCAG as an ongoing basis. Apart from the policy note presentation and signing of the MoU with OCAG, ICAB has already accomplished many components of the Project such as: Shared the Sri Lankan experience on Public Private Partnership as well as shared views and knowledge with the ICAEW specialist on UK experience through arranging knowledge sharing sessions Arranged Training Program on Public Sector Regulations (Treasury Rules, Internal Controls, GFRs) and Procurement Rules for ICAB Members ICAB is striding with the extended times up to June 2014 of the project where external expert consultant and internal resources are working together to draw a very successful accomplishment. Organized 03 Days Knowledge Sharing Sessions for 04 batches during April 2014 on the Public Financial Management (Treasury Rules, General Financial Rules, Budget etc.) for tomorrows CAs’ and ICAB Members provided by the Academy for planning and Development, Ministry of Planning. Knowledge Sharing Sessions on the Public Procurement Rules (Advanced level from the Audit Perspective) and on Government Procurement Rules is on the way to arrange for the Practicing Members as well. Ms. Suraiya Zannath FCA, the Paper Presenter said that there is no uniformity in Auditing of the state owned enterprises and other public sector entities when audited by CAG and the CA Firms. She further said that audited reports of the state owned enterprises and other public sector entities by the CA Firms are not also shared with CAG. In terms of
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internal audit she said, the policy paper highlighted that it is fragmented and not considered when external audit conducted by the private CA Firms or others at the behest of the development partners. About assessment of OCAG, she said that there is scarcity of human resources relevant to academic and professional orientation, it is required for further improvement, she said. The audit reports repeatedly pointed out the weaknesses of the internal control of the government but there was little management attention on the particular aspect of the audit reports, she observed. She opined that enhancement engagement of stakeholders is needed in this regards to address the problem. She said, it is necessary for OCAG to build professional partnership with ICAB or other similar organisations. Masud Ahmed said that there are two sides regarding qualifications of the public accountants and private accountants. He emphasized on concerted efforts by both public & private accountants working to achieve desired results maintaining accounting and auditing. Johannes Zutt said that public private partnership is very much important in current context. The auditors should have more connection with the accounts and the morality, he further said. Commenting on the paper, ICAB Past President and Council Member Anwaruddin Chowdhury FCA said that the need for strategy partnership has been felt for very long time. The presentation is a culmination of long and well measured thoughts and process. Public private partnership in accounting aspect will have multi dimensional implications in the years ahead, he said.
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ICAB Organizes Anti-money Laundering Workshop The institute has organized a workshop on "Anti Money Laundering & Terrorist Financing" on 7 April 2014 for the members of the Institute. The workshop was inaugurated by the Chief Guest Abu Hena Mohammad Razee Hassan, Deputy Governor, Bangladesh Bank and Showkat Hossain FCA, President, ICAB delivered the welcome address. Syful Islam FCA, Council member & Past President was the Session Chairman. Resource Persons of the workshop were Debaprosad Debnath, General Manager & Operational Head, Bangladesh Financial Intelligence Unit, Bangladesh Bank, and Kamal Hossain, Joint Director, BFIU, Bangladesh Bank, Dhaka Core topics of the workshop were Overview of AML/CFT & Relevance with Accountants, Money Laundering Prevention Act 2012 & Anti-Terrorism (Amendment, 2013) Act 2009,Compliance requirement for Accountants on AML/CFT issues. Mr. Showkat Hossain FCA, President-ICAB awarded certificates to the fifty participants participated in the workshop.
Training on ‘Public Sector Financial Management’ held The Institute of Chartered Accountants of Bangladesh (ICAB) arranged a 03-Days Training Course ‘Knowledge Sharing Sessions on the Public Procurement Rules (Advance level from the Audit Perspective) the Public Financial Management
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Representatives from World Bank, Dhaka were present on the workshop on "The Art of Leadership"
(Treasury Rules, General Financial Rules, Budget etc.) for ICAB’s Professionals and Tomorrow’s Chartered Accountants’ who are at least CA KL/P-I/Intermediate level qualified for professional development under the World Bank financed Project titled Promoting Public Private Partnership (PPP) for Improved Audit Quality Assurance. The training was provided by the National Academy for Planning and Development, Ministry of Planning with a view to enhance the capacity of the professionals at individual as well as at firm’s level attached with the opportunities in Public Sector like; Consultancy, Audit, Review, Investigations and staff Appointments etc. The Training Program on Public Financial Management (Treasury Rules, Internal Controls, GFRs) for 41 honorable members and 41 Future Chartered Accountants was arranged by ICAB under this Project. The training conducted in 4 batches contained 25 members in each batch at the National Academy for Planning and Development under Ministry of Planning on 11th - 13th April 2014 and 18th - 20th April, 2014. Total 82 participants participated in the Training and received their Certificates from the President-ICAB and the Director General, National Academy for Planning and Development.
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The Institute of Chartered Accountants of Bangladesh (ICAB) organized a two day long workshop on ‘The Art of Leadership’ from 26 to 27th April 2014 at its training room. A total number of 22 participants participated in the workshop. ICAB President Showkat Hossain FCA inaugurated the workshop. Ms. Suraiya Zannath, Sr. Financial Management Specialist, the World Bank and Mozammel Haque, representative, the World bank were present as Special Guests in the inauguration session. ICAB Council Member and Past Presidents Mr. Muhammed Farhad Hussain FCA , Mr. Md. Humayun Kabir FCA , Vice President Dewan Nurul Islam FCA, Council Member. Gopal Chandra Ghosh FCA, Humaira Sharmeen from Prothom Alo Jobs, Md. Moinul Islam from ACI and Md. Masud Khan from Surma Lafarge Cement were the resource persons of the workshop. Important areas of the workshop were Communication Skills, Public Speaking Skills, Leadership Theory & Practices, Interviewing Skills,
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Posture & Gesture, Expectations from a Finance Manager, Management and Leadership in 21st Century, Career Progression. It was 3rd time of such workshop in this year. Fourth Batch of the workshop will be held in May this year.
ICAB President Attends Session on ICAEW’s Curriculum Jonathon Worrell conducted a discussion session to give an overview on ICAEW’s old and newly curriculum, structure, contents and examinations scheduled on 9 April 2014. Mr. Worrell gave a brief presentation on the matter related to those areas. He also participated in an open discussion regarding upcoming examinations and ICAEW classes to be organized by ICAB in July and November this year. Among others, ICAB President Showkat Hossain FCA, Council Member and Past Presidents Muhmmed Farhad Hussain FCA and Md. Humayun Kabir FCA, Secretary (Acting) Md. Saiful Islam ACA and Director (Technical) Mahbub Ahmed Siddique FCA were present in the discussion held at Mini Conference Room, CA Bhaban.
Justin West and Jonathon Worrell demonstrate ICAEW Students’ Seminar at ICAB
ICAEW Head of new business development Justin West and Senior Business Development Manager Jonathon Worrell jointly demonstrated ICAEW Students’ Seminar at ICAB training room, Dhaka on 18 April 2014. They presented a paper in the seminar covering ICAEW’s syllabus and overview of ICAEW advanced stage examination under old and new curriculum. The presentation also covered ICAB advance stage examination results in Bangladesh, common errors in examination paper, etc. Among others, ICAB president Showkat Hossain FCA, Council Member and Past President Syful Islam FCA, Director Mahbub Ahmed Siddique FCA and Snehasish Barua FCA were present in the seminar. Participants in the seminar requested to hold ICAEW classes by ICAB and their willingness to attend the upcoming examinations. ICAB President emphasized mutual relation and benefits between the two Institutes for capacity building in the area of education, examinations and overall quality of the profession. Mr. Syful Islam advised the students to give more time and attention in study and to work hard to pass the ICAEW examinations as it is a matter for the sake of reputation of both the Institute and members as well.
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Resource persons from Bangladesh Bank and World Bank were jointly conducted the Workshop on ‘Anti Money Laundering and Terrorist financing’ ICAB, the World Bank and the Bangladesh Bank jointly organized a series of workshops on ‘Anti Money Laundering and Terrorist Financing’ at ICAB’s Auditorium on 27, 28 and 29 May, 2014. The Officials of the Institute participated in the workshop on 27 May and the Members of the Institute participated on 28 and 29 May where ICAB President, Vice Presidents and Council Members were also present. A total number of 100 ICAB Members and 25 ICAB officials took part in the workshop. The main areas of the workshop were Overview of FATF Recommendations, ML/FT vulnerabilities in the accounting and TCSP sector, Overview of AML/CFT law and obligation in Bangladesh. Resource Persons of the Workshop were Ms. Marilyne Landry, AML/CFT Expert, The World Bank, Dhaka, Ms. Priyani Malik, Financial Sector Specialist, Financial Market Integrity (FFSFI),Financial and Private Sector development, The World Bank, Dhaka and Kamal Hossain, CAMS Joint director, BFIU, Bangladesh Bank. The Workshop was ended with the certificate giving session. The Workshops were organized with a view to build awareness among the Members and Officials of ICAB about the Money Laundering and terrorist Financing cases regarding National and International perspective.
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Training for ICAB’s Professionals, tomorrow’s Chartered Accountants and Representatives of CA firms at NAPD The Institute of Chartered Accountants of Bangladesh (ICAB) arranged a 03-Day Knowledge Sharing Sessions on the Public Financial Management (Treasury Rules, Internal Controls, GFRs) for ICAB’s Professionals, tomorrow’s Chartered Accountants and Representatives of CA firms under the World Bank financed Project titled Promoting Public Private Partnership (PPP) for Improved Audit Quality Assurance at NAPD premises. The National Academy for Planning and Development, Ministry of Planning, GoB provided the training with a view to enhance the capacity of the professionals at individual as well as at firm’s level attached with the opportunities in Public Sector like; Consultancy, Audit, Review, Investigations and staff Appointments etc. 120 representatives from different CA Firms of ICAB participated in the Training Program on Public Financial Management (Treasury Rules, Internal Controls, GFRs) under this Project. 5th & 6th Batch training was held on 06 to 08 May 2014 and 7th & 8th batch on 12, 14 to 15 May 2014. Each batch comprised of 30 participants received their Certificates from the President-ICAB and the Director General, National Academy for Planning and Development.
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Training Programme on ‘Public Sector Auditing Standards’
independence, proper functioning and professional conduct of Supreme Audit Institutions that are entrusted with the oversight function of use of public funds and the fundamental principles in auditing public entities and guidelines for use in carrying out the audits. ISSAI frame work also includes INTOSAI Guidance for Good Governance (INTOSAI GOV) providing guidance to public authorities on the proper administration of public funds.
The Institute of Chartered Accountants of Bangladesh (ICAB) organized a training programme on "Public Sector Auditing Standards" under the World Bank financed "Public Private Partnership for Improved Audit Quality Assurance" project for its members at ICAB auditorium on Friday 20 June 2014. A total of 105 ICAB members received the training in two batches.
The course included three sessions- (i)An overview explaining the authority, evolution ,structure and types of the standards and the framework,(ii) Nature of financial audit in public sector ,its linkage to compliance issues and applicability of Guidelines for financial audits and compliance audits (iii) Performance audits- key principles and applicability of standards and guidelines.
International Standards of Supreme Audit Institutions (ISSAIs) are a set of professional standards developed by Professional Standards Committee of International Organization of Supreme Audit Institutions (INTOSAI) and approved by its Congress. The ISSAI frame work includes ISSAIs stating the basic prerequisites for the
Bob Shambler, Consultant, Leading Pilot Project, OCAG- Bangladesh and Rajesh Dayal Consultant, SPEMP-B project, OCAG, Bangladesh and Mr. Burhanuddin Ahmed FCA, Adviser, ICAB, Senior Member-ICAB contributed as resource persons.
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PFMRF Workshop for ICAB Members The Institute of Chartered Accountants of Bangladesh (ICAB) organised Workshop on "Public Financial Management (PFM) Systems and Regulatory Framework" for its members at ICAB Auditorium on 21 June 2014. Md. Humayun Kabir FCA Council Member and Past-President-ICAB was the session chairman in the Workshop. Mohammad Muslim Chowdhury Director (Additional Secretary) Component 2: Public Financial System Deepening MTBF and Strengthening Financial Accountability Project Finance Division, Ministry of Finance was the resource person. ICAB Council Member and Past President Md Syful Islam FCA distributed certificates to the participants at the end of the workshop.
Training on IFRS and IAS for BB Officials A 25-day long Training Program (2nd Phase) on IFRS and IAS for Bangladesh Bank Officials was held Md. Abul Quasem, Deputy Governor, Bangladesh Bank inaugurated the Training Program as the Chief Guest on 1st June 2014 evening at ICAB auditorium.
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Md. Abul Quasem in his speech said that Bangladesh Bank is keenly interested to achieve advanced and pragmatic technical knowledge on Accounting especially on IFRS and hoped that training organized by ICAB for BB officials will meet the requirement of banking regulation at large. A total of 35 mid level Bangladesh Bank Officials including Joint Directors, Deputy Directors and Assistant Directors participated in the training. Eleven number of ICAB Members conducted the classes. Topics ranging from Financial Reporting, Financial Statements, Accounting Policy, Statement of Cash Flow and Adaptation of International Financial Reporting Standards, etc. were discussed on the 25-days training programme. After ending the training, certificates were distributed among the participants in a simple ceremony held on 26 June 2014 at a city local hotel where Ms. Nazneen Sultana, Deputy Governor, Bangladesh Bank was present as the Chief Guest. Showkat Hossain FCA, President-ICAB, Md. Syful Islam FCA, Past President & Council Member-ICAB and Md Abdus Salam FCA, ast President & Council Member-ICAB were present in the occasion.
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As Chartered Accountants works in the key leadership position of business activities, they are the prime users of IT and ERP systems. Through this training the participants would be able to lead the SAP implementation team and also able to play leading role in SAP environment, SAP conversant Business professionals.
ICAB Organizes Training on ERP Software The Institute of Chartered Accountants of Bangladesh organized training on ERP Software – SAP (FICO Module) for its members with a view to achieving dynamism in management capability at its auditorium on 9 August 2014. A good numbers of ICAB members participated in the training. The training will continue till September 2014. The training is aimed to introduce the participants to SAP environment and provide fundamental knowledge about functionalities of all SAP modules. The participants will be oriented with business processes and performing day to day activities of FI & CO module. This would make them more skilled in financial reporting, managing financial risk, measuring financial performance, running corporate treasury and managing costs and working capital associated with corporate entities.
This course was planned to highlight user-centric aspects of FICO module. The participants are expected to find they well-versed with total SAP overview, reporting features in SAP FICO as well as SAP business processes. The training compositions were overview on SAP, SAP FI Module includes, General Ledger (FI-GL), Accounts Payable (FI-AP), Accounts Receivable (FI-AR), Asset Accounting (FI-AA), Bank Accounting (FI-BA), SAP CO Module, Cost Element Accounting (CO-FI part), Internal Orders accounting (CO-OM), Audit in SAP Environment and Reporting, Audit Issues in SAP Environment and Reporting. Kamal Uddn Ahmed, Secretary (Acting), Technology Division, Ministry of Information and Communication, GoB was present as Chief Guest. ICAB President Showkat Hossain FCA, Vice President Dewan Nurul Islam FCA and Council Member Gopal Chandra Ghosh FCA were present during the occasion.
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Closing and Certificate awarding ceremony of the Training on "SAP ERP -FI/CO" -1st batch As the Chief Guest of the closing Ceremony, Nazrul Islam Khan, Secretary, Ministry of ICT awarded certificates to the participants on 5th September in the closing session in presence of President-ICAB. Last Workshop on "Anti Money Laundering Compliance" The Institute of Chartered Accountants of Bangladesh (ICAB) organized a Workshop on "Anti Money Laundering Compliance" on 20 September-2014 at ICAB Auditorium. This is the 5th workshop on Anti Money Laundering organized by ICAB in association with Bangladesh Bank. Forty Five members of the Institute participated in the workshop. The core contents of the workshop were: overview of AML/CFT & relevance with accountants, money laundering prevention act 2012 & anti-terrorism
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(Amendment, 2013) Act 2009 and compliance requirement for Accountants on AML/CFT issues. Mohammad Abdur Rab, Deputy Director, BFIU, Bangladesh Bank, Mohammad Mahbub Alam, Joint Director, BFIU, Bangladesh Bank, and Mamun Hossain, Joint Director Bangladesh Bank were the resource persons of the workshop. President -ICAB inaugurated the workshop and the Vice president (E& T) made closing remarks with vote of thanks.
ICAB Organizes Training on ERP Software for its Members ICAB organized training on ERP Software – SAP (FICO Module) for its members (2nd batch) with a view to achieving dynamism in management capability at its auditorium on 17 October 2014. ICAB President Showkat Hossain FCA inaugurated the Training 2nd phase program. A total of 22 members of ICAB participated in the training.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
The training is organized to introduce the participants to SAP environment and to provide fundamental knowledge about functionalities of all SAP modules. The participants will be oriented with matters like business processes and performing day to day activities of FI & CO module. This will build mastery in financial reporting, managing financial risk, measuring financial performance, running corporate treasury and managing costs and working capital associated with corporate entities. As Chartered Accountants in the key leadership position of business activities, they are the prime users of IT and ERP systems. Through this training the participants will be able to lead the SAP implementation team and also will be able to play leading role in SAP environment. SAP conversant Business professionals, Chartered accountants, Auditors, Finance Management officials are given top priority in any business functions. This course was planned to highlight user-centric aspects of FICO module. The participants found themselves well-versed with total SAP overview, reporting features in SAP FICO and SAP business processes as well. The training compositions were overview on SAP, SAP FI Module includes, General Ledger (FI-GL), Accounts Payable (FI-AP) Accounts Receivable (FI-AR), Asset Accounting (FI-AA), Bank Accounting (FI-BA), SAP CO Module, Cost Element Accounting (CO-FI part), Internal Orders accounting (CO-OM), Audit in SAP Environment and Reporting, Audit Issues in SAP Environment and Reporting and Other Discussions.
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Abu Sufian J Alam, Chief Technology Officer (CTO), Sanofi Bangladesh Ltd., Principal Trainer (Overall SAP overview of All Module), Mohammad Atiqur Rahman ACA, Manager Financial Accounting, Sanofi Bangladesh Ltd., Specialized Trainer (FI Module) and Abdullah Al Mahbub FCA, FCMA, Associate Director Finance, Accounting, Sanofi Bangladesh Ltd., Specialized Trainer (CO Module).
Last Part of Second Phase Training on Preparation of Financial Statements for NGO-MFI Ends The last part of second phase of training programme on preparation of Financial Statement for NGO-MFI Chief Accountants started on 01 November 2014 at the Institute’s auditorium. A total 40 officials from different NGOs participated in the training. Total number of 200 officials from NGOs has participated in the training through five batches during the month of November dated as 6th batch on 1-2 November, 7th Batch on 9- 10 November, 9th batch on 16- 17 November, 10th batch on 23-24 November and 11th Batch on 30 November-1 December 2014. The resource persons of the training were ICAB Council Member and Past Presidents Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA, Council Member Masih Malik Chowdhur FCA, Dr.Abu Sayed Khan FCA, Muhammad Farooq FCA, Gopal Chandra Ghosh FCA, fellow member Ajit Kumar Paul FCA, Eftekhar Ali FCA and Bibhuti Bushan Biswas FCA. Different topics relating to accounting i.e. accounting cycle, accounting concepts, convention, assumptions, principles ad policies, cash Vs accrual
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basis of accounting, income and expenditure recognition under accrual basis, cash book, bank book, general ledger, loan ledger, maintenance of books of accounts-subsidiary registers, special register, statements and reports for microfinance management, conceptualization of international/ Bangladesh Accounting Standards (BAS), Bangladesh Financial Reporting Standard(BFRS), application of MFIs. Of BAS, BFRS, preparation of financial statements (balance sheet, income statement, cash flow statement, changes in equity statements and notes to the accounts),nature of errors and rectification of errors, preparation of debit voucher, credit and journal voucher, preparation of trial balance, preparation of receipts and payments accounts, bank reconciliation statement, accounting for depreciation/ loan loss provision and write off issues, fixed assets schedule (BAS-16),internal audit of MFIs, internal control system and verification of assets liabilities, external audit of MFIs, accounting for government grant (IAS-20),financial ratio analysis and calculating effective rate of interest were discussed in the training.
Training on ERP Software for ICAB Members Ends The training on ERP Software – SAP (FICO Module) for ICAB members (2nd batch) was concluded on 22 November 2014. ICAB organized the training with a view to achieving dynamism in management capability which was started on 17 October 2014. Shayam Sunder Sikder, hon'ble Secretary, Information & Communication Technology Division, Ministry of Information and Communication Technology, GoB
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distributed the certificates among the participants at function held at ICAB on 22 November 2014. ICAB President Showkat Hossain FCA, Vice President (E & T)-. Dewan Nurul Islam FCA, Chairman, CPDC-ICAB Gopal Chandra Ghosh FCA, Council Mmber and Past Presidents Md. Humayun Kabir FCA, Md. Abdus Salam FCA and Council Member Masih Malik Chowdhury FCA were present on the occasion. The training was organized to introduce the participants to SAP environment and to provide fundamental knowledge about functionalities of all SAP modules. The participants will be oriented with matters like business processes and performing day to day activities of FI & CO module. This will build mastery in financial reporting, managing financial risk, measuring financial performance, running corporate treasury and managing costs and working capital associated with corporate entities. This course was planned to highlight user-centric aspects of FICO module. The participants found themselves well-versed with total SAP overview, reporting features in SAP FICO and SAP business processes as well. The training compositions were made based on overview on SAP, SAP FI Module includes, General Ledger (FI-GL), Accounts Payable (FI-AP) Accounts Receivable (FI-AR), Asset Accounting (FI-AA), Bank Accounting (FI-BA), SAP CO Module, Cost Element Accounting (CO-FI part), Internal Orders accounting (CO-OM), Audit in SAP Environment and Reporting, Audit Issues in SAP Environment and Reporting and Other Discussions.
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Workshop on Code of Ethics Professional Accountants Held
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for
A workshop on Code of Ethics for professional accountants (IESBA 2013 Edition) took place at ICAB auditorium on December 05, 2014. Vice President of ICAB, Mr. Kamrul Abedin FCA inaugurated the workshop, and the sessions were facilitated jointly by Mr. Gopal Chandra Gosh FCA, member of Council-ICAB, and Mr. Mahbub Ahmed Siddique FCA, Director (technical)-ICAB. Fifty number of Members of ICAB who were selected in response to the circular on first come first served basis, participated the workshop. This Code contains three parts. Part A establishes the fundamental principles of professional ethics for professional accountants and provides a conceptual framework that professional accountants shall apply to: (a) Identify threats to compliance fundamental principles;
with
the
(b) Evaluate the significance of the threats identified; and (c) Apply safeguards, when necessary, to eliminate the threats or reduce them to an acceptable level. Safeguards are necessary when the professional accountant determines that the threats are not at a level at which a reasonable and informed third party would be likely to conclude, weighing all the specific facts and circumstances available to the professional accountant at that time, that compliance with the fundamental principles is not compromised.
A professional accountant shall use professional judgment in applying this conceptual framework. Part B and C describe how the conceptual framework applies in certain situations. They provide examples of safeguards that may be appropriate to address threats to compliance with the fundamental principles. They also describe situations where safeguards are not available to address the threats, and consequently, the circumstance or relationship creating the threats shall be avoided. Part B applies to professional accountants in public practice. Part C applies to professional accountants in business. Professional accountants in public practice may also find Part C relevant to their particular circumstances.
Workshop on General IT Controls & Application Controls Held The Institute of Chartered Accountants of Bangladesh (ICAB) organized a workshop on "General IT Controls & Application Controls: What to Consider when performing an Audit of Financial Statement" held on 6th December 2014 at ICAB auditorium, CA Bhaban. The Participants were awarded with 03 (three) CPD Credit Hours for attending the workshop. The workshop was facilitated by Sk. Ashik Iqbal, Manager with KPMG in Bangladesh.Total number of fourty five members were attended the workshop. The purpose of this workshop was to draw a clearing picture that includes a number of issues. For instance, Flow of information within a process by identifying inputs, applications and outputs of an IT system. Processes related to application controls that address risks. Relevant General IT Controls when relying on application controls IT considerations in the
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audit and to understand how IT fits into the audit Role and accountabilities of auditors in relation to IT in the audit. Describe how to select and capture relevant IT applications. Explain the impact of selecting automated or manual controls on audit efficiency and effectiveness. Identify why and when to test relevant General IT Controls. Determining scope elements of a General IT Controls environment and assess deficiencies. Determining reliability of system generated reports if relevant General IT Controls are ineffective or not tested.
Training on Preparation of Financial Statements for NGO-MFI Ends on December The last part of second phase of training program on preparation of Financial Statement for NGO-MFI Chief Accountants started on 01 November 2014 at the Institute’s auditorium and ends on 22 December 2014. About 40 officials from different NGOs participated the training in each batch. A total of 160 officials from NGOs has participated in the training through four batches during the month of December, 2014; dated as 11th Batch on 8- 9 December, 12th Batch on 13- 14 December, 13th Batch 17- 18 December, and 14th Batch on 21- 22 December 2014.
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The resource persons of the training were ICAB Council Member and Past Presidents Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA, Council Member Masih Malik Chowdhur FCA, Dr.Abu Sayed Khan FCA, Muhammad Farooq FCA, Gopal Chandra Ghosh FCA, fellow member Ajit Kumar Paul FCA, Eftekhar Ali FCA and Bibhuti Bushan Biswas FCA.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
Different topics relating to accounting i.e. accounting cycle, accounting concepts, convention, assumptions, principles ad policies, cash Vs accrual basis of accounting, income and expenditure recognition under accrual basis, cash book, bank book, general ledger, loan ledger, maintenance of books of accounts-subsidiary registers, special register, statements and reports for microfinance management, conceptualization of international/ Bangladesh Accounting Standards (BAS), Bangladesh Financial Reporting Standard(BFRS), application of MFIs. Of BAS, BFRS, preparation of financial statements (balance sheet, income statement, cash flow statement, changes in equity statements and notes to the accounts),nature of errors and rectification of errors, preparation of debit voucher, credit and journal voucher, preparation of trial balance, preparation of receipts and payments accounts, bank reconciliation statement, accounting for depreciation/ loan loss provision and write off issues, fixed assets schedule (BAS-16),internal audit of MFIs, internal control system and verification of assets liabilities, external audit of MFIs, accounting for government grant (IAS-20),financial ratio analysis and calculating effective rate of interest were discussed in the training.
1.4 EXAMINATION ICAB dose not compromise with the standard and transparency of its examination system. The examination-related activities of 2014 are summarized in the following subsequent paragraphs.
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Holding of Examinations
Examination in London Centre
As usual we held two examinations in the year 2014. In May-June 2014 session, examinations were held at Dhaka, Chittagong and London centres simultaneously. But in November – December 2014 session examinations were held at Dhaka and Chittagong centres only.
We successfully arranged our Professional Examinations at London centre in May-June 2014 session. The examinations were held in the office of the High Commission of Bangladesh in London. The ICAB UK Chapter Management Committee extended full support and co-operation in holding the examinations.
Result Result of different levels of Professional Examinations declared in 2014: Level
Nov-Dec 2013 fully Appeared Passed
%
Partly Passed
%
PSK
3900
294
7.5
1072
27.5
PSA
1409
52
3.7
470
33.3
AS
117
17
14.5
49
41.8
PE-III 155
45
29
35
22.5
May-June MayLevel 2014 June 2014
MayJune 2014
MayJune 2014
MayJune 2014
Appeared
Appeared Appeadred Appeared Appeared
PSK
3771
3771
3771
3771
3771
PSA
1550
1550
1550
1550
1550
AS
149
149
149
149
149
×
×
×
×
PE-III ×
Punishment The Council withheld results of 07 candidates in May-June 2014 Examination Session for violation ICAB discipline. Out of them, 02 examinees had been debarred from appearing at the Nov-Dec 2014 Examinations.
Conversion Course Examination The last Conversion Course Examination on ‘Preparing Limited Company Accounts’ (9th Batch) was held in April-May 2014. 35 examinees out of 38 passed and got exemption from ‘Accounting’ of Professional Stage Knowledge Level Examination. The last Conversion Course Examination on ‘IFRS Framework and Financial Reporting Inconformity with BAS Requirements’ (5th Batch) was held in April-May 2014. 10 examinees out of 11 passed and got exemption from ‘Financial Accounting’ of Professional Stage Application Level Examination.
Extension of duration of examination The Council has re-fixed the duration of Professional Stage Examinations of the Institute with effect from November-December 2014. The duration of Knowledge Level Examinations will be from one hour and a half to two hours except Taxation-I which is as usual of three hours duration. The duration of Application Level Examinations will be from two hours and a half to three hours.
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1.5 AWARD GIVING CEREMONY 2014 FOR BRILLIANT CHILDREN OF ICAB MEMBERS & EMPLOYEES The Institute has been expanding both qualitatively and quantitatively and as a natural offshoot has introduced an inspiring even through awarding the brilliant children of the members and employees of ICAB for their academic excellence at JSC, SSC, HSC, “O” and “A” equivalent levels. To award the brilliant children of the members and employees the Institute has been organizing each year an award giving ceremony in a gorgeous manner and festive mood under the folder of the Members Services and Welfare Committee (MSWC) of the Council ICAB.
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SELECTION CRITERIA FOR AWARD The criteria for the Award for 2014 as decided by MSWC Committee is as follows: Examination Minimum GPA/ Grade Requirement JSC-2013 GPA 5.00 SSC & HSC 2014 GPA 5.00 “O” Level January and June 2014 6 As “A” Level January and June 2014 3 As Total 30 children of ICAB Members and Employees have fulfilled the above criteria and is awarded the ICAB Brilliant Children Award for the year 2014 on 23 December 2014. Mr. AHM Mustafa Kamal FCA , MP Hon’ble Minister , Ministry of Planning, GoB graced the occasion as the chief guest.
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2.0
STUDENTS' AFFAIRS INCLUDING LIBRARY FACILITIES
2.1 ARTICLED STUDENTS During the year 2013-2014, the Institute granted registration to 1588 students for Article ship. A number of 1221 students completed their Article ship training and 32 Articled Students discontinued Articles ship due to various reasons. In the second half of 2014, 735 students were registered for Article ship. Detailed statistics are as follows: Total number of Articled Students as on 01 July 2013
4272
Add: Registered during 2013-2014
1588 5860
Less: Course Completed during 2013-2014 Discontinued during 2013-2014
(1221) (32)
In Course Articled Students as on 30 June 2014
(1253) 4607
The Growth of Articled Students over the years is shown in the chart below:
New Registration
Total
5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0
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2.2 SCHOLARSHIPS & GRANTS Sl No
Name of scholarships
Amount disburse during the Year Total 1st Year 2nd Year 3rd Year disburse Installment Installment Installment 54,000/18000/- 72,000/42,000/42,000/96,000/96,000/120,000/60,000/180,000/60,000/60,000/90,000/60,000/150,000/24,000/24,000/48,000/60,000/60,000/Not disburse during the year Not disburse during the year Total disburse during the year: 708,000/Effective from 1st January 2015 60,000/st Effective from 1 January 2015 120,000/Effective from 1st January 2015 120,000/-
Number of scholarships
1 2 3 4 5 6 7 8
ACNABIN General Scholarship ABM Azizuddin Scholarship RRH Scholarship S F Ahmed Foundation Scholarship M H Chowdhury Scholarship M. Mashiur Rahman Scholarship AKM Mizanur Rahman Scholarship Shasha Foundation Scholarship
3 1 4 2 2 3 1 2
9
ACNABIN Female Scholarship
3
10
A.F. Mujibur Rahman Foundation Scholarship
3
11 12 13
Masih Muhith Haque Scholarship Syful Shamsul Alam Scholarship Howladar Yunus Scholarship
In addition Shasha Foundation will also provide a sum of Tk. 2000/- per year for reading materials to the awardees. Grants and Scholarship to BCACP During the year 2014, Tk. 16,80,000/- as scholarship from the General Fund, Tk. 8,40,000/- as General Grant, Tk. 5,94,870/ as office rent, Tk. 6,07,510/- as Student Association fees and Tk. 75,000/- as
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Installation Ceremony. The total amount of Tk. 37,97,380/- were disbursed to Bangladesh Chartered Accountancy Chhatra Parishad (BCACP) as part of students welfare.
2.3 ARTICLED STUDENTS’ ALLOWANCES The Council approved the enhancement of the monthly allowance of Articled Students as below effect with from 1 July 2011:
Years of allowance
1st year
2nd year
3rd year
4th year
Amount (Taka)
Tk.3,000/-
Tk.3,500/-
Tk.4,000/-
Tk.4,500/-
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2.4 ICAB LIBRARY SERVICES FOR STUDENTS It is encouraging to mention here that the number of library users of Dhaka and Chittagong are increasing. This trend obviously indicates the seriousness of CA students to qualify the professional examinations at the earliest possible time. Moreover a large number of members are also using the Library facilities.
Stocks and additions of books as on 30 June 2014
In the year 2014, the ICAB Libraries both in Dhaka and Chittagong have been enriched with professional books, journals and periodicals of updated versions. The Library service is now under process of automation. The institute has initiated to introduce modernization of ICAB Library services through installation of integrated, web based library automation system e, g. digital library management software and also e-library under the World Bank Project.
2.5 CAMPUS ACTIVITIES
Library hour is from 10.00am to 9.00pm in two shifts from Saturday to Thursday and 3.00pm to 9.00pm onr Friday but during examinations library remains open up to 10.00pm for all days of the week for the benefit of CA students and members.
During the year 2014, the pre-examination evening coaching classes different levels for three months had been organised at Dhaka Centre.The pen picture of the levels and number of attending students & teachers in the courses are furnished below:
Stocks of books as on 30 June 2014
19820
Purchased during the year
654
Received as donation during the year
274
Stocks of books as on 30 June 2013
18892
Books sent to CRC during the year
112
Daily average attendance of the students
250
Level of Course (New Syllabus)
Centre
Examination Session
No. of Students
No. of Teachers
PS-KL (9th Batch) PS-AL (8th Batch) AS (7th Batch)
Dhaka Dhaka Dhaka
May-June 2014 May-June 2014 May-June 2014
601 244 53
119
PS-KL (10th Batch) PS-AL (9th Batch) AS (8th Batch)
Dhaka Dhaka Dhaka
Nov-Dec 2014 Nov-Dec 2014 Nov-Dec 2014
733 203 74
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(Grand Total: 03 Levels, 02-Examination Session, # Total Students=1,908, # Total Teachers=241) Level of Course (Old Syllabus) Conversion Course (s) on 'Accounting' of PSKL & AL
Centre
Examination Session
No. of Students
No. of Teachers
Dhaka
May-June 2014
49
15
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(Grand Total: Conversion Courses on 'Accounting', Class Session: April-May 2014 , # No. of Students=49, # No. of Teachers=15) Note(s): 1.
The total cumulatative number of participated students of ICAB New Curriculum are as 7,629 , till 29 November 2014 (counting from January 2010);
2.
The total number of students joined in Conversion Courses (PS-KL & AL) had been reached at 1,274, till 26 May 2014 (counting from 18 September 2010); and
3.
Classes are now organised smoothly in A.C. Rooms at Campus withchordless Microphone and Electronic Multimedia Presentatier.
CA Hostel Anniversary President-ICAB Showkat Hossain attended 27th CA Hostel Anniversary Programme 2014 at a City hotel on 25 March 2014 which was organized by Bangladesh Chartered Accountancy Chhatra Parishad. As Chief Guest ICAB President in his speech provided some important guidance for CA Students and assured them ICAB’s all out cooperation and support to be continued with a view to produce better CA Professionals. Among others Ajit Kumar Paul, Fellow Member of the Institute and Joint Secretary, Ministry of LGRD & Co-operatives were present on the occasion. ICAB President Attends Installation Ceremony of Executive Committee of BCACP President-ICAB Showkat Hossain attended Installation Ceremony of Executive Committee of Bangladesh Chartered Accountancy Chhatra Parishad (BCACP) 2012-2014 held on 30 March 2014 at Engineering Institute, Dhaka. ICAB President was present on the occasion as Chief Guest. The office bearers of BCACP pose for photo session with the President of the Institute. BCACP Ad-hoc Committee Met ICAB President
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The Members of the Ad-hoc Committee, Bangladesh Chartered Accountancy Chhatra Parishad (BCACP) of ICAB paid a courtesy call on ICAB President Showkat Hossain FCA at latter’s office on 15 April 2014. They held a meeting with the ICAB President and discussed on various academic issues like ICAB curriculum,
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library facilities, examinations and the accommodation problems in CA Hostel. ICAB President assured them of his best cooperation to ensure proper educational environment and other related facilities for the sake of the development of the profession. He advised the students to be more attentive in their studies. He further said there is no alternative to study to pass the examinations and hard work is essential for qualifying the exams. The Members of the BCACP Committee handed over a bouquet to the ICAB President on the occasion. BCACP New Office Bearers Meet ICAB President
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The Honourable President of the ICAB graced the program as Chief Guest and handed over crests to the qualified Chartered Accountants. The partners of ACNABIN were present in the program and gave their valuable advices and spoke out words of encouragement for all the students and staff presented. The Partners and the students exchanged views in the meeting which will help to make better performance in the coming examinations. The successful candidates also shared their experiences and advised the students on various aspects of C.A. Examinations.
Newly elected committee of Bangladesh Chartered Accountancy Chhatra Parishad (BCACP) paid a courtesy call on ICAB President Showkat Hossain FCA at his office on 24 August 2014. They present flower bouquets to the ICAB President on behalf of the BCACP Committee. President of the BCACP introduced the committee members with the ICAB President. During the meeting ICAB Secretary AKM Rahmat Ullah FCA was present. ICAB President advised the new committee members to work for the development of academic environment on the Campus and he assured ICAB would extend all out cooperation for any positive role the committee members undertakes for the benefit of the general students. President ICAB Joins Bi-Annual Review Meeting on Performance of ACNABIN students in CA Exams as Chief Guest ACNABIN, Chartered Accountants organized bi-annual review meening on performance of ACNABIN students in C.A. Examination: May-June 2014 on 25 September 2014 at its Training/ Assembly Hall. The program discussed the performance of the students of the firm in May-June 2014 session and congratulated the newly qualified Chartered Accountants.
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3.0
MEMBERS’ CONFERENCE/CONTINUING PROFESSIONAL DEVELOPMENT (CPD) PROGRAMME
Members Conference on ‘Women in the Accountancy Profession in Bangladesh’
Accountants, Chittagong, were present as the panel speakers at the conference.
The Institute of Chartered Accountants of Bangladesh (ICAB) arranged the members' conference on "Women in the Accountancy Profession in Bangladesh" at the ICAB’s auditorium in the city marking the International Women's Day on 8 March 2014.
Mr Javed Siddiqui in his presentation said though the number of female Chartered Accountant (CA) is increased, their participation in the profession remained significantly low.
HT Imam, Prime Minister's political adviser, was the chief guest while ICAB president Showkat Hossain FCA gave welcome speech at the function. Dr Javed Siddiqui, faculty member, Manchester Business School, University of Manchester, UK, presented a key-note paper while Ms. Parveen Mahmud FCA, past president of the ICAB, moderated as session chairman. ICAB Past President Mrs. Parveen Mahmud was also present in the conference. Ms Suraiya Zannath Khan FCA, senior financial management specialist, South Asia Region, World Bank, Ms Shama Rukh Alam FCA, group finance director, Duncan Brothers (BD) Ltd, Ms Akhtar Sanjida Kasem FCA, partner, A Qasem & Co. Chartered Accountants and Ms Ratna Dutta FCA, proprietor, Dutta & Co. Chartered
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In Bangladesh, only 22.9 percent female are employed in jobs including accountancy profession while the same is 68.3 percent in case of male. Such gender inequity in the national level is grossly attributed due to multiple socio-cultural factors, such as structural and social institutions, lack of policy initiatives and traditional mind-set towards the role of women in the society etc. To enhance the participation of female chartered accountant in the policy making position, Mr Javed made some suggestions. The ICAB could take catalytic role in awareness building, Mr Siddique said. "At present, women only account for 4.67 percent of the total number of chartered accountants in Bangladesh, suggesting the existence of a gender gap."
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Members Conference on ‘Conducting Audit in an Automated Environment’ The Institute of Chartered Accountants of Bangladesh a members conference on ‘Conducting Audit in an Automated Environment’ at its auditorium on Wednesday, 19 March 2014. Md. Lukman Chowdhury, Member, Audit, Intelligence and Investigation, National Board of Revenue (NBR) was present as Chief Guest. Muhammed Farhad Hussain FCA, Member Council & Past President-ICAB conducted the seminar as session chairman while Showkat Hossain FCA, President- ICAB delivered the welcome speech. ICAB Past President Mr Farhad Hussain FCA also gave a short speech in the conference. Sabbir Ahmed FCA of the Hoda Vasi Chowdhury & Co, Chartered Accountants presented a key-note paper at the seminar highlighting the requirement to consider IT in audit, assessment of IT criticality in audit, IT in financial reporting, its access, information security in the changing world etc. The output of end-user computing processes frequently appears as an authoritative document that will be relied on by management in financial reporting, the keynote speaker Sabbir Ahmed pointed out in his paper and suggested that IT based information could reduce the complexities regarding legal, compliance, regulatory, operational and public relations, etc that cause erosion of customers, market share and revenue.
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Technology changed the way of auditing; increasingly the manual evidence of information is no longer exists. Where audit evidence is solely electronic, it requires acquiring specialized knowledge and techniques about the process and it is much important for reducing the audit risk, he writes in the paper. Management should have appropriate controls over technology so that all critical data, transactions and programs are backed up on a defined schedule and that the backups are complete, accurate and can be recovered if needed, he emphasized in the paper. Members Conference on ‘An analysis Macroeconomic performance of Bangladesh’
on
ICAB organised a members conference on ‘An analysis on Macroeconomic performance of Bangladesh’ at its auditorium on Thursday, 15 May 2014. Mr. Moazzem Hossain, Editor of the Financial Express was present as the Chief Guest. ICAB President Showkat Hossain FCA delivered the welcome speech while Council Member and Past President Anwaruddin Chowdhury FCA moderated the program as Session Chairman. ICAB Council Member Md Shahadat Hossain FCA presented the key-note paper in the seminar. The government's unnecessary spending should be avoided in the national budget as it leads to widening deficit financing and raising the volume of debts significantly, said the keynote paper Md Shahadat Hossain FCA. He said such types of government expenses help raising the volume of interest
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payments each year, and it grows fast. The paper noted that unnecessary development projects taken by the government create inflationary pressure in the country, which erodes the purchasing power of the middle- and limited-income bracket people. Members’ Conference on ‘Amendments in the Bank Companies ACT, 1991 and its implications on External Audit of Banks’ ICAB organised a Members’ Conference on “Amendments in the Bank Companies ACT, 1991 and its implications on External Audit of Banks’ at ICAB Auditorium on Wednesday, 25 June 2014. Md. Abul Quasem, Hon'ble Deputy Governor, Bangladesh Bank was present as chief guest and ASM Nayeem FCA,
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Member Council and Past President- ICAB was present as Session Chairman. While Sabbir Ahmed FCA, Hoda Vasi Chowdhury & Co, Chartered Accountants presented the Key-note Paper. The Key-note speaker said that audit is a dynamic and evolving matter, requiring constant update of knowledge and rigorous learning and development programs for all level of staff including partners of an audit firm. He further said that since auditing and accounting standards are changing, so as regulations, a practicing chartered accountant auditing a Bank requires to invest substantial time and resources to keep them updated on these changes. Through this continuing professional development, an auditor ensures delivery of high quality audit, he added.
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Members’ Conference on ‘An analytical study of significant amendments made by the Finance Act (# 04) 2014 and SROs thereunder’ To understand the impact of changes in Tax, VAT, Customs Regulations and overall amendments made through Finance Act and SROs, like previous year the Institute of Chartered Accountants of Bangladesh (ICAB) organized Members’ Conference on “An analytical study of significant amendments made by the Finance Act (# 04) 2014 and SROs thereunder on Stamps, Customs, Income-tax, VAT and Sur-charges regulations at CA Bhaban in the city.” Mr. MA Mannan, MP, Hon’ble State Minister, Ministry of Finance and Planning, GoB graced the occasion as the Chief Guest while Mr. Md. Humayun Kabir FCA, Member Council and Past President-ICAB conducted the Conference as Session Chairman.
parts of building construction bring good result in 100% export orientated industries like RMG,Textiles, Leather, etc. Members’ Conference on ‘Global Audit ReformsChallenges and Opportunities’
Mr. Abul Khair Chowdhury FCA, Past President-ICAB and Managing partner, Hoda Vasi Chowdhury & Co., Chartered Accountants and Mr. Abdul Khalek FCA, Director (Finance) and Company Secretary, Berger Paints Bangladesh Ltd jointly presented the Key-note paper in the Conference. ICAB President Mr. Showkat Hossain FCA, Council Members, Past Presidents and ICAB members attended the Conference.
ICAB organized Members’ Conference on "Global Audit Reforms- Challenges and Opportunities” on 27 October 2014 at the Institute’s Auditorium, CA Bhaban,Dhaka. ICAB President Showkat Hossain FCA delivered welcome address at the conference. Reyaz Mihular FCA, Managing Partner, KPMG Sri Lanka presented the Keynote Paper while Adeeb H. Khan FCA, Member Council was the Session Chairman of the Conference.
The key-note speakers in their paper made few recommendations regarding amendments on Tax and VAT through Finance Act 2014. In the paper they mentioned that from now onwards any dispute relating to mandatorily PSI (Pre-Shipment Inspection) can be re-solved through ADR, Export Duty (ED) on rice export will create an adverse impact, zero rated custom duty on import of structures, materials &
Keynote presenter Reyaz Mihular FCA discussed about new auditor reporting requirements, key audit matters, proposed changes in ISA 570, ISA requirements and it comparison with UK and EU requirements. He also discussed about EU Audit Reforms, its different aspects and their impact on audit.
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As session chairman Adeeb Hossain FCA, ICAB Council Member summing up the session said that last few years, many changes have taken place in banking audit based on some ground realities. To keep abreast, ICAB is always pro active to trim up its accountants with these changes. As the member of SAFA, CAPA, IFAC, IASB, the members of the Institute are required to be informed about the global audit reform, he said. Members’ Conference on ‘Enhance Practice Management and New Service Opportunities in SME Sector’ ICAB organized Members’ Conference on “Enhance Practice Management and New Service Opportunities in SME Sector’ at its auditorium on 02 December 2014.
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Dhaka Chamber of Commerce & Industry President Mohammad Shahjahan Khan was the Chief Guest and President of ICAB Showkat Hossain FCA delivered the welcome speech in the conference. AK Chowdhury FCA, Managing Partner, Hoda Vasi Chowdhury & Co, Chartered Accountant and Past President of ICAB conducted the seminar as Session Chairman. ICAB Council Member and Past President M. Farhad Hussain FCA presented the Key-note paper. Mr. Farhad in his presentation described the key aspects of practice management like strategy and planning, structure and models and business development, etc. He also mentioned some new opportunities for Chartered Accountants as well as some challenges.
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Members’ Conference on ‘South Asian Economies: The Growing Power’ The Institute of Chartered Accountants of Bangladesh organized seminar on “ South Asian Economies: The Growing Power” at its auditorium on 14 December 2014. Dr. Ahsan H. Mansur, Executive Director, Policy Research Institute of Bangladesh conducted the seminar as Session Chairman and ICAB President Showkat Hossain FCA delivered the welcome speech. Suraiya Zannath, FCA Senior Financial Management Specialist, South Asia Region, World Bank presented the key-note paper in the seminar. Key-note speaker Suraiya Zannath, FCA Senior Financial Management Specialist, World Bank mentioned that with a sustained average growth rate of 6.7% over 2000-2012, South Asia is currently the second fastest growing region in the world. Economists predict that growth will continue at 6-8% until approximately 2025, she added.
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In her paper she said this growth is possible because of closer affiliation to China via multilateral frameworks such as SAARC and APTA that would create further opportunities for economic benefits through increased trade, FDI, infrastructure building etc. she also pointed out some key drivers for South Asian Countries growth such as demographic dividend, infrastructure, inclusive growth, institutions, market integration, rise of the middle class, human mobility and high remittances, service sector development and regional integration. CRC Holds CPD Seminar on ‘BFRS-13: Fair Value Measurement’ The Chittagong Regional Committee (CRC) of ICAB organized a CPD Seminar on ‘BFRS-13: Fair Value Measurement’ on Saturday, 1 February 2014 at the Conference Hall of ICAB –CRC office, Chittagong.
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Showkat Hossain FCA, President-ICAB graced the occasion as Chief Guest, Nasim Anwar FCA, Vice President-ICAB was Special guest while Mohammad Solaiman FCA, Former President of Taxes Appellate Tribunal, Dhaka moderated the session as session chairman. Ahmad Dawood FCA, Chief Financial Officer & Company Secretary, Chittagong Stock Exchange Limited presented the valuable Key-note paper in the seminar. The summary of the Key-note is as follows: Valuation has always been considered as an interesting subject for professional accountants. Sometimes it creates controversies among the different interest groups as it involves use of significant judgments. BFRS 13 is a significant step forward in establishing consistent fair value measurement and disclosure guidance across BFRSs. Many old concepts regarding fair value have been changed. Above all, the new standard requires fair value to be measured as an exit price from the perspective of market participants in the 'principal' market even if transaction normally takes place in a different market. Even if a fair value measurement itself does not change, the new standard includes new disclosure requirements that may require additional data collection on unobservable inputs used for fair value measurements, sensitivity to these inputs and inter-relationships between them on unrealised gains and losses and on the fair value hierarchy.
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Financial Statements' on Saturday, 26 April 2014 at the Conference Hall of ICAB-CRC office, Chittagong. Alihussain Akberali FCA, Chairman, BSRM Steels Limited graced the occasion as Chief Guest and Haradhan Dey FCA, Partner MRH Dey & Co., Chartered Accountants was Session Chairman. Md. Shaifur Rahman Mazumdar FCMA, FCA, Past Chairman, ICAB-CRC presented the valuable Key-note paper in the seminar. Information about the reporting entity is useful to existing and potential investors, lenders, regulators and other users. Financial reporting can be made on different bases, assumptions and judgments. The ultimate objective of this standard is to ensure harmonization in reporting and also to ensure comparability in different years and entities so that the users can get true, fair and unbiased information for their economic decisions. IAS-1 gives guidelines on structure, contents, styles, policies, disclosures regarding preparation and presentation of financial statements. CRC Holds CPD Seminar on 'Salient Features of Bank Company Act, Recent Amendments & Issues'
CRC Holds CPD Seminar on 'IAS-1: Presentation of Financial Statements'
The Chittagong Regional Committee (CRC) of ICAB organized a CPD Seminar on 'Salient Features of Bank Company Act, Recent Amendments & Issues' on Saturday, 12 April 2014 at the Conference Hall of ICAB-CRC office, Chittagong.
The Chittagong Regional Committee (CRC) of ICAB organized a CPD Seminar on 'IAS-1: Presentation of
Mohammed Roshangir, Deputy Managing Director, Bank Asia graced the occasion as Chief Guest, Md.
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Salim Uddin MBA, FCMA, FCA, Professor, Department of Accounting & Information Systems, University of Chittagong was Session Chairman. Imtiaz Alam ACA Proprietor, Imtiaz Alam & Co., Chartered Accountants presented the valuable Key-note paper in the seminar. The Key-note speaker described the details in his paper regarding Bank Company Act, recent amendments & other related issues. A short note is given hereunder. CRC Organizes CPD Seminar on ‘Harmonization of Financial Reporting and Audit Practices: Bangladesh Perspective’ The Chittagong Regional Committee of ICAB organized Continuous Professional Development (CPD) Seminar on ‘Harmonization of Financial
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Reporting and Audit Practices: Bangladesh Perspective’ at its Conference Hall on 31 May 2014. ICAB President Showkat Hossain FCA graced the occasion as Chief Guest. Dr. Mohammad Ayub Islam, Professor, Department of Accounting & Information Systems, University of Chittagong moderated the seminar as Session Chairman. Anwaruddin Chowdhury, Council Member and Past President-ICAB presented the valuable Key-note Paper in the seminar. A total number of 72 ICAB Members attended the seminar. CRC Holds CPD Seminar on 'Integrated Reporting: Challenges and Opportunities' The Chittagong Regional Committee (CRC) of ICAB organized a CPD Seminar on 'Integrated Reporting:
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Challenges and Opportunities' on Saturday, 21 June 2014 at the Conference Hall of ICAB-CRC office, Chittagong. Professor Md. Helal Uddin Nizami, Commissioner, Bangladesh Securities and Exchanges Commission graced the occasion as Chief Guest, Mr. Showkat Hossain FCA, President-ICAB & Resident Partner, Hoda Vasi Chowdhury & Co., Chartered Accountants was present as Special Guest and Mr. Md. Salim Uddin MBA, FCMA, FCA, Professor, Department of Accounting & Information Systems, University of Chittagong was Session Chairman. Mr. Anwaruddin Chowdhury FCA, Member Council & Past President, ICAB and Director CAPA Board presented the valuable Key-note paper in the seminar. A total number of 61 ICAB Members attended the seminar.
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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
Members’ Meeting on ‘Six months' performance of ICAB, Finance Act 2014 and Proposed Financial Reporting Act’ A meeting of members was held on “six months' performance of ICAB, Finance Act 2014 and Proposed Financial Reporting Act" at Conference Hall, ICAB-Chittagong Regional Office (CRC) on 22 July 2014. In the meeting President ICAB Showkat Hossain FCA, Vice President Nasim Anwar FCA attended the meeting. President ICAB apprised different steps taken by ICAB on Finance Act 2014, FRA etc. and urged all members to perform their responsibilities without tear or favour and with highest professional acumen. A total number of 70 ICAB Members of Chittagong area attended the meeting.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
CRC Holds CPD on Finance Act 2014 and SROs on Income Tax and VAT Regulations The Chittagong Regional Committee (CRC) of ICAB organized a CPD Seminar on 'An analytical study of significant amendments made by the Finance, Act, 2014 and SROs thereunder on Income Tax and VAT regulations' on 6 September 2014 at the Conference Hall of ICAB-CRC office, Chittagong. Apurba Kanti Das, Commissioner of Taxes, Taxes Zone-2, Chittagong graced the occasion as Chief
2014
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& FINANCIAL STATEMENTS 2013-2014
Guest and Mohammad Solaiman FCA, Former President, Taxes Appellate Tribunal, Dhaka was Session Chairman. Moddassar Ahmed Siddique FCA, Group Chief Financial Officer, KDS Group presented the valuable Key-note paper in the seminar. A good number of Members attended the programme. Study Manuals for all Levels are the following are available in counceling centre:
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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
4.0
COMPLIANCE WITH IFAC SMOs
2014 is an excellent year for ICAB considering the national and international technical compliance and receiving official appreciation, specially from International Federation of Accountants (IFAC). It is true that ICAB gave due importance in all spheres of compliance matter that comes as compulsion from international as well as domestic bodies throughout the year 2014. As a recognition, ICAB received a letter of appreciation from IFAC that clearly admitted ICAB commitment towards SMO Action Plan and IFAC allows ICAB for biennial submission of such plan instead of annual submission which indicates IFAC firm satisfaction on ICAB compliance and commitment.
4.1
ICAB COMPLIANCE REPORT
Seven IFAC SMOs for ICAB ICAB is a member of the International Federation of Accountants (IFAC). ICAB has been complying the different requirements of IFAC from time to time. The first draft of ICAB action plan on IFAC SMOs was develop in 2008 and made available at IFAC website in 2009. Thereafter the Institute made available the revised and updated SMOs action plan every year. In February 2014, representative from ICAB and other SAFA Member Bodies hold a
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discussion meeting with Mr. Warren Allen, President of IFAC and his team regarding the strategic action plan including supporting standards development, improving quality and capacity, supporting the profession and engaging in global representation and advocacy. ICAB is always committed to comply these SMOs requirements on continuing basis for professional excellence. ICAB has been included in the list of IFAC members eligible for submitting their Statements of Membership Obligations (SMO) Action Plan updates on a biennial basis. This change seeks to ease reporting obligations in response to members’ feedback on the annual reporting requirement. The Compliance Advisory Panel (CAP) and Member Body Development (MBD) staff will review the effectiveness of this approach within two years of its implementation. The biennial update offers Member Bodies that have demonstrated a consistent commitment to the Action Plan process the possibility of updating their Action Plan on a biennial schedule (every two years). So, ICAB need to submit its next SMO Action Plan in 2016 instead of 2015. It is noted here that ICAB submitted its last SMO action plan at early 2014. Some of the major actions taken during this year are discussed in subsequent paragraphs. The Seven (07) IFAC Statements of Membership Obligations (SMOs) are as follows:
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IFAC SMOs
Background information
SMO 1 - Quality Assurance
A Quality Assurance Board (QAB) was formed in 2004 and has been carrying out its assigned tasks in a planned and systematic manner. The quality assurance review system was set up with support of a twinning project with ICAEW to provide technical support for capacity building of ICAB members and firms. After setting up a Quality Assurance Department (QAD), QAB is monitoring and guiding QAD for activities relating to quality assurance in accordance with IFAC SMO 1. In 2008 and 2009, ICAB adopted and published ISQC 1 as BSQC 1 and an Audit Practice Manual (APM) and disseminated these to all of its practicing members including arrangement of numbers of workshops on implementation of the APM. The Quality Assurance Board performs the following functions:
Key performance
(QAB)
Develop a framework and establish policies and procedures for the quality assurance program; Establish quality control standards and guidelines to audit practice; Carry out review of working papers relating to audits; Monitor the quality assurance program to ensure its effective implementation; Arrange training programs, CPDs and workshops to improve the standard of audit; Perform a periodic review of the quality assurance Program; and Any other functions delegated to it by the Council. In 2010, ICAB started mandatory QA visits. The 47 firms auditing listed entities were covered during the first year of implementation. Gradually extended the coverage of visits to all other practicing firms licensed by ICAB. In 2011, more than one third of the total firms were visited including follow-up visits to those deemed as operating unsatisfactorily. The QAD reviewer received on hand training in the UK from ICAEW staff. ICAEW continues to provide ongoing advice and guidance where needed. The QAD has completed the first round of visits by the end of 2012. Overall activities of the QAD are running smoothly and in alignment with SMO1. In 2012, ICAB delivered QA workshops for practicing members and shared the results of QAD visits to assist practicing members in improvement and strengthening of their systems to comply with QA requirements.
Collected the Annual Return Form from all audit firms within stipulated time Prepared a database based on the Annual Return Forms 2013 Conducted a number of meetings on quality assurance and other professional development issues. Updated the QAB regarding the visit status from 2010 to 2013 and developed visit plan and other activities for the year 2014 Conducted QAD visits to more than 40 firms in 2014, prepared reports on the main issues identified during reviews of auditors and audit firms Awareness-raising among practicing members at the time of QAD visit regarding the importance and significance of the overall quality assurance system as an ongoing basis Report to the respective firms and QAB in detail on QAD visits covering the observations and recommendations on: o Availability of required documents as notified by QAD correspondence earlier; o Compliance of the requirements of BSQC 1; o Working file documentation procedures; o Audit procedures, etc. Referred a significant number of firms to Investigation and Disciplinary Committee through Council for major non-compliance with QAD Requirements. Organized QAD Workshops on “How to maintain quality in audit and assurance services� where a good number of practicing members and audit staff attended. Each of those workshops were two-day long and covered the following key areas: o QAD Visit Status, Future Challenges and the Way Forward o Quality Control as per BSQC 1 o Planning to Audit Completion procedures o Working Files Maintenance Procedures o Hot File and Cold File Review Procedures Started works on development of Quality Control Manual for small and medium practitioners.
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IFAC SMOs
Background information In 2013 and 2014, the QAD conducted visit to about half the number of firms in addition to the follow-up visits, assist IDC in case investigation and disciplinary matters, trained audit staff at the time of visit, etc. During 2013 and 2014, QAD organizes a number of two-day long QAD workshops in Dhaka on “How to maintain quality in audit and assurance services” where a good number of practicing members and audit staff attended. The attendees were even awarded 6 CPD Credit Hours for participating in the workshop.
SMO 2 International Education Standards
A candidate with a minimum HSC / A-Level qualification and specific academic results is eligible to enroll with the Institute to study chartered accountancy. The candidates also require practical experience on audit, assurance, and other training under the supervision of a principal of a practicing CA firm as an article student. The duration of work experience varies from two to four years depending on the previous records of the academic and/or other relevant professional qualification of the students. The curriculum of ICAB was revised in 2009 on the basis of the curriculum of ICAEW plus local law and taxation papers and an information technology module. Ethics are covered throughout the relevant modules as pertinent. After passing the entire threelayers of examinations of the Institute, namely: Professional Stage Knowledge Level (7 modules), Professional Stage Application Level (7 Modules) and Advanced Stage (3 Modules and a Case Study), a student can be eligible for the membership of the Institute as an ACA. After 5 years post qualification experience and having a minimum of 60 CPD Credit Hours, an ACA can be eligible to become a FCA of the Institute. ICAB organises CPD Programs every year for the members of the Institute covering all relevant current professional issues including ethics and standards. The current requirement is 60 hours per year by IFAC. During 2014, the Institute carried out a number of CPD seminars and workshops on different contemporary and relevant issues for the professionals in addition to the International Conference, workshops, etc.
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A Board of Studies (BOS) has been functioning since the inception of the Institute. The Board of Studies (BOS) performs the following functions: organize pre-examination coaching classes for students; provide proper facilities to the examinee; conduct evaluation tests of the lecturers;
Key performance Continue to ensure that ICAB’s Audit Quality Review System is operating effectively and continues to be in line with SMO 1 requirements. This includes periodic review of the operation of the quality assurance review system and updating the Action Plan for future activities where necessary.
Arrangement of ICAB Tuition in four sessions for students of different stage and level under ICAB CA Curriculum. Provided training to ICAB Members who are interested to attend ICAEW Exam under the MoU with ICAEW by the ICAB Tutor who received Training from Kaplan, UK on ICAEW Advanced Stage curriculum. Organized revision classes for them by a Kaplan from UK Tutor on ICAEW case study for the first time in ICAB. ICAB Technical Director attended annual tutor conference and different meeting with senior executives of LDP and PSD at ICAEW regarding Professional development issues, updating curriculum, study materials etc. Mr. Jonathon Worrell, Senior Business Development Manager conducted discussion meetings with ICAB regarding ICAEWs old and newly curriculum structure, upcoming examinations and classes and Mr. David Brookfield, Senior Consultant and Syllabus Expert of ICAEW attended meeting with ICAB regarding examination related issues focusing on syllabus coverage, assessments ideas, communications between examiners and tutors, learning materials and pass rates. Reviewing the requirements of IES5 and consider how ICAB can align its existing work experience requirement. Reviewing the requirements of IES7 and consider how ICAB can align its existing CPD requirement. Working closely with ICAEW to update the existing ICAB curriculum based on curriculum of ICAEW Published ICAEW advanced stage study materials During 2014, carry out a number of CPD
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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
IFAC SMOs
Background information arrange preparation and update of study manuals, and approve a panel of authors for such manuals; make a periodical review of syllabuses and recommend for necessary revision; assist in arrangement of training and examinations regularly for prospective students and recommend their course fees; recommend annual revenue & capital budgets for education, coaching classes, IT Training, purchase of books, journals, magazines, etc. for articled students and members of the Institute; and carry out any other function as may be assigned to the Board by the Council from time to time. In 2010, the Learning and Professional Development Department was introduced as an outcome of the Twinning Project with ICAEW and the DOS was replaced by LPDD accordingly. The LPDD performs all the activities relating to education and CPD. The LPDD also performs all other activities within the scope of BOS. During 2014, about every suggested answers/modules have been developed including the pending previous modules. A huge number of trainings have also been organised during 2014. ICAB is now very famous in providing training on professional development matters not only for its members and students but also for other stakeholders including regulatory bodies.
SMO 3 International Auditing and Assurance Standards
& FINANCIAL STATEMENTS 2013-2014
ICAB has the responsibility for setting auditing standards. ICAB’s Technical and Research Committee adopts ISAs as Bangladesh Standards on Auditing (BSAs) with limited modifications that are necessary due to local laws. ICAB has been performing the convergence process with ISAs since 1998. It also updates these standards as an ongoing process. The Technical Department (TD) of the Institute is actively working with the Technical and Research Committee (TRC) to perform the whole process of convergence. An established due process is maintained. The core project to adopt the Clarity ISAs was completed in 2009, even before the publication of the BSAs, which were later prepared on the basis of the adopted clarified ISAs. ICAB has a process in place to update members on changes and developments in International Auditing and Assurance Standards as issued by IAASB. The review, adoption and publication of the standards is
Key performance seminars on different contemporary and relevant issues for the professionals both in Dhaka and Chittagong on the following topics: o o o o o o o o o o
o o
BFRS-13: Fair Value Measurement Women in the Accountancy Profession in Bangladesh Conducting Audit in an Automated Environment Salient Features of Bank Company Act, Recent Amendments & Issues IAS-1: Presentation of Financial Statements An Analysis on Macroeconomic Performance of Bangladesh Harmonization of Financial Reporting and Audit Practices: Bangladesh Prespective Integrated Reporting: Challenges and Opportunities Amendments to the Bank Company Act, 1991 Implecations on External Audit of Bank An Analytical study of significant amendments made by the Finance Act (#4) 2014 and SROs thereunder on Stamps, Customs, Income Tax, VAT and Sur-harges regulations Globe Audit ReformsChallenges and Opportunities Enhanced Practice Management and New Service Opportunities in SME Sector
Besides ICAB organised training for ICAB members on quality assurance, for Central Bank on IFRS, for NBR on Tax Audit etc. ICAB has published the update Handbook of The Code of Ethics and Volume I & II of the Handbook of Bangladesh Quality Control, Auditing Review, Other Assurance, and Related Services Pronouncements in 2014 Initiated regular reviews of adopted ISAs and Statements to ensure alignment with the latest versions issued by the IAASB as an ongoing basis Continue to support ongoing adoption and implementation of IAASB pronouncements. This includes review of the implementation of the Action Plan to date and updating the Action Plan for future activities as necessary. Organize Auditing, matters
many CPD seminars on ethical and professional
Provide on hand training while performing the QAD visits to the firms as
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IFAC SMOs
Background information conducted on a timely basis and regularly monitored by the TRC and the Council of the Institutes. With a view to ensuring the proper implementation of the standards, ICAB has been organizing training, seminars and workshops. Professional accountants and students are also educated and trained on the updated standards during firm visits conducted by the Institute.
SMO 4 - IESBA Code of Ethics
A defined code of ethics was established by ICAB through ICAB By-Laws before adopting the IESBA code of ethics. The 2008 IESBA Code of Ethics was adopted and disseminated accordingly to ICAB members and this version of the Code is still in place.
Key performance an ongoing basis Publication of updated auditing, assurance and other standards
Ethics to be more specifically covered within the ICAB professional qualification syllabus. Coverage of Professional Ethics, Conflicts and Auditors’ Independence in different CPD seminars both in Dhaka and Chittagong for members of the Institute
ICAB is active in building awareness of the Code among members and conducts educational programs based on the Code. The updated CA curriculum covers ethics in all relevant chapters.
Ensured that developments affecting ICAB members are communicated by means of website, newsletters and similar media.
ICAB has published the 2013 version of IESBA Code in 2014 as Handbook of the Code of Ethics for Professional Accountants.
Publication the Handbook of The Code of Ethics for Professional Accountants based on IESBA 2013 publication
In 2014, diffrent workshops and training were conducted on leadership program and Code of Ethics.
Organized leadership program for newly qualified accountants emphasizing the professional code of conduct Organized Workshops on “Code of Ethics for Professional Accountants” Sent responses to IFAC on IESBA Exposure Drafts
SMO 5 International Public Sector Accounting Standards
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ICAB has formed a separate Committee on Public Finance and Public Sector Accounting to perform defined activities relating to support of convergence with International Public Sector Accounting Standards (IPSAS) in Bangladesh. The committee has taken some initiatives and already discussed with relevant Government authorities, especially with the Comptroller and Auditor General Office (OCAG) in Bangladesh, upholding the convergence procedures. ICAB is very eager to collaborate with the relevant authorities in this regard. ICAB will continue to use its best endeavors to encourage the Government to adopt IPSAS. In 2012, ICAB organized jointly with Confederation of Asian & Pacific Accountants (CAPA) an International Conference on “Strengthening Bangladesh Public Sector Accounting & Auditing – Global Reforms and the Way Forward” which is a milestone to initiate the close relationship with Comptroller and Auditor
Meeting with the World Bank regarding proposed project on “Promoting Public Private Partnership for Improved Audit Quality” Organized a Knowledge Sharing Session with Sri Lanka in Dhaka highlighting the o
The present relationship between the CA Sri Lanka and C&AG. o Adoption of IPSASs and ISSAIs. o Initiatives taken to strengthen the Public Sector Financial Management area in Sri Lanka. Arranged a number of trainings for ICAB Members on Public Sector Regulations(Treasury Rules, Internal Controls, GFRs) and Procurement Rules Continuing the communication with OCAG for strengthening public private partnership for improved quality assurance
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
IFAC SMOs
Background information
2014
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
Key performance
General Office in Bangladesh to promote the adoption and implementation of IPSAS. ICAB organized different technical sessions on “Public Sector Accounting and Auditing – The Way Forward” at that conference.
Working towards support development and Implementation of a Reporting framework in the Public Sector of Bangladesh through next World Bank Project
ICAB is currently at the end of accomplishment of the project “Promoting Public Private Partnership for Improved Audit Quality” with ICAEW, National Audit Organization of UK and C & AG Office of Bangladesh under a project funded by World Bank.
Organized a number of meetings with OCAG at ICAB and OCAG premises in relation to knowledge sharing session and public private partnership for improved quality assurance
In 2013 and 2014 ICAB organized a number of trainings for ICAB Members on Public Sector Regulations (Treasury Rules, Internal Controls, GFRs) and Procurement Rules and a joint discussion meeting with Sri Lanka and OCAG Bangladesh on Public private Partnership.
Accomplished the 1st World Bank Project and awarded the 2nd one where the opportunities to work with OCAG, Bangladesh are available.
In 2014 a good number of ICAB members attended workshop “Public Private Partnership for Improved Public Sector Auditing in Bangladesh” organized by The World Bank. In 2014, ICAB has been also awarded the World Bank funded project “Strengthening Audit and Accounting Profession” where support development and Implementation of a Reporting framework in the Public Sector of Bangladesh is one of the significant components. SMO 6 Investigation and Discipline
ICAB has an Investigation and Disciplinary Committee (IDC) to perform the functions assigned to it under ICAB’s By-laws and any other relevant functions delegated by the ICAB Council. The Committee has its own working procedures to conduct the investigation process and to take disciplinary measures. Disciplinary proceedings relating to firms are conducted without reference to firm names to avoid conflict of interest. During the year 2013 and 2014, the ICAB further working on restructuring the existing IDC by forming three different Boards named Investigation Board, Disciplinary Board and Appeal Board in line with the requirement of SMO6 and following the guideline of ICAEW. The Chairmen of these new Boards are to be select from external stakeholders with relevant professional experience. In 2013, ICAB reprimanded 20 audit firms for professional misconduct under ICAB Bye-law In 2014, a significant number of actions have been taken by the IDC against the different complaints made by ICAB QAD and other regulatory bodies and stakeholders.
A number of complaints made by ICAB QAD on quality assurance matters as well some of the complaints came from other stakeholders and regulatory bodies during the year More than fifty firms have been referred by Council to IDC during the year for non-compliance of quality assurance matters from 2011 to 2014 so far as reported by QAD and recommended by QAB A number of disciplinary matters have been resolved from IDC during the year The IDC took some significant action against some of the firms The IDC recommended for imposing fine on 05 CA firms o Tk.3,00,000.00 to 01 CA Firm (Allegations lodged by Bangladesh Bank) o Tk. 50,000.00 to 01 CA Firm (Allegations lodged by BSEC) o Tk. 2,00,000.00 to 01 CA Firm (Allegations lodged by QAD-ICAB) o Tk. 50,000.00 each to 02 CA Firm (Allegations lodged by QAD-ICAB) The IDC recommended to the CouncilICAB for suspension of Membership of two members of the Institute
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IFAC SMOs
Background information
Key performance The following matters are under investigations/consideration of ICAB
SMO 7 International Financial Reporting Standards
ICAB is responsible for adopting and implementing International Financial Reporting Standards in Bangladesh. ICAB has been performing the convergence process with IFRS. IFRS 9 is not currently adopted due to legal implications. Full IFRS adoption as BFRS is currently planned for 2015. The BFRS for SMEs was published by ICAB at June 2011 (launched on 29 June 2011) and are essentially the adopted version of IFRS for SMEs (2009 version) with few modifications. The Technical Department (TD) of the Institute is actively working with the Technical and Research Committee (TRC) to perform the whole process of convergence. An established due process is maintained for such convergence. The TRC reviews whether the Financial Reporting and Accounting Standards need to be converged or updated every year based on the updates of the IASB publication. In 2013, ICAB published the volume-II of IFRS which covers all international accounting standards including IAS 29. During the year, ICAB contacted with IFRS Foundation regarding the copyright and license agreement to publish and use IFRS for adoption or publication of IFRS. ICAB is now very updated on adoption and dissemination of all applicable of BFRS. In 2014, ICAB signed an agreement with IFRS Foundation, UK for the supply of data for the development and publication of the BFRS and BFRS for SMEs (for both print and electronic format). This is the first time ICAB has obtained official arrangement with IFRS Foundation to use the IFRS and IFRS for SMEs in Bangladesh through signing the agreement.
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o Allegations made by Ministry of Commerce, GoB against the Auditors (02 CA Firms) of Destiny 2000 ltd and its associated organizations Disciplinary actions taken by ICAB against 10 CA firms/members for professional misconduct. Besides the above activities, there are some other allegations/complaints are under the consideration/investigations of IDC. Organized an intensive training on IFRS for the officials of the Central Bank of Bangladesh Maintaining the due process while adopting / updating IFRS/IAS as BFRS/BAS during the year as follows: o Review the new / revised IFRS/IAS by expert members of TRC; o Recommend to Council for adoption after reviewing and discussing by TRC; and o Adopt by ICAB Council accordingly. o Analyze and implement the recommendations made in the review above. IFRS is covered in ICAB curriculum as much as required During the year, ICAB signed an agreement with IFRS Foundation, UK for the supply of data for the development and publication of the BFRS and BFRS for SMEs (for both print and electronic format). As per agreement, no rights will be granted to the third parties to reproduce, store in retrieval system or transmit in any form or any means without the written permission of ICAB and the IFRS Foundation.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
5.0
2014
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
QUALITY ASSURANCE & TECHNICAL STANDARDS
5.1 QUALITY ASSURANCE QAD Visit Status In 2014, the Quality Assurance Department (QAD) started its second year of the second phase (three-year cycle 2013-2015) of visits emphasizing the risk based firms first and due to that reason, firms having listed clients were visited on priority basis. However, every audit firms are in the scope of QAD visit. QAD also considered visits geographically and covers all firms located in Dhaka and Chittagong. In every QAD visit, generally each firm is issued a visit report explaining the compliance status of required elements of Bangladesh Standard on Quality Control 1 (BSQC 1) and other observations on the overall audit procedures of the firm visited including the comments on contents of its audit working files. The QAD maintains the visit procedures in accordance with IFAC SMO 1: “Quality Assurance� and ICAEW guideline in this regard. The Institute is very much thankful to the firms for their cooperation during the visits. In 2014, total 40 firms were visited, out of those 3 firms were found satisfactory, 32 firms found as requiring for urgent improvements and 5 firms were found unsatisfactory which would be recommended to refer to IDC. Within 2012, the QAD of ICAB had completed the first phase (three-year circle) of quality assurance visit as planned initially which was started in 2010. Now the QAD has achieved the experience of the general standards of quality of the firms maintained. The overall result of observance is not satisfactory as only few firms got the satisfactory opinions. However, the QAD believes that the building of awareness regarding maintaining of quality in audit and assurance services were communicated properly to the firms and it is
QAD expectation that in coming days the visited firms will be more organized, documented and strengthen than earlier times on quality assurance issues. In the year 2010, total of 47 firms with listed clients were covered by QAD Visits and from the finally out of those firms, 11 firms were found as satisfactory, 11 found acceptable, 17 firms were found as required urgent improvement and 8 firms were referred to the IDC through Council-ICAB. In 2011, in addition to 17 follow-up visits, 45 firms were visited newly, where 3 firms were found satisfactory, 27 firms were found as required for urgent improvement and 15 firms were found significant non-compliance with quality assurance requirements and have been referred to the Investigation and Disciplinary Committee through Council. In 2012, the remaining of the first three year cycle firms was visited by the Quality Assurance Department except some exceptional cases. Out of those visited firms, 18 firms were referred to IDC through Council-ICAB and the investigation process against those firms is currently in progress. In 2013, total 50 firms were visited, out of those 16 firms were found satisfactory, 30 firms found as requiring for urgent improvements and 4 firms were found unsatisfactory which was recommended to refer to IDC. As ICAB has adopted the ICAEW model for Quality Assurance, ICAEW supports ICAB in this regard as an ongoing basis. In 2013, Mr Mahbub Ahmed Siddique FCA, Director Technical visited ICAEW QAD and Professional Conduct Department at Milton Keynes, UK to share the result ICAB QAD and IDC activities and to discuss how to improve these procedures based on ICAEW
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experience. During the visit Mr. Siddique met and discussed with Mr. Simon Stone on Annual returns, Ms. Elaine Griffiths on the working procedures of ICAEW Audit Registration Committee and Mr. Paul Bentall on Disciplinary Process while Mr. Martin Batsford debriefed the overall procedures of ICAEW QAD operations. In 2012, Mr. Siddique visited ICAEW UK for seven weeks training on ICAEW Advanced Stage Curriculum which would enrich his knowledge in financial and corporate reporting, auditing and assurance matters, ethical guidelines etc. and that will add the value to technical, learning and QAD activities of ICAB. In the year 2011, Mr. Siddique visited ICAEW, UK to gain firsthand knowledge and visit experience on quality assurance activities run by ICAEW. In addition, he observed the proceedings of the ICAEW Professional Conduct department including the Disciplinary Committee hearings process. The QAD functions directly under the control and guidance of the QAB. The present staff strength of QAD includes two qualified Chartered Accountants and a part qualified support staff. The head of this Department is Mr. Mahbub Ahmed Siddique FCA and he occupying the position of Director Technical. Reviewer of firms is Mr. Md. Afsar Uddin ACA occupying the position of Deputy Director of QAD and the administrative responsibility of QAD lies with Ms. Nargis Aktar who is an Assistant Secretary of QAD, ICAB.
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Building awareness and training at the time of QAD Visits Practicing Members’ Conferences for Sharing QAD Experience Workshop on how to maintain quality in audit and assurance services List of QAD Documents BSQC 1: Bangladesh Standard on Quality Control 1 IFAC SMO 1: Quality Assurance Audit Practice Manual Annual Return of Firms Whole Firm Audit Compliance Review Checklist Cold File Audit Compliance Review Checklist ICAB QAD Audit Visit Manual Revised conditions for Certificate of Practice (COP) Opening Meeting Template Audit Working Papers Checklist QAD Reporting Format Soft and Hard copy of all QAD publications and documents Database of the firms as per the submitted annual returns All letters to the firms on QAD Visit All Visit Reports including the follow-up visits
During 2014, ICAB-QAD organized a workshop on QAD matters for practicing members in Dhaka.
All responses from the firms
The Institute strongly believes that the QAD monitoring visit and the actions taken by the Institute based on the reports of those visits will definitely impact the profession very positively in coming days. The Institute also expects that the audit firms in Bangladesh will maintain the quality assurance requirements in every respect. QAD expects the policy that “No compromise with quality & ethics” should be maintain by the members of the Institute.
ICAB Organizes QAD Workshops for Its Members
A separate report on Quality Assurance Board is also available in this Annual Report.
Present status of Quality in Audit and Assurance Services and Future Challenges
All formal communication with the firms As part of quality assurance programme, the Quality Assurance Department of the Institute organized QAD workshops in Dhaka during the year 2014 on “How to Maintain Quality in Audit and Assurance Services”. The 2-day long workshops also focused on the future challenges of the auditing arena. Followings were the topics covered in those workshops:
QAD Training Programme
Quality Control Requirement as per BSQC 1
CPD Seminars on Professional Code of Ethics and BSQC 1
Working papers of Audit and Assurance Services and their Contents
CPD on New Quality Assurance Requirement
Various Checklist used in Audit and Assurance Services
Numbers of Workshops on implementation of APM
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
2014
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
Muhammad Aminul Hoque ACA, Sabbir Ahmed FCA, Jahidur Rahman FCA. ICAB President Showkat Hossain inaugurated the training on 8 March and awarded certificate to the participants at the end of the training on 9 March 2014. 5.2 TECHNICAL STANDARDS Adoption Status of International Accounting, Auditing and Other Standards
Audit Planning and Control Evaluation Substantive Testing and Audit Completion Hot File Review Cold File Review
ICAB President Showkat Hossain FCA inaugurated the workshop in Dhaka at the Training Room of the Institute on 08 March and awarded certificate to the participants at the end of the training on 9 March 2014. A total number of 26 practicing members of the Institute took part on those workshops. Mr. Md. Shahadat Hossain FCA, Mr. Sabbir Ahmed FCA, Mr. Jahidur Rahman FCA, Mr. Muhammad Aminul Hoque ACA and Senior Deputy Director, ICAB Mr. Md. Saiful Islam ACA was the resource persons to conduct the workshop. Workshop on ‘How to Maintain Quality in Audit and Assurance’ The Institute of Chartered Accountants of Bangladesh (ICAB) organised a two-Day Workshop on “How to Maintain Quality in Audit and Assurance” for the members of the Institute at its training room on 8-9 March 2014.
The application and compliance of the accounting and auditing standards to improve presentation and audit of the financial statements is a fundamental requirement of the members of the accountancy profession. The Institute is fully aware of the need to keep our members updated of the latest developments in the accounting profession. Being regulator of the Accountancy Profession in Bangladesh, ICAB has been performing its responsibilities for the review, adoption, publication and dissemination of relevant International Accounting, Auditing, Assurance, Ethics and other pronouncements as pronounced by International Accounting Standards Board and International Federation of Accountants. The Institute is also carrying out its responsibilities by promoting the use of these standards through education, training and building awareness through its members and other stakeholders. The Technical and Research Committee (TRC) of the Council-ICAB has been working hard to enrich and update the members with latest status of the accounting and auditing standards from time to time.
The topics including present status of quality in audit and assurance services and future challenges, quality control requirements as per BSQC 1, working papers of audit and assurance services and their contents, various checklist uses in audit and assurance service, planning and control evaluation, substantive testing and audit completion and hot file review were elaborately discussed in the classes. At the end of the training, a Group Discussion was also held. The resource persons of the training were Md. Saiful Islam ACA, Md. Shahadat Hossain FCA,
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Following is the list of different International Standards which have been adopted and updated time to time by ICAB as Bangladesh Standards: SL #
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
International Standards IFRS: International Financial Reporting Standards IAS: International Accounting Standards ISA: International Standards on Auditing IAPN: International Audit Practice Note ISRE: International Standard on Review Engagements ISAE: International Standard on Assurance Engagements ISRS: International Standard on Related Services IFAC Code of Ethic ISQC 1: International Standards on Quality Control 1 IFRS for SMEs: International Financial Reporting Standards for Small and Medium Size Entities
Adopted by ICAB as BFRS: Bangladesh Financial Reporting Standards BAS: Bangladesh Accounting Standards BSA: Bangladesh Standards on Auditing BAPN: Bangladesh Audit Practice Note BSRE: Bangladesh Standard on Review Engagements BSAE: Bangladesh Standard on Assurance Engagements BSRS: Bangladesh Standard on Related Services IFAC Code of Ethics for ICAB BSQC 1: Bangladesh Standards on Quality Control 1 BFRS for SMEs: International Financial Reporting Standards for Small and Medium Size Entities
The Summary Adoption Status of Accounting and Auditing and other Standards are as follows: Summary Status of IFRS/IAS and BFRS/BAS as of 31 December 2014 IFRS / IAS Status
BFRS / BAS Status
Total Number of IFRS existed
13
Total Number of IFRS adopted by ICAB as BFRS
12
Total Number of IAS existed
28
Total Number of IAS adopted by ICAB as BAS
28
IFRS for SMEs
1
BFRS for SMEs
1
Total IAS/IFRS
42
Total BAS/BFRS
42
Only IFRS 9 has not yet been adopted by ICAB but under review process. BFRS 10, BFRS 11, BFRS 12 and BFRS 13 are effective on or after 1 January 2013 All other BFRSs are currently effective IAS 29 has been adopted as BSA 29 effective on or after 1 January 2013 All BASs are currently effective Adopted and Published in 2011 and effective from 1 January 2013 All BASs/BFFSs are currently effective
Summary Status of ISA Others as BSA Others as of 31 December 2014 ISA / IAPS / Others Status
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BSA / BAPS / Others Status
Total ISA existed
36
Total ISA adopted by ICAB as BSA
Total IAPN existed
1
Total IAPN adopted by ICAB as BAPN
Total ISREs existed
2
Total ISREs adopted by ICAB as BSREs
2
Total ISRSs existed
2
Total ISRSs adopted by ICAB as BSRSs
2
Total ISAEs exited
5
Total ISAEs exited adopted by IACB as BSAEs
5
FRAMEWORK
1
FRAMEWORK - adopted by ICAB
1
IESBA Code of Ethics
1
IESBA Code of Ethics adopted by ICAB
1
International Standards on Quality Control 1 (ISQC 1)
1
ISQC 1 - adopted by ICAB as 1 Bangladesh Standards on Quality Control 1 (BSQC 1
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Remarks During 2013, the TRC has completed the overall review process for publication of updated Handbook of Bangladesh Quality Control, Auditing Review, Other Assurance, and Related Service Pronouncements In 2014, ICAB published Handbook of the Code of Ethics for Professional Accountants and the volume I & II of the Handbooks of Bangladesh Standards on Auditing, Assurance, and Ethics Pronouncements All of these standards are currently effective
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Technical Publications Auditing and Standards
Assurance
In the year 2014, the Technical Department with the direct supervision of Technical and Research Committee has completed the publication of Bangladesh Handbook of the Code of Ethics for Professional Accountants and the volume I & II of the Handbooks of Bangladesh Standards on Auditing, Assurance, and Ethics Pronouncements. This publication is the adopted 2013 version of IAASB Handbook of the Code of Ethics for Professional Accountants and the volume I & II of the International of Bangladesh Standards on Auditing, Assurance, and Ethics Pronouncements. Financial Reporting Standards In 2014, TRC of Council ICAB has decided to review, adopt and publish the updated IFRSs as BFRS in 2015. In 2013, the Technical Department with the direct guideline of the Technical and Research Committee of the Institute published the BFRS Volume-II which contains the 2012 version (except IAS 39 which is the 2010 version due to technical reason) of all International Accounting Standards (IASs) including IAS 29: Accounting in Hyperinflationary Economies. This is the first time; the Institute adopted the IAS 29 in Bangladesh. Only IFRS 9 is not yet adopted although the IAS 39 is available, as IFRS 9 will replace the IAS 39 in 2015. IFRS for SMEs In 2014, TRC of Council ICAB has decided to review, adopt and publish the updated IFRSs for SMEs in 2015. ICAB adopted and published the IFRS for SMEs as BFRS for SMEs in 2011, the effective date of which is on or after 1 January 2013. So, now the SMEs have a set accounting standards for preparation and presentation of their financial statements which is very much acceptable globally, although, the application has not yet been obligated by any regulatory body of the small and medium entities in
Bangladesh. Plaque of Handbook of the Code of Ethics, Bangladesh Quality Control, Auditing Review, Other Assurance and Related Service Pronouncement (Volum-I & II) Book Unveiled Mr. Abul Maal Abdul Muhith, MP, Hon’ble Minister for Finance, GoB, on Sunday, 30 November 2014 unveiled the plaque of the Books at ICAB Nation Award giving ceremony. ICAB President Md. Showkat Hossain FCA, Member Council and Past President Mr. Abbas Uddin Khan FCA, Vice Presidents Mr. Kamrul Islam FCA and Mr. Dewan Nurul Islam FCA, ICAB Secretary Mr. AKM Rahmat Ullah FCA and ICAB Technical Director Mahbub Ahmed Siddique FCA also seen on the dais. Training on Technical Matters During the year 2014, a number of Members Conferences has been conducted on different technical and professional development issues. A full pledged training on all effective International Financial Reporting Standards (IFRSs) for Bangladesh Bank Officials has been conducted at ICAB premises in Dhaka. The training was followed by certification ceremony and a dissemination of a published manual of IFRS. ICAB organised intensive training for tax officials from National Board of Revenue on Tax Audit. Besides, ICAB organised many CPD, Workshops, discussion meetings and trainings both in Dhaka, Chittagong and even UK on different relevant technical matters for ICAB Members, students and other stakeholders during the year 2014.
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6.0
PROPOSED FINANCIAL REPORTING ACT-2014 Finance Act, 2014 AND ICAB
FRA-2013 proposed a Council, 'Financial Reporting Council' to establish under the act consisting of not less than 07 and not more than 12 permanent and part time members appointed by the Government. The permanent members will be The Governor of the Bangladesh Bank, The Chairman of SEC, The Chief Controller of Insurance, The Chairman of NBR and the President of FBCCI whereas the part time members will be 02 non-practicing experienced professional accountants nominated by ICAB. The Act proposed that FRC will have an oversight function over the professional accounting bodies through its Financial Reporting Monitoring Department, Audit Practice Review Department and Enforcement Department over the ICAB members engaged in Public Interest Entities (PIE) financial reporting and auditing. The Act also proposed that the FRC will develop, renew, improve and adopt the Financial Reporting and Auditing standards based on the recommendations of Standards Setting Department. Even the proposed Act included the staffs and students of a Chartered Firm in the definition of Auditor whereas the Chartered Accountants Ordinance has clearly difined Auditor since 1973.
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ICAB is in the opinion that the promulgation of FRA with the above provisions in Bangladesh is not necessary from socio-economic perspective. ICAB is not against the decision of Government to enact FRA but the provisions of proposed FRA may not act favorably for the Bangladesh economy. The ICAB Cocuncil made numbers of dialogue with the Government and informed 05 gray areas of proposed FRA.
When we are dealing with FRA, the Finance Act 2014 was passed by the Cabinet giving the auditing authority to Cost Accountant whereas they are not entitled to do the statutory audit under any legar requirement in Bangladesh. ICAB Council discussed with the Government on the issue and successful to make them understand that the Cost Accountants cannot be allowed to conduct statutory audit in Bangladesh. A snapshot of ICAB’s different activities regarding Financial Reporting Act and Finance Act is presented below: ICAB Team Paid Courtesy Commerce Secretary
Call
on
A four-Member ICAB team of the Institute of Chartered Accountants of Bangladesh (ICAB) headed by its President Showkat Hossain FCA paid a courtesy call on Commerce Secretary Mahbub Ahmed at his office at Bangladesh Secretariat, Dhaka on 26 February 2014. During discussion, The ICAB delegates informed about roles of ICAB to improve the accounting and auditing standards, best practice in financial reporting and governance, ethical issues, code of conduct in professional education & training, setting and ensuring the implementation of accounting & auditing standards and the overall quality assurance of the profession. They sought all out cooperation from the secretary to perform ICAB’s duties properly. The team also discussed about proposed Financial Reporting Act 2012. The Hon’ble secretary patiently heard the opinion of ICAB team and assured them that the act will be finalized after having consultation with the ICAB.
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Meeting with Finance Division Secretary ICAB team met Fazle Kabir, Secretary, Finance Division on 15 June 2014 and briefed him about the limitations and conflicting parts of draft FRA 2014. ICAB also sought his support and cooperation in this regard. Finance Secretary assured all possible cooperation to make this act more realistic.
ICAB Team Met Finance Minister ICAB discussed the issues on proposed Financial Reporting Act with Mr. Abul Maal Abdul Muhith, MP, hon’ble Minister for Finance, GoB on 15 June 2014 at latter’s office. ICAB Members discussed the issue during a courtesy call paid by ICAB President Showkat Hossain FCA and his team. They also explained ICAB’s stand on these issues. Later, the team handed over an official letter regarding ICAB’s opinion on draft, FRA 2014 to the Hon’ble Minister. The Minister gave a patient hearing to ICAB team and assured that Government will not enact any new law conflicting with any existing Law. He also assured that before finalization of the FRA bill, Government would consider all professional bodies/stakeholders opinion/ comments on this matter. During the meeting, ICAB discussed on the 05 gray areas of proposed FRA like definition of auditor, standard setting responsibility, issuance of practicing certificates, selection of Members for FRC, penalty clauses and urged to modify all those. Other members of the ICAB Team were Member Council & Past Presidents Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA, Member Council Masih Malik Chowdhury FCA and Past President A K Chowdhury FCA.
The ICAB team was comprised of member council & past presidents Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA, member council Masih Malik Chowdhury FCA and past president A K Chowdhury FCA which was led by ICAB President Showkat Hossain FCA. Meeting with Secretary of Parliamentary Affairs Division
Legislative
&
A 5-Member ICAB Team comprising Mr. Showkt Hossain FCA, President-ICAB, Member Council & Past Presidents Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA and Past President A K Chowdhury FCA met Md. Shahidul Haque, Secretary of Legislative & Parliamentary Affairs Division, MOLJ&PA on 17 June 2014 at latter’s office and discussed about draft FRA 2014 issues. Secretary assured ICAB team that his Division will consider ICAB’s opinion/comments on the draft FRA 2014 before the finalization of the draft.
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Council-ICAB Masih Malik Chowdhury FCA, Past President A K Chowdhury FCA and ICAB Secretary AKM Rahmatullah FCA. ICAB Held Discussion Meeting on Proposed Finance Act, 2014 and Financial Reporting Act (FRA)
ICAB Team Meets NBR Chairman ICAB President Showkat Hossain FCA and his team met Md. Ghulam Hussain, Chairman, National Board of Revenue (NBR) in latter’s office on 20 June 2014. The team discussed about some sections of the proposed finance bill 2014-15 with Chairman. Latter, an ICAB’s letter along with section wise recommendations in this regard was also handed over to the NBR Chairman. The Chairman gave a patient hearing to ICAB team and assured to look after these issues before passing the Finance Bill 2014-15 in Jatiayo Shangshad. Government considered the ICAB’s recommendations and withdrew the sections allowing Cost & Management Accountants for Auditing Accounts Statements in the Finance Bill 2014-15. Now only Chartered Accountants would have the authority to do the job. Other members of the ICAB team were Member Council & Past Presidents Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA, Member
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ICAB organised a Members meeting under the title ‘Discussion and Way Forward’ Re: Finance Bill 2014, and proposed Financial Reporting Act (FRA) at the Institute’s auditorium on 05 July 2014 to make the members’ conversant about Finance Bill 2014 and apprised different activities and steps taken by the Institute on proposed FRA. ICAB President Showkat Hossain FCA delivered his welcome speech in the meeting. In his deliberation, Mr. Showkat briefed on the activities and progress of the Institute after his assumption of office as the President of the Institute in January 2014, and focused on proposed Financial Reporting Act and the Finance Bill 2014, in particular. Past President and Council Members Md Syful Islam FCA, Md Humayun Kabir FCA and council member Muhammad Farooq FCA, A F Nesaruddin FCA and Gopal Chandra Ghosh FCA also spoke on the occasion. The Members attending the meeting had the privileges to give their opinion. In their opinion some members suggested that such programme should be arranged routinely to make the members aware about the on going happenings related to professional aspects.
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PROMOTING GOOD GOVERNANCE
ICAB-Prothom Alo Pre-budget Roundtable Discussion
huge losses should be addressed with due care to turn those profitable.
Speakers at a pre-budget discussion stressed the need for expanding tax net and proper allocation of budget in priority projects to ensure desired economic growth.
He added that the economic growth of Bangladesh has been growing at about 6.0 per cent mainly due to the contribution of the lower section of people like migrant workers, readymade garment workers and microcredit borrowers and we have duty towards them and budget should reflect that.
They said this at the pre-budget discussion held at the Prothom Alo conference room in the city on 14 May 2014. The Institute of Chartered Accountants of Bangladesh (ICAB) and Bengali daily Prothom Alo organised the roundtable discussion with ICAB president Showkat Hossain FCA in the chair. Former ICAB president Humayun Kabir FCA moderated the discussion. In his speech, former adviser to the caretaker government Akbar Ali Khan said that unnecessary projects in the ADP create a burden on tax payers which ultimately affects the common and poor people. Mr Khan further said that it is necessary to formulate proper guide lines to increase expected revenue. He also said that the problem related to the institutions incurring
ICAB President Showkat Hossain FCA in his welcome speech said that ICAB earlier submitted its budget proposals regarding VAT & Tax to the National Board of Revenue (NBR). ICAB’s proposals were made with a view to increase government revenue, avoid contradictory provisions & loopholes of existing laws, encourage investment and discourage siphoning of capital outside Bangladesh reduce tax rate on organizations like SMEs that are creating more job opportunities, control tax return submission by NGOs and verification of submitted financial reports. The proposals emphasized mainly on three areas; increase of revenue, removal of
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procedural flaws and ensuring social justice. ICAB’s proposals covered 58 areas on Tax policies and 37 areas on VAT policies of the government, he said.
directly and to create greater market for the products. About ADP, he said that, more allocation is required to the projects that yield greater benefit to the people.
Former NBR (National Board of Revenue) chairman Abdul Majid said the allocation of ADP in the upcoming budget is Tk 790 billion and the revised ADP of the last fiscal is Tk. 600 billion. The ADP allocation should be based on the revised ADP budget.
Md. Humayun Kabir FCA, Council Member-ICAB moderated the discussion. He said, ICAB-Prothom Alo organize the discussion every year as part of their social and moral responsibility. The national budget relates to the interest of all the people of the country, so allocation of the budget should be aimed to benefit the wider population, he said. He further said this year Budget has emphasized on large scale revenue target and NBR have the responsibility to fulfill that aim. It is important that the revenue expenditure should clearly address the interest of the people and the public welfare. He also gave opinion about the size of the budget and ADP.
He suggested the government to target an aggressive revenue budget in order to bring various sectors, individuals and levels in the tax net which is yet to be covered. Considering the tax-GDP ratio in Bangladesh, it can be said that there is flow of money in the economy but interestingly the government is not receiving the tax. Former adviser to the caretaker government M Hafiz Uddin Khan said there are many projects in the ADP which are unnecessary vis-a-vis many priority projects are not supported with adequate funds. He said that there should be comprehensive action plan to control expenditure of government particularly on luxury expenditures. He also emphasized on the centralised system of budget preparation. Former NBR member Faruk Ahmed Khan said the tax-GDP ratio is very poor in Bangladesh, compared to those of the neighbouring countries. The government has set a reasonable revenue collection target of Tk. 1,490 billion in the upcoming budget which is praiseworthy. He suggested skill development of the tax personnel to become successful in revenue collection. Mr Ahmed however, said the high corporate tax discourages foreign direct investment in the country. Former DCCI (Dhaka Chamber of Commerce and Industry) president Sabur Khan demanded there should be incentive in the budget for those who will create more employment.
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Abbas Uddin Khan FCA, Council Member and Past President, ICAB said that employment generation through industrialization is very important. For that, a comprehensive industrial policy is required. Government should ensure proper value of agricultural products of the farmers so that they could benefit from it. Citing other country’s examples, he said government should have policy to purchase a certain level of agro-products from the farmers
Parveen Mahmud FCA, Past President-ICAB said despite massive debacle that hit the world economy, Bangladesh kept resilience as the wheel of the Private sector was on the right track. She said that lack of institutional capability, poor governance and problem in implementation process deter the development of the country. She said we should strengthen the family planning program, introduce labors safety especially for the female workers. About labor safety, she said Bima scheme could protect the right of the labors but there is little institutional support in these areas. Md. Syful Islam FCA, Past President and Council Member-ICAB emphasized on service sector for creating more employment opportunities and mentioned that this sector alone provides 53% employment of the country. He said that government should set a target to increase more employment through facilitating the service sectors. Kamrul Abedin FCA said provision of making black money to white should be avoided. About bank’s performance, he said, policy is needed to revitalize the nationalized banks. Dewan Nurul Islam FCA, Vice President-ICAB said at present private investment in our country is facing a setback. Citing examples, he said proper steps should be taken to increase the investment. Emphasized on institutional capacity, he said some incentives should be proposed in the Budget to encourage long term investment in the capital market.
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A F Nesaruddin FCA, Council Member-ICAB said that revenue will not increase though expanding tax net. This is because, NBR did not propose for the increase of tax net after surveying ground reality of taxpayers, he said. NBR may have some limitations, but it can engage private firm for surveying, he further said and added that harassments to tax payers should not occur. Mr. Nesaruddin also remarked on foreign currency loan and its effect. Salma Khan a renowned feminist activist spoke about gender related issues and women’s education. He said that in the budget there should be allocation to address the gender related issues with due importance.
UPGP & LGSP-II organized training for reviewing CA Firms for Union Parishad Audit Union Parishad Governance Project (UPGP) and Local Governance Support Project (LGSP) of the Local Government Division under the Ministry of Local Government Rural Development & Cooperative, GoB jointly organised two-day training on ‘Financial Audits, Performance Assessment, Fiduciary & Safeguards Compliance’ for the auditing and reviewing CA Firms assigned to auditing and reviewing of Union Parishads financial statements for 2012-2013, 2013-2014 and 2014-2015 under LGSP - II at BIAM auditorium, Dhaka. The trainings were held in several phases throughout the month of April 2014. ICAB president Showkat Hossain FCA was present in both inauguration and
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closing session of each phase of the training programe on 1, 3, 6, 8, 10, 20 and 29 April 2014. He gave a brief speech on each session of the training. The ICAB president handed over certificates to the participants after each phase of the training. LGSP Training programme on "Financial audits, performance assessment, fiduciary & safeguards compliance covered different areas of Union Parishad audit and budgetary functions like Performance Assessment of Union Parishads, Financial Audit, Audit methodology and field level audit, documentation & reporting, Overview of fiduciary & safeguards compliance assessment and open discussion session. Resource persons of the training are Prof. Mobasser Monem, Department of Public Administration, University of Dhaka and Consultant, UPGP, Md. Aminul Islam, Consultant, LGSP, Ajit Kumar Paul FCA, Consultant, LGSP. ICAB President Showkat Hossain FCA delivered welcome speech at the ‘Orientation Program for Financial Auditors and Performance Assessors’ under LGSP-II at BIAM Foundation, Dhaka on 1 April 2014. It is mentioned that the designated Firms already have completed audit on financial statements of Union Parishads for 2010-2011 and 2011-2012. The Local Government Division urged the assigned audit firms to complete the audit of the Union Parishads across the country within the stipulated time effectively.
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upcoming World Bank Funded Projects. The meeting discussed about ongoing projects and different avenues and scopes that the World Bank and ICAB can work with.
WTO Team visit A team of WTO visited ICAB on 21 April 2014 to have a glimpse on overall development of the Institute and to discuss various professional issues those ICAB adopted and implemented since ROSC Report in 2003. The discussion mainly focused on activities of ICAB-Quality and Assurance Department, Investigation and Disciplinary proceedings through professional conduct and the up-gradation of education system in line with ICAEW. ICAB President Showkat Hossain FCA, Vice Presidents Kamrul Abedin FCA, Nasim Anwar FCA and ICAB Secretary (Acting) Md. Saiful Islam ACA were present in the meeting.
World Bank Delegates Visit A discussion meeting was held on 28 April 2014 between World Bank and ICAB Team on existing and
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The Members of the World Bank team were Ms. Suraiya Zannath Khan FCA, Sr. Financial Management Specialist, the World Bank and Fily Sissoko, Manager, South Asia Regional Financial Management, the World Bank. ICAB Team led by ICAB President Showkat Hossain FCA included Vice President Dewan Nurul Islam FCA, Council Member & Past Presidents Abbas Uddin Khan FCA, Md. Humayun Kabir FCA and Md Abdus Salam FCA, Council Members Masih Malik Chowdhury FCA, A F Nesaruddin FCA, Md. Shahadat Hossain FCA and Gopal Chandra Ghosh FCA, Director (Technical) Mahbub Ahmed Siddique FCA, Senior Deputy Director (PC) Md. Saiful Islam ACA, Deputy Director (LPD) Yesmin Hosna ACA.
Corporate Reporting Conference ICAB president Showkat Hossain FCA and Council Member & Past President Md Humayun Kabir FCA participated in a Conference on ‘Corporate Reporting ‘at the British High Commissioner’s official residence on 16 March 2014. Md Humayun Kabir in his speech shared his insight in Corporate Reporting in Bangladesh in the conference. The Comptroller & Auditor General of Bangladesh was the Chief Guest while Standard Chartered Bank Financial was the keynote presenter in the conference.
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The ACCA Bangladesh hosted the conference during the visit of its Vice President and two council members & Director, learning in Bangladesh.
ICAB Submitted Proposals on Tax and VAT Policies to NBR Regarding Budget 2014-’15 R egarding the upcoming National Budget 2014-2015, ICAB submitted its proposals on VAT & Tax policies to the National Board of Revenue (NBR) recently. The proposals were finalized by Taxation & Corporate Laws Committee of ICAB and was highly appreciated and overweighed by the NBR. The authority of NBR said that with due consideration and review, it will incorporate the proposals where it may deem fit in the upcoming national budget. ICAB’s proposals were made with a view to increase of government revenue, avoid contradictory provisions & loopholes of existing laws, encourage investment as well as discourage siphoned of capital to abroad, reducing the Tax rate on organizations like SMEs that create more job opportunities, controlling Tax return submission by NGOs and verification of submitted financial reports, etc. The proposals emphasized mainly on three areas; increase of revenue, remove procedural flaws and ensuring social justice. ICAB’s proposals cover 58 areas on Tax policies and 37 areas on VAT policies of the government.
ADB team visited ICAB A team of Asian Development Bank (ADB) visited ICAB on 5 May 2014. They held a meeting with Vice President Kamrul Abedin FCA and high officials of
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ICAB to be conversant over the developments of the Institute since Rosc Report was introduced by World Bank in 2003. As per recommendations of Rosc Report, the Government has taken initiatives to launch Financial Reporting Act (FRA) in 2007. Since the introduction of Rosc Report, ICAB has made tremendous advancement regarding its Education system, activities of QAD and Investigation & Discipline department, etc. ICAB has signed MOU and MRA with ICAEW and CPA Ireland respectively. It has strong ties with World Bank. ICAB’s certification is also accepted by leading international accounting bodies, the Institute of Chartered Accountants of England and Wales (ICAEW). In the country, it has MoU with the Office of the Comptroller and Auditor General (OCAG). ICAB provides training to Central Bank of Bangladesh, National Board of Revenue and other regulatory bodies and Non-Government Organizations. According to the signed MRA to attain the CPA Ireland membership, ICAB members have to complete and pass only 01 paper out of 17 papers of CPA Ireland examination. As a regulatory body ICAB, is very much proactive to take action against the defaulter CA firms. Its investigation and Disciplinary Committee is giving highest priority in the matter of allegation against any member or CA Firms. The ICAB team headed by the Vice President elaborately discussed the progress of ICAB with the ADB Team. Consuming the gist of Rosc Report, the ADB came up with 24 recommendations to develop the capital
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markets in the country. One of their recommendations is to introduce Financial Reporting Act. However, the ADB team is satisfied over the developments of ICAB since 2003. After the meeting , ICAB expects that the ADB will be flexible over FRA issue and change its stand for disbursement of loan in capital markets development.
Director (Technical)-ICAB Joins ICAEW Tutor Conference Mahbub Ahmed Siddique FCA, Director (Technical)-ICAB joined the ICAEW Annual Tutor Conference and held different meetings with Senior Executives of Learning & Professional Development (LPD), Professional Standards Department and Quality Assurance Department. On invitation from the Institute of Chartered Accountants of England & Wales (ICAEW), Mr. Siddique paid a visit to the Institute from 6 to 11 February 2014. In the Tutor Conference, he shared his view on ICAEW Case Study Assessment Procedure and Strategic Business Management matter. During the visit, Mr. Siddique met with Regional Director, Quality Assurance and his Team and discussed QAD Status of ICAB, Annual Returns & Professional Conduct procedure etc.
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ICAB organized meetings on LGSP- II Audit 2012-13 on 22 July at its Council Hall and 23 July 2014 at
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Auditorium where Team Leaders and Representatives from Reviewer Firms, Audit Firms and the institute were present. Showkat Hossain FCA, President-ICAB , Kamrul Abedin FCA, Vice President-ICAB, Ajit Kumar Paul FCA, Senior Local Govt. Audit Specialist, LGSP-II, LGD and AKM Rahmat Ullah FCA, Secretary of the Institute attended the meetings and gave their valuable suggestions in various aspects of quality reports. For smooth functioning and producing quality audit report, ICAB President emphasized on Uniformed Reporting on Union Parishads. He also informed that the LGSP- III phase is waiting to pass which would bring greater scope for working on audit. The Meetings reviewed and discussed on the two sets of reporting on uniform Bangla Reporting Format developed by S. F. Ahmed & Co. and ACNABIN. After discussion, the meeting made some changes in the Reporting Format and requested S. F Ahmed & Co. to incorporate those changes and finalize one uniform set of reporting format. About Signatory of the Report, the Meeting decided that all the Firms under Consortium/ JV will sign the Report, the first signatory will be the Auditor of the UP and the Last Signatory will be the Lead Firm unless the Lead Firm is the Auditor of the UP. The meeting also decided that the Audit Firms will submit their full and complete Report to the Reviewer Firms within 15 August 2014 so that the Reviewer Firms may continue their review and submit the Report within the deadline to the LGD. The Meeting suggested that the Reviewer Firms will
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communicate their findings to the respective Audit Firms and both of them together will resolve the differences in line with the best professional practices. The Meeting discussed on material defect level 10 to 20 percent of the expenditure of a UP for that year as ‘Qualified Audit Report’ and above 20 percent as Adversely Qualified Report’. The meeting also decided that the report should be adversely qualified when the misstatement is material and pervasive. Audit Report of the UP should also be Adversely Qualified for any one of the major non compliance matters like Issuance of cash cheque; Schemes not endorsed by BGCC; Schemes not initiated from the Ward Sava; Schemes undertaken which are included in the negative list stated in UPOM; Sign boards are not found; Work not awarded to third party; Payments made before completion of works, Non availability of Assets Register incorporating all assets so far acquired by the UP, etc. In continuation ICAB held Meetings on LGSP-II with the representatives of assigned audit firms on 8 July and 10 July 2014 at ICAB premises. Meetings discussed different issues related to the Union Parishad Audit.
ICAB team visits ICAEW and ACCA, London Meetings on various professional issues held A five-member ICAB delegation headed by its President Showkat Hossain FCA along with ICAB Council Member and Past Presidents Md. Syful Islam FCA, Md. Abdus Salam FCA, Muhammed Farhad Hussain FCA and Director Technical Mahbub Ahmed Siddique FCA participated in meetings with high officials of the Institute of Chartered Accountants in England and Wales (ICAEW) and ACCA, London during their visit from 26 August to 30 August 2014. They also participated in a CPD seminar on IFRS-13 hosted by ICAB UK Chapter. The visit has become fruitful which will result in fostering the existing relationship with these Institutes to a new height.
Meeting with ACCA, London, UK ICAB delegates headed by President Showkat Hossain FCA held a meeting with Andrew Steele, Marketing Director-Partnership & Recognition, ACCA, London at 29 Lincoln’s Inn Fields, London on 26 August 2014. The meeting held elaborate discussion on mutual relationship between the two Institutes and the way
forward. ICAB delegates advised ACCA to work on MRA proposal from ACCA end but on the other hand ACCA emphasized firstly on MoU as a start of collaboration with ICAB.
Meeting at ICAEW, Moorgate Place, London on 27 August 2014 ICAB delegates had a meeting with ICAEW delegation headed by ICAEW Vice President Dr. Hilary Lindsay, Senior Business Development Manager Jonathon Worrell, International Affairs Manager Christina Pavlis. There was a high level discussion relating to the ongoing mutual cooperation and collaboration between ICAB and ICAEW. Each ICAB participant explained the ICAB's progress for last few years and specially since started the twinning project with ICAEW in terms of education and examination, professional standards, quality assurance, management structure, capacity and image building. ICAEW delegates highly appreciated the ongoing progress of ICAB and expressed their keen interest to work with ICAB in coming days. They also assured that apart from the renewal of ICAB-ICAEW MoU for a further period, ICAEW would be supportive for ICAB’s progress being its learning and professional development partner.
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On the same day, there was another meeting with ICAEW Executive Director Learning and Professional Development Mark Protherough, Head of New Business Opportunities Justin West, Director Qualification Gavin Aspden, Head of Operation Martin Batsford, International Affairs Manager Christina Pavils and Senior Business Development Manager Jonathon Worrell. Updating the ICAB’s syllabus, study materials and other learning & professional development matters, renewal of existing MoU and its contents for next phase, discussion on strategic contents of ICAB Tax-II exam paper, Financial Reporting Council (FRC) issues, TOT program, Quality Assurance, Investigation and Disciplinary matters, Governance and Management Structure, International Accounting, Auditing and other Technical matters, etc and the way forward were dominated in the discussion and meetings with the ICAB’s delegation in London. ICAEW assured to continue supports to ICAB for its ongoing development. ICAEW advised to improve the next ICAB Tax-II exam paper so that they can consider the exemption from the ICAEW business planning Taxation in coming days based on evaluation of such exam paper(s). Both ICAB and ICAEW delegates agreed in the meeting that the Institutes will participate in the World Congress Conference in Italy and to sign the MoU with some modifications for the further three years period.
Meeting at ICAEW, Moorgate Place, London on 28 August 2014 ICAB delegates also had a meeting with ICAEW delegation headed by ICAEW Executive Director Professional Standards Vernon Soare to discuss ongoing World Bank project, MoU Contents and capacity building of ICAB. Vernon emphasized on ICAB capacity building referring the Strategy Document signed by ICAB Council in 2008. He promised to continue their support and cooperation in coming days under the World Bank funded project and/or its own international strategic planning.
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Besides, the ICAEW team consists of Director Faculties Deborah Chaplin, Manager Outreach & Engagement Library & Information Service Rowena Mann and Head of Technical Advisory Shazad Mansuri. They promised to provide the access for
ICAB to some links for technical matters of ICAEW to use and understand the benefit of the services of its faculties. They also assured that for updating ICAB online library they would cooperate ICAB in future as required. ICAB expressed their gratefulness to ICAEW delegates and assured to contact with ICAEW in coming days on these matters.
Meeting at ICAEW, Milton Keynes, UK on 29 August 2014 ICAEW team headed by ICAEW Director-qualification Gavin Aspden is comprised of Judy Dimmock, Jonathan Jones, Jennifer Burt, Jonathon Worrell had a meeting with ICAB delegation to discuss ongoing World Bank project, MoU Contents ICAB’s latest Tax II exam paper, examination matters and the way forward. Gavin assured that they would work on how ICAB Curriculum can be updated based ICAEW 2014 at the best possible way and come back to ICAB soon. Judy explained about the deficiencies of strategic matters in ICAB's latest Tax-II papers. She added that based on satisfactory review of next two ICAB Tax-II exam papers, ICAEW would consider the exemption from its Business Planning: Taxation exam paper. She advised to cover more planning contents in the ICAB Tax-II exam papers in next exams. They also responded to the queries of ICAB relating to exam system of ICAEW.
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ACCA Regional Head of Education Visits ICAB A team of ACCA Bangladesh headed by its Regional Head of Education Rehan Uddin visited ICAB on 19 August 2014. The team held a meeting with ICAB President Showkat Hossain FCA and discussed about the proposed MRA between ICAB and ACCA, Bangladesh. Earlier, in March ACCA had talk over the issue with ICAB. During the meeting ICAB Council Member & Past President Md Abdus Salam FCA, Council Member Gopal Chandra Ghosh FCA, ICAB Secretary AKM Rahmat Ullah FCA and Director (Technical) Mahbub Ahmed Siddique FCA were present.
ICAB and World Bank Held Meeting on ROSC Progress Report A meeting between technical team of ICAB and representatives of World Bank was held at ICAB Council Hall on 24 June 2014 to discuss the updates of the ROSC report. The ROSC report was introduced by the World Bank in 2003 Bangladesh perspective and it pointed out 20 recommendations for greater transparency and accountability in country’s accounting, auditing and the financial sectors. ICAB team informed that the Institute in collaboration with the government has implemented 19 recommendations out of 20. They also informed that over the years ICAB has remarkably improved on setting accounting standards and performing auditing. In this perspective the World Bank representative said the World Bank is considering further review of the report.
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Meeting on Draft ROSC 2014 ICAB held a meeting on update of 1st draft of Observance of Standards and Code (ROSC) Report of World Bank at ICAB Council Hall with Md. Humayun Kabir FCA, Council Member & Past President ICAB in the Chair on 18 August 2014. The meeting held discussion in details of the draft of ROSC 2014 and gave their observations over the draft. The meeting decided that a draft letter would be prepared based on outcome of the discussions. As ICAB got a request from the World Bank, the meeting also decided a copy of the draft letter to be sent to the World Bank. The meeting was attended by ICAB’s Vice Presidents Kamrul Abedin FCA and Dewan Nurul Islam FCA, Council Member & Past President Md. Syful Islam FCA, Council Member Masih Malik Chowdhury FCA, Secretary AKM Rahmat Ullah FCA and Director (Technical) Mahbub Ahmed Siddique FCA.
ICAB President Visits World Bank Office, Dhaka A team of ICAB headed by its President held a meeting with World Bank Officials at latter’s Bangladesh office at Agargaon, Dhaka to discuss further about update of draft of Observance of Standards and Code (ROSC) Report of World Bank on 21 August 2014. Other members of the team were Vice President Dewan Nurul Islam FCA, Council Member Md. Shahadad Hossain FCA and Director Technical Mahbub Ahmed Siddique FCA. World Bank Senior Financial Management Specialist Suraiya Zannath Khan represented the World Bank in the meeting. The meeting discussed about the latest
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development of ROSC Report 2014, the progress of ICAB made regarding professional and academic issues and the necessity of Financial Reporting Council. Earlier, ICAB had sent a letter to World Bank regarding their observations on the ROSC Report acting upon a decision came out from the meeting with WB delegates over ROSC Report 2014 at ICAB Council Hall on 18 August ICAB.
ACCA Team Visits ICAB A team of ACCA Bangladesh comprising its Vice President Alexandra Chin, Council Member Pauline Hobson, Director-Learning Alan Hatfield, ACCA Bangladesh Country Manager Mohua Rashid and Business Development Manager Monirul Hassan, paid a courtesy call on ICAB President Showkat Hossain FCA at his office on 15 March 2014. They discussed possible areas of mutual cooperation on technical and other development matters. The ACCA delegates expressed their interest to work with ICAB on educational, professional and technical deliberation. The team thanked the ICAB president for nominating Md. Humayun Kabir FCA, Past President & Council Member as Guest Speaker at the conference on Corporate Reporting which is scheduled to be held on 16 March 2014 at British High Commissioner’s Official Residence. They also invited President and his team to join the conference. In the meeting ICAB Past & President Council Members Md. Humayun Kabir FCA, Md. Syful Islam FCA, Vice Presidents Kamrul Abedin
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FCA, Dewnan Nurul Islam FCA, Secretary (In-chagre) Prof. Dr. Mahfuzul Hoque and Director (Technical) Mahbub Ahmed Siddique FCA were present.
Projects of World Bank The Institute of Chartered Accountants of Bangladesh(ICAB) successfully completed the World Bank financed Project titled Promoting Public Private Partnership (PPP) for Improved Audit Quality Assurance (Contract No.7170811) on 4 April 2012. The Project duration is 1st January 2012 to 30 June 2014 and ICAB is able to complete the project within the said duration. The main objective of this Project is to develop a Partnership Framework enabling the ICAB and the Office of the Comptroller and Auditor General (OCAG) to collaborate and strengthen their capacity to support effective Public and Private Sector Audit. The assignment is expected to bridge and minimize the knowledge gaps between Public and Private Sector Audit Professionals, Implement a Partnership Framework and Improve Compliance with Quality Standards in the Private and Public Sector Audit. To achieve the objective ICAB has to execute the following activities in 2014.
Arrangement of Training on Public Sector Regulations (Treasury Rules, Internal Controls, GFRs, and Procurement Rules for 200 ICAB Members A Training Program on Public Sector Finance for 41 honorable members and 41 tomorrow’s Chartered
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Accountants was arranged by ICAB under this Project. The course topic embraced Fiscal and Monitory Policy of Bangladesh, Expenditure Monitoring and Budgetary Control Process, Government Accounting System including iBAS Operations, Treasury Rules, Internal Controls, GFRs and financial management of public procurements, Financial Management System of Development Projects and Public Audit and Parliamentary Oversight of public spending. The training conducted in 4 batches accommodated 20 members in each batch at National Academy for Planning and Development under Ministry of Planning on 11th - 13th April 2014 and 18th - 20th April, 2014. Total 82 ICAB Professionals have been trained up on Public Financial Management at advanced level .The resource persons included senior officials of OCAG, MOF and NAPD, who are seasoned trainers on Public Financial Management. The participants received their Certificates from the President-ICAB and the Director General, National Academy for Planning and Development. For conducting a course on Public Procurement Audit, ICAB had several interactions with the Director General and Senior Consultant of CPTU. ICAB reviewed the course materials of the Public Procurement Course delivered to the public auditors and suggested some improvements built on public procurement audit course offered abroad and practical experience of senior ICAB members on post review of public procurements. The suggested revision was shared with CPTU and the course was offered with the revised course design involving Resource Persons suggested by CPTU. 80 Participants comprising of ICAB Members and tomorrow’s CAs completed this training on Public Procurement Regulations(PPR) with special emphasis on public procurement auditing during June 06-07,13 and 20-21.The training conducted in 4 batches contained 20 members in each batch at National Academy for Planning and Development under Ministry of Planning
Arrangement of Training on Public Sector Auditing Standard A day long course on International Standards on Supreme Audit Institutions (ISSAIs) was organized for 84 ICAB members on June 20 at the ICAB Auditorium. ICAB members enriched their knowledge through interactive participations with the resource persons of international repute having extensive experience on public sector audits.
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Dissemination of the Policy Note to OCAG, ICAB, Government Officials, Donors, corporate sectors etc The policy note dissemination program was arranged on 29 April, 2014 at Bangabandhu International Conference Center, Agargoan, Sher- e-Bangla nagar, Dhaka. Mr. Masud Ahmed, Comptroller and Auditor General of Bangladesh was the chief guest and Mr. Showkat Hossain, FCA President, ICAB was the special guest of the ceremony. World Bank Dignitaries, ICAB Members, OCAG Officials, Representatives of other Professional Institutes, SEC, DSE, CSE, RJSC, Public Sector Entities, Bangladesh Bank Officials, Incorporations and University Teachers (Dhaka University) were invited to this Policy Note Dissemination Program. The Policy Note was disseminated before a good number of Representatives from the above Stakeholders, who actively participated in the Program.
ICAB Signed a New Project ICAB has received “Institutional Development Fund” (IDF) grant from International Bank for Reconstruction and Development (World Bank) for the Project named “Strengthening Financial Reporting Framework and Audit Practice”. The contract was signed by honorable President Mr. Showkat Hossain, FCA on 28 April, 2014. The duration of the Project is three (03) years. This project will assist ICAB for its onward support to the Ministry of Finance (MoF) of the Government of Bangladesh (GoB) to strengthen the financial reporting system in the public sector entities and build capacity for improving the standard of professional education and audit quality assurance systems. Key Indicators of the said Project are: 1.
Collaboration between MOF and ICAB to enhance the quality of financial reporting by Public sector entities.
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Develop public sector reporting framework.
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Strengthen Professional Education curriculum.
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Enhance monitoring capacity of the Quality Assurance Department of ICAB
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8.0
LIAISON WITH GOVERNMENT AND REGULATORY BODIES
ICAB Team Met Finance Secretary An ICAB team led by President of the Institute of Chartered Accountants of Bangladesh Showkat Hossain FCA met Fazle Kabir, Finance Secretary, Finance Division, Ministry of Finance at latter’s office on 25 February 2014. The other members of the team are Vice Presidents Kamrul Abeden FCA, Nasim Anwar FCA & Dewan Nurul Islam FCA, Council Member and Past President M Farhad Hussain FCA and Council Member Mashi Malik Chowdhury FCA. They discussed different professional issue regarding accountancy. They also exchanged their views regarding the proposed Finanancil Reporting/ Financial Reporting Council with the secretary.
ICAB President Chaired 1st Board Meeting of CSE Showkat Hossain FCA, President –ICAB chaired the Board Meeting of Chittagong Stock Exchange (CS) held at Chittagong Club on 14 February 2014. All government nominated and elected Directors of CSE attended the meeting. ICAB President conducted the meeting where Dr. Muhammad Abdul Mazid got elected as Chairman of CSE.
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A delegation of ICAB paid a courtesy call on
Hon’ble Minister of Law, Justice & Parliamentary Affairs, GoB Advocate Anisul Haque at latter’s office on 06 March 2014 to discuss matters of professional interest. The ICAB delegation was comprised of President-ICAB Showkat Hossain FCA, Vice Presidents Kamrul Abedin FCA, Dewan Nurul Islam FCA & Nasim Anwar FCA, Past President Md. Syful Islam FCA and Council Member Masih Malik Chowdhury FCA. The Minister gave a patient hearing to the delegation and assured his support to different concern of CA Profession.
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ICAB Team Met Addl. Secretary (IIT), MoC A two member ICAB team comprising of Vice President-ICAB Kamrul Abedin FCA and Masih Malik Chowdhury FCA met with Monoj Kumar Roy, Additional Secretary (IIT) of Ministry of Commerce, GoB at latter’s office on 11 May 2014 and discussed on the ICAB Representative’s comment in the meeting held on 21 April 2014 with the Ministry of Commerce which was not properly recorded in the minutes. ICAB Team requested Additional Secretary for record the ICAB Representative’s opinion in the said meeting. Mr. Roy assured to amend the minutes properly in this regard. Earlier, the Ministry of Commerce, GoB held a meeting on 21 April 2014 regarding ‘Transformation and Amendment of ICMAB Ordinance 1977 into Bangla’ where ICAB Representatives including Masih Malik Chowdhury FCA, Member Council –ICAB were present. They opposed the change of the existing name ‘Institute of Cost and Management Accountants of Bangladesh’ into new name ‘Institute of Chartered Management Accountants of Bangladesh’ with their logical points. ICAB Representative citing some relevant examples in our neighboring countries like India and said if the name of ICMAB is changed, it will create confusion between the two professions.
Meeting with RAJUK Chairman A team of ICAB comprising Council Member and Past Presidents Abbus Uddin Khan FCA, Md. Syful Islam FCA, Md Abdus Salam FCA, Fellow Member Ajit Kumar Paul and ICAB Secretary AKM Rahmat Ullah FCA met G. M. Jainal Abedin Bhuiya, Chairman, RAJUK at latter’s Office on 11 May 2014. They discussed with the Chairman about various development issues including allocation of land for ICAB Academic Campus at Uttara in the City.
ICAB President Participates in Meeting of Ministry Commerce on ICT ICAB President Showkat Hossain FCA participated in a meeting of the Ministry Commerce, GoB at its office, Bangladesh Secretariat on 6 August 2014. He took
part in the meeting on an invitation from the Ministry. The meeeting was organized to discuss about modernization and digitalization of organizations and bodies under the jurisdiction of the Ministry. At the meeting ICAB President informed the Ministry that considering the country’s perspective and rapid expansion of e-service, The Institute of Chartered Accountants of Bangladesh (ICAB) has taken various initiatives to modernize and develop technology based services and has achieved remarkable progress in this respect.
ICAB President Met Public Works Minister for Permanent Campus of ICAB ICAB President Showkat Hossain FCA met Engineer Mosharraf Hossain, Minister, Ministry of Housing and Public Works, GoB at the latter’s Office on 5 August 2014 to discuss about ICAB academic campus related issues. During the meeting, Member Council and Past Presidents Abbas Uddin Khan FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA and Member Council A F Nesaruddin FCA accompanied ICAB President. He briefed the Minister about ICAB’s activities and informed that currently ICAB has more than 1500 Chartered Accountants and 20,000 students. Out of them, about 200 CAs and 3000 students are in Chittagong. These numbers are increasing very rapidly. The president also informed that ICAB has no permanent Academic Campus in Dhaka and Chittagong. He requested the Minister to allocate one plot at Uttara (3rd Phase) in Dhaka and another at Agrabad or Khulshi Commercial Area in Chittagong for two ICAB Academic campuse.
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ICAB Team Led by ICAB President Met Chairman, JS Standing Committee, MoF A team of ICAB headed by its President Showkat Hossain FCA met Dr. Muhammad Abdur Razzaque, MP, Chairman, Parliamentary Standing Committee on the Ministry of Finance, GoB on 14 September 2014 at latter’s office at Bangladesh Jatiya Sangsad Bhaban..The other members of the team were ICAB Council Member and Past Presidents Md. Syful Islam FCA and Md Abdus Salam FCA. They informed the Chairman about ICAB activities and the recent development of the Institute regarding regulatory function and CA education. They also discussed about proposed FRA. The Chairman gave patient hearing to the ICAB team during the discussion and gave his thoughtful suggestions on some professional issues.
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ICAB Team Met Senior Secretary, MoC A team of ICAB headed by its President Showkat Hossain FCA met Hedayetullah Al Mamoon, ndc, Senior Secretary of the Ministry of Commerce, GoB at his office at Bangladesh Secretariat on 30 October 2014. They discussed different professional issues with the Secretary. The other members of the team are Vice President-ICAB Dewan Nurul Islam FCA, Council Member and Past Presidents Abbas Uddin Khan FCA, Syful Islam FCA and Secretary AKM Rahmat Ullah FCA.
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PROMOTING TRANSPARENCY
ICAB Awards Companies, Public Entities for Best Presented Annual Reports 2013 A s like previous years, the Institute of Chartered Accountants of Bangladesh awarded ICAB National Award to banks, insurance companies, non-government organisations and public sector entities for their Best Presented Annual Reports 2013. As Chief Guest Hon’ble Finance Minister AMA Muhith, MP handed over the 14th ICAB National Awards for Best Presented Annual Reports 2013 to the winners at a ceremony organized by the ICAB at Pan Pacific Sonargaon Hotel in Dhaka on 30 November 2014. Mr. Showkat Hossain FCA, President of ICAB and Mr. Abbas Uddin Khan FCA, Chairman of the Review Committee for Published Accounts and Reports of the ICAB, spoke at the function. ICAB RCPAR Committee selected 43 Companies/ Organizations evaluating their Annual Reports 2013 for ICAB National Award 2014 in nine catagories. Prime Bank Ltd has secured first prize, Bank Asia Ltd and Islami Bank Bangladesh jointly secured second prize while Eastern Bank Ltd and
Dutch-Bangla Bank Ltd got third prize among all the private sector banks including co-operative Banks in preparing and publishing annual reports. Besides, 15 other banks received certificates of merit in the competition. In the category of public sector Banks, Janata Bank Ltd and Rupali Bank Ltd jointly won the first prize and Bangladesh Development Bank Ltd secured second position. IDLC Finance Ltd topped the list in the category of Non-bank Financial Services while Prime Finance & Investment Ltd and Union Capital Ltd jointly became the second and Lanka Bangla Finance Company Ltd secured third position. DBH Finance Ltd and Uttara Finance & Investment Ltd received certificates of merit. Green Delta Insurance Company Ltd became the first and Reliance Insurance Company Ltd the second and Prime Insurance Company Ltd the third in the category of insurance sector. Eastland Insurance Company Ltd got certificate of merit. Among the manufacturing entities, BSRM was awarded the top prize while Singer Bangladesh Ltd came out as the second and GlaxoSmithKline as the third prize winners. No one received certificate of merit.
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Country's largest telecom operator Grameenphone only bagged the top award wining first position in the information and communication technology (ICT) sector. In service sector, Unique Hotel Restaurant received the award. In the NGO category (including NPOs), BRAC secured the top position while Sajida Foundation the second and Uddipan the third. Buro Bangladesh got certificate of merit. The first award in the category of Corporate Governance Disclosure went to IDLC Finance Ltd while Janata Bank Ltd and Prime Bank Ltd became the second and the third winners respectively. Bank Asia Ltd, Islami Bank Bangladesh Limited, Union Capital Ltd and Prime Finance got certificate of merit. The Investment Corporation of Bangladesh only became the first in the category of public sector entities (excluding entities covered under other sectors/categories), no other Institutions are qualified for the other prize.
ICAB and World Bank reviwed the Progress of Ongoing Project A meeting between ICAB and World Bank Dhaka Office was held on Sunday, 09 February 2014 in Council Hall at CA Bhaban under the Chairmanship of Mr. Showkat Hossain FCA, President-ICAB. The meeting discussed on the following issues: strategies for completing the project “Promoting Public Private Partnership for Improved Quality Audit & Assurance steps to be taken for the New Project “Strengthening Financial Reporting Framework and Audit Practice and strategies regarding ROSC report in 2003. As the period for implementing the Project ‘Promoting Public Private Partnership for Improved Quality Audit & Assurance” has expired on 31 December 2013, the
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meeting discussed that the project implementation period could be extended up to 30 June 2014. The change of the Comptroller & Auditor General and the political unrest delayed the implementation of the project, the meeting was informed. ICAB approach will be to execute the unimplemented areas of the project by 30 June 2014. The meeting decided that ICAB and WB will form separate Committee to identify the unimplemented portions of the Project. ICAB appreciated some way forward suggestions provided by the WB regarding the project. ICAB also had successful talks about ICAB’s proposed project “Strengthening Audit Practice and Professional Education”. The WB emphasized on activities through this project like gap analysis of the existing reporting framework for public sector entities; development of detail roadmap to amend and adopt an updated public sector reporting framework; training of trainers, examiners, assessors, question setters and secretariat staffs by ICAEW; modernize e-learning facilities in ICAB; building monitoring capacity of the Quality Assurance Department of ICAB; strengthening the investigation and disciplinary function of ICAB. WB also suggested ICAB for developing the activity plan along with the cost allocation for ensuring the implementation of the project. The WB lauded the role of ICAB in different dimensions since the last ROSC Report in 2003. The ICAB Team comprised of Showkat Hossain FCA, President-ICAB, Kamrul Abedin FCA, Vice-President (Technical), Dewan Nurul Islam FCA, Vice-President (Education & Training), Md. Humayun Kabir FCA, Past President & Council Member, Md. Syful Islam FCA, Past President & Council Member, Md. Abdus Salam FCA, Past President & Council Member, Prof. Dr. Mahfuzul Hoque, Secretary-In-Charge, Md. Saiful Islam ACA, Senior Deputy Director (PC) and Mohammad Gulam Shahriar ACA, Deputy Director (F&A) and on the other hand, World Bank team are consisted of Ms. Suraiya Zannath Khan, FCA, Sr. Financial Management Specialist, The World Bank, Mr. Aminur Rahman Chowdhury, FCA, Mr. Mohammad Reaz Uddin Chowdhury and Mr. Mohammad Atikuzzaman.
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SAFA Conference Marking Session & ITAG Committee Meeting in Dhaka SAFA Conference Marking Session and SAFA ITAG Committee Meeting were held from 17 to 19 February 2014 in ICAB premises to finalize the results of SAFA BPA & SAARC Anniversary Award for Corporate Governance 2012.
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The training was conducted in 02 batches comprised of 30 members in each batch at NAPD premises on 20, 21 & 27 June 2014. Participants received their certificates from the Director General, National Academy for Planning and Development.
Workshop on Latest SAFA Evaluation Criteria at ICAB ICAB held a Workshop on latest SAFA Evaluation Criteria for improving the quality of Published Accounts and Reports ICAB on 19 June 2014 evening at ICAB Council Hall, Dhaka. Inaugurating the discussion meeting, ICAB President Showkat Hossain FCA said that this type of meeting will largely encourage our listed entities for improving their annual reports in near future and ensure more transparency & accountability among share holders.
Technical Persons from ICAB, ICAP, ICASL, ICAN and ICAI participated in the Conference Marking Session. SAFA ITAG Committee meeting was held on 19 February 2014 and the meeting finalized 31 companies from Bangladesh, India, Pakistan, Sri Lanka and Nepal for Awards (1st, 2nd and 3rd position), 48 companies for Certificate of Merit Under 11 categories.
Knowledge Sharing Sessions on ‘Public Procurement Rules’
He urged the chief financial officers (CFOs) of all respective companies to maintain proper standards in preparing their annual reports. The workshop was arranged for the CFOs of different banks, non-banking financial institutions and multi-national organisations to make them more conversant to the criteria followed by two award review committees in selecting the best Presented Annual Reports for the awards.
The Institute of Chartered Accountants of Bangladesh (ICAB) arranged a 03-day Knowledge Sharing Sessions on the Public Procurement Rules (Advance level from the Audit Perspective) for ICAB’s Qualified Chartered Accountants under the World Bank financed Project titled Promoting Public Private Partnership (PPP) for Improved Audit Quality Assurance at the National Academy for Planning and Development (NAPD) premises under Ministry of Planning on 20, 21 & 27 June 2014. Abbas Uddin Khan FCA, ICAB council member and chairman of its Review Committee For publi Accounts and Reports (RCPAR), presided over the programme while Mahbub Ahmed Siddiqui FCA, director (technical) of the ICAB, made a presentation on the criteria that are followed by the awards committees.
The training was provided by the National Academy for Planning and Development, Ministry of Planning with a view to enhance capacity of the professionals at individual as well as at firm level attached with the opportunities in Public Sector like; Consultancy, Audit, Review, Investigations and staff Appointments, etc.
In his presentation, Mr Ahmed pointed out some lackings which generally occur in preparing the annual reports, and discussed how the companies can avoid those problems and make their annual reports more efficiently. About 25 CFOs of different intuitions participated at the workshop. They also took part in a panel discussion. A total number of 32 participants (mainly CFOs/Head of Accounts) from the listed companies and NGOs attended the Workshop.
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10.0
ORGANIZING AND JOINING INTERNATIONAL EVENTS
10.1 CONFERENCE/MEETTINGS IN DHAKA
International Conference, morning of the day.
ICAB Holds SAFA International Conference 2014 on ‘Accountants for Growth: Perspective South Asia’
Finance Minister Abul Maal A Muhith attended the valedictory session of the conference as the chief guest.
The Institute of Chartered Accountants of Bangladesh (ICAB), a member of South Asian Federation of Accountants (SAFA), arranged an International Conference on "Accountants for Growth: Perspective South Asia" at Bangabandhu International Conference Centre (BICC) on 9 September 2014. Around 500 accountancy professionals from various local, regional and international accounting bodies participated in the gathering and exchanged their views and experiences.
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In his speech the Chief Guest Hon’ble Commerce Minister Tofail Ahmed, MP called upon the professional accountants to play pivotal role to ensure good corporate governance, facilitate the business and economic growth and contribute towards enhancing business confidence in the country. Mr Ahmed inaugurated the SAFA
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SAFA president CA Subodh Kumar Agrawal spoke as the special guest while former chairman of the National Board of Revenue (NBR) and incumbent Chairman of the Chittagong Stock Exchange (CSE) Dr Muhammad Abdul Mazid read out the keynote paper Accountants for Growth: Perspective South Asia’ written by Mustafa K. Mujeri, Director General Bangladesh Institute of Development Studies (BIDS). The opening session was also addressed, among others, by ICAB president Showkat Hossain FCA and its council member and SAFA Conference organising committee chairman Abbas Uddin Khan FCA. There were three Technical Sessions. In Technical Session-I, Key note paper on “Public Private Partnership in Development Strategy” was presented by ICAB Council Member and Past President Anwaruddin
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Chowdhury FCA and the session was conducted by Laksman R Watawala, President CMA Sri Lanka as Session Chairman. In Technica Session-II, President, Institute of Chartered Accountants of Pakistan (ICAP), Naeem Akhter Sheikh FCA presented a paper on "Chartered Accountants: Transparency and Accountability," while Mr. Narendra Bhattarai ICA, Nepal, conducted the session as Session Chairman. In the last and Technical Session-III, CA Jay Ajit Chhaira, Central Council Member, Institute of Chartered Accountants of India (ICAI) presented a paper on "Business and Profession for Development Strategy", while President-ICAB Showkat Hosain FCA conducted this last session as Session Chairman. The speakers at the conference underlined the need for proper utilisation of the accountants' professional excellence to help ensure transparency, accountability and good corporate governance, thus accelerating the business and economic growth in the South Asian countries including Bangladesh. Conference Chairman Abbas Udin Khan FCA said that South Asia is one of the fastest growing regions in the world. Despite repeated natural disaster, the economies of this region have successfully bounced back and show resilience to contain and continue impressive growth. The Chartered Accountants can provide services to create a congenial environment for foreign direct investment, capital market development, industraliasition and in so doing, can contribute to the economic growth of the country. ICAB President Showkat Hossain FCA said, "Accountants can provide different value added services to build a friendly socio-economic environment for local and foreign direct investment,
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capital market development, industrialisation and thereby can contribute towards the economic growth of respective countries." "The CAs are generally perceived as expert in financial accounting, reporting, taxation, auditing and assurance services. But, they are more than the general perception. They are now strategic business and development partner of our nation," the ICAB president said. He said the CAs are mission-critical for devising business strategy to ensure sustainable growth and only the accountants have the access to each and every department of the business process wherever financial matters are linked. Dr. Mustafa Kamal Mujeri, Director General, Bangladesh Institute of Development Studies (BIDS) had to leave for Haj and Dr. Abdul Majid, Chairman CSE and Ex-chairman NBR presented the key note paper. In the keynote Mr. Mujeri wrote that following the recent financial and economic crisis, the regulatory authorities in the South Asian countries have sought to improve the quality of financial disclosure and communication in the context of rapid globalization. This has led to the implementation of a set of reforms, governance practices which can ensure international accounting practices and prudential norms in the South Asian countries. These factors show that the South Asian countries are well poised to implement as well as develop and strengthen the international accounting methods. The countries have all the compulsions to adopt these practices since they are experiencing high economic growth and have high level of education and developed legal systems.
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For facilitating the process of transition to full adoption of evolving international accounting practices, the accounting community in these countries should explore several issues, such as what are the effects of adoption of international practices on existing domestic accounting practices; what effects do such adoption has on the macro economy; and how does the contents of international methods enable to improve accounting information in the country. The professional bodies should organize relevant skills, knowledge and abilities necessary to develop accounting as a dynamic profession along with relevant education, ethics and quality assurance normsconsistent with the international standards. For ensuring effectiveness, accounting professional bodies should have a direct and strong working relationship with the government. In the South Asian context, the government’s role should be more of nurturing the accounting professional bodies, particularly in the formative years. However, such nurturing should not compromise the independence of these bodies in any manner. The government has the legislative authority to establish the accountancy profession and ensure proper oversight of the profession. The government itself should act as a major trainer of accountants to work in public financial management. As we have emphasized earlier, the ability of the state to provide effective regulatory frameworks would largely determine how well the accountants contribute and the market and the economy perform. Moreover, the impact of accountancy profession on economic growth will depend on both the efficiency of the regulatory policies and instruments that are used and the quality of the underlying governance processes that are practiced by the regulatory authorities.
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Mr Tofail Ahmed MP hoped that SAFA conference would open up a new vista for regional cooperation, help achieving sustainable growth in the SAARC region at large.
The Commerce Minister said, "The role of the Chartered Accountants (CAs) are vital for the business and economic growth in the South Asian region. We have a lot of prospect to be explored for development as we have human resources to cater in our region." "Accountants are not only dealing in conventional area of accounting, taxation and auditing services. They are now involved in overall strategic business planning and development," he continued. Citing the public private partnership (PPP) as a sine-qua-non for sustainable development in the region to maximize resources' utilization, Mr Tofail said, "The role of accountants is also pivotal here." To ensure the continuity of our development, he said, integrity, transparency, accountability and good governance come first in the business process and reporting. "The CAs are at the helm of the main responsibility for transparency and accountability," as they hold the key of financial accounting, auditing and reporting from their different roles as preparers, presenters, auditors and strategic partners, he said. Past President & Council Member Syful Islam FCA placed vote of thanks. Mr. Anwaruddin Chowdhury presented Technical Paper on Public Private Partnership in Development Strategy at 1st Technical Session which began shortly after the end of the inaugural session of the conference at noon. In his paper he highlighted Religious, Philosophical Perceptions of Knowledge &
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Accounting, GATS-WTO Regime Recognition, SAARC Islamabad Declaration, Corporate Frauds of New Millennium – (Enron), Role of Auditors and Rating Agencies (Anderson), Strengthening CG Practices (Regulatory Oversight), Recent Developments – Impact on CR / FR & AP, Global Financial Crisis/ Economic Recession •
Changing Global Scenario – Euro zone Debt Crisis, Regulatory Failure – Sub-prime Lending/Derivatives
•
G-20 Pittsburg Summit 2009 Declaration, Critical Nature of Financial Markets, Convergence to Globally Harmonized High Quality, Independent Accounting/FR Standards (Financial Instruments)
Crucial Role of Accountants in-Global Recovery & Market Confidence and Way Forward.
After lunch break in 2nd Technical session, Mr. Naeem Akhtar Sheikh, President ICAP presented technical paper on Chartered Accountants -Transparency and Accountability. He said, today Professional Accountants are functioning in virtually all sectors of society and their role is critical to the reputation and success of the organization with whom they are associated. Professional Accountants can help the organization in developing their business strategies and in connecting short term actions with long term aspirations. Professional accountants play key roles in organization that often go far beyond the stereotypical perceptions of accountants. It may not be readily apparent to all employers and business owners, but they can capitalize on professional accountants’ training, knowledge, and skill sets to help guide their organizations towards long-term sustainable success.
In 3rd Technical Session, CA. Jay Ajit Chhaira, Member Council & Past President, The Institute of Chartered Accountants of India (ICAI) presented technical paper on ‘Business and Profession for Development Strategy’. He said with the fast pace of globalization, the traditional role of professional accountants has undergone a sea change. Accountancy profession is recognized as contributing to every sector and aspect of the global economy. Today professional accountants are not solely auditors but they work in diverse field as management accountants, business leaders, corporate financiers, business advisers. Professional Accountants function in virtually all sectors of society, including industry and commerce, public practice, the public sector, and academia. In fulfilling their various roles, professional accountants serve the public interest by providing high quality services while adhering to the values of integrity, transparency and expertise. In the valedictory session in the evening of the day Finance Minister Abul Maal Abdul Muhith urged CAs to evaluate the audit report of the auditor that would ensure good governance, the people anticipated and emphasized to maintain standards of audit reports. He said auditors should show the path to invest capital in their reports. So it is your responsibility to check proper use of the money. ICAB President made the concluding speech. The curtain of the conference was brought down after a colourful cultural function by the legendary singer Ms. Runa Laila which was followed by a dinner.
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35th SAFA Board Meeting in Dhaka A fter a daylong SAFA Conference, the ICAB hosted 35th SAFA Board Meeting at BICC on 10 September 2014. The Meeting started at 12 noon with the participation of members representatives from India, Pakistan, Sri Lnaka beside Bangladesh. The Chairmen of the different committees described the outcome of their meetings held earlier in the morning of the day. Committee for Improvement in Transparency, Accountability and Governance (ITAG) recommended for the meeting of panel of judges that would comprise of President of SAFA member bodies or their authorized representative and Chairman of ITAG Committee. The committee also proposed that the SAFA BPA Award Ceremony to be held at
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Bhubaneshwar, India coinciding Chartered on 8th December 2014.
with
SAARC
Press Conference by ICAB on SAFA International Conference Earlier the Institute of Chartered Accountants of Bangladesh organized press conference at its Council Hall on 8 September on ‘SAFA International Conference 2014’ that was scheduled at Bangabandhu International Conference Centre on 9 September 2014. The press conference attended by About 30 Journalists from different print and electronic media. SAFA Conference Chairman Abbus Uddin Khan FCA, ICAB President Showkat Hossain FCA, Council Member and Past Presidents ASM Nayeem FCA, Md. Syful Islam FCA, Council Member Nasaruddin FCA spoke in the conference.
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Maldives and Nepal Delegates Met ICAB President at CA Bhaban
ICAB President on the same day and they also participated in the meeting.
To learn about legal status, organizational setup and other administrative arrangements of ICAB, a three-member Maldives delegates headed by Niyaz Ibrahim, Auditor General of Maldives met ICAB President Showkat Hossain FCA and other Council Members and Past Presidents on 8 September 2014 at CA Bhaban during their visit in Dhaka on the occasion of SAFA International Conference 2014.
10.2 ICAB’S PARTICIPATES IN INTERNATIONAL EVENTS 30th SAFA Board Meeting held in Colombo ICAB President Showkat Hossain FCA led a delegation of the Institute in 30th SAFA Board Meeting held in Colombo, Sri Lanka on Tuesday, 21 January 2014. In the meeting they discussed on different professional issues to bring more excellence in accounting profession in this region. Mr. Hossain (in front row second from left) is seen in the picture. Major areas to be focused in 2014 are Augmenting visibility though increased stakeholder engagement,Positioning SAFA as an effective Regional Forum, Increased international convergence, Qualification Reciprocity with in the Region,Increase Member Body cooperation etc.
AG Office of Maldives is currently working on a draft legislation to establish a National Accountancy Body in Maldives. Other delegates of AG Office of Maldives were Ahmed Salih and Ahmed Nizar while Member Council & Past Presidents Abbas Uddin Khan FCA, Md. Syful Islam FCA, Member Council AF Nesaruddin FCA and Director (Technical)-ICAB Mahbub Ahmed Siddique FCA were present in the meeting. ICAB assured Maldives team for its all out cooperation to set up Accounting body in Maldives. Besides, visiting two ICAN delegates comprising of President CA Narendra Bhattarai and ICAN Vice President CA Prakash Lamsal paid a courtesy call on
ICAB President Showkat Hossain attends SAFA meetings in Colombo A delegation of the Institute of Chartered Accountants of Bangladesh led by its President Showkat Hossain left Dhaka for Colombo, Sri Lanka on Sunday, 19 January 2014 morning to join different SAFA meetings including SAFA Board, Assembly, different Committees & Task Force Meetings. The other members of the delegation are Vice President Nasim Anwar FCA, Council Member and Past Presidents Abbas Uddin Khan FCA, Md. Syful Islam FCA, Md. Humayun Kabir FCA, ASM Nayeem FCA and Council Member and Immediate Past President Md Abdus Salam FCA. They attended 30th South
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Asian Federation of Accountants (SAFA) Board Meeting, SAFA Assembly Meeting, SAFA Committee on Education, Training & CPD, SAFA Committee on SMPs, SAFA Committee on ITAG, SAFA Committee on International Affairs, SAFA Task Force to develop Strategy to Combat Corruption in SAARC Region, SAFA Task Force to address Risk & Challenges to Accountancy Profession in SAFA Region, SAFA Task Force to Review the Existing Committee System and tenure of President and Vice-President of SAFA during 20-22 January 2014.
Roundtable Discussion with IFAC held Warren Allen, President of International Federation of Accountants (IFAC) and SAFA member bodies leadership held a Round Table Discussion in the evening of 21 January 2014 at CA Sri Lanka premises, Colombo. The IFAC, a global organization for Accountancy profession vows to uphold the standard of public services by strengthening the profession and contributing to the development of strong economy. Mr. Allen in his presentation focused on the IFAC’s strategic plan for 2014 and beyond in supporting standards development, improving quality and capacity, supporting the profession and engaging in global representation and advocacy. A question & answer session was also held after Mr Allen’s speech and SAFA Representatives including ICAB delegates participated in this session. The participants of the ICAB are Vice President Mr. Nasim Anwar FCA, Council Member and Past Presidents Mr. ASM Nayeem FCA, Mr. Abbas Uddin Khan FCA, Mr. Md. Humayun Kabir FCA, Mr. Md. Abdus Salam FCA, Mr. Md. Syful Islam FCA and 3 ICAB Officials Director Technical Mr. Mahbub Ahmed Siddique FCA, Senior Deputy Director Mr. Md. Saiful Islam ACA and Deputy Secretary Mr. Md. Nasrat Hasan.
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IFAC, SAFA jointly organize workshop on ‘Realizing the Power of Professional Accountancy Organizations Workshop on ‘Realizing the Power of Professional Accountancy Organizations (PAOs)’ was held on 22 November 2014 in Colombo, Sri Lanka. The day-long workshop was jointly organized by IFAC and SAFA where Mr. Brian Blood, CEO CAPA presented a paper on ‘Assisting PAOs Develop’, Mr. Arjuna Herath, President ICASL & Vice President SAFA presented on ‘Sri Lanka Development Partnership with the World Bank’ and Ms. Marta Russell, Technical Manager, Member Body Development, IFAC presented on ‘Realizing the Power of PAOs- Quality and Capacity’. The workshop was organized with a view to share experiences and exchange knowledge on three different areas related to development of PAOs and the accountancy profession, solutions to practical challenges, exploration of good practices for the benefit of all participants. Three Topics of the workshop are (i) Approaches to adoption and implementation of international standards (ii) Good practices, success factors and challenges in PAO capacity building in South Asia and beyond and (iii) Advocacy, stakeholder engagement, and establishing a public policy role: A PAOs perspective were discussed during group discussion and all ICAB delegates actively participated in these group discussion session. A summary of key discussion points and insights shared will be available soon in IFAC website.
ICAB President attends SAFA Board Meeting & CFO Conference in Pakistan Showkat Hossain FCA, President of the Institute of Chartered Accountants of Bangladesh (ICAB) attended South Asian Federation of Accountants
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(SAFA) Board & Committees meetings and CFO Conference held in Karachi, Pakistan from 9 – 11 March 2014. Earlier, on Sunday (09 March 2014), he left Dhaka for Pakistan to attend the meetings and a day before on Saturday (08 March 2014) a team of ICAB also left for Pakistan on the same purposes. The team was comprised of ICAB Vice President Nasim Anwar FCA, Members Council & Past Presidents Abbas Uddin Khan FCA, M Syful Islam Anwaruddin Chowdhury front row left seen in group photo at the CAPA FCA, Past President A K Chowdhury PSFMC meeting hosted by the PICPA on 23 March 2014. FCA and Director Technical-ICAB Mahbub Ahmed Siddique FCA. They participated in meetings of SAFA Committee on quality control, task force to develop strategy to combat corruption in SAARC Region, SAFA task force to implement basel II report in SAARC countries, SAFA task force to harmonize the evaluation criteria used by SAFA member bodies for giving BPA Awards on 09 March 2014. They attended SAFA international Anwaruddin Chowdhury seen on the dais as a Panelist in the session of relations committee meeting , small ADB-CAPA-World Bank Forum held at ADB Headquarters, Manila on 24 and medium practices committee March 2014. (SMP) meeting, committee for improvement in transparency, accountability and and in the CAPA-PICPA Roundtable with the governance (ITAG) meeting, meeting of SAFA task Philippines Government on 25th March. force to review the existing committee System and The CAPA PSFM Committee Meeting, hosted by the 31st SAFA Board Meeting on 10 March 2014. The PICPA. The Meeting officially launched the CAPA respective chairmen of all SAFA committees and task Document, “Improving Financial Management in the forces attended the SAFA Board Meeting and Public Sector - The Eight Key Elements of Success”. presented their reports on the same day. On 11 March 2014, the team attended CFO conference at Hotel It also pronounced CAPA’s Position Statement on Improving PSFM and released a Template for Marriot in Karachi, Pakistan. “assessing, developing and reviewing the quality of Anwaruddin Chowdhury participates in financial management in the public sector”.
CAPA Manila Events
Anwaruddin Chowdhury, Member Council & Past President ICAB and Director (Bangladesh Representative) Confederation of Asian and Pacific Accountants (CAPA) Board, participated in the CAPA events, sponsored by the ADB and PICPA in Manila from 23-25 March. Anwaruddin, also a Member of CAPA Public Sector Financial Management (PSFM) Committee, was actively involved in the proceedings of the CAPA PSFMC meeting on 23rd; the ADB-CAPA-World Bank International Forum on 24th
The CAPA CEO acknowledged the contributions of the PSFMC members, including Anwaruddin Chowdhury, in the conception, development and finalization of this Document. The ADB-CAPA-WB International Forum on Public and Private Sector Financial Management -Global Trends, Regional Implications, Local Impacts” was the first such tripartite collaboration between these three organizations. Hosted by the ADB, the Forum attracted over 70 delegates from the ADB, World Bank, CAPA, IFAC, IPSASB and INTOSAI.
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Anwaruddin Chowdhury was the Panel Speaker in the 6th session on “Public Sector Auditing- Developments and Status of International Standards of Supreme Audit Institutions (ISSAIs) Implementation”. Anwaruddin gave a brief resume of the public sector composition and functions of OCAG as the SAI in Bangladesh. The Philippine Public Sector Roundtable Opportunities for Harmonization’ was jointly organised by CAPA and PICPA on 25 March, to provide an opportunity to deliberate PFM reform initiatives in the Philippines and the role of the accountancy profession. The Roundtable deliberated on the Reforms Roadmap planned for 2011-15 and opportunities for the accountancy profession to play a role in sustaining the objectives of the roadmap. Discussions focused on attracting and retaining a pool of high quality professional accountants to support the public sector. This highlighted the demand for quality training needs and cooperation with the profession. The event established opportunities towards ongoing dialogues and increased collaboration between the public sector and the accountancy profession. The Roundtable was participated by over 30 delegates from the CAPA, PICPA, Philippine Commissioner of Audit (SAI), Finance Department (MoF), SEC, Central Bank, the ADB, WB and IFAC. The event was chaired by Geoff Applebee, Chair of CAPA PSFMC. Anwaruddin shared Bangladesh and South Asian country experiences as regards Role of PAOs (like ICAB) in synergizing with the SAIs in public sector accounting and auditing.
ICAB Participates in ‘FRED’ Conference and CAPA Events in Negombo, Sri Lanka ICAB President Showkat Hossain FCA and Member Council and Past President ICAB, Anwaruddin Chowdhury, participated in the CAPA-World Bank organised and CA Sri Lanka sponsored Conference on Financial Reporting for Economic Development (FRED) held in Negombo, Sri Lanka from 19-21 May. Anwaruddin Chowdhury, Director CAPA Board and Bangladesh Representative on CAPA PSFM Committee, participated in the CAPA Board and Directors (only) meeting and the PSFMC meeting on 22-23 May 2014.
President-ICAB acted as panelist in FRED Conference
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Showkat Hossain FCA, President-ICAB acted as one of the panelists of breakout session D: Ethics and professional accountant – An Asian perspective in
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conference on 21 May 2014. Emphasizing on compliance of ethical requirements in present scenario, good practices and recent reforms taken place in this region, Mr. Showkat shared his views. Anwaruddin Chowdhury most actively participated throughout the FRED conference that was segmented into five plenary sessions; Financial Reporting Supply Chain: Who is Accountable for What?, Financial Reporting in the Public Sector, Accountancy Profession in Asia: The State of Play, Beyond financial reporting: Is Integrated Reporting the answer? and four breakout sessions; Ensuring quality corporate financial reporting, Corporate governance, internal control and risk management, Education and the development of needed skills and Ethics, The professional accountant—An Asian perspective.
CAPA Public Sector Financial Management Committee Meeting Anwaruddin Chowdhury also actively participated in CAPA Public Sector Financial Management Committee Meeting on 22 May and CAPA Board and Directors (only) meeting on 23 May 2014. The members of the committee discussed about Strategic activities, FRED Conference, next PSFMC Meetings and associated events. They had gone thorough discussion and a strategic plan to attract and retaining finance professionals in public service, ‘Academia’ stakeholder to provide idea of public sector specialization, need to influence behavior to attract and retain qualified accounting professionals and training public sector officials in financial reporting, etc. ICAB team participates in SAFA Board Meeting, SAFA BPA Awards giving ceremony, RSS Conference in Islamabad
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ICAB President Showkat Hossain FCA along with Vice President Nasim Anwar FCA, Past Presidents Abbas Uddin Khan FCA, Md. Abdus Salam FCA and Council Member Masih Malik Chowdhury FCA participated in 32nd SAFA Board Meeting, 78th SAFA Assembly Meeting, different Committees & Task Force meetings, SAFA Best Presented Annual Report Awards and SAARC Anniversary Awards for Corporate Governance Disclosures Ceremony and Regional Standards Setters (RSS) Conference from 3 to 4 May 2014 at Islamabad, Pakistan.
32nd SAFA Board Meeting In the Board meeting, ICAB team raised different issues for strengthening the activities of SAFA including suggestion on professional matters which were given due weight by the SAFA Board. In addition to the Board meeting, they also participated in meetings of different SAFA Committees on Governmental and Public Sector Enterprises Accounting, International Relations Committee, Committee on Professional Accountants in Business (PAIB), Committee for Improvement in Transparency, Accountability and Governance (ITAG), Small & Medium Practices Committee (SMP) and Task Force to develop Strategy to Combat Corruption in SAARC Region.
Annual RSS Conference Organized by ICMA Pakistan, Standard Setters from India, Pakistan, Bangladesh, Sri Lanka participated in the Annual RSS Conference on 4 May 2014 at Hotel Serena, Islamabad under the aegis of SAFA. Mr. Showkat Hossain FCA, President ICAB participated in the Panel Discussion on “Requirement of Implementing an Accounting Standard for Micro Entities in the SAFA Region” and Mr. Md. Abdus Salam FCA, Immediate Past President ICAB participated in
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the Panel discussion on the implications of implementing the IFRS 13. All the presentations focused on the current status of each country's effort to adopt International Financial Reporting Standards (IFRSs), the challenges they face and the steps taken by countries affiliated to the South Asian Federation of Accountants (SAFA) for adoption of these International Standards.
SAFA BPA Awards and SAARC Anniversary Awards 2012 Award Giving Ceremony of SAFA BPA Awards and SAARC Anniversary Awards 2012 was also organized by ICMA Pakistan at same venue on 4 May 2014 evening. Bangladeshi enterprises scored better positions including overall winners in the competition.
ICAB participates in SAFA Board Meeting, SAFA Conference and Different Committee Meetings in Maldives A 6-Member ICAB delegation headed by Vice President Nasim Anwar FCA participated in the 33rd SAFA Board, different Committees/Task Force meeting and SAFA Conference in Maldives from 8 to 10 June 2014.
33rd SAFA Board Meeting They attended the SAFA Committees and Task Force meetings; SAFA Committee on Professional Ethics and Independence; SAFA Committee on International Affairs; SAFA Committee for Improvement in Transparency, Accountability & Governance(ITAG), SAFA Committee on Accounting and Auditing Standards, SAFA Committee on Harmonization of
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Fiscal and Tariff Regimes, SAFA Committee on Small & Medium Practices Committee (SMP), SAFA Committee on Quality Control, SAFA Task Force to develop Strategy to Combat Corruption in SAARC Region, and SAFA Task Force to implement Basel-II Report in SAARC Countries. The delegation led by , Vice President Nasim Anwar FCA participated in the 33rd SAFA Board meeting held on 9 June 2014 at Maldives and contributed on different issues for strengthening the activities of SAFA including suggestion on professional matters which were given due weightage by the SAFA Board.
SAFA Seminar on 'Efficiently Managing SMPs' They also participated a daylong SAFA Seminar on 'Efficiently Managing SMPs' organized by Auditor General Office of Maldives in Male on 10 June 2014. Nasim Anwar FCA, Vice President ICAB presented a technical paper titled ‘Types of Audit Opinions’ in the seminar. A large number of CPA Maldives Members and some other invited participants including senior officials of Auditor General Office of Maldives and Teachers of Maldives National University attended the seminar. ICAB Vice President’s paper was largely appreciated among the participants. Other members of the ICAB delegates were Member Council & Past Presidents Abbas Uddin Khan FCA, M. Farhad Hussain FCA, ASM Nayeem FCA, Md. Humayun Kabir FCA and Deputy Secretary & SAFA Nodal Officer-ICAB Md. Nasrat Hasan.
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SAFA International Conference and SAFA Board Meeting in Nepal On the occasion of the Oath Taking Ceremony of its newly elected President CA. Mahesh Guragain and Vice President CA. Narendra Bhattarai, the Institute of Chartered Accountants of Nepal (ICAN) organized a SAFA International Conference on the theme “Governance for Creating Enabling Environment for Economic Development” on 18th and 19th July, 2014. The Seminar focused on the contemporary and emerging issues on Corporate Governance and their impact on creating enabling environment for economic development of the country.
34th SAFA Board Meeting President-ICAB Showkat Hossain FCA, Member Council & Past President-ICAB Abbas Uddin Khan FCA, President-ICAN CA. Subodh Kumar Agrawal, Vice President, ICAN Arjuna Herath and World Bank Representatives participated in the Board meeting. In the meeting a wide range of issues like Preparation of comparative study of Transfer Pricing and International Taxation Provisions in SAFA Countries, especially in regard to Double Taxation Avoidance Treaties; Concept paper on the need for Quality Assurance and the relaxation for certain conditions for MSP’s; Preparation of model Quality Control Review Framework in SAFA countries; Gap Analysis on Quality Control Mechanism being followed by SAFA Members bodies; Prepare detailed guidelines for evaluation of BPA Awards; Comparative study on the status of Audit Firm Rotation in the countries of SAFA member bodies; Work towards IFAC Regional Organization Status for SAFA; SAARC Arbitration Council; etc were discussed in the Meeting. Proposed
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establishment of training Institute in SAFA region by the World Bank was approved in principle by the Board.
ICAB Delegates Led by Showkat Hossain Participated in SAFA Events and Regional SMP Forum in Delhi ICAB President Showkat Hossain FCA participated in 36th SAFA Board Meeting held on 11th October 2014 at Hotel Le-Meridien, New Delhi, India. He also attended Assembly Meeting. In the SAFA Board Meeting the participants discussed on reports from chairmen of different committee(s)/ task force, progress on establishing virtual knowledge and training centre for financial reporting in South Asia–update by World Bank, draft Act of incorporation of CPA Maldives, World Bank ‘s event at Rome, IFAC SMO Action Plan status update, draft report on corruption in Financial Institutions of SAARC Region, draft Terms of Reference of committee on NPOs and cooperative sector, SAFA report submitted to IFAC, third SAFA E-Newsletter , progress of SAFA Best Presented Annual Report awards and SAARC, Anniversary awards for corporate governance disclosures 2013, participation of SAFA office bearers as observer in 18th SAARC Summit in Kathmandu, Nepal and nomination on SAFA Board by the Institute of Chartered Accountants of Pakistan. On 10 October 2014, Muhammed Farhad Hussain FCA made a presentation on ‘Enhance Practice Management and New Services’ at SAFA IFAC Regional SMP Forum while Ms. Suraiya Zannath Khan FCA presented paper on ‘South Asian Economies; the Growing Power’ at SAFA Women Empowerment program.
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Mr. Farhad in his presentation described the key aspects of practice management like strategy and planning, structure and models and business development, etc. He also indicated some new opportunities for Chartered Accountants as well as some challenges. Abbas Uddin Khan represented SAFA Committee for Improvement in Transparency, Accountability and Governance meeting on 11 October 2014. Earlier on 9 October, a five-member team of ICAB left for India to attend the events of South Asian Federation of Accountants organized by the Institute of Chartered Accountants of India scheduled from 09-11 October 2014. The other members of the team are ICAB Council Member and Past Presidents Abbas Uddin Khan FCA, Md. Farhad Hussain FCA, Fellow Member and World Bank’s Senior Financial specialist Suraiya Zannath Khan FCA and ICAB Senior Deputy Director (PC) Md Saiful Islam ACA.
ICAB delegates led by President Visit Italy Participated in I ICAEW CAW Summit, WCOA Conference, IFAC, CAPA, World Bank’s events Ateam of ICAB headed by its President Showkat Hossain FCA participated in ICAEW sponsored Chartered Accountants Worldwide (CAW) Summit, World Congress of Accountants (WCOA) Conference, IFAC, CAPA and World Bank’s events in Rome, Italy from 6 to 13 November 2014. At the day-long CAW summit, they discussed about opportunities and challenges of Chartered Accountants, development of the chartered accountancy brand: experiences and challenges, and Chartered Accountants worldwide – the global opportunity
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Other members of the team were ICAB Member Council and Past Presidents, Md. Humayun Kabir FCA, Anwaruddin Chowdhury FCA, Md. Syful Islam FCA, Akhtar Sohel Kasem FCA, Md Abdus Salam FCA, Vice President Dewan Nurul Islam FCA, Council Member
Muhammad Farooq FCA and Director (Technical) Mahbub Ahmed Siddique FCA. On Thursday, 6 November 2014, ICAEW sponsored Chartered Accountants Worldwide (CAW) Summit ICAB delegates participated in ICAEW sponsored Chartered Accountants Worldwide (CAW) Summit at Westin Excelsior Hotel in Rome. Over 15 of the world’s leading Chartered Accountancy bodies were convergent in Rome to discuss the value of Chartered Accountants; what makes them special and what sets them apart from other qualifications. A debate was also held on some of challenges facing by CAs. They shared experience and discussed the way forward to
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three CAPA PAOs (plus two PAOs outside CAPA) as member bodies to benefit from the ADB $ 750,000 grant facility for improving Quality Assurance standards.
work together to address those issues. It was indeed a fellowship meeting and networking event among the chartered accountants from different CA Institutes. Among the ICAB delegates, ICAB President Showkat Hossain FCA, Vice Presidents Dewan Nurul Islam FCA, Member Council and Past Presidents Anwaruddin Chowdhury FCA, Md. Humayun Kabir FCA, Md. Syful Islam FCA and Technical Director Mahbub Ahmed Siddique FCA participated in the Summit.
IFAC Council Meeting
Anwaruddin Chowdhury was vocal in the meetings and made prominent contributions towards both the meetings proceedings. Mr. Chowdhury has been assigned three tasks by the CAPA Committee meetings; 1. Report on the impact of the CAPA Conference on Strengthening Public Sector Accounting and Auditing- Global Reforms and the Way Forward, held in Dhaka in February 2012, 2. Brief “case study” on the implementation of donor (WB) funded project by ICAB/PAO and 3. Impact of people/citizenry on the CAPA maturity model for PAOs. These reports need to be completed preferably by 31 December 2014 and surely before next CAPA PSFM meeting in Kathmandu in March 2015. He also joins PSFM Committee meeting. Showkat Hossain FCA, Dewan Nurul Islam FCA, Anwaruddin Chowdhury FCA, Humayun Kabir FCA , Md. Syful Islam FCA and Mahbub Ahmed Siddique FCA attended CAPA Networking and Drink Reception at InterContinental De La Ville Roma on Saturday, 08 November 2014. It was a wonderful networking event where members from different CAPA Member Bodies met and discussed each other on professional development issues. The drink reception was hosted by ICAEW and ACCA, UK.
CAPA Events November 2014 ICAB delegates attended full day Council Meeting of IFAC where ICAB as a member of IFAC, was requested to vote for decision on different agenda. The delegates actively participated in the Council meeting and voted on different agenda for decision based on best judgement accordingly. Among ICAB delegates Showkat Hossain FCA, Md. Humayun Kabir FCA and Mahbub Ahmed Siddique FCA attended the program.
CAPA PAO Development Committee and CAPA PSFM Meetings Anwaruddin Chowdhury FCA as Director of CAPA Board actively participated in the CAPA PAO Development Committee and PSFM Committee meetings at InterContinental De La Ville Roma in Rome. Through representations of Anwaruddin Chowdhury, ICAB has been selected as one of the
CAPA Board Meeting Board and Vice President Dewan Nurul Islam FCA joined the meetings and actively participated in the CAPA Events (Board, AGM and Director only Board
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Meeting) at InterContinental De La Ville Ro mRome. It was essentially a closed door meeting with two sessions held on 8th and 9th November. The meeting reviewed the agenda and proceedings of the full Board meeting; staff and CE performance, bonus and related issues like admission of new affiliate members and future CAPA events in 2015.
CAPA Board Meeting
World Bank Event World Bank Chief Financial Management Officer Ms. Jennifer Thomson, ICAEW CEO and other senior delegates, Presidents of different CA Institutes were get together in the World Bank Event at Grand Ritz Hotel in Rome. The participants shared their experience, success story and the way forward in the gathering. In Rome event, the participants praised ICAEW for its cooperation for its initiatives to capacity building of the different CA Institutes. Dewan Nurul Islam FCA, Akhtar Sohel Kasem FCA, Anwaruddin Chowdhury FCA, Md Abdus Salam FCA,
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Md. Syful Islam FCA and Mahbub Ahmed Siddique FCA attended the WB event.
Tuesday-Wednesday, 11 & 12 November 2014, World Congress of Accountants Conference ICAB delegates participated in Plenary Session II of World Congress of Accountants Conference at auditorium Parco Della Musica in Rome on 11 November 2014. Accountants from different CA Institutes across the world participated in the conference. The participants discussed on new audit report, evolution of private companies financial reporting, building a global valuation expertise, fighting corruption and fraud: the role for professional accountants, International education standards and auditor competence, convergence to IFRS and global consistency, assurance services for SME reporting, etc. They also participated in Plenary Session II at Auditorium Parco Della Musica in Rome on 12 November 2014. The participants exchanged their views in “Plenary Session II - Enhancing government transparency and accountability: a way to economic growth�. In the session, they discussed building blocks of audit quality, SMPs 2020, Public sector accounting and the move to accrual accounting, Code of ethics: shaping behavior, limiting the risk of failure in financial institutions, etc. On Thursday, 13 November 2014, Plenary Session III held at Auditorium Parco Della Musica in Rome where participants discussed about cchallenges in implementing new European accounting directives
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of 2013, facilitating credit in the SME marketplace, contributing to and supporting the development of professional accountancy organizations, fiscal sustainability and service reporting by public sector entities and the expectations of the audit committee. Final Session and closing ceremony of the conference was held at auditorium Parco Della Musica in Rome.
ICAB President Chaired session-2 of SAFA International Seminar in India Two- member delegation of ICAB comprising its President Showkat Hossain FCA and Member Council & Past President Abbas Uddin Khan FCA attended SAFA Best Presented Annual Report Awards & SAARC Anniversary Awards for Corporate Governance
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Disclosures Ceremony 2013 , 37th SAFA Board Meeting and SAFA International Seminar on ‘Integrated Reporting’ held at Bhubaneshwar, India on 04 December 2014. As Session Chairman, ICAB President Showkat Hossain FCA conducted the session-2 on Role of Professional Accountants in IR of the SAFA International Seminar hosted by the Institute of Chartered Accountants of India. The seminar was organized to provide an opportunity to deliberate the need and emergence of Integrating Reporting, Role of professional accountants, and sharing of experience with regard to assimilation of this concept in business.
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MEMBERS' AFFAIRS
Membership The total membership strength of the Institute as of 1 July 2014 was 1499, of whom 862 were fellows and 637 were associates. The membership statistics are furnished below. Dhaka Members in Practice Members not in Practice Chittagong Members in Practice Members not in Practice
Fellow 308 376 684
Associate 18 524 542
Total 368 1131 1226
38 27 65
04 52 56
42 79 121
113 113
39 39
152 152
862
637
1499
Abroad Members in Practice Members not in Practice Total as on 1 July 2014
However, up to December 2014 total number of members are 1512.
Membership Growth The growth in membership of the Institute is shown in the chart below: Membership Growth: Engagement-Wise
New Member
Total member
1600 1400 1200 1000 800 600 400 200 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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Members Entitled to Train Articled Students The total number of members entitled to train articled students as on 01 July 2013 was 269. During six months up to 31 December 2013 another 03 members were granted permission to train Articled Students increasing the number to 272 as on 31 December 2013.
Newly Qualified Chartered Accountants Enrolled as Members During the year 2013, (44+30)=74* examinees qualified as Chartered Accountants and 74 out of them enrolled as Associates of the Institute. One more Chartered Accountants qualified from Australia/UK was also enrolled as the members of the Institute. * Out of 74, 64 were from old syllabus i.e. from PE-III and 10 were from new syllabus.
MEMBERS ACHIEVEMENT The following members of the Institute recorded achievement during the year.
ICAB Congratulated Mustafa Kamal FCA for Being Elected as ICC President ICAB congratulated AHM Mustafa Kamal FCA, MP Hon'ble Minister, Ministry of Planning, Government of Peoples Republic of Bangladesh for his being elected as the President of the International Cricket Council (ICC). On behalf of the Council, ICAB President Showkat Hossain FCA delivered a ‘Letter of Congratulation’ to the Minister on 1 July 2014 for being elected as the President of ICC. In the letter, ICAB President wished every success of Mr. Kamal in his new assignment to carry out the responsibilities as President of ICC and hoped that under visionary leadership of Mr. Kamal, ICC would be able to contribute significantly towards the development of global cricket and achieve the highest order of excellence in ICC events. President ICAB also invited Mr Kamal to visit ICAB. Mentioned that AHM Mustafa Kamal is a Fellow Member of the Institute.
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ICAB President got Govt. Nomination as Director of CSE ICAB President Showkat Hossain FCA has been nominated by the Government as the Independent Director of the Chittagong Stock Exchange recently. As per the demutualised scheme, there should be a 13-member of CSE Board of which seven are independent directors. Beside Showkat Hossain FCA, President-ICAB, the other Independent Directors are — Former NBR chairman Dr. Muhammad Abdul Mazid, Chittagong University professor Mohammad Ayub Islam, former CSE director Moinul Islam Mahmud, former Bangladesh Garment Manufacturers and Exporters Association president Md Shafiul Islam Mohiuddin, BGMEA first vice-president Nasiruddin Ahmed Chowdhury, and former ICMAB chairman Momtaz Uddin Ahmed. It is mentioned that Showkat Hossain FCA is a Partner of Hoda Vasi Chowdhury & Co. Chartered Accountants since 1998, an independent correspondent firm to Deloitte Touche Tohmatsu. He is a Director of Union Bank Ltd, a Member of SAFA Board of Director, a Rotarian & Past President of Rotary Club of Islamabad, Chittagong. Mr. Hossain represents ICAB in the Board of CWASA as well. He is also Member of various organizations like Finance Sub-Committee of Chittagong Club Ltd, the Advisory Committee in respect of Financial & Accounts, and the Banking & Taxation of Chittagong Chamber of Commerce & Industries Limited.
Showkat Hossain becomes Jury Board Member of Daily Star-DHL Bangladesh Business Awards On an invitation from the Editor of the Daily Star dated 25 February 2014, ICAB President Showkat Hossain FCA agreed to the offer to be the member of Jury Board of The Daily Star-DHL Bangladesh Business Awards (BBA). The Daily Star-DHL Bangladesh Business Awards (BBA) is a most prestigious award in the country. The Daily Star and DHL Express Bangladesh jointly organize the program every year to honor the exceptional business leaders and promote ethical business practice in Bangladesh since 2000. Among others Dr. Atiur Rahman, Governor, Bangladesh Bank, Ms. Rokia A Rahman, former Advisor to the Caretaker Government & President, MCCI, Dr. Hossain Zillur Rahman, former Advisor to the Caretaker Government & Executive Chairman, PPRC, Syed Md. Aminul Karim, Member (Income Tax Policy), National Board of Revenue, Md. Helal Uddin, Vice President, FBCCI, AHM Moazzem Hossain, Editor, The Financial Express, Barrister Nihad Kabir, Sr. Partner, Syed Ishtiaq Ahmed & Associates, Professor Mustafizur Rahman, Executive Director, CPD, Anis A Khan, Managing Director, Mutual Trust Bank Ltd, Desmon Quiah, Country Manager, DHL Express Bangladesh and Mahfuz Anam, Editor and Publisher of the Daily Star are the jury members of the awards. Mr. Showkat among others is offered to be present in the Jury Board Meeting on 03 March 2014 at the Daily Star office, Aziimur Rahman Conference Hall, Daily Star Centre, Dhaka.
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Humayun Kabir Becomes Commercially Important Person Again
Mohammed Humayun Kabir FCA Chief Executive Officer, New
Dacca Industries Limited has been declared Commercially Important Person (CIP) Export for the year 2012 by the Ministry of Commerce, Government of the People's Republic of Bangladesh. This is the third time Mr. Kabir has been recognized as CIP. It may be mentioned that he was declared CIP export for the year 2011 and 2007 earlier. Mr. Kabir was awarded Jatiyo Poribesh Padak (National Environment Award) 2010 by the Ministry of Environment & Forest, GOB also. Besides, Mr. Kabir is a facilitator, alternative disputes resolution (ADR) of National Board of Revenue (NBR), Bangladesh, CEO of Shinepukur Ceramics Limited and companies under BEXIMCO Jute Division. He is also a Member of the Management Committee of Bangladesh Employers Federation and Convener of Sub Committee for Taxation of FBCCI.
Mr. Al Maruf Khan FCA
Mr. Al Maruf Khan FCA (Enrolment No. 667) has assumed the
position of Vice Chairman of Kunming International Logistics and Finance Association (ILFA), China. ILFA is a Chinese Government supported organization based in Kunming to promote Bangladesh China India Myanmar (BCIM) Economic corridor integration initiative. Mr. Khan is also appointed as Principal Advisor of South Asian Federation of Exchanges (SAFE) in its Executive Board meeting held on 08th June, 2014 in China. Mr. Khan was the President of Chittagong Stock Exchange Ltd, and immediate past Chairman of South Asian Federation of Exchanges, apex body of all stock exchanges of South Asian Region. Mr. Khan is a Fellow member of the ICAB and ICAE&W and a CPA of the Institute of Chartered Accountant of Ontario.
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N I Chowdhuary FCA appointed as the Chairman Board Audit Committee. Padma Islami Life Insurance Ltd.
Mr. Nurul Islam Chowdhury FCA (Enrl 766) is appointed as
the Chairman of Board Audit Committee, Padma Islami Life Insurance Ltd. for the term 2013-14. He is also Independent Director of the same company since September 02, 2012. Earlier, he was a member of Board Audit Committee of the Padma Islamic Life Insurance Ltd. for the term 2012-13.
A F Nesaruddin won Championship Trophy of Prime Bank Golf Cup Tournament
Mr. Nurul Islam Chowdhury FCA Council Member
of the Institute of Chartered Accountants of Bangladesh won the Championship Trophy (in Front 9 Category) of the Prime Bank Golf Cup Tournament 2014 and also secured Hole-In-One honour (drop the ball in the hole in one shot from tee-off point) in another event held recently. In the photo Brigadier General P C Thimmaya, Defense AttachĂŠ, High Commission of India in Bangladesh is seen witnessing the event as playmate and marker for Mr Nesar. The Prime Bank Golf Cup Tournament 2014 was held at Kurmitola Golf Club recently. Congratulations and best wishes to Mr Nesar.
Khalilur Rahman Chowdhury Appointed as DMD of Rupali Bank
Md. Khalilur Rahman Chowdhury FCA (Enrl 372), a fellow
member of the Institute of Chartered Accountants of Bangladesh has been appointed as Deputy Managing Director of Rupali Bank Limited recently. Before joining the the Rupai bank Limited, he served Bangladesh Development Bank Limited (BDBL) as General Manager. He was deputy general manager of the Bangladesh Shilpo Bank.
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AKM Mizanur Rahman Appointed as Director of Sadharan Bima Corporation
A K M Mizanur Rahman FCA (Enrl 438), Managing Partner of Shafiq Mizan Rahman & Augustine and a senior member of the Institute of Chartered Accountants of Bangladesh (ICAB) has been appointed as Director of Sadharan Bima Corporation (The only State Owned Organization in General Insurance Sector). He is an official receiver, Government of Bangladesh and sponsor of SBAC Bank Ltd. He is also International Director of OISCA International, Japan and associated with many social organizations in Bangladesh. He participated in a series of seminars and conferences in home & abroad. He was Ex-Chairman & Honorary Secretary of Dhaka Regional Committee (DRC), ICAB for the year 1997 & 1994 respectively.
Md Salim Uddin appointed as Director of Rupali Bank Ltd. by GoB
Md. Salim Uddin, FCMA, FCA, MBA is a fellow member of both
the Institute of Cost and Management Accountants of Bangladesh-ICMAB and the Institute of Chartered Accountants of Bangladesh-ICAB. He has recently been appointed as Director of Rupali Bank Ltd. by the Government of Bangladesh. Now he is a faculty member, Professor in the Department of Accounting & Information Systems, University of Chittagong, and Chittagong, Bangladesh. In 1999 he went to Belgium to study MBA at the University of Brussels and obtained his MBA degree with the grade of distinction. He has been working as Financial Consultant/Adviser in the different organisations since 1993 and gathered vast experiences in the fields of designing accounting system, project management, project financing through debt and equity, business negotiation and regulatory compliance etc,. Mr. Salim has keen interest in theoretical and applied research. His main areas of interest are International Accounting, IAS/IFRS, Forensic Accounting, Creative Accounting and Capital Market. He has more than fifty research publications at home and abroad in various fields of Accounting and Finance. He worked and completed a project on E-Brokerage in Belgium and gathered experience in negotiating international business and finalising contract.
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Nehal Ahmed promoted as Additional Managing Director
Nehal Ahmed FCA (Enrolment No. 609), has been promoted as Additional Managing Director w.e.f April 16 2014. Mr Ahmed joined International Leasing and Financial Services Limited (ILFSL) in 2003 and has been holding different key positions in the company since then. Prior to this promotion, he had been serving as Deputy Managing Director. Bachelor (Honours) and Masters in Economics from University of Dhaka, Mr. Ahmed is a Fellow Chartered Accountant of the Institute of Chartered Accountants of Bangladesh (ICAB). He is also a Fellow of the Institute of Personnel Management (IPM) and the Bangladesh Society for Human Resources Management (BSHRM). Mr. Ahmed is a life member of the Dhaka University Economics Department Alumni Association (DUEDAA).
Ahmad Dawood Appointed as Chief Regulatory Officer
Ahmad Dawood FCA, FCMA (Enrolment No. 902), has been
appointed as the first Chief Regulatory Officer (CRO) of Chittagong Stock Exchange (CSE). CRO is the top boss of regulatory affairs division (RAD) of a stock exchange. Upon demutualization of stock exchanges in Bangladesh in late 2013, the exchanges’ regulatory functions have been separated from its commercial functions to enforce a strong SRO model in line with the international standard. The CRO heads the regulatory functions while the CEO heads the commercial function of the bourse. Prior to this appointment, Dawood served various key positions in CSE including CFO and Company Secretary. Earlier he had worked as Manager at the KPMG International.
Mohammed Quddus Elected as Governor of Lions Club International
Mohammed Quddus FCA (Enrolment No. 578) has been
elected as a Governor (unopposed) of Lions Club International Dist 315A1 Bangladesh at National convention held at Pan Pacific Sonargaon Hotel, Dhaka. He took oath in the office of Governor at the International convention held in Toronto, Canada recently. Lions Club International is the largest service organization of the world with 1.5 million Members in 207 countries of the world.
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Ali Amjad Choudhury Qualify CISA Examination
Ali Amjad Choudhury, ACA (Enrolment No. 1242) have recently passed the Certified Information Systems Auditor (CISA) examination conducted by ISACA, USA. Mr. Amjad has been working as the Head of Finance and Company Secretary at Southeast Bank Capital Services Limited, a subsidiary of Southeast Bank Limited since 2009. He also worked as Consultant in IT projects with Leads Corporation, Era Infotech Ltd.
Mahsudur Rahman FCA secured 5th position in Asian Body Building Championship Competition
Md. Mahsudur Rahman FCA, FCMA (Enrolment No. 815) participated in the Asian Bodybuilding Championship held in June 2014 in Colombo, Sri Lanka and secured 5th position. He is the only athlete from Bangladesh participated in this highest level of sport event in the Asia. Mr. Mahsud earlier achieved ‘Gold Medal’ in the Bangladesh Games organized by BD Olympic Association and obtained ‘Mr. Bangladesh’ and ‘Mr. Dhaka’. The events were organized by BD Bodybuilding Federation and Dhaka City Corporation respectively. At present Mr. Mahsud is working at Rahimafrooz Group as General Manager. He is involved in various prestigious social organizations at national and International level.
Gopal Chandra Ghosh FCA Joined Anower Group as CFO
Gopal Chandra Ghosh FCA, Council Member of ICAB joined Anwar Group of Industries as chief financial officer.
Mr. Ghosh has 8 years of professional experience in strategic planning, treasury management, budgetary control, internal audit and business process reengineering. He has previously worked with Lafarge and Viyellatex Group.
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WE MOURN With a heavy heart it is intimated that during the year 2014 we lost a few of our esteemed members. We pray for their eternal peace.
Md. Abdul Majid FCA
Md. Abdul Majid FCA (Enrolment No. 428), Partner, Syful Shamsul Alam & Co., Chartered Accountants passed away on 05 January 2014. (Innah Lillahe... Rejeun). On behalf of the Council and the members of the Institute of Chartered Accountants of Bangladesh (ICAB), President of the Institute Showkat Hossain FCA expressed deep sorrow at the demise of Mr. Majid. He prayed to almighty Allah, the most merciful, for salvation of his departed soul and for the strength and courage to the bereaved family to bear the irreparable loss.
Md. Shafiqul Islam Khan FCA
Md. Shafiqul Islam Khan FCA (Enrolment No. 173) Pro-Vice Chancellor, Darul Ihsan University died due to Heart Attack on 05 April 2014. (Innah Lillahe ... Rejeun). On behalf of the Council and the members of the Institute, the President of ICAB expressed deep sorrow at the demise of Mr. Shafiqul and prayed to almighty Allah, the most merciful for salvation of his departed soul and give the bereaved family the strength and courage to bear the irreparable loss.
Kazi Mezbah-ul Alam FCA
Kazi Mezbah-ul Alam FCA (Enrolment No. -40) Managing Partner, K M Alam & Co. Chartered Accountants, passed away on 15 April 2014 due to old age complications. (Innah Lillahe ... Rejeun). He was a man of great virtues and high self esteem. On behalf of the Council and the members of the Institute, the President of ICAB expressed deep sorrow at the demise of Mr. Kazi Mezbah-ul Alam and prayed to almighty Allah, the most merciful for salvation of his departed soul and give the bereaved family the strength and courage to bear the irreparable loss. 144
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Mr. Md. Rayhan Mirza FCA
Mr. Md. Rayhan Mirza FCA (Enrolment No. 1024), died on 02 May 2014. (Innah Lillahe ... Rejeun). On behalf of the Council members of the Institute, the President of ICAB expressed deep sorrow at the demise of Mr. Mirza and prayed to Almighty Allah, the most merciful for salvation of his departed soul and give the bereaved family the strength and courage to bear the irreparable loss.
Mr. Ashoke Kumar Saha FCA
Mr. Ashoke Kumar Saha FCA (Enrolment No. 677), Partner, G Kibria & Co., Chartered Accountants died on 30 May 2014. On behalf of the Council members of the Institute, the President of ICAB expressed deep sorrow at the demise of Mr. Saha and prayed for the salvation of his departed soul and give the bereaved family the strength and courage to bear the irreparable loss.
Mozer Abid Vasi FCA
Mozer Abid Vasi FCA (Enrlment No. 29), died on 26 June 2014 in USA (Innah Lillahe... Rajeun). He had been suffering Cancer for a long time. On behalf of the Council members of the Institute, President-ICAB expressed deep sorrow at the demise of Mr. Mozer Abid Vasi and prayed to Almighty Allah, the most merciful for salvation of his departed soul and give the bereaved family the strength and courage to bear the irreparable loss.
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Md. Abu Sayeed Miah FCA With deep sorrow, we regret to inform you that one of our veteran Chartered Accountants Mr. Md. Abu Sayeed Miah FCA (Enrolment No. 444) passed away on 9th July, 2014 at 12:15am in Square Hospitals due to cardiac arrest. To recollect his vibrant life and career, it is mentionable that Abu Mr. Md. Abu Sayeed Miah completed his academics from Dhaka University before starting his career as a Lecturer in Management at Shibpur Shaheed Asad Degree College, Narsingdi. After that he joined Bangladesh Bank and worked there for about four years. During this time he passed Banking Diploma Examination of the Institute of Bankers, Bangladesh securing 1st Place (Gold Medal) in Part-I (May 1977) and 2nd Place (Silver Medal) in Part-II (Nov 1977). Later he joined Rahman Rahman Huq Chartered Accountants and became a qualified Chartered Accountant in 1983. His next professional associations included 7 years in Dhaka Match Industries Co. Ltd. in the role of Finance Manager, 3 years in Rahimafrooz Group as Chief Manager (Finance), 11 years in Uttara Group of Companies as Director (Accounts and Finance). Finally he was working at the capacity of a Partner at Ahmed Khan & Co. Chartered Accountants since 2005. A humble honest person by nature, Mr. Md. Abu Sayeed Miah was well known to closed ones for his ever-reliable integrity & accountability, friendly behavior and his simple lifestyle. He leaves behind his wife and two sons along with a grandchild. May the Almighty give his family, relatives and friends the strength and patience to bear this great loss.
Mr. Md. Mohibullah FCA
Md. Mohibullah FCA (Enrolment No: 90), FCMA died on 3 September 2014 due to old age complications (Innailaihi...Raziun). He was practicing member and proprietor of Mohibullah & Co, Chartered Accountants. He was Secretary of ICAB Dhaka Regional Committee in 1985. Mohibullah was also member of Institute Cost and Management Accountants of Bangladesh. From the Council of ICAB, President of ICAB Showkat Hossain FCA sent a condolence letter to the bereaved family and sought eternal peace to the departed soul.
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Mr. Abul Kalam Azad FCA With deep sorrow, we regret to inform that one of our veteran Chartered Accountants Mr. Abul Kalam Azad FCA (Enrolment No. 85) passed away on 25th October, 2014 in USA. Humble and simple by nature, Mr. Abul Kalam Azad FCA was admired friendly behavior and his simple lifestyle. May the Almighty give his family, relatives and friends the strength and patience to bear this great loss. May his great soul rest in peace, Ameen.
Mohammed Mosleh Uddin FCA
Mohammed Mosleh Uddin FCA (Enrolment No. 22) died on 02 November 2014 due to old age complications in USA (Innailaihi... Raziun). He was Director of Reliance Finance Limited and Reliance Brokerage Service Limited. He left behind his wife, three sons, grand-sons & daughters and a number of well wishers. From the Council of ICAB, President of ICAB Showkat Hossain FCA sent a condolence letter to the bereaved family and sought eternal peace to the departed soul.
A Milad and Doa Mahfil for Late ICAB Members The Institute of Chartered Accountants of Bangladesh (ICAB) arranged a 'Milad and Doa Mahfil for the salvation of departed souls of late Members of the Institute at ICAB Auditorium on 8 April 2014. Before starting Milad and doa Mahfil, the relatives, colleagues, friends and well wishers of the late members recalled their contribution to the nation and the Institute as well. They prayed to the almighty Allah for the eternal peace of the departed souls of their beloved Fellow Members, who died over the past years. ICAB President Showkat Hossain FCA, Members of the Institute and employees attended the Milad & doa Mahfil, conducted in solemnity and due honour, specially for the members who expired recently.
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Mr. Zahir Uddin Ahmed FCA We express our deep grief and sorrow due to the death of Mr. Zahir Uddin Ahmed FCA, FCMA, CGMA, Past President and Chairman Advisory Committee, ICAB who breathed his last on 19 November 2014 in Singapore General Hospital, Singapore at the age of eighty (Innah Lillahe ... Rajeun). Mr. Ahmed was also a fellow of the Chartered Institute of Management Accountants, UK and an honorary lecturer in the Department of Management, Dhaka University. In his long glorified career, Mr. Ahmed served as Member of several committees formed by GoB, including the Cost and Price Consultative committee and Company Law Reforms Committee, Law Commission, National Wages and Productivity Commission 2010. His Namaz-e-Janaja was held in Gulshan Azad Mosque on Friday, 21 November 2014 after Jumma. President, Vice Presidents, Past Presidents, Council Members ICAB and ICAB Members attended the Janaja. He was laid to rest in Banani Graveyard. The Members and all the Employees of the Institute express deep sorrow and pray to Almighty, the most merciful, for the salvation of his departed soul and for the bereaved family to bear the loss. A 'Milad and Doa Mahfil for the salvation of departed soul of late Mr. Zahir Uddin Ahmed FCA, was held at the Institute of Chartered Accountants of Bangladesh (ICAB) on 23 November 2014 at CA Bhaban, Kawran Bazar, Dhaka. All ICAB members and his well wishers attended the Mahfil. Before the milad started, ICAB President recalled the memories of late Mr. Zahir Uddin Ahmed and other Members who died in the past.
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COMMUNICATIONS AND PUBLICATIONS
12.1 PUBLICATION OF JOURNAL/ NEWS BULLETIN/ BOOKS/ SOUVENIR ETC. ICAB always digs for new ideas for bringing new dimension in its publications. To improve the journal’s quality, standard and to make attractive it to the members and others stakeholders, overall look of the Journal has been changed including its cover page, contents, and articles. The journal was made attractive through by using graphical and pictorial design and presentation. It
contained a greater variety of quality articles contributed by the accounting professionals and the other professionals. The Universities, Conporates Entities and Regulatory Bodies are the readers of the Journal. The subscribers of ICAB Journal have increased this year. Distribution of the News Bulletin was made wider. This year the Institute got cover story title of a national monthly magazine ‘Guardian’ August issue. Besides this, ICAB published huge number of Books, Manuals, Souvenir etc.
Cover page of some of the publications are on the display
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12.2 MEDIA COVERAGE ICAB got massive media coverage both in print and electronic media throughout the year 2014. Some of them are depicted below:
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This year ICAB drew highest media coverage through its national and international events. ICAB Members’ Conferences, Roundtable Discussion on Budget of 2014-15, ICAB Press Conference, SAFA International Conference 2014, Trainings and Workshops etc got huge media coverage in both print and electronic media. This year The Daily Star, The New Age and The Financial Express published exclusing interview of the President-ICAB.
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List of Members and Firms The List of Members and Firms 2014-2015 was published containing the updated list of members and firms with their addresses and contact details as on 01 July 2014. The publication was duly distributed among the members of the Institute. This year the List of Members and Firms 2014-2015 adds addemdun with name and addresses of new members, members removed from this register due to non payment of annual fees and other reasons.
Distribution of ICAB Publications During the year complimentary copies of BAS/BFRS were distributed to outside agencies and stakeholders including relevant ministries, government agencies, Bangladesh Bank, SEC, DSE, FBCCI, BCI, DCCI, ICMAB and many public/Private universities and donor agencies.
12.3 ICAB PRESIDENT’S INTERVIEWS IN PRINT MEDIA ICAB President Showkat Hossain FCA in an exclusive interview with the Daily New Age on 17 January 2014
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practice and it is mandatory for the audit firms to maintain that. There could be some incidents where an individual audit firm fails to maintain the standard fully but that does not necessarily mean the entire industry lacks the standard. On the other hand, the quality or standard of an audited financial statement does not only depend on the auditors. There are other issues like the efficiency of the business entity and the government policies about different financial issues. NA: How the audit reports can be affected by the business entities and government policies? Showkat: The government brought many small firms under audit requirement because of its tax policy. Now the small firms often cannot afford high quality account managers. As a result, their financial reports fail to match the standard. As you may know the duty of the auditors is not to prepare the accounts, rather they just check if the accounts of the report are correct or not. So basically, for low-standard financial reports you can hardly blame the auditors. Sometimes the small firms also try to pass through the audit requirement by taking unfair means. Maybe some audit firms also help them doing so. But if the business entities prepare their accounts is a standard manner then no auditor can change it or manipulate it. NA: What measures are taken against the audit firms which help businesses in unfair means?
Showkat Hossain FCA, president of the Institute of Chartered Accountants of Bangladesh, in a interview with New Age, has said the quality or standard of an audited financial statement does not only depend on the auditors.
Showkat: The ICAB has a disciplinary committee which takes action against the audit firms if any complaint is found. We can suspend or even cancel the licence of the audit firms. But we have faced problems when we did so in the past. The suspended firms often get stay order form the court and carry out their operation. As we all abide by the law there is noting much to do on this ground. But we often impose fine for the professional misconducts.
New Age: What do you think about the standard of the country’s audit reports?
NA: Why has ICAB opposed the government move to formulate the Financial Reporting Act?
Showkat Hossain: I believe the standard of the audit reports in our country is good as we always maintain the international standard. We have formulated an audit standard in line with the best international
Showkat: It will be better if you say we raised some points which we believe need consideration. The FRA is prepared in a manner which has some contradictions. If the government wants to strengthen the monitoring for audit reports there are already
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regulators to look after it. For the public limited companies we have the Bangladesh Securities and Exchange Commission and for private companies we have Registrar of Joint Stock Companies and Firms. The ICAB itself is also doing a lot of work to ensure better audit reports. We have a 1973 act under which we operate and updating that act will do enough to ensure better accounting and audit standard. NA: There is allegation that low-quality audit reports were major reasons behind the stock market crash during 2010-11. What is your stand? Showkat: There is no base of such allegation. The stock market was burst because of the bubble which was created because of a demand-supply mismatch. People were rushing to invest in the stock market and I wonder if anyone looked at the audit report of the companies to make investment decisions. The picture would have been different if the investors paid attention to the audit reports of the companies.
The Interview was published in the Daily New Age on 19 January 2014. ICAB President Showkat Hossain FCA in an Interview with the Financial Express on 16 July 2014, President Office, CA Bhaban President of ICAB Showkat Hossain FCA gave an exclusive interview with the Financial Express about ICAB’s stand on the proposed Financial Express and the development of the Institute. The interview in the print media is a part of his ongoing activities to create and update about the ICAB’s activities towards development of the country’s economy. The interview is as follows. The Institute of Chartered Accountants of Bangladesh (ICAB) has agreed to accept the proposed Financial Reporting Act (FRA), under which Financial Reporting Council (FRC) will be formed to oversee functions of the auditors. The institute, however, placed a five-points demand before the government for its consideration in finalising the FRA draft as it, ICAB said, will help shun various impediments in ensuring quality audit and achieve purposes of the law.
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"We have recently submitted five-point proposal before the Finance Minister for incorporation in the proposed FRA for the greater interest of the standard audit practice and the country," ICAB president Showkat Hossain FCA told the FE in an interview recently. In a query, Mr Hossain said that ICAB still thinks that strengthening its existing Investigation and Disciplinary Committee (IDC) as like as the proposed FRC in terms of composition, power and function is a better alternative to the formation of FRC as a separate body. By strengthening the IDC, it is veritably possible to achieve purposes of the proposed FRC. "To do so, it will be needed just to bring some necessary changes in the Presidential Order No 2 of 1973, under which the ICAB was established," he said. However, against the government's resolution to pass the FRA and form FRC, the ICAB finally placed the five-point proposal to make the FRC effective in ensuring transparency and accountability in the audit practice instead of binding its functions with bureaucratic red tape, Mr Hossain said. Explaining the first of the five proposals, he said that the definition of 'auditor' was mentioned as 'professional accountant' that was further defined as 'member of ICAB and ICMAB (Institute of Cost and Management Accountants of Bangladesh)' in the drafted FRA. Strongly opposing the definition, he said that the Cost and Management Accountants (CMAs) are not 'auditors of the financial statement'; rather they are empowered to audit only cost accounts according to Section 220 of the Companies Act 1994.
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So, "We requested him (finance minister) to exclude the members of ICMAB from the definition of auditor."
ICMAB; then, it is better to merge them. Otherwise, it will create chaos," he said.
Secondly, the ICAB requested to raise its representatives from one to three, include representative from the law and commerce ministries along with the finance ministry and exclude ICMAB representative at the proposed 13-member FRC.
About ICAB's objection on composition of FRC, Mr Hossain said that in the drafted FRA, the Bangladesh Bank governor was made chairman of FRC, securities regulator and insurance regulators' chairmen and some others were made its members; but all of them are stakeholders and beneficiaries of the CAs' reports;
Substantiating its demand to exclude ICMAB, he said that as the FRC is for overseeing functions of CAs, then why CMAs will be included here. He rather floated to make another FRC, if necessary, for the CMAs and not to include CAs there. Disagreeing with the draft provisions that empowered FRC to give licence to CAs, ICAB further proposed to include provisions, under which the institute will continue giving licence under a set of rules and regulations and FRC will give final clearance to the CAs to start their audit practice. Because, if the FRC was empowered to give licence, there will be bureaucratic red tape on the issue, causing lack of CAs for audit in the country. Fourthly, Mr Hossain said that ICAB is member of different standard setting bodies including SAFA, CAPA, IFAC and IASB. Accordingly, ICAB receives any new standard immediately after they are set, and "we then incorporate it in the Bangladesh perspectives after necessary examination." Because of not having such connection with international standard setting bodies, FRC will not be able to do the task; rather it will take 5-7 years for FRC to be acquainted to all of these. In the meantime, Bangladesh will lag behind than others. So, ICAB proposed to continue its function of setting audit standard and simultaneously empower the FRC to finally approve that standard. Lastly, the ICAB pleaded to drop the provision of jail sentence proposed in the FRA for the CAs keeping other penalty provisions as it is drafted. Regarding the ICMAB's request for its inclusion in the FRC, he said that they (CAMs) might want their inclusion in the FRC in an intention to place demand later to allow them to audit. "CMAs do not audit anywhere in the world. If they are allowed to audit financial statements, there is no necessity of having two organisations -- ICAB and
"On one hand, they will get their reports certified by us (CAs) and on the other hand will oversee functions of the CAs. That's why we protest it," he said. He further said that the ROSC Report of 2003 made 20 recommendations; ICAB already complied with 19 of them; only FRA was left. In another query, the ICAB president said that "transparency and accountability at the accountancy profession will definitely be enhanced" if the proposed FRC is constituted prudently and function efficiently instead of being like many other ineffective bodies. Saying that base of the unscrupulous CAs would be enervated with formation of the FRC, he hoped the FRA to truly facilitate to bring the errant CAs into book and develop the economy in the country. The ICAB already started creating awareness among the CAs about the provisions of the proposed FRA so that they increase their efficiency and ensure quality of audit. The interview was published in the Financial Express on 21 July 2014. 12.4
EXPOSURE IN ELECTRONIC MEDIA
ICAB President Attends ATN Business & Finance Programme ICAB resident Showkat Hossain FCA participated in ATN business & finance live talk show that was broadcast on 23 July 2014. The program was on ‘Capital Market’. The other participants of the program was Moinuddin, CEO, Sheltek Brokerage. A good number of TV viewers also participated in the program through telephone. The participants answered the questions of the viewers about stock market and Proposed Financial Reporting Act (FRA) in the program.
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About stock market, ICAB President said, share prices mostly depends on supply and demand. He said investors should invest in the share market considering balance sheet and fundamentals of the company. Investors could be benefited, if they invest their money on long term basis, he opined.
ICAB president in an Interview with BTV
On a query Mr. Hossain said that ICAB works on setting accounting standards in the country, CAs audit the accounts while CMAs do not play any role there. About proposed Financial Reporting Act, he said CMAs’ inclusion in the FRC will be unprecedented. Already ICAB is performing the same job which FRC is likely to be assigned to do. However, he reiterated, ICAB always favoured the government’s initiatives to bring transparency and accountability but that should not be counter productive and at the cost of our country’s overall economic peril, he added.
ICAB President in ATN Bangla Talks about Evaluation in Banking Sector Performance President ICAB Showkat Hossain FCA joined in ATN business & finance live talk show on 02 July 2014. The programme was on ‘Evaluation in Banking Sector Performance’. The other participants of the programme were Syed Mahbubur Rahman, Managing Director, BRAC Bank Ltd and AKM Majedur Rahman, Managing Director, Premier Bank Ltd. ICAB President spoke about different aspects of transparency and accountability of banking sector and measures that can be taken to improve the situation. The programme was moderated by Ismat Jerin Khan. They also replied the queries made by the viewers.
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Shorty after end of the ICAB press conference on 8 September 2014, ICAB President Showkat Hossain gave an exclusive interview in Bangladesh Television that was broadcast nationwide on 10 September. He spoke about transparency and accountibility in the corporate sector of the country. Company’s management should be more transparent in their day to day operations, he said. Chartered Accountants as well have a Nobel role to play in establishing transparency in their audit reports which reflect the company’s face.
Nasir Uddin Ahmed FCA participates in ATN Business & Finance Program Nasir Uddin Ahmed FCA, Council Member & Past President-ICAB participated in ATN Business & Finance live talk show program. Moderated by Ismat Zerin Khan, The program was broadcast on 19 January 2014. He talked about recent trend of capital market in the country.
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Mr. Nasir said that to get back the money that was strayed from the capital market, a special tribunal will be very much effective to detect the criminals behind the share market scam. The tribunal will expedite the trial of scam also, he added. He thinks that the tribunal will handle many technical issues, so it should have relevant technical experts. He also said that the BSEC should have Chartered Accountants who are very expertise professionals to assist the tribunal.
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Mr. Jamal said, mix trend both positive and negative were dominated in banking sector in last year. The scale of deposited amount of money increased in one hand, on the other hand lending liquidity decreased a notch down due to Bangladesh Bank’s monetary policy that put some restrictions on lending money provision. He said reformation in the banking sector was made in foreign banking perspective which did not match with our country’s perspective. About share market development, he said, the debacle in capital market happened due to lack of corporate governance in the regulatory bodies. To improve the system of corporate governance, demutualization should be implemented as soon as possible, he opined.
M Farhad Hussain FCA Joins in ATN business & finance live program
Investors should invest their money in the capital market through scrutinizing the background of the company’s economic performance, he advised. Another discussant of talk show was Fakuruddin Ali Ahmed, former President of Chittagong Stock Exchange.
Dr. Jamaluddin Ahmed FCA attends Business talk in Bangla Vision
Dr. Jamaluddin Ahmed FCA, Past President of ICAB and also Director of Janata Bank participated in Bangla Vision’s live talk show’ Business Vision’ that was broadcast on 13 January 2013. Professor Dr. Abu Ahmed also participated in the talk show. They spoke about Economic performance of the Bank, Insurance Company and other financial Institutions.
Council Member & Past President of the Institute of Chartered Accountants of Bangladesh (ICAB) M Farhad Hussain FCA joined in ATN business & finance live talk show that was broadcast on 20 February 2014. Over country’s business environment share market and its development, the ATN Bangla TV channel organized the program regularly moderated by Ismat Jerin Khan. The program issue was ‘Current Trend of Capital Market Scenario’. The other participant, of the program is M S Sekil Chowdhury, Chairman, Centre for NRB. The TV viewers also participated in the program through telephone. The veteran Chartered Accountant shared his thoughts in reply to the questions of the viewers about stock market business in the program.
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Md. Humayun Kabir FCA in Ekushey TV Business program Mohammed Humayun Kabir FCA, council member and past president of the Institute of Chartered Accountants of Bangladesh participated in live Ekushey Business program in E-Tv on 2 March 2014.
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Other discussants are Economist Prof. Dr. Helaluddin, Econiomist Dr. Mizanur Rahman, foremer BSEC Chairman Faruk Ahmed Siddique, former president of Dhaka Stock Exchange Rakibur Rahman, Vice President of Merchant Bank Association Akter Hossain Sannamot. They spoke about demutualization board of two bourses, its activities and effects on the markets and answered many questions of the investors participated in the program directly from spectators row.
M Farhad Hussain FCA appeared in ATN Bangla to Talk about Capital Market
Mr Humayun spoke about Bangladesh Bank’s recent circular regarding commercial Banks, its subsidiary Institutions and their capital in the share market, valuation process of IPO launching and capital market instability.
Council Member & Past President of ICAB M Farhad Hussain FCA participated in ATN business & finance live talk show broadcast on 18 August 2014. The program moderated by Ismat Jerin Khan focused on ‘Capital Market’.
He spoke about BB circular, capital market, valuation process of IPO, company’s management, auditor, issue manager and BSEC’s role.
Md. Humayun Kabir FCA Speaks on Demutualization of DSE, CSE in R-Tv
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Md Humayun Kabir FCA, council member and past president of the Institute of Chartered Accountants of Bangladesh participated in R-Tv’s Talk show: ‘Share Bazar –O- Apnar Giggasa; Demutualization, new board of directors and future challenges’ that was broadcast live on 17 February 2014. The program was moderated by Syed Ashiqur Rahman.
The other participants were Al Amin, Professor, Accounting Department of Dhaka University and Dr. Hamid Uddin, Associate Professor of University of Sharjah,UAE. The TV viewers participated in the program through telephone call. Mr. Farhad spoke about the recent trend of stock market, bank’s liquidity, the country’s economic growth, value of share, company’s profit records, PE ratio and the management credibility.
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Mohammed Forkan Uddin FCA appeared at live Ekushey Business Program on Capital Market
Mohammed Forkan Uddin FCA, capital market specialist and partner, Masih Muhith Haque & Co, Chartered Accountants appeared at Ekushey Business program on 28 April 2014 over a live interview focusing on capital market scenario, its future movement and the upcoming national budget. He spoke about present trend of capital market, surplus banks’ liquidity, single digit interest rate on FDR and demutualization of the two bourses. Mentioned that Mr. Forkan also appeared in series of talk shows on financial matters of national and international concerns different times in other channels like Independent TV, RTV, etc.
Nasir Uddin Ahmed and A F Nesaruddin Talked about Capital Market in ATN Business & Finance Programme
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broadcast on 23 October 2014. The program moderated by Ismat Jerin Khan focused on ‘proposed Financial Reporting Act and function of capital market’. On a query, Nasir Uddin Ahmed said Finance Reporting Act does not impact directly on the Capital Markets. However, it would ensure accountability and transparency of audit and accounts of the company. He said, ICAB as regulatory body are giving punishment to the accountants and firms who do not comply with accounting standards or involve in malpractice and upload the information in its website, he added.ICAB Investigation and Disciplinary Committee rigorously involved in the process, he added. AF Naseruddin FCA said, auditor audits accounts of company once a year. He certifies the value of the accounts before launching IPO in the capital market and same has been done by the Issuer manager. unfortunately, Capital market is largely moved by rumor, he said. He further said, ADB is putting pressure on government to introduce FRA in the name of disbursing of loan. On a query, the ICAB council member said that ICAB opposed the way FRC learnt to be formed. ICAB is ready to assist the government. As the main stakeholder of FRA, we placed some observations to make the FRA more meaningful so that it could contribute to improve transparency and accountability in the financial sector, he said. ICAB members advised that the investors should be very caution when they invest their hard earned money in the capital market. The other participant was Syed Sajid Hossain, Managing Director, Chittagong Stock Exchange. The TV viewers participated directly in the program through telephone call.
Forkan Uddin appeared at live Ekushey Business program on Capital Market
C ouncil Member & Past President of ICAB Nasir Uddin Ahmed FCA and Council A F Nesaruddin FCA participated in ATN business & finance live talk show
Mohammed Forkan Uddin FCA, capital market specialist and partner, Masih Muhith Haque & Co, Chartered Accountants appeared at Independent TV interview at the program titled Babosapati Protidin on 28 October 2014. With his visionary ideas, he focused different aspects of capital market, reasons of
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uptrend of the market, PE ratio, New IPO process, taxation and the proposed Financial Reporting Act.
Out of that government would be benefited, he opined.
About capital market, investors should invest their hard earned money in share markets business considering PE ratio. He advised that investors should carefully purchase the share when its PE ratio high.
About the impact of FRA on capital market, he said it does not impact on capital market. FRA got nod by the Cabinet on four reasons; ensuring quality of Financial Reporting, Enforcement, Accounting Standard Setting and Regulate the auditors, he added the FRA will be enacted. But the auditors do not prepare the Financial Reporting, it is prepared by the company’s management, he said. But there is no clause to control the company management in the proposed FRA. He said, accounting standard setting is technical issue, only ICAB can do this, he added.
About taxation service, he chartered accountants provide tax consultancy within the purview of country’s law. There should be research wing in the NBR to make the income tax act more users friendly.
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About the government’s move to enact the proposed Financial Reporting Act (FRA) he said the act has some ambiguity and dualism with the country’s Companies Act. He said, instead of creating new wing of government expenditure like FRC, the government may take initiative to strengthen the ICAB to serve the vey purposes of FRC, he said.
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REGIONAL OVERSEAS COMMITTEES/CHAPTERS
13.1 ACTIVITIES OF DRC DRC-ICAB Annual Picnic-2014 The members, employees of the Institute of Chartered Accountants of Bangladesh (ICAB) and their spouse and children passed a joyful and cheerful day at Mohammodi Garden, Mohishashi, Kalampur, Dhamrai on Friday, 14 March 2014. The annual picnic was organised by the ICAB Dhaka Regional Committee amid full enthusiasm, cultural bonanza and sports activities.
It was a day of pleasure and fun for about hundreds of picnickers. They immensely enjoyed the warmth and beauty of the nature. The children along with their parents were in great delight as they participated in the games and sports arranged at the picnic spot. Everyone looked absolutely contents and happy while returning from the picnic. Every year of ICAB Dhaka Regional Committee arranges the picnic to keep them away from the monotonous routine work of the daily hustle and bustle of city life.
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MEETING WITH DRC DELEGATES
A team of Dhaka Regional Committee, ICAB led by President DRC Md. Fokrul Islam FCA met ICAB President Showkat Hossain FCA at his office on 03 April 2014. The other members of the team are Md. Eftekhar Ali FCA, Md. Selim Reza FCS, FCA, Mizanur Rahman FCA, Mohammed Khairul Alam FCA. They held the meeting to discuss professional issues and to apprise the matters related to the affairs of the Committee to the President. At the meeting ICAB President emphasized for more pro-active role in building image of the Institute as well as to foster the development of the profession.
Dhaka Regional Committee held 34th AGM The 34thAnnual General Meeting of Dhaka Regional Committee (DRC) of the Institute of Chartered Accountants of Bangladesh (ICAB) was held on 17thMay 2014 at ICAB Auditorium of the Institute. The meeting approved and adopted Financial Statements of DRC for the year 2012-2013. In the meeting Mohammad Khairul Alam FCA and Md. Yasin Miah FCA were elected as Chairman and Secretary respectively for the year 2014.
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Mohammad Khairul Alam, FCA was born in 1972. He completed his master in Management from National University. He became Associate member of the ICAB in 2007 and Fellow member in 2012. He has been working in different Standing and Other Committees of ICAB. He visited many countries of the world like UK, Italy, Singapore, Dubai, Qatar, Saudi Arabia, Thailand etc. He has participated in many training, workshop & seminar at home and abroad. He has 17 years of professional experience. Md. Yasin Miah FCA was born at Village-Manderpur, PS- Kasba and District Brahman Baria. He was qualified as a Chartered Accountant from the Institute of Chartered Accountants of Bangladesh (ICAB) in 2007. He has long experience in various organizations like BRAC, Gonoshasthaya Pharmaceuticals Ltd., Fu-Wang Group etc. Currently he is Chief Financial Officer of Global Insurance Limited. Other members of DRC-ICAB are Md. Fokrul Islam FCA, Md. Eftekhar Ali FCA, Md. Selim Reza FCA, Mizanur Rahman FCA, Mohammed Sabir Ahmed FCA, Md. Zakaria FCA and Md Monzur Alam FCA.
New Office Bearers of DRC Pay Courtesy Call on ICAB President New office bearers of Dhaka Regional Committee, ICAB paid a courtesy call on ICAB President Showkat Hossain FCA at his office on 27 May 2014. Earlier at a Annual General Meeting of DRC Mohammad Khairul Alam FCA and Md. Yasin Miah FCA were elected as Chairman and Secretary respectively for the year 2014. The new office bearers of DRC discussed various professional issues with the President. Among others the outgoing DRC Chairman Md. Fokrul Islam FCA and ICAB Secretary AKM Rahmat Ullah FCA were present during the meeting.
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ICAB President assured them about all out support from the ICAB to new office bearers of DRC.
13.2 ACTIVITIES OF CRC CRC Annual Picnic 2014 Chittagong Regional Committee (CRC)-ICAB organized annual Picnic-2014 at Cox’s Bazar on 21 to 22 March 2014 where ICAB Members, CRC staff, their spouses and children participated with full enthusiasm and joy.
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CRC-ICAB observes International Mother Language Day
In observance of International Mother Language Day, the members of Chittagong Regional Committee (CRC)-ICAB paying homage to the Language martyrs through placing floral wreaths at the Shaheed Minar in the city, Chittagong.
13.3 UK CHAPTER CPD on IFRS 13 by ICAB UK Chapter ICAB UK Chapter organized a Members’ Conference on ‘IFRS 13: Fair Value Measurement’ at Duru House, 101, commercial road, London on 30 August 2014. ICAB president Showkat Hossain FCA graced the occasion as Chief Guest while AKM Fazlur Rahman FCA, Chairman ICAB UK Chapter moderated the session as Session Chairman. ICAB Council Member and Past President Md Abdus Salam FCA presented the Keynote paper in the Conference.
Picnickers enjoyed the beauty of the sea, its surrounding hills and natural beauty amid wonderful sunny day at Cox's Bazar. Chittagong Regional Committee-ICAB arranges the picnic every year.
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REAL ESTATE MATTER
Inauguration of Renovated 8th Floor, CA Bhaban
approval from the Council. This effort is likely to ease the pressure on lifts services and remove the inconveniences of the increased number of students.
7th Floor Renovation The design of 7th floor renovation is at final stage with modern architectural design which will be housing training complexes of ICAB, DRC offices and their conference room etc.
The Institute of Chartered Accountants of Bangladesh (ICAB) completed the renovation work 8th floor, CA Bhaban in February 2014 and organized an Inauguration program of newly renovatedon Saturday, March 08, 2014. Mr. Tofail Ahmed, MP, Honourable Commerce Minister, Government of the People’s Republic of Bangladesh inaugurated the renovated 8th floor where President, Vice Presidents and Council Hall are housed. Showkat Hossain FCA, President-ICAB, Past Presidents and Council Members of the Institute were present. The mentioned renovation was carried out with reasonable cost and modern architectural design.
Shifting Library from 7th Floor to 3rd Floor
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The shifting of sutdents library, ICAB from 7th floor to 3rd floor has been approved by the council-ICAB and will be implemented soon. An estimate has already been made and got
Rental Issues with Prothom-alo The matter to vacate the CA Bhaban by the tenants Prothom-alo is discussed with the Prothom-alo officials and a formal Minutes of Meeting requesting to vacate a floor within a year and the other floors subsequently his all ready communicated to them. However, we are waiting to hear from them.
Appointment of Fire Safety Consultants To improve/ upgrade the fire safety of CA Bhaban, Prudential Consultant is appointed to suggest and measures regarding fire safety issues of CA Bhaban.
Land Purchases for CRC The parchase of a plot for CRC in Agrabad is under process. Necessary negotiations and verifications are done to ensure the authenticity of the ownership and formalities through reputed lawyers and concerned land offices.
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ICAB President’s discussion with Public Works Minister for Permanent Campus ICAB President Showkat Hossain FCA met Engineer Mosharraf Hossain, Minister, Ministry of Housing and Public Works, GoB at the latter’s Office on 27 October 2014 to discuss about the allotment of Government plots for ICAB academic campus. During the meeting, Member Council and Past Presidents Abbas Uddin Khan FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA and Member Council and Chairman Real Estate Committee-ICAB A F Nesaruddin FCA accompanied ICAB President. He briefed the Minister about ICAB’s activities and informed that ICAB has more than 1500 Chartered Accountants and 20,000 students. Out of them, about 200 CAs and 3000 students are in Chittagong. These numbers are increasing rapidly. The president went on saying that ICAB has no permanent Academic
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Campus in Dhaka and Chittagong. He requested the Minister to allocate one plot at Uttara (3rd Phase) in Dhaka and another one at Agrabad or Khulshi Commercial Area in Chittagong for Chittagong ICAB Academic campuse to provide better education and training facilities of CA students. It is pertinent to mentioned that ICAB has already placed two applications before the Ministry for consideration. Hon’ble Minister gave a patient hearing to the ICAB’s team and gave a recommendation on ICAB’s applications for due consideration by the Chairman, RAJUK and Chittagong Development Authority (CDA) longstanding campus issue.
Other Events In 2014, ICAB also carried out cleaning of external glasses and ACPs which were installed in the year 2012. The cleaning works are expected to enhance the durability of the external decorative works.
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15.0
HUMANITARIAN INITIATIVE
The Council approved 5 Lacs grant for warm clothes for the vulnerable peoples of the northern cold hit area. The Institute of Chartered Accountants of Bangladesh (ICAB) distributed 2,000 blankets among the cold-hit distressed people of all ages under Ulipur Upazila of Kurigram Friday. The ICAB distributed the blankets with financial assistance of 'Sparkle', an organisation of the Young Chartered Accountants under management of the Accounting & Information Systems (AIS) Club of Begum Rokeya University, Rangpur (BRUR). Superintendent of Police of Kurigram Mohammad Tobarak Ullah along with ICAB Members distributed the blankets among the cold-hit people at a ceremony arranged at Bagua Anantapur School and College ground in the upazila as the chief guest. Chairman of local Hatia union parishad Abul Hossain presided over the ceremony also participated by local elite, public representatives, socio-cultural and professional activists and community leaders.
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MISCELLANEOUS ACTIVITIES
Showkat Hossain FCA took over the charge of President Showkat Hossain FCA has taken over the charge of the President of the Institute of Chartered Accountants of Bangladesh (ICAB) for 2014 at a formal ceremony held at ICAB Auditorium on Wednesday, 01 January 2014. Mr. Showkat replaced outgoing President Mr. Md Abdus Salam FCA. Three New Vice-Presidents of ICAB; Kamrul Abedin FCA, Nasim Anwar FCA and Dewan Nurul Islam FCA also took the charge of their offices as Vice Presidents of ICAB for the year 2014. After taking charge, the new President of ICAB sought cooperation from all quarters
and urged all to work to uphold the image of CA profession. He reiterated his commitment to work for the development of the Institute and the profession at large. He also requested the members and all others to put up their best efforts to bring momentum in financial sector. He urged ICAB personnel to be instrumental for all the activities that ICAB will take in the year 2014. Mr. Hossain, a veteran Chartered Accountant is the 42nd President of the Institute. He has been in the ICAB Council since 2004. He is a Director in the Board of Union Bank Ltd. He is a Member of SAFA Committee on Harmonization of Fiscal and Tariff Regimes. He is Life Member of Chittagong Kidney Foundation & Maa Shisu O'General Hospital.
Warmth Felicitation On behalf of the Editor of the Financial Express, Mr. M Rajab Ali, Senior Manager handing over a bouquet to newly elected ICAB President Showkat Hossain FCA at latter’s office on Thursday, 02 January 2014. ICAB Secretary In-charge Prof. Dr. Mahfuzul Hoque and other officials were present on the occasion.
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Chairman of the Dhaka Regional Comittee (DRC) Fokrul Islam FCA greeted newly elected ICAB President Showkat Hossain FCA while two other Vice Presidents of the Institute Dewan Nurul Islam FCA and Kamrul Abedin FCA were present.
Mr. Showkat Hossain FCA, President-ICAB was greeted by the Board of Directors, Chittagong Water Supply and sewerage Authority (CWASA) at its Board Meeting on 18 January 2014 where Mr. Hossain attend the Meeting as Director of CWASA.
ICAB President attends CSE Get together
ICAB President, also Member of the Board of Directors of Chittagong Stock Exchange accompanied by other Members of the Board greeted newly elected President of Chittagong Stock Exchange on 19 February 2014
President ICAB Attends ICMAB Convocation
ICAB President attends yearly get together of Chittagong Stock Exchange at Hotel Ruposhi Bangla on 9 February 2014.
ICAB President and CSE Board Members Greet CSE new President
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ICAB President Showkat Hossain FCA and Council Member & Past President Md. Syful Islam FCA attended the convocation of the Institute of Cost and Management Accountants of Bangladesh (ICMAB) held on 28 January 2013 at Ruposhi Bangla Hotel, Dhaka. Abul Maal Abdul Muhith MP, Hon’ble Minister for Finance, GoB was the Chief Guest and Prof. Dr. S.M. Nazrul Islam, Vice-Chancellor, BUET was the Convocation Speaker. All together about hundred
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
Fellow and Associate Members of ICMAB received their Certificates in the Convocation Program.
ICAB observes International Mother Language Day ICAB President Showkat Hossain FCA along with other Fellow Members and ICAB Officials pose for photo before joining mourning stream on 21st February 2014.
A team of the Institute of Chartered Accountants of Bangladesh (ICAB) placed floral wreaths at Central Shaheed Minar in observance of International Mother Language Day and Language Martyr Day on Friday, 21st Febraury 2014. 'Amar Ekushey' and International Mother Language Day was observed across the country paying homage to the martyrs of glorious language movement in 1952. ICAB expressed solidarity with thousands of people of all levels who brought out mourning procession singing 'Amar Bhaiyer Rakte Rangano Ekushey February, Ami Ki Bhulite Pari".
ACCA Country Manager Meets ICAB President
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FCA, Council Member and Past President Syful Islam FCA and Director (Technical) Mahbub Ahmed Siddique FCA were present in the meeting.
ICAB President and other Board of Directors CSE Met BSEC Chairman ICAB President Showkat Hossain FCA who is also a Director of Chittagong Stock Exchange (CSE) along with other Members of the Board of Directors held a meeting with the Chairman of Bangladesh Securities and Exchange Commission (BSEC), Professor Dr. M. Khairul Hossain at latter’s office in Dhaka on 19 February 2014. They held discussion on operational activities of Chittagong Stock Exchanges and sought guidelines to bring dynamism in stock market operation. Al Maruf Khan FCA, outgoing Chairman of CSE also hosted a dinner on 20 February 2014 at a City Hotel where BSEC Chairman attended and interacted with the new CSE Chairman and Directors. The members of BSEC also attended the dinner. ICAB President among others was present there. Showkat Hossain attends Daily Star- DHL Bangladesh Business Awards ceremony ICAB President Showkat Hossain FCA attended Daily Star-DHL Bangladesh Business Awards ceremony held at Hotel Pan Pacific Sonargaon, Dhaka on 28 March 2014. Mr. Hossain was a member of the Jury Board of the Awards this year. The Daily Star-DHL Bangladesh Business Awards (BBA) is a most prestigious award in the country which is jointly organized by The Daily Star and DHL Express Bangladesh every year to honor the exceptional business leaders and promote ethical business practice in Bangladesh since 2000. Earlier, Mr. Showkat attended the Jury Board Meeting of the Awards on 03 March 2014 at the Daily Star office, Aziimur Rahman Conference Hall, Daily Star Centre, Dhaka.
Annual Outing-2013 of Hoda Vasi Chowdhury & Co. Ateam of ACCA led by Mohua Rashid, Country Manager, ACCA met Showkat Hossain FCA at latter’s office on 4 February 2014. They congratulated the new President of ICAB and discussed various professional issues. Vice Presidents of ICAB Kamrul Abedin FCA, Dewan Nurul Islam FCA and Nasim Anwar
Showkat Hossain FCA, ICAB President & Resident Partner of Hoda Vasi Chowdhury & Co., Chartered Accountants is seen at a gathering of the students & employee of Hoda Vasi Chowdhury & Co. at its Annual Outing-2013 programme held at Cox’s Bazar, Chittagong on 27 February to 01 March 2014. The
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Students were very delighted having the president of the Institute among themselves during the occasion. They enjoyed scenic beauty of the largest Seashore of the world.
Everyone looked very happy while returning from the picnic. Every year of Hoda Vasi Chowdhury & Co., Chartered Accountants arranges the picnic to keep them away from the monotonous routine work of the daily hustle and bustle of city life.
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April 2014. ICAB team headed by Showkat Hossain FCA, President-ICAB held a meeting with the delegates from ICMAB on the same day to discuss about various professional matters and bi-literate issues. Other members of the ICAB team are Vice Presidents Kamrul Abedin FCA and Nasim Anwar FCA, Council Members Abbas Uddin Khan FCA, Md. Syful Islam FCA & A F Nesaruddin FCA, Secretary (Acting) Md. Saiful Islam ACA were present on the occasion.
Farewell Program in Honour of Outgoing Secretary
Pahela Boishakh observed
Employees of the Institute of Chartered Accountants of Bangladesh (ICAB) observed Bengali New Year ‘Pahela Boishakh 2021’ on 14 April 2014. ICAB President Showkat Hossain FCA and Council Member & Past President Md. Syful Islam FCA were present amongst the employees of the Institute. Mr. Syful Islam joined with the ICAB President cutting a cake to celebrate the occasion. Mr. Showkat Hossain in his brief speech said that such gatherings foster the cohesiveness and develop the bondage in the work place. Mr. Syful said that such occasion should be observed every year so that employees of this Institute refresh themselves with actual taste and style of our culture.
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A delegation of the Institute of Cost Management & Accounts of Bangladesh (ICMAB) visited ICAB on 17
The Institute of Chartered Accountants of Bangladesh (ICAB) arranged a program at its Auditorium on 02 April 2014 in a bid to give a Farewell to its Outgoing Secretary (In-charge) Prof. Dr. Mahfuzul Hoque. ICAB President Showkat Hossain FCA, Vice President Kamrul Abedin FCA, Past President and Council Members Abbas Uddin Khan FCA, Nasir Uddin Ahmed FCA, Md. Syful Islam FCA, Immediate Past President Md Abdus Salam FCA and Employees of the Institute were present on the occasion.
ICAB Arranged Written Test for Recruitment of ‘Pubali Bank Audit Officer’
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In the picture President-ICAB Showkat Hossain FCA was visiting the Library, ICAB on 6 May 2014, when a written test for Pubali Bank Audit Officer went on. ICAB has arranged the written test of total number of candidates 108 for the selection of Audit Officer for Pubali Bank, Dhaka. Genaral Manager, Human Resource Pubali Bank, other officers, HR, Pubali Bank, Vice President (E&T)-ICAB Dewan Nurul Islam FCA and ICAB Members were present during the examination.
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ICAB President Showkat Hossain FCA participated in inaugural ceremony of CSE Internet Trade Fair on 22 October 2014. As Chief Guest MA Mannan, MP, Hon’ble State Minister, Ministry of Finance & Planning, GoB, inaugurated the CSE Internet Trade Fair at the Institute of Diploma Engineers in Dhaka. Mr. Showkat is also an Independent Director of CSE nominated by the Government.
ICAB President attended International Conference of ICC-Bangladesh
On request of the Pubali Bank Limited, ICAB organized the recruitment test for Audit Officers.
ICAB Holds Advisory Committee Meeting The Institute of Chartered Accountants of Bangladesh (ICAB) held its Advisory Committee Meeting of the Council at its Council Hall on Wednesday, 29 October 2014. ICAB President Showkat Hossain FCA described the activities of ICAB during his tenure. He also sought guideline from the Past Presidents regarding further advancement of the Institute.
Demonstrating his action plan, ICAB President said to ensure transparency and good governance in financial sector, ICAB is implementing practical IT based audit education and training, trying to implement the IFAC and other compliance requirements and giving highest importance on improvement of audit and assurance quality.
ICAB joined ICC International Conference on Global Economic Recovery: Asian Perspective organized by International Chamber of Commerce- Bangladesh at Bangabandhu International Conference Centre on 25 October 20414. His Excellency Md. Abdul Hamid, President of People’s Republic of Bangladesh inaugurated the program as Chief Guest. The Institute of Chartered Accountants of Bangladesh was one of the co-organizer of the Conference. Among others, Hon’ble Finance Minister Abul Maal Abdul Muhith, MP, Hon’ble Commerce Minister Tofail Ahmed MP, Hon’ble Minister for Foreign Affairs Abul Hassan Mahmood Ali, MP, UNCTAD Secretary General H.E. Dr. Mukhisa Kituyi, ICC Vice Chairman Sunil Bharatio Mittal and ICAB President Showkat Hossain FCA were present in the conference.
ICAB President participated in Prothom Alo Roundtable discussion
ICAB President in CSE Internet Trade Fair
ICAB President Showkat Hossain FCA participated in Prothom Alo organized ‘Ethics and Responsibility in Accountancy Profession’ Roundtable discussion at its
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seminar room on 25 October 2014. The Daily Prothom Alo organized the Roundtable discussion in association with the ACCA.
December 01, 2014 at the ICAB Council Room at Kawran Bazar, which was attended by the members of the Council and the ICTC.
Commerce Minister Tofail Ahmed, MP was present in the conference as Chief Guest.
The ICTC had earlier contracted with a software developer, Onnorokom Software Ltd., to develop a customized software for this work in collaboration with the IT Department of the Institute, especially Md. Deloar Hossain, Database System Manager. In order to vote online, ICAB members will be required to indicate their intention to the Election Commission within a prescribed date prior to the Elections, following which a unique password will be issued. The member will then be allowed to cast his/her vote after following the instructions. Necessary data security and encryption features have been installed in the programme. In addition to the online voting system, physical voting at the designated polling booths will continue to be available, as per previous practice, in accordance with the provisions of the ICAB Bye laws.
Mr. Hossain said, ICAB has an Investigation and Disciplinary Committee to detect fault in audit firms. According to the reports submitted by IDC, ICAB takes punitive measures including suspension of licence to the firms, but often the firms managed to get stay order from the High Court and continue audit practice, he added. DSE supervise only 325 listed companies but who would supervise the thousands of companies, he further said. Among others, CSE Chairman Dr. Abdul Majid, DSE Managing Director Shapan Kumar Bala, ACCA Country Manager Mahua Rashid, ICMAB President Mohammad Selim, Professor Momtaj Uddin Ahmed and Dhaka University IBA Director Iqbal Ahmed spoke in the roundtable.
ICAB to Introduce Online Voting for Next Council, Regional Committee Elections in 2015
Following a recent Council decision and in response to the needs of ICAB members particularly the overseas members, the ICT Committee (ICTC) of ICAB organized a Mock Online Voting session on Monday,
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Speaking on the occasion, the honourable President of the Institute, Mr. Showkat Hossain, FCA, lauded the initiatives of the ICTC and hoped that the introduction of online voting would help to modernize the voting process, keeping all security, transparency and convenience measures in place. It would also help to bring ICAB in line with the practices of international accounting bodies.
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17.0
RECRUITMENT AND PROMOTION
Key Recruitments and Promotions During 2014: To Strengthen different departments/ Sections, the following recruitment have been made:
To Strengthen different departments/ Sections, the following promotions have been made:
Md. Nizam Uddin promoted to Sr. Assistant Secretary.
ICAB appoints Mr. AKM Rahmat Ullah FCA as Secretary-ICAB.
Md. Amdad Hossain promoted to Sr. Assistant Secretary (IT).
ICAB appoints Ms. Farhana Sultana ACA as Deputy Director.
Ms. Nargis Akther promoted to Assistant Secretary.
ICAB appoints Mr. Ayesha Rahman ACA as Deputy Director.
Liakat Ali promoted to Sr. Store Keeper
ICAB appoints Mr. Hossain Mahmud Patwary as Sr. Assistant Director.
Jashim Uddin Rana Accounts Assistant.
Ms. Hafsa Aktar promoted to Senior Officer.
Ms. Anjgela Roy promoted to Senior Officer.
ICAB appoints Ms. Suraia Parveen as Sr. Assistant Director.
ICAB appoints Mr. Helal Uddin as Sr. Officer (Exam).
ICAB appoints Mr. Md. Hamidur Rahman Mollah as Sr. Officer.
ICAB appoints Mr. Kawsar Hamid as Electrician.
promoted
to
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18.0
ACKNOWLEDGEMENT
The Council would like to put on record its gratitude and appreciation to all members of ICAB in general and especially those who extended their valuable efforts to the Institute in various Committees and Sub-Committees to make the year 2014 a successful one. ICAB Council expresses its appreciation for the sincere and impartial efforts of SF Ahmed & Co. Chartered Accountants and Huda Hossain & Co. Chartered Accountants in auditing the financial statements of ICAB as external auditors of the Institute. The Council would like to gratefully acknowledge the contributions made by the respective Regional Committees and Chapters Management Committees for their whole hearted support and cooperation in carrying out the activities of the Institute. The Council is sincerely grateful to different Ministries of the Government making ICAB truly and effective Institute. In particular, Ministry of Commerce extended their hearted support to focus ICAB’s role as a Professional Body. The Council specially acknowledges the continuous alliance of the Ministry of Finance, Ministry of Law and Parliamentary Affairs and other Parliamentary Committees. ICAB is also grateful to the National Board of Revenue (NBR) and Bangladesh Bank (BB) for their contact with ICAB in various aspects of National economy throughout the year and we hope to have the same in the days to come. The Council also thanks the Local Government Division of the Ministry of Local Government, Rural Development & Co-operative (LGRD & C) being aligned with ICAB for the Annual External Audit, Performance Assessment and Fiduciary & Safeguard Compliance Assessment of Union Parishads under the Local Governance Support Project (LGSP)-II. ICAB would like to appreciate the role of the Office of the Comptroller and Auditor General (OCAG) for their cooperation in Knowledge sharing session among Public and Private Sectors. The Institute takes the opportunity to convey gratitude to BSEC, DSE, CSE and other Government and Non-Government Organizations (NGOs) for their continuous support and cooperation to ICAB to perform its statutory role.
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ICAB is honored to work as the consulting and implementing body of the World Bank Projects. As a development partner of Bangladesh ICAB would like to appreciate and pay a debt of
gratitude to the World Bank (WB) for their continuous support, particularly in developing the professional education and capacity building of ICAB members. ICAB council also likes to convey gratitude to DFID for maintaining close ties with ICAB in harmonizing a successful Public Private Partnership. ICAB extends their gratitude to International Federation of Accountants (IFAC), Confederation of Asian & Pacific Accountants (CAPA) and the South Asian Federation of Accountants (SAFA) along with other regional Professional Institutes for supporting ICAB. The Institute thanks IFRS Foundation for bestowing their confidence and signing an agreement that empowers only ICAB in Bangladesh for supplying of data for development and publication of Bangladesh Financial Reporting Standards (BFRS), Bangladesh Accounting Standards (BAS) and BFRS for SMEs. Under this agreement, ICAB has got the copyright license to publish both in print and online electronic editions of BFRS, BAS and BFRS for SMEs using IFRS, IAS and IFRS for SMEs as issued by the International Accounting Standards Board (IASB) and to distribute English language version of these standards in Bangladesh. ICAB is sincerely thankful to the Institute of Chartered Accountants in England and Wales (ICAEW) for its continuous collaboration with ICAB in its journey to professional excellence in technical, learning and professional development issues, quality assurance and professional conduct. ICAB also express its gratitude to ICAEW for renewal of MoU for a further period. ICAB also acknowledges its gratitude to CPA Ireland who has been attached with ICAB through MRA. Last but not the least, the contribution and excellent cooperation of the ICAB Members to face the challenges and uncertainties that ICAB encounter. Beside this, the Institute also thanks all the employees of ICAB to make the year 2014 an eventful one. By the order of the Council.
AKM Rahmat Ullah FCA Secretary-ICAB
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REPORT OF THE QUALITY ASSURANCE BOARD (QAB)
On behalf of the Quality Assurance Board (QAB) of the Council-ICAB, I am very much delighted to present the QAB Report on the Quality Assurance Review (QAR) activities carried out by the Quality Assurance Department (QAD) under the guidance of QAB during the year 2014.
Activities of Quality Assurance Department The QAB was formed in 2004 and has been carrying out its assigned responsibilities in a planned and systematic manner. After setting up QAD in 2009, QAB has been monitoring and guiding QAD for quality assurance related activities in accordance with IFAC SMO-1. In 2008 and 2009, ICAB adopted and published ISQC-1 as BSQC-1 and also introduced an Audit Practice Manual (APM) with the help of ICAEW, which was then disseminated to all of its practicing members. In 2009, ICAB Council updated the conditions for Certificate of Practice (COP) where compliance with the requirements of BSQC-1, submission of Annual Returns of firms and QAD visits by ICAB had been inserted in relation to the programme of quality control of the audit firms in Bangladesh. The quality assurance review system of ICAB was set up in 2010 with the support of a twinning project with the Institute of Chartered Accountants in England and Wales (ICAEW) to provide technical support for capacity building of ICAB members and firms. From the year 2010, ICAB started the Quality Assurance Visits of the firms that have listed clients, and have gradually extended the coverage of visits to all other practicing firms licensed by ICAB over the years. The achievement of QAD was very significant considering the coverage of the firms visited
and their positive outcome found during follow-up visits. As planned initially, the QAD has completed its first three-year cycle (2010-2012) of visits. The second three-year cycle (2013-2015) of visits has started along with remaining follow-up visits from 2013; a significant progress in covering of QAD visits have been achieved during the year 2014. In the first three-year cycle starting in 2010, a total of 46 firms with listed clients were covered out of which 8 firms were referred to the IDC through Council. In 2011, in addition to 17 follow-up visits, 45 firms were visited and 15 firms were found to have significant non-compliance with quality assurance requirements and were referred to the IDC through Council. In 2012, almost all the remaining firms were visited by the Quality Assurance Department. Out of those firms 30 firms were referred to IDC through Council. In 2013, in addition to 09 follow-up visits, 41 firms were visited as first phase of the second three-year cycle and 04 firms were found to have significant non-compliance with quality assurance requirements and were referred to the IDC through Council-ICAB. In 2014, in addition to 05 follow-up visits, 35 firms were visited as second phase of the three-year cycle where 05 firms were found having significant non-compliance with quality assurance requirements and were referred to the IDC through Council-ICAB. The entire activities of QAD are running very smoothly, maintaining the IFAC requirements in this regard. We are also constantly liaising with ICAEW and receiving ongoing advice and guidance as and when needed. ICAB also emphasizes the importance of quality assurance issues through CPD seminars and workshops.
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Audit Firms licensed to operate in Bangladesh ICAB holds the sole and exclusive right to issue practicing licenses to members and firms to carry out Audit and Assurance services in Bangladesh. As of 1st July 2014, the number of partnership audit firms licensed by ICAB stood at 96, and the number of proprietorship firms at 76, making a total of 172 firms. The number of members in practice was 368 and the number of members not in practice was 1131. The number of practicing members entitled to train articled student was stood at 271. Issuance/renewal of Certificate of Practice is done annually by ICAB and requires strict adherence to (a) attaining a minimum number of 12 Continuing Professional Development (CPD) hours; and (b) submission of Annual Return by the firms within the stipulated time.
Quality control process of ICAB as regulator The responsibility for issuance and renewal of Certificate of Practice to auditors is vested with ICAB. In a bid to address the quality control issues and also to upgrade the quality of audit and assurance services by the firms, ICAB has set up the Quality Assurance Department (QAD) with full time qualified professional accountants and staff. However, the Council/QAB has embarked on the following programs: •
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Formed a Quality Assurance Board with the status of a Standing (i.e. Permanent) Committee, headed a Past President of the Institute, and reporting directly to the Council;
•
Adopted the International Standard on Quality Control – ISQC 1 -(as BSQC 1);
•
Established a Quality Assurance Department (QAD) reporting to QAB for carrying out the detailed work in accordance with an approved methodology;
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Adopted a Quality Assurance Visit Manual, designed checklists for evaluating firms’ procedures for quality control, cold file review, whole firm review, etc. closely mirroring the regulations and processes followed by ICAEW;
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Distributed an Audit Practice Manual (APM), prepared jointly with ICAEW, to all its practicing members;
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Conducted a number of workshops for all practicing members on use of APM at Dhaka and Chittagong;
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Initiated and completed the first three-year cycle (2010–2012) quality assurance visits to all audit firms and continuing the second three-year cycle (2013-2015) of quality assurance visits to all audit firms with a priority of audit firms having listed clients and then firms having other Public Interest Entity (PIE) clients; and
•
Referred (though the required to) the Investigation and Disciplinary Committee (IDC) of the Institute to contemplate actions against the firms having major non-compliance with quality assurance requirements, issues relating to professional misconduct and unsatisfactory results arising out of the quality assurance review.
The QAD functions directly under the control and guidance of the QAB. The present staff strength of QAD includes two qualified Chartered Accountants and a part qualified support staff. Mr. Mahbub Ahmed Siddique FCA, as Director (Technical), is responsible inter alia for the activities of Quality Assurance Department (QAD) Mr. Md. Afsar Uddin ACA, Deputy Director of QAD mainly looks after the QAD visits while the administrative responsibility of QAD lies with Ms. Nargis Aktar who is an Assistant Secretary of QAD, ICAB. ICAB has adopted the ICAEW model for Quality Assurance, and ICAEW imparts training to the QAD on an ongoing basis. Mr. Mahbub Ahmed Siddique FCA visited ICAEW in London to gain first hand knowledge and experience in 2011 and later on. He was seconded to the ICAEW team to visit the audit firms and was also invited to observe the proceedings of the Disciplinary Committee hearings of the ICAEW.
Procedures followed by the QAD The QAD work starts after all practicing firms submit an Annual Return of the firms' profile started from 2010 that mainly includes summary of clients, numbers of qualified and part qualified staff and students, and other relevant information. This
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information covers the calendar year (Jan–Dec) and is due by 15 February the following year. In accordance with the directives of the Council, no Practicing Certificates are issued or renewed without the submission of the Annual Return. It may be mentioned that in 2014, about 8 Practicing Certificates were not renewed because of failure by the audit firms to submit such Annual Returns. The next step involves a selection of firms for visits by the QAD Reviewers. The QAB policy is to cover all firms under QAD visits within each three years' cycle. Priority is given to the audit firms having listed audit clients, then the audit firms having other Public Interest Entity (PIE) clients and then all other firms. The QAD reviewer maintains formal procedures and documentation in compliance with IFAC SMO-1 and as guided by ICAEW. A Checklist, earlier prepared and approved by the QAB, is used for this purpose and the following key areas are covered:
Leadership – to highlights the responsibility of the Partners to maintain adequate quality control procedures in performing audit engagements (Lead the firm from the top giving consistent messages on the importance of quality control);
Ethical Requirements – to establish written policy on ethical requirements including annual confirmation of independence and ICAB requirements (Always act ethically in accordance with the relevant standards and pronouncements);
Acceptance and Continuance – of new and existing clients: to develop written procedures on acceptance and continuance of new and existing clients and maintain those procedures in addition to ICAB’s specific requirements in this regard (Focus on the right clients being matched by the right skills with emphasis on integrity and competencies);
Human Resources – to develop written policies on recruitment, training, compensation, skills, competence, ethical requirements, appraisals, etc. (Maintain capable and competent staff giving due attention to the firm’s human resources policies and procedures);
Engagement Performance – to develop quality control procedures and apply in
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appropriate manner for ensuring quality in audit and assurance service (Deliver quality audits, consultation on difficult or contentious matters and meeting requirements for engagement quality control review);
Monitoring – to develop a monitoring system of quality control of the firm (Monitor the firm’s system of quality control and carry out a periodic objective inspection of a selection of completed audit engagements);
Documentation – to establish a well organized documentation procedures and maintain the permanent and current working files (Document the operation of the quality control system so that the firm complies with BSQC 1’s documentation requirements)
In line with the procedures for firm visits, 15 days prior notice is given to the firms for such visits. The visits are carried out in a very professional manner and all findings are discussed with the firm’s partners prior to completion of the visit. Following an internal review by the QAB, the reports are then issued to the respective firms and a written response is requested on the actions which the firm plans to initiate to address the shortcomings. QAD classifies the results of the visit as either Satisfactory or Unsatisfactory. A Satisfactory rating means no immediate action is required and the firm will be covered again in the next cycle of visits, usually 3 years from the date of the last visit. An Unsatisfactory rating triggers a different set of actions – the firm is given a second opportunity to demonstrate improvement. A follow up visit is made, usually 6 months later the results still do not meet the requirements, the case is then referred to the Investigation & Disciplinary Committee (IDC) through the Council for necessary action as per the Institute’s Bye Laws. Though the QAD started its journey from the year 2009, much progress has been achieved so far. A lot of work still needs to be done to bring our audit quality control standard up to a level that we all can be proud of.
A S M Nayeem FCA Chairman, Quality Assurance Board and Member Council and Past President of ICAB
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20.0
REPORT OF THE TAXATION AND CORPORATE LAWS COMMITTEE (TCLC)
On behalf of the Taxation and Corporate Laws Committee (TCLC), I am pleased to report on the activities of the TCLC for the year 2014. Area of Activities during the year TCLC, a non-standing committee of the Council of the Institute, has performed in the following areas: i.
On the basis of the suggestions/ comments received from the members of the Institute a)
Preparation of a set of recommendations for submitting to NBR on fiscal laws (relating to Income Tax, VAT, Customs, Turnover tax, Gift Tax and stamp duty, etc.) to incorporate the same into the National Budget;
b)
Making comments on the draft enactments /amendments on the Taxation Code, Companies Act, Banking Companies Act, Multi-Level Marketing Act and other Acts/Regulations relating to and affecting the profession and the business; and
c)
ii.
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Making liaison with different ministries and regulating authorities on the issues relating to the profession and to protect the interest of the Institute and its members.
Organizing seminars, workshops, trainings or CPD programmes relating to corporate laws, taxation, VAT, Custom regulations, Finance Act, Companies Act, Banking and Insurance
Acts, the Securities & Exchange Ordinance & Rules and other related matters. iii.
Contributing internationally in relation to Statement of Membership Obligations of International Federation of Accountants and other regional professional bodies through dissemination of its knowledge and providing required input as demanded from time to time.
Number of Meetings Held In 2014, threee TCLC held three (03) meetings. Besides, a Sub-committee, headed by Mr. Muhammad Farooq FCA, Vice President on Banking Companies (amendment) Act 2013, held two meetings during the year.
Submission of ICAB Proposals to NBR The Committee submitted a set of constructive proposals on Income Tax, VAT and Turnover Tax to NBR for incorporation in the Finance Act 2014. The ICAB's proposals were for revenue increase as well as rationalization of some of the existing provisions of the Acts. ICAB's recommendations were highly appreciated and a number of proposals have been accepted by the authorities. coube allowed to The Draft Finance Act 2014 included Cost and Management Accountants as a certifying authority along with Chartered Accountants for some entities for tax purpose but after logical explanation of the ground reality and standard global practice, the name of Cost and Management Accountants excluded from that services in the final version of the
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Act. noted from last year werepractice VATindependently.Moreover, requirement of for and edfor tax purpose is an y explore and professional knowledge.One of the outstanding accomplishments of TCLC this year was authorizing Chartered Accountants to practice VAT independently.
Roundtable Pre-budget Discussion With the auspiciousness of TCLC, a Pre-Budget roundtable discussion was jointly held with the Daily Prothom Alo in Dhaka on 14 May 2014 outcome of which was well circulated by the national newspapers and the electronic media. The Roundtable discussion was participated by economists, budget analysts, former advisers of the Caretaker Government of Bangladesh, journalists and a number of council members & past presidents of ICAB. Among them, Dr. Akbar Ali Khan & Mr. M Hafiz Uddin Khan, Fformer Advisers to the Caretaker Government, Feminist Ms. Salma Khan, Former NBR Chairman Dr. Abdul Majid, Former NBR Member and Former Chairman, Bangladesh Securities and Exchange Commission Mr. Faruk Ahmed. SiddiquiFaruk , Former President DCCI Khan, and Mr. Sabur Khan, Former President DCCI were present and participated in the discussion. Among d,The participants focused on the ways to increase the revenue, suggested to remove complexities and contradictions to mitigate the sufferings of the taxpayers, recommended to ensure transparency in the application of laws and regulations, opined to promote the ADR in resolving the tax disputes, suggested to reduce corporate tax rate to encourage investments for employment generation and to stop the outflow of capital from the country.
Draft Company Bill 2014 During the year 2014, the Ministry of Commerce (MoC) initiated enactment of new Company Law replacing the existing Companies Act 1994. The Institute was very proactive to protect the interest of the profession and took pro-business stand. Accordingly, TCLC in its meetings discussed regarding the draft Company Bill and forwarded its suggestions protecting the interests of ICAB and its members as well as to minimize the complexity and cost of doing business. TCLC was very active to ensure that our suggestions were duly recognized and reflected in the Sub-committee report formed by MoC in this regard.
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Draft Tax Code NBR has posted the Draft Direct Tax Code 2013 in its website www.nbr.gov.bd for seeking suggestions from the stakeholders. TCLC has been discussing on the draft Tax Code and after taking the inputs from the ICAB Members, it will look forward to submit its comments in near future to NBR for consideration.
The Banking Companies (amendments) Act 2013 The Banking Companies Act 1991 has been amended twice in 2013. The amendments have direct impact on the profession of accountancy and specially have great bearings upon the practicing members. Accordingly, the TCLC has given substantial time to discuss on those amendments and to find out the ways to standardize the engagement letter, management representation letter and auditors' report keeping in mind of the requirements of the amendments of the Banking Companies Act.
CPD Seminars and others During the year, on the auspiciousness of the TCLC, Four CPD seminars 2014 were held both at Dhaka and CRC Office. The first one on ’Salient Features of Bank Company Act, Recent Amendments & Issue’ on 12 April 2014 at CRC office and the second one is on ‘Amendments to the Bank Companies Act, 1991-Implications on External Audit of Bank on 25 June 2014 at Dhaka , the third one on “An Analytical Study of Significant Amendments Made by the Finance Act-2014 and SROs Issued Thereunder on Income Tax and VAT Regulation” wereheld on 6 September 2014 at Dhaka and the last one on the same topics on 25 September 2014 at CRC office.the brain storming from where the member participants achieved guideline and updates TCLC Chairman was also the convener of the Council Sub-committee on the Proposed Financial Reporting Act 2013, details discussion and various updates report on which has been covered elsewhere in this Annual Report. Besides, a number of interviews of TCLC Chairman were published in the daily newspapers (the Prothom Alo, the Financial Express, the Bonik Barta, etc.) and telecast in the electronic media (Ekuse TV, ATN Bangla, R TV) on national budget, draft company bill and the proposed FRA issues.
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Gratitudes On behalf of the TCLC Members, I express gratefulness to President, Vice Presidents, Councilors and the employees of the Institute who actively participated and contributed to the activities of the Committee during the year. Without their support and cooperation it would not be possible to carry out the activities of TCLC successfully during the year. Special thanks go to Mr. Masih Malik Chowdhury FCA, Mr. ASM Nayeem FCA, Mr. AF Nesaruddin FCA, Mr. Md Abdus Salam FCA, Mr. M Syful Islam FCA, Mr. Md. Shahadat Hossain FCA, Mr. Abul Khair Chowdhury FCA (Enrolment No. 52), Mr. Md. Habibullah FCA (411), Mr. Hasan Mahmood FCA (564), Mr. Shekhar Ranjan Kar FCA (707), Mr. Mahmudul Hasan Khusru FCA (820), Mr. Mohammed Tofazzul Hussain FCA (848), Mr. Snehasish Barua FCA (894), Mr. Mahbub Ahmed Siddique FCA (1020), Mr. Muhammad Aminul Hoque ACA (1129), Mr. Saiful Islam ACA (1225) and Mr. Md.
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Afsaruddfin ACA (1409) for their creative inputs, dedicated services & relentless works in compiling the suggestions for NBR and other related activities.
Conclusion TCLC was very active during the year to protect the interest and promote the causes of the Institute and its Members. However, a lot of works still need to be done. We must not forget that competing forces are stronger and more vigilant than ever before. Members' integrity, alertness and unity are the need of the hour to achieve the goals. May Almighty guide and grant us success.
Md. Humayun Kabir FCA Chairman, Taxation & Corporate Laws Committee and Member Council & Past President-ICAB
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
21.0
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INVESTIGATION AND DISCIPLINARY COMMITTEE
On behalf of the Investigation & Disciplinary Committee (IDC) of the Council-ICAB, I am delighted to present the Report on the Investigation & Disciplinary Committee Activities undertaken by the IDC of Council-ICAB during the year 2014. The Institute of Chartered Accountants of Bangladesh (ICAB) was established under the Bangladesh Chartered Accountants (CA) Order 1973 for the purpose of regulating the profession of accountants and for matters connected therewith. The Council-ICAB discharges its investigation & disciplinary functions as per bye-laws # 128 & 129 of ICAB Bye-Laws 2004 through IDC of Council-ICAB. As a member body of IFAC, ICAB is also responsible to undertake investigation & disciplinary activities complying with IFAC SMO-6.
Initiation of Proceedings ICAB initiates investigation & disciplinary proceedings on complaint-based or on information-based approach. Under
complaint-based approach, action is triggered by the receipt of a complaint against an individual member or firm. The information-based approach is not a substitute for the complaints-based approach, but an additional process that offers protection to the public. It does so by permitting the Professional Conduct Department of ICAB to commence an investigation (even when there has been no complaint) where information is received from reliable sources that indicates the possibility of misconduct. ICAB has the direct responsibility for the overall quality assurance system of the audit firms in Bangladesh. The investigation & disciplinary proceedings may also be initiated, if the Quality Assurance Board (QAB) of Council-ICAB considers that an unsatisfactory conclusion of quality assurance reviews indicate serious failing by the firm or partner as recommended to Investigation and Disciplinary Committee (IDC) of Council-ICAB through Council-ICAB.
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Details of IDC Meeting In 2014, 08 (eight) meetings were held and the summary of these meetings are presented below: Meeting No. 1. 2. 3. 4. 5. 6. 7. 8.
Date 16.03.2014 28.04.2014 24.05.2014 21.06.2014 09.08.2014 27.09.2014 25.10.2014 06.12.2014
No. of Agenda 08 08 09 15 12 11 08 07
No. of Member
Attendance
33 33 33 33 33 33 33 33
12 07 09 09 16 08 10 09
No. of Subcommittee Meeting NA NA NA NA NA NA NA NA
Summary of IDC Activities in 2014 The brief summary of the activities dealt by IDC during the year 2014 is as follows: Sl. #
06
2.
Bangladesh Securities & Exchange Commission (BSEC) Bangladesh Bank
No. of Complaints Resolved IDC Council 06 06
02
02
01
3.
National Board of Revenue (NBR)
03
03
02
4.
CA Firms
05
05
04
5.
Quality Assurance Board (QAB), ICAB
11
11
07
6.
Professional Conduct, ICAB
30
30
14
1.
Complainants
No. of Complaints
Remarks
Steps taken to resolve the issue on 28.12.14 Steps taken to resolve the issue Steps taken to resolve the issue on 28.12.14 Steps taken to resolve the issues on 28.12.14 Steps taken to resolve the issues on 28.12.14
Details of IDC Activities in 2014 The detail of the activities dealt by IDC during the year 2014 is as follows: Sl. # Complain By
Complain Against
Fact
IDC Recommendation
Status
COMPLAINTBASEDAPPROACH
180
1.
Bangladesh Securities & Exchange Commission (BSEC)
Nasir Mohammad & Co Chartered Accountants
The management of Pedrollo NK Limited prepared financial statements without complying with BSA for the year 2006, 2007, 2008 and 2009 whereas the auditors did not discharge their professional duties.
IDC found the concerned auditor Mr. Md. Nurul Huda Monsury FCA guilty of professional misconduct for being grossly negligent in discharging their professional responsibilities and recommended to the Council-ICAB to suspend Mr. Md. Nurul Huda Monsury FCA, Partner Nasir Mohammad & Co Chartered Accountants from membership of the Institute for a period of 02 (two) years.
Council-ICAB approved the Order of Suspension of Mr. Md. Nurul Huda Monsury FCA, Partner Nasir Mohammad & Co Chartered Accountants and published the matter in the Institute’s Journal and website.
2.
Bangladesh Securities & Exchange Commission (BSEC)
MRH Dey & Co The management of Chartered Pedrollo NK Limited Accountants prepared financial statements without complying with BSA for the year 2010 whereas the auditors did not discharge their professional duties.
IDC found the auditor "MRH Dey & Co Chartered Accountants" guilty of professional misconduct for being grossly negligent in discharging their professional responsibilities and recommended to the Council-ICAB to Reprimand MRH Dey & Co Chartered Accountants with Monetary Penalty Tk. 50,000 (fifty thousand).
Council-ICAB approved the Order of Reprimand imposing monetary penalty Tk. 50,000 only and published the matter in the Institute’s Journal and website.
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Sl. # Complain By
Complain Against
Fact
Ahmed Zaker & Bangladesh Bank Co Chartered alleged Ahmed Zaker Accountants & Co. Chartered Accountants for signing 02 separate sets of financial statements of M/s Toka Ink (Bangladesh) Ltd for the same year ended 31 December 2002.
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IDC Recommendation
Status
IDC found Ahmed Zaker & Co. Chartered Accountants guilty of professional misconduct and unanimously resolved to recommend to the Council-ICAB under Bye-Law 129(1) to reprimand and impose a monetary penalty of Tk.3,00,000.00 (Three Lac) only upon the accused CA Firm Ahmed Zaker & Co. Chartered Accountants.
Council-ICAB approved the Order of Reprimand imposing monetary penalty Tk. 100,000 only (on request by Ahmed Zaker & Co) and published the matter in the Institute’s Journal and website.
3.
Bangladesh Bank
4.
Ahmed Zaker M/s. Louhajang & Co Construction Chartered Accountants
The Reports identified by Ahmed Zaker & Co Chartered Accountants which were not signed by them and forwarded the matter to ICAB for necessary action.
The IDC decided to dispose of the case and also felt the necessity of publishing the matter in the National Dailies to protect the image of ICAB and the Accountancy Profession in Bangladesh and recommended the matter to the Council to take appropriate action in this regard. Publication of the report in the print media will create awareness to the public and to the stakeholders to be careful in accepting the audited statement of accounts, particularly of non-listed organizations.
The Council-ICAB agreed with the recommendations of IDC and instructed Secretary-ICAB to take necessary steps.
5.
Anisur Rahman & Co Chartered Accountants
Regarding the audit of M/s. Kulsum Poultry Dairy and Fish Farm Ltd and subsequently identified that the Audit Report was not signed by the Anisur Rahman Chartered Accountants.
The IDC decided to dispose of the case and also felt the necessity of publishing the matter in the National Dailies to protect the image of ICAB and the Accountancy Profession in Bangladesh and recommended the matter to the Council to take appropriate action in this regard.
The Council-ICAB agreed with the recommendations of IDC and instructed Secretary-ICAB to take necessary steps.
6.
NBR (Joint N K Roy & Co Commissione Chartered r of Taxes, Accountants Inspection Range-4, Taxes Zone, Rajshahi)
Regarding the audit of M/s. Tamanna Traders for the year ended 30 June 2012
The IDC decided to dispose of the case and also felt the necessity of publishing the matter in the National Dailies and to write to the NBR Chairman to take action against Mr. Basu, ITP for his involvement in faking audit report of M/s. Tamanna Traders. The meeting recommended the matter to the Council as noted above to take appropriate action in this regard.
The Council-ICAB agreed with the recommendations of IDC and instructed Secretary-ICAB to take necessary steps.
7.
NBR (Joint Commissione r of Taxes, Inspection Range-4, Taxes Zone, Rajshahi)
Regarding the audits of Md. Zahid Hossain, Md. Habib Ahsan Babu, M/s Paly Enterprise, M/s Tabassum Trading, Md. Abdul Quader Mridha, M/s Showan Machineries, Md. Shamsul Alam, Rekat Ali Pramanik, M/s A K C Bricks, Md Ali Akbar for the year ended 30 June 2012.
The meeting decided to recommend to the Council to reprimand Mr. SK Mahbubar Rahman FCA, Proprietor of Mahbub Mohsin & Co Chartered Accountants for maintaining Liaison Office at Chamber Bhaban (2nd Floor), G L Roy Road, Rangpur, Phone # 64606 without taking permission from ICAB and for not following proper audit procedures while conducting audits of Md. Zahid Hossain, Md. Habib Ahsan Babu, M/s Paly Enterprise, M/s Tabassum Trading, Md. Abdul Quader Mridha, M/s Showan Machineries, Md. Shamsul Alam, Rekat Ali Pramanik, M/s A K C Bricks, Md Ali Akbar for the year ended 30 June 2012 though the audit clients are proprietorship organizations.
Council-ICAB approved the Order of Reprimand of Mr. SK Mahbubar Rahman FCA, Proprietor of Mahbub Mohsin & Co Chartered Accountants and published the matter in the Institute’s Journal and website.
Director of M/s. Kulsum Poultry Dairy and Fish Farm Ltd
Mahbub Mohsin & Co Chartered Accountants
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Sl. # Complain By
Complain Against
Fact
IDC Recommendation
Status
8.
Bangladesh Securities & Exchange Commission (BSEC)
Ata Khan & Co Regarding the audit of Chartered GQ Ball Pen for the Accountants year ended 31 December 2012
IDC found Ata Khan & Co Chartered Accountants is guilty of professional misconduct and recommend to the Council-ICAB for Membership Suspension of Mr. Maqbul Ahmed FCA, Partner of Ata Khan & Co Chartered Accountants for a period of 02 years with monetary penalty of Tk. 200,000.
Council-ICAB approved the Suspension Order of Mr. Maqbul Ahmed FCA, Partner of Ata Khan & Co Chartered Accountants and published the matter in the Institute’s Journal and website.
9.
Audit Committee, ICAB
Mr.N.I.Chowdh Regarding some ury FCA, the administrative issues. former Secretary
The meeting discussed on the matter and expressed that the allegations brought in by the Audit Committee of ICAB are not under the purview of IDC of Council-ICAB whereas Mr. N.I. Chowdhury FCA has been released from his service with effect from 01 January 2013. This is an administrative matter and the Council-ICAB should deal with it.
The Council-ICAB reviewed the recommendations of IDC and instructed no action except for the advance against land purchase. An investigation is going on it and the final will be taken after the finalization of investigation report.
10.
ABX Logistics Ahmed Zaker & Regarding the audit of The meeting did not find any basis (Bangladesh) Co Chartered ABX Logistic (BD) Ltd for the complaint lodged by ABX Ltd Accountants for the year 2007. against Ahmed Zaker & Co Chartered Accountants who denied the issuance of Audit Report for ABX Logistics (Bangladesh) Ltd. for the year 2007.
The Council-ICAB agreed with the recommendations of IDC and instructed Secretary-ICAB to take necessary steps.
The audit for the year was done by Hoda Vasi Chowdhury & Co who were appointed auditors for the year by the company and submitted audit report for the year accordingly. Therefore, the meeting came to the conclusion that ABX Logistics (Bangladesh) Ltd. had prepared the fake audit reports for the year 2007 using the stationery of Ahmed Zaker & Co. and submitted to tax office.IDC recommended to the Council-ICAB to write to the Chairman, NBR and to the concerned DCT for taking appropriate action against ABX Logistics (Bangladesh) Ltd. for the fraud committed by it. The meeting also decided not to recommend any action against Ahmed Zaker & Co.
182
11.
ABBAS KHAN & Co Chartered Accountants
Islam Quazi Violation of ICAB Fee Shafique & Co Schedule. Chartered Accountants
12.
Mr. Pinaki Das Each other. FCA vs. Mr. Narayan Roy FCA
Partnership issues of Pinaki Das & Co Chartered Accountants
The meeting decided to recommend to Council-ICAB to refer the matter to Quality Assurance Board for conducting visits to related CA Firms.
The Council-ICAB agreed with the recommendations of IDC and refer the matter to QAB, ICAB.
The Partnership deed is defective and cannot suggest any action against any of the partners and recommended to Council to make further efforts to resolve the issue.
The Council-ICAB allowed President to resolve the issue personally and the matter is under process.
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Sl. # Complain By
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Complain Against
Fact
IDC Recommendation
Status
13.
NBR (Joint Commissione r of Taxes, Inspection Range-4, Taxes Zone, Rajshahi)
M/s Shafiq Mizan Rahman & Augustine Chartered Accountants
Regarding the audits of Dr. Siddiqur Rahman Patwari, Proprietor of Banpara Clinic for the year ended 30 June 2012.
The IDC decided to recommend to the Council-ICAB to reprimand Shafiq Mizan Rahman & Augustine Chartered Accountants so that they improve their audit quality and if it is found in future that they have not improved the quality of audit then ICAB will take drastic action.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Shafiq Mizan Rahman & Augustine Chartered Accountants on 28 December 2014 to take final decision.
14.
Bangladesh Securities & Exchange Commission (BSEC)
A Matin & Co Chartered Accountants
Regarding the audit of Bangas Ltd for the year ended 30 June 2012.
The IDC found A Matin & Co Chartered Accountants and S.H. Khan & Co Chartered Accountants guilty of professional misconduct under clauses 21 & 24 of Schedule-C, Part-I of Part-II, ICAB Bye-Laws 2004 and recommended to the Council to impose a penalty of Tk. 100,000 upon each firm for their unethical practice and discrediting the image of the accountancy profession. The IDC also recommended that the copies of the recommendation, if approved by the Council should be put into ICAB Website and given to the print media. The decision should also be communicated to the BSEC and Bangas Limited.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing A Matin & Co Chartered Accountants on 28 December 2014 to take final decision.
15.
Bangladesh Securities & Exchange Commission (BSEC)
S.H. Khan & Co In connection with the Chartered complaints of BSEC Accountants against A Matin & Co Chartered Accountants regarding the audit of Bangas Ltd for the year ended 30 June 2012.
The IDC found A Matin & Co Chartered Accountants and S.H. Khan & Co Chartered Accountants guilty of professional misconduct under clauses 21 & 24 of Schedule-C, Part-I of Part-II, ICAB Bye-Laws 2004 and recommended to the Council to impose a penalty of Tk. 100,000 upon each firm for their unethical practice and discrediting the image of the accountancy profession. The IDC also recommended that the copies of the recommendation, if approved by the Council should be put into ICAB Website and given to the print media. The decision should also be communicated to the BSEC and Bangas Limited.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing S.H. Khan & Co Chartered Accountants on 28 December 2014 to take final decision.
16.
Bangladesh Bank
MM Hossain & Co Chartered Accountants
The IDC found MM Hossain & Co Chartered Accountants guilty of professional misconduct under clause 21, 24, 32 and 33 of part-I, Schedule–C, part-II of ICAB ByeLaws 2014 and recommended to the Council–ICAB to reprimand MM Hossain & Co Chartered Accountants with monetary penalty of Tk.50,000 (Taka Fifty thousand) only on Mr. Md. Moazzem Hossain FCA. If he fails to pay the penalty amount within 03 (Three) months from the date of communication of Council decision, his membership should be suspended for one year.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing MM Hossain & Co Chartered Accountants on 28 December 2014 to take final decision.
Regarding the audit of M/s ServicEngine Limited for the years 2008-09, 2009-10, 2010-11 and 2011-12
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Sl. # Complain By 17.
Bangladesh Securities & Exchange Commission (BSEC)
Complain Against Ahsan Kamal Sadeq & Co Chartered Accountants
Fact
IDC Recommendation
Regarding the audit of Quasem Drycells Ltd for the year ended 30 June 2013.
The IDC reviewed the BSEC’s complaints to the firm copied to ICAB and also called the partners of Ahsan Kamal Sadeq & Co Chartered Accountants for personal hearing. The IDC reviewed the explanations of Ahsan Kamal Sadeq & Co Chartered Accountants and found that BSEC has not made any query on the explanations of Ahsan Kamal Sadeq & Co Chartered Accountants. The IDC also reviewed the issues of the BSEC and found that there are no material misstatements. Therefore, the Committee decided to dispose of the issue recommending no action against the firm. The IDC also recommends to the Council-ICAB to inform BSEC the decision of IDC on their complaints.
Status The Council-ICAB agreed with the recommendations of IDC and disposed of the case with no action.
INFORMATION-BASED APPROACH
184
1.
Professional Conduct Department, ICAB
Mr. ASM Ataul Karim FCA, Proprietor of Mohammad Ata Karim & Co Chartered Accountants
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articledship.
IDC found Mohammad Ata Karim & Co Chartered Accountants guilty of professional misconduct and decided to recommend to the Council-ICAB to reprimand Mohammad Ata Karim & Co Chartered Accountants and also imposing monetary penalty Tk. 300,000 (three lac) only. If the firm fails to pay the penalty amount within 03 months from the date of communication of the decision of the ICAB Council then the firm should be suspended from public practice for one year.
Council-ICAB approved the Order of Reprimand of Mohammad Ata Karim & Co Chartered Accountants with imposing Monetary Penalty on Mr. ASM Ataul Karim FCA, Proprietor of Mohammad Ata Karim & Co Chartered Accountants and published the matter in the Institute’s Journal and website.
2.
Professional Conduct Department, ICAB
Mr. Gobinda Kumar Nath ACMA, Articled Student of Mr. ASM Ataul Karim FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
IDC recommend to the CouncilICAB to cancel the registration of Mr. Gobinda Kumar Nath ACMA (Reg.: 19376, 18.03.11-17.03.13) and debar him from appearing in any ICAB examinations. If he had passed any examination of the ICAB, the results of those examinations should also be cancelled.
Council-ICAB approved the Order of Cancellation of Registration & Exam Results of Mr. Gobinda Kumar Nath ACMA and published the matter in the Institute’s Journal and website.
3.
Professional Conduct Department, ICAB
Mr. Md. Mijanur Rahman Bhuiyan FCA, Partner of Dewan Nazrul Islam & Co Chartered Accountants
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
IDC found Dewan Nazrul Islam & Co Chartered Accountants guilty of professional misconduct and recommended to the Council-ICAB to reprimand Dewan Nazrul Islam & Co Chartered Accountants along with imposing monetary penalty Tk. 300,000 (three lac) only with immediate effect. If the firm fails to pay the penalty amount within 03 months from the date of communication of the decision of the ICAB Council then the Firm should be suspended from practice for one year.
Council-ICAB approved the Order of Reprimand of Dewan Nazrul Islam & Co Chartered Accountants with imposing Monetary Penalty on Mr. Md. Mizanur Rahman Bhuiyan FCA, Partner of Dewan Nazrul Islam & Co Chartered Accountants and published the matter in the Institute’s Journal and website.
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Sl. # Complain By
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Complain Against
Fact
IDC Recommendation
Status Council-ICAB approved the Order of Cancellation of Registration & Exam Results of Mr. Md. Jahidul Islam ACMA and published the matter in the Institute’s Journal and website. Council-ICAB approved the Order of Cancellation of Registration & Exam Results of Ms. Farida Yesmin ACMA and published the matter in the Institute’s Journal and website. Council-ICAB approved the Order of Reprimand of S.H. Khan & Co Chartered Accountants with imposing Monetary Penalty on Mr. Mujibar Rahman FCA, Partner of S.H. Khan & Co Chartered Accountants and published the matter in the Institute’s Journal and website. Council-ICAB approved the Order of Cancellation of Registration & Exam Results of Mr. Sayem Bin Solaiman ACMA and published the matter in the Institute’s Journal and website. Council-ICAB approved the Order of Reprimand of Chowdhury Bhattacharjee & Co Chartered Accountants with imposing Monetary Penalty on Mr. Narayan Chowdhury FCA, Partner of Chowdhury Bhattacharjee & Co Chartered Accountants and published the matter in the Institute’s Journal and website. Council-ICAB approved the Order of Cancellation of Registration & Exam Results of Mr. Mohammad Ahsan FCMA and published the matter in the Institute’s Journal and website.
4.
Professional Conduct Department, ICAB
Mr. Md. Jahidul Islam ACMA, Articled Student of Mr. Md. Mijanur Rahman Bhuiyan FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
IDC recommended to the CouncilICAB to cancel the registration of Mr. Md. Jahidul Islam ACMA (Reg.: 19981, 01.08.11-31.07.13) and debar his from any ICAB examinations as he was working full time in other organizations and did not serve the Firm.
5.
Professional Conduct Department, ICAB
MS. Farida Yesmin ACMA, Articled Student of Mr. Md. Mijanur Rahman Bhuiyan FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
IDC recommended to the CouncilICAB to cancel the registration of Ms. Farida Yesmin ACMA (Reg.: 21293, 30.05.12-29.05.14) and debar her from any ICAB examinations as she was working full time in other organizations and did not serve the Firm.
6.
Professional Conduct Department, ICAB
Mr. Md. Mujibar Rahman FCA, Partner of S.H. Khan & Co Chartered Accountants
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
IDC found S.H. Khan & Co Chartered Accountants guilty of professional misconduct and recommended to the Council-ICAB to reprimand S.H. Khan & Co Chartered Accountants along with imposing monetary penalty Tk. 300,000 (three lac) only on Mr. Mujibar Rahman. If he fails to pay the penalty amount within 03 months from the date of communication of ICAB decision then his membership with the ICAB be suspended for 01 year.
7.
Professional Conduct Department, ICAB
Mr. Sayem Bin Solaiman ACMA, Articled Student of Mr. Mujibar Rahman FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
IDC recommended to the CouncilICAB to cancel the registration of Mr. Sayem Bin Solaiman ACMA (Reg.: 22087, 16.11.12-15.11.14) and debar him from appearing in any ICAB examinations in future. If he had passed any examination of ICAB the results of those should also be cancelled.
8.
Professional Conduct Department, ICAB
Mr. Narayan Chowdhury FCA, Partner of Chowdhury Bhattacharjee & Co Chartered Accountants
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
IDC found Chowdhury Bhattacharjee & Co Chartered Accountants guilty of professional misconduct and recommended to the Council-ICAB to reprimand Chowdhury Bhattacharjee & Co Chartered Accountants with imposing monetary penalty Tk. 300,000 (three lac) only with immediate effect. If the firm fails to pay the penalty amount within 03 months from the date of communication of the decision of the ICAB Council then the Firm should be suspended from practice for one year.
9.
Professional Conduct Department, ICAB
Mr. Mohammad Ahsan FCMA, Articled Student of Mr. Narayan Chowdhury FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
IDC recommended to the CouncilICAB to cancel the registration of Mr. Mohammad Ahsan FCMA (Reg.: 21136, 14.06.12-13.06.14) and debar him from appearing the ICAB examinations in future. If he had passed any ICAB examination the result of those should also be cancelled.
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Sl. # Complain By
186
Complain Against
Fact
IDC Recommendation
Status
10.
Professional Conduct Department, ICAB
Mr. Anisur Rahman FCA, Partner of Rahman Anis & Co Chartered Accountants
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
IDC found Rahman Anis & Co Chartered Accountants guilty of professional misconduct and recommended to the Council-ICAB to reprimand Rahman Anis & Co Chartered Accountants with imposing monetary penalty Tk. 300,000 (three lac) only with immediate effect. If the firm fails to pay the penalty amount within 03 months from the date of communication of the decision of the ICAB Council then the Firm should be suspended from practice for one year.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr. Anisur Rahman FCA, Partner of Rahman Anis & Co Chartered Accountants on 28 December 2014 to take final decision.
11.
Professional Conduct Department, ICAB
Mr. Abdul Mazid ACMA, Articled Student of Mr. Anisur Rahman FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
IDC recommended to the CouncilICAB to cancel the registration of Mr. Abdul Mazid ACMA (Reg.: 21145, 01.06.12-31.05.14) and debar him from appearing the ICAB examinations in future. If he had passed any ICAB examination the result of those should also be cancelled.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr. Abdul Mazid ACMA on 28 December 2014 to take final decision.
12.
Professional Conduct, ICAB
Mr. Ranjit Das student of Mr. Md. Mijanur Rahman Bhuiyan FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The IDC found Mr. Ranjit Das (Reg. # 21074) guilty of professional misconduct for violating ICAB ByeLaw # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB Bye- Laws 2014 and recommended to the Council窶的CAB to cancel the registration of Mr. Ranjit Das with immediate effect and debar him from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr. Ranjit Das on 28 December 2014 to take final decision.
13.
Professional Conduct, ICAB
Mr. Ariful Alam student of Mr. Md. Mijanur Rahman Bhuiyan FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The IDC found Mr. Ariful Alam (Reg. # 22118) guilty of professional misconduct for violating ICAB ByeLaw # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB Bye- Laws 2014 and recommended to the Council 窶的CAB to cancel the registration of Mr. Ariful Alam with immediate effect and debar him from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr. Ariful Alam on 28 December 2014 to take final decision.
14.
Professional Conduct, ICAB
Mr. Nishat Chandra Das student of Mr. Md. Mijanur Rahman Bhuiyan FCA
Violation of bye-law # The IDC decided not to recommend 115(1) of ICAB Byeany action against Mr. Nishat Laws 2004 and Deed Chandra Das (Reg. # 21635). of Articleship.
Council agreed with the recommendations of IDC and dispose of the case.
15.
Professional Conduct, ICAB
Mr. Md. Jahirul Islam student of Mr. Md. Mijanur Rahman Bhuiyan FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr. Md. Jahirul Islam on 28 December 2014 to take final decision.
The IDC found Mr. Md. Jahirul Islam (Reg. # 19458) guilty of professional misconduct for violating ICAB ByeLaw # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB Bye- Laws 2014 and recommended to the Council窶的CAB to cancel the registration of Mr. Md. Jahirul Islam with immediate effect and debar him
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from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled. 16.
Professional Conduct, ICAB
Mr. Mahmud Hasan student of Mr. Md. Mijanur Rahman Bhuiyan FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The IDC found Mr. Mahmud Hasan (Reg. # 19812) guilty of professional misconduct for violating ICAB ByeLaw # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB Bye- Laws 2014 and recommended to the Council 窶的CAB to cancel the registration of Mr. Mahmud Hasan with immediate effect and debar him from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr. Mahmud Hasan on 28 December 2014 to take final decision.
17.
Professional Conduct, ICAB
Mr. Md. Abdul Khaleq student of Mr. Md. Mijanur Rahman Bhuiyan FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The IDC found Mr. Md. Abdul Khaleq (Reg. # 19829) guilty of professional misconduct for violating ICAB ByeLaw # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB Bye- Laws 2014 and recommended to the Council 窶的CAB to cancel the registration of Mr. Md. Abdul Khaleq with immediate effect and debar him from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr. Md. Abdul Khaleq on 28 December 2014 to take final decision.
18.
Professional Conduct, ICAB
Mr. Chuton Paul student of Mr. Md. Mijanur Rahman Bhuiyan FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The IDC found Mr. Chuton Paul (Reg. # 20891) guilty of professional misconduct for violating ICAB ByeLaw # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB Bye- Laws 2014 and recommended to the Council 窶的CAB to cancel the registration of Mr. Chuton Paul with immediate effect and debar him from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr. Chuton Paul on 28 December 2014 to take final decision.
19.
Professional Conduct, ICAB
Mr. Shamim Uddin student of Mr. Md. Mijanur Rahman Bhuiyan FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The IDC found Mr. Shamim Uddin (Reg. # 22564) guilty of professional misconduct for violating ICAB ByeLaw # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB Bye- Laws 2014 and recommended to the Council 窶的CAB to cancel the registration of Mr. Shamim Uddin with immediate effect and debar him from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr. Shamim Uddin on 28 December 2014 to take final decision.
20.
Professional Conduct, ICAB
Mr. Ashraful Alam student of Mr. Md. Mijanur Rahman Bhuiyan FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The IDC found Mr. Ashraful Alam (Reg. # 22567) guilty of professional misconduct for violating ICAB ByeLaw # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB Bye-Laws 2014 and recommended
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr. Ashraful Alam on
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to the Council 窶的CAB to cancel the 28 December 2014 to registration of Mr. Ashraful Alam with take final decision. immediate effect and debar him from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled.
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21.
Professional Conduct, ICAB
Mr.Prodip Chandara Saha student of Mr. Md. Mujibar Rahman FCA
Violation of bye-law # The IDC decided not to recommend any action against Mr.Prodip 115(1) of ICAB ByeLaws 2004 and Deed Chandara Saha (Reg. # 19363). of Articleship.
Council agreed with the recommendations of IDC and dispose of the case.
22.
Professional Conduct, ICAB
Mr.Golam Morshed student of Mr. Md. Mujibar Rahman FCA
Violation of bye-law # The IDC decided not to recommend any action against Mr.Golam 115(1) of ICAB ByeLaws 2004 and Deed Morshed (Reg. # 19524). of Articleship.
Council agreed with the recommendations of IDC and dispose of the case.
23.
Professional Conduct, ICAB
Mr. Abdul Halim student of Mr. Md. Mujibar Rahman FCA
Violation of bye-law # The IDC decided not to recommend any action against Mr. Abdul Halim 115(1) of ICAB ByeLaws 2004 and Deed (Reg. # 20098). of Articleship.
Council agreed with the recommendations of IDC and dispose of the case.
24.
Professional Conduct, ICAB
Mr.Ananta Kumar Sarkar student of Mr. Md. Mujibar Rahman FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The IDC found Mr. Ananta Kumar Sarkar (Reg. # 20546). guilty of professional misconduct for violating ICAB Bye-Law # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB ByeLaws 2014 and recommended to the Council 窶的CAB to cancel the registration of Mr. Ananta Kumar Sarkar with immediate effect and debar him from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr.Ananta Kumar Sarkar on 28 December 2014 to take final decision.
25.
Professional Conduct, ICAB
Mr.S.K. Abu Nasir Hera student of Mr. Md. Mujibar Rahman FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The IDC found Mr. S.K. Abu Nasir Hera (Reg. # 20988) guilty of professional misconduct for violating ICAB Bye-Law # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB ByeLaws 2014 and recommended to the Council 窶的CAB to cancel the registration of Mr. S.K. Abu Nasir Hera with immediate effect and debar him from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr.S.K. Abu Nasir Hera on 28 December 2014 to take final decision.
26.
Professional Conduct, ICAB
Mr.Serazul Islam student of Mr. Md. Mujibar Rahman FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The IDC found Mr. Serazul Islam (Reg. # 21545) guilty of professional misconduct for violating ICAB ByeLaw # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB Bye- Laws 2014 and recommended to the Council 窶的CAB to cancel the registration of Mr. Serazul Islam with immediate effect and debar him from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr.Serazul Islam on 28 December 2014 to take final decision.
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27.
Professional Conduct, ICAB
Mr.Mohammad Selim student of Mr. Md. Mujibar Rahman FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The IDC found Mr. Mohammad Selim (Reg. # 22711) guilty of professional misconduct for violating ICAB ByeLaw # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB Bye- Laws 2014 and recommended to the Council 窶的CAB to cancel the registration of Mr. Mohammad Selim with immediate effect and debar him from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr.Mohammad Selim on 28 December 2014 to take final decision.
28.
Professional Conduct, ICAB
Mr. Kamolesh Chandra Manda student of Mr. Md. Mujibar Rahman FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The IDC found Mr. Kamolesh Chandra Mandal (Reg. # 20545) guilty of professional misconduct for violating ICAB Bye-Law # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB ByeLaws 2014 and recommended to the Council 窶的CAB to cancel the registration of Mr. Kamolesh Chandra Mandal with immediate effect and debar him from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr. Kamolesh Chandra Manda on 28 December 2014 to take final decision.
29.
Professional Conduct, ICAB
Mr. Md. Mamunur Rashid student of Mr. Md. Mujibar Rahman FCA
Violation of bye-law # 115(1) of ICAB ByeLaws 2004 and Deed of Articleship.
The IDC found Mr. Md. Mamunur Rashid (Reg. # 19423) guilty of professional misconduct for violating ICAB Bye-Law # 115(1) under clause 25 (i) of Part-I, Schedule-C, Part-II of ICAB ByeLaws 2014 and recommended to the Council 窶的CAB to cancel the registration of Mr. Md. Mamunur Rashid with immediate effect and debar him from appearing in any ICAB examination. If he had passed any examinations of ICAB, the result of those examinations should be cancelled.
The matter placed before the CouncilICAB on 10 December 2014 and decided to call personal hearing Mr. Md. Mamunur Rashid on 28 December 2014 to take final decision.
30.
Professional Conduct, ICAB
Mr. Newton Chowdhury student of Mr. Narayan Chowdhury FCA
Violation of bye-law # The IDC decided not to recommend 115(1) of ICAB Byeany action against Mr. Newton Laws 2004 and Deed Chowdhury (Reg. # 20337). of Articleship.
Council agreed with the recommendations of IDC and dispose of the case.
QUALITY ASSURANCE BOARD (QAB) FOR UNSATISFACTORY QUALITY ASSURANCE REPORT 1.
QAB
Habib Sarwar & Non maintenance of Co Chartered ICAB quality control Accountants requirements for listed audit clients.
IDC observed that Habib Sarwar & Co Chartered Accountants had not required staff and logistic support to undertake the audit works of publicly listed companies and recommended to the Council-ICAB to suspend Habib Sarwar & Co Chartered Accountants from public practice in publicly listed companies for a period of 02 (two) years.
Council-ICAB approved the Suspension Order and published the matter in the Institute窶冱 Journal and website.
2.
QAB
G Mostafa & Co Non maintenance of Chartered ICAB quality control Accountants requirements for listed audit clients.
The IDC found that G Mostafa & Co Chartered Accountants guilty of professional misconduct and unanimously resolved to
Council-ICAB approved the Suspension Order and published the matter
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recommend to the Council-ICAB to in the Institute’s reprimand and impose monetary Journal and website. penalty of Tk.50,000.00 (Taka fifty thousand)only upon G Mostafa & Co Chartered Accountants. The meeting further decided that if G Mostafa & Co Chartered Accountants does not fully comply with the quality assurance issues within 06 months, the Council-ICAB may take tougher action against G Mostafa & Co Chartered Accountants.
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3.
QAB
MM Rahman & Grossly negligent to Co Chartered comply with the ICAB Accountants quality control requirements for listed audit clients.
Council-ICAB found MM Rahman & Co Chartered Accountants guilty of professional misconduct and recommended to the Council-ICAB to reprimand and impose a fine of Tk. 200,000 (Two Lac) only upon MM Rahman & Co Chartered Accountants and also recommended that if the CA Firm fail to comply with the quality assurance issues within 06 months, the Council-ICAB may take tougher action against MM Rahman & Co Chartered Accountants.
Council-ICAB approved the Reprimand Order imposing monetary penalty of Tk. 200,000 only and published the matter in the Institute’s Journal and website.
4.
QAB
MN Islam & Co Non maintenance of Chartered ICAB quality control Accountants requirements for listed audit clients. Subsequently, for non-payment of student allowance as prescribed by ICAB and for noncompliance of byelaw # 8 & ICAB Circular in this regard 1/15/ICAB-2009 dated 17 June 2009.
IDC observed that MN Islam & Co Chartered Accountants had not required staff and logistic support to undertake the audit works of publicly listed companies and recommended to the Council-ICAB to suspend M N Islam & Co Chartered Accountants from public practice in publicly listed companies for a period of 02 (two) years.
Council-ICAB approved the Suspension Order imposing monetary penalty of Tk. 100,000 only and published the matter in the Institute’s Journal and website.
Subsequently, IDC recommended to Council to reprimand and impose monetary penalty of Tk. 200,000 (two lac) only.
5.
QAB
Ahsan Kamal Sadeq & Co
Non maintenance of ICAB quality control requirements for listed audit clients.
IDC observed that Ahsan Kamal Sadeq & Co Chartered Accountants had not required staff and logistic support to undertake the audit works of publicly listed companies and recommended to the Council-ICAB to suspend Ahsan Kamal Sadeq & Co Chartered Accountants from public practice in publicly listed companies for a period of 02 (two) years.
Council-ICAB approved the Suspension Order and published the matter in the Institute’s Journal and website.
6.
QAB
Islam Quazi Shafiq & Co
Non maintenance of ICAB quality control requirements for listed audit clients.
IDC found Islam Quazi Shafique & Co Chartered Accountants are grossly negligent in the quality assurance related matters and guilty of professional misconduct and recommended to the Council-ICAB to reprimand and impose monetary penalty of Tk.50,000.00 (Taka fifty thousand) only upon Islam Quazi Shafique & Co Chartered Accountants.
Council-ICAB approved the Reprimand Order imposing monetary penalty of Tk. 50,000 and published the matter in the Institute’s Journal and website.
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7.
QAB
Dewan Nazrul Islam & Co
Non maintenance of ICAB quality control requirements for audit clients and for conducting the audit of a listed company violating the SEC Rule 1987 as the firm was not a partnership.
IDC observed that Dewan Nazrul Islam & Co Chartered Accountants conducted the audit of listed company being a proprietorship and BSEC should be responsible to take action against Mr. Dewan Nazrul Islam FCA for violating the BSEC Rules.
Council-ICAB Suspended Dewan Nazrul Islam & Co Chartered Accountants from public practice in publicly listed companies for a period of 02 years IDC of Council-ICAB recommended imposing monetary penalty of Tk. 100,000 to the Council-ICAB to take only and published the appropriate action as it deems required against Dewan Nazrul Islam matter in the Institute’s Journal and & Co Chartered Accountants. website.
8.
QAB
A Hoque & Co Chartered Accountants
Non maintenance of ICAB quality control requirements for audit clients
In view of the assurance given by Mr. A.K.M. Aminul Hoque FCA and his submission, the IDC recommends to reprimand A Hoque & Co Chartered Accountant and to inform the noncompliance of audit procedures and accounting standards will be taken very seriously in future leading to imposition of monetary penalty and suspension from public practice.
The matter placed before the CouncilICAB on 10 December 2014 and the Council decided to call personal hearing A Hoque & Co on 28 December 2014 to take final decision.
9.
QAB
Rahman Mustafiz Haq & Co Chartered Accountants
Non maintenance of ICAB quality control requirements for audit clients
In view of the assurance given by Mr. A.T.M. Mustafizur Rahman FCA and his submission, the IDC recommends to reprimand Rahman Mustafiz Haq & Co Chartered Accountants and to inform the noncompliance of audit procedures and accounting standards will be taken very seriously in future leading to imposing of monetary penalty and suspension from public practice.
The matter placed before the CouncilICAB on 10 December 2014 and the Council decided to call personal hearing Rahman Mustafiz Haq & Co on 28 December 2014 to take final decision.
10.
QAB
Shafiq Mizan Rahman & Augustine Chartered Accountants
Non maintenance of ICAB quality control requirements for audit clients
The meeting found Shafiq Mizan Rahman & Augustin Chartered Accountants guilty of professional misconduct for violating bye-law # 115(3) for not paying student allowances as prescribed by the ICAB, bye-law # 8 & ICAB Circular # 1/15/ICAB-2009 dated on 17 June 2009 in this regard for not maintaining Audit Working Paper Files, Audit Permanent Files, Copy of Audit Report of latest listed audit clients and Bangladesh Standards on Quality Control (BSQC)-1 under clauses 21, 25, 27 and 33 of part-I of Schedule–C, part–II of ICAB Bye Laws 2004 and recommended to the Council–ICAB to reprimand Shafiq Mizan Rahman & Augustin Chartered Accountants with monetary penalty Tk. 50,000 (Taka Fifty Thousand) Only. If the partners fail to pay the penalty amount within the three (3) months from the date communication of Council decision then their membership should be suspended for one year.
The matter placed before the CouncilICAB on 10 December 2014 and the Council decided to call personal hearing Shafiq Mizan Rahman & Augustine on 28 December 2014 to take final decision.
11.
QAB
Ahmed Shahid Non maintenance of & Co Chartered ICAB quality control Accountants requirements for audit clients
The IDC recommends to the Council to reprimand Ahmed Shahid & Co Chartered Accountants with imposing monetary penalty Tk.
The matter placed before the CouncilICAB on 10 December 2014 and the Council
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300,000 (three lac) only on Mr. Shahid Uddin Ahmed FCA. If he fails to pay the penalty amount within 03 (three) months from the date of communication of the decision of Council-ICAB then his membership should be suspended for one year. The reprimand and collection of monetary penalty should be kept abeyance up to 15 June 2015 as the firm has made the commitment to close the firm after 15 June 2015.
decided to call personal hearing Ahmed Shahid & Co on 28 December 2014 to take final decision.
ICAB is determined to achieve its mission to promote and regulate the accounting profession and its members to ensure high quality financial reporting and to develop and maintain the competence and skill required of professional accountants in public practice and thereby enhance the image and reputation of the accounting profession. The accounting profession is often blamed by stakeholders particularly of listed companies not maintaining high ethical standards and skill required of practicing Chartered Accountants. The misdeeds of a few firms are tarnishing the image of the profession as a whole. In view of such criticism ICAB council has decided to take drastic measures against delinquent member firms. Accordingly the complaints were forwarded to IDC for proper investigation and recommended action. The IDC worked very hard in investigating the complaints very seriously against audit firms including giving personal hearing to partners of the alleged firms before arriving at a decision. The recommendations of IDC are very harsh in some cases depending on the nature of offence in order to bring back discipline in the profession. However I am, as Chairman of the IDC, feeling happy that ICAB council has taken decision on some of the recommendations. I, as Chairman of the IDC, urge upon the ICAB Council to give top priority in future including holding special meeting dedicating solely for deliberation and decision making on the recommendation of IDC on an urgent basis if the name and fame of this great profession is to be restored. Thanking you, Abdul Hafiz Choudhury FCA Chairman, Investigation & Disciplinary Committee
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22.0
REPORT OF THE AUDIT COMMITTEE
The Audit Committee of the Council of ICAB has been formed to assist the Council in discharging its function and responsibilities with well defined Terms of Reference (ToR) so that the Committee acts independently. These ToR of the Committee includes the composition of the Committee with one of the Past Presidents of ICAB who will act as the Chairman of the Committee, two Council Members other than members of the Executive Committee and four Independent Members. The ToR also includes the functions of the Committee as monitoring the financial operations of the Institute, integrity of financial statements, risk management and internal control management, compliance with legal and regulatory requirements, evaluate performance of the Institute, review qualifications and independence of external auditors, compliance of ICAB Bye-Laws & Council Directives, and to carry out any other function(s) as may be assigned to the Committee by the Council from time to time.
During the year 2014, the Audit Committee had one meeting and in the meeting it conducted the following business:
The Audit Committee consists of 10 Members of which one Past President of ICAB who acts as Chairman, 5 (five) Council Members among which only one is from the Executive Committee and 4 (four) are independent members. The Secretary of ICAB acts as the Member Secretary of the Committee.
On behalf of the Audit Committee,
1.
Reviewed the financial operations and integrity of the financial statements of the Institute;
2.
Reviewed the risk management and internal control management;
3.
Reviewed the compliance with the legal and regulatory requirements;
4.
Reviewed the performance, qualifications and independence of external auditors; and
5.
Reviewed the effectiveness of the Institute’s governance process.
The Minutes of the Audit Committee meetings containing various suggestions and recommendations to the Management are placed before the appropriate authorities for ratification and implementation.
A. K. Gulam Kibria FCA Chairman, Audit Committee
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MEETINGS OF THE COUNCIL AND COMMITTEES
COUNCIL MEETING Total Meetings: 16 Name
Attendance
Mr. Showkat Hossain FCA Mr. Kamrul Abedin FCA Mr. Dewan Nurul Islam FCA Mr. Nasim Anwar FCA Mr. Akhtar Sohel Kasem FCA Mr. Masih Malik Chowdhury FCA Mr. Anwaruddin Chowdhury FCA Mr. Abu Sayed Mohammed Nayeem FCA
Dr. Md. Abu Sayed Khan FCA Mr. Abbas Uddin Khan FCA
16 16 11 13 10 14 12 11 13 15
Name
Attendance
Mr. Muhammed Farhad Hussain FCA
Mr. Md. Humayun Kabir FCA Mr. A F Nesaruddin FCA Mr. Muhammad Farooq FCA Mr. Nasir Uddin Ahmed FCA Mr. Md Abdus Salam FCA Mr. Md. Syful Islam FCA Mr. Adeeb Hossain Khan FCA Mr. Md. Shahadat Hossain FCA Mr. Gopal Chandra Ghosh FCA
13 9 14 11 10 13 11 8 16 14
** The above attendance does not include the attendance of the Council Meeting schedule to be held on 31 December 2014.
Summary of the Meetings of the Different Standing Committees / Board held in 2014 Sl # 1 2 3 4 5 6 7
Standing Committees / Boards Executive Committee Examination Committee Investigation and Disciplinary Committee Articled Students Committee Technical and Research Committee Board of Studies Quality Assurance Board
No. of Meetings held in 2014 6 5 8 4 3 3 3
Executive Committee Name Showkat Hossain FCA Dewan Nurul Islam FCA Nasim Anwar FCA Masih Malik Chowdhury FCA Abu Sayed Mohammed Nayeem FCA
Attendance 6 6 4 5 3
Name Abbas Uddin Khan FCA Muhammed Farhad Hussain FCA Md Abdus Salam FCA Md. Syful Islam FCA
Attendance 5 4 6 6
Examination Committee
194
Name Showkat Hossain FCA Kamrul Abedin FCA Anwaruddin Chowdhury FCA Dr. Md. Abu Sayed Khan FCA Md. Humayun Kabir FCA
Attendance 5 5 2 2 3
Name Muhammad Farooq FCA Adeeb Hossain Khan FCA Gopal Chandra Ghosh FCA Md. Mustafizur Rahman FCA (218)
Attendance 4 1 4 1
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Investigation & Disciplinary Committee Name A. Hafiz Choudhury FCA Dewan Nurul Islam FCA
Attendance 6 3
Name Md. Tipu Sultan FCA (661) Mohammad Al Maruf Khan FCA (667)
Attendance -
Nasim Anwar FCA Masih Malik Chowdhury FCA
2 5
7 -
Abu Sayed Mohammed Nayeem FCA
2 1 1 1 4 3 1
Sib Sankar Saha FCA (702) Abu Noim Md. Kashem Chowdhury FCA (752) Md. Moniruzzaman FCA (787) Md Sayeed Ahmed FCA (811) Mahmudul Hasan Khusru FCA (820) AKM Saif Ullah Kowchar FCA (828) Mostafa Kamal FCA (829) Masud Parvez FCA (835)
Muhammad Farooq FCA Md. Shahadat Hossain FCA AKM Rafiqul Islam FCA (30) Chitta Ranjan Mazumder FCA (178) Md. Iqbal Chowdhury FCA (272) Md. Amirul Islam FCA (331) Dr. Jamshed Sanyiath Ahmed Choudhury FCA (363) Sarwar Azam Khan FCA (409) Md. Shahjahan Majumder FCA (571) Md. Tofazzal Islam Talukder FCA (608)
2 3 -
Nehal Ahmed FCA(609)
2
Md. Abul Kashem Majumder FCA (566)
Mohammed Mizanur Rahman FCA (862)
Muhammad Nazrul Islam FCA (884) Snehasish Barua FCA (894) Ajit Kumar Paul FCA (908) Md. Selim Reza FCA (939) Mohammad Mosttafa Shazzad Hasan ACA (1433)
3 2 1 3 2 5 1 4 1 5 4
Articled Students Committee Name Attendance Name Attendance Md. Syful Islam FCA 4 Sabbir Ahmed FCA (770) 3 Akhtar Sohel Kasem FCA Md. Moniruzzaman FCA (787) 1 Abbas Uddin Khan FCA 4 Amal Krishna Das FCA (802) Muhammed Farhad Hussain FCA Mostafa Kamal (829) 1 AF Nesaruddin FCA 2 Mohammed Forkan Uddin FCA (886) 2 Gopal Chandra Ghosh FCA 3 Snehasish Barua FCA (894) 1 Mian Muhammad Shaheedullah FCA (118) 2 Ajit Kumar Paul FCA (908) Chitta Ranjan Mazumder FCA (178) 2 Mizanur Rahman FCA (940) 1 Md. Nurul Haque FCA (195) 2 Md. Zakaria FCA (967) 1 Md. Mustafizur Rahman FCA (218) Md. Ashraful Azim FCA (975) 1 AFM Alamgir FCA (268) 1 Fouzia Haque FCA (1032) 1 Md Anisur Rahman FCA (350) 1 Faker Ahmed ACA (1112) Abu Sayeed Mohammad Ali FCA (431) 4 Md. Wahid Murad ACA (1117) 1 AKM Mizanur Rahman FCA (438) 2 Md. Al Amin Siddiki ACA (1164) 1 Shah Md Zakaria Bhuiyan FCA (446) 1 Anjon Kumar Roy ACA (1175) 1 AKM Mohitul Haq FCA (458) Md. Ali Akther Rezvi ACA (1183) 1 Tofayel Ahmed FCA (468) 3 Kamal Hossain ACA (1269) Abu Anas Muhammed Rezaullah ACA (1286) Ali Ashfaq FCA (509) 1 Ashraful Ameen FCA (513) 2 Md. Mosharof Hossain ACA (1319) S M Atiar Rahman FCA (574) Md. Selim Reza ACA (1329) 1 Md Abdul Momin Khan Lohani FCA (575) 1 Md. Shohel Rana ACA (1383) Mohammad Hamidur Rashid FCA (607) Md. Yeasin Mollah ACA (1441) Akhtar Sanjida Kasem FCA (643) 1 Sajib Sarkar ACA (1467) Md Harun-Or-Rashid FCA (697) Ashraf-Uz-Zaman Ali ACA (1518) 1 Sib Sankar Saha FCA (702) 2 Chairman, DRC-ICAB Md. Atikur Rahman FCA (715) 1
195
2014
ANNUAL REP ORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
Investigation & Disciplinary Committee Name Kamrul Abedin FCA Anwaruddin Chowdhury FCA Md. Humayun Kabir FCA Nasir Uddin Ahmed FCA Adeeb Hossain Khan FCA Md. Shahadat Hossain FCA Sabbir Ahmed FCA (770) Mohammod Masud Rana FCA (773) Mohammad Monowar Hossain FCA (788) Mohammad Mohiuddin Ahmed FCA (800)
Md. Sayeed Ahmed FCA (811) Mohammad Nesar Uddin FCA (814) Abdullah Al Mahmud FCA (818) Mahmudul Hasan Khusru FCA (820) Ovijit Bhattacharjee FCA (824) Md. Mahamud Hosain FCA (833) Mohammad Syed Bashir Ali FCA (849) Harun Mahmud FCA (850) Mohammad Jashim Uddin FCA(869) Muhammed Moshiur Rahman FCA (874)
Mohammed Forkan Uddin FCA (886) Snehasish Barua FCA (894) Nanda Dulal Saha FCA (895) Md. Anisuzzaman FCA (896) Mohammad Abdul Ohab Miah FCA (901) Ajit Kumar Paul FCA (908) Md. Abdur Rouf FCA (918) Md. Rokonuzzaman FCA (936) Sabbir Ahmed FCA (937) Md. Shamim Ahamed FCA (947)
Attendance Name Attendance 4 Mohammed Sabir Ahmed FCA (949) Babul Kumar Saha FCA (962) Mohammad Mizanur Rahman FCA 2 (987) Muhammad Mehedi Hasan FCA (1000) 1 MBM Lutful Hadee FCA (1006) 4 Md. Zillur Rahman ACA (1040) 3 Mahbub Alam FCA (1050) Md. Abu Khair Hasanul Hasif Sowdagar 1 FCA (1054) Maria Howlader FCA (1063) 1 Syed Md. Enamul Kabir ACA(1078) Shahriar Istiaq Halim FCA (1083) 1 Bibhuti Bushan Biswas ACA (1088) Farjana Akter Sadi FCA (1098) Manik Kumar Sarker ACA (1106) Faker Ahmed ACA (1112) 2 Md. Wahid Murad ACA (1117) Mohammad Ibrahim Khalil ACA (1128) 1 1 Abdullah-Al-Mamun ACA (1142) 1 Md. Jasim Uddin ACA (1147) Anjan Kumer Roy ACA (1175) 1 Mohammad Touhidur Rahman ACA (1279) 2 1 3 Sk. Ashik Iqbal ACA (1310) 3 2 Md. Mosharof Hossain ACA (1319) Esha Nabila Hussain ACA (1397) 1 Shayema Akter ACA (1413) 1 Kazi Shah Omar Faruk ACA (1422) 3 1 Ramdas Howlader ACA (1457) 3 1 Mahmudur Rahman ACA (1491) 2 0 1
Board of Studies
196
Name ABM Azizuddin FCA Md Abdus Salam FCA Dewan Nurul Islam FCA Dr. Md. Abu Sayed Khan FCA Muhammed Farhad Hussain FCA AF Nesaruddin FCA Nasir Uddin Ahmed FCA Gopal Chandra Ghosh FCA Md. Rafiqul Islam Khan FCA (155) Chitta Ranjan Mazumder FCA (178) Md. Mustafizur Rahman FCA (218) Md. Shafiul Alam FCA (254) AFM Alamgir FCA (268) Mohamed Abdul Baree FCA (482) S M Atiar Rahman FCA (574) Md Abdul Momin Khan Lohani FCA (575) Md. Kamrul Hassan FCA (579)
Attendance 2 2 3 1 3 1 1 2 2
Name M Abu Bakar FCA (830) Masud Parvez FCA (835) Mohammad Syed Bashir Ali FCA (849) Md. Jahidur Rahman FCA (860) Nanda Dulal Saha FCA (895) Mustaq Ahammed FCA (924) Md. Rokonuzzaman FCA (936) Sabbir Ahmed FCA (937) Md. Shamsur Rahman FCA (941) Babul Kumar Saha FCA (962) Muhammad Mehedi Hasan FCA (1000)
Krishna Kamal Ghose ACA (1021) Shahriar Istiaq Halim FCA (1083) Farjana Akter Sadi FCA (1098) Uttam Kumar Saha ACA (1121) Mohammad Ibrahim Khalil ACA (1128) Mainul Huda ACA (1131)
Attendance 1 1 2 -
2014
ANNUAL R EPORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
Name Md. Shafiqul Alam FCA (603) Humayun Bokhteyar FCA (631) Akhtar Sanjida Kasem FCA (643) Hassan Md Ziaul Hoque Khan FCA (711) Md. Rokonuzzaman FCA (739) Jeenat Jahan Dipty FCA (753) Sarwar Uddin FCA (779) Tushar Bhowmik FCA (784) Ala Uddin FCA (805) Mahmudul Hasan Khusru FCA (820)
& FINANCIAL STATEMENTS 2013-2014
Attendance Name Attendance 3 Abdullah-Al-Mamun ACA (1142) 1 Mohammad Salahuddin Chowdhury 2 ACA (1153) Muraheb Malik Chowdhury ACA (1186) 1 Muhammad Abidur Rahman (1321) 3 Oishee Labina Hussain ACA (1341) Mohammad Belayet Hossain ACA 1 (1480) Ashraf-Uz-Zaman Ali ACA (1518) 1 Chairman, DRC-ICAB Masud Khan, Finance Director, Lafarge Surma Cement Ltd. Santi Narayan Ghosh, University of Dhaka 2 -
Quality Assurance Board Name
Attendance
Name
Attendance
Abu Sayed Mohammed Nayeem FCA
3
Leena Razzaque FCA (821)
-
Md. Syful Islam FCA
1
Md. Jahidur Rahman FCA (860)
-
Showkat Hossain FCA
-
Mohammed Forkan Uddin FCA (886)
1
Kamrul Abedin FCA
2
Snehasish Barua FCA (894)
2
Akhtar Sohel Kasem FCA
-
Nanda Dulal Saha FCA (895)
-
Md. Humayun Kabir FCA
-
Ajit Kumar Paul FCA (908)
1
AF Nesaruddin FCA
3
Mustaq Ahammed FCA (924)
-
Anil Chandra Nath FCA (53)
2
Mizanur Rahman FCA (940)
-
Chitta Ranjan Mazumder FCA (178)
1
Md. Zakaria FCA (967)
-
Mujibul Huque FCA (180)
1
Mohammad Khairul Alam FCA (972)
-
Abu Sayeed Mohammad Ali FCA (431)
2
Md. Ashraful Azim FCA (975)
-
Ali Ashfaq FCA (509)
1
Md. Ashraful Haque FCA (976)
2
Suraiya Zannath Khan FCA (582)
-
Shahriar Kabir FCA (997)
-
Ferdous Ahmed Khan FCA (612)
-
Md. Zillur Rahman FCA (1040)
-
Md. Helal Uddin FCA (645)
1
Md. Syed Abul Hashem FCA (1093)
-
Mohammad Al Maruf Khan FCA (667)
-
Moinul Hye Asif ACA (1127)
-
Md. Raghib Ahsan FCA (689)
2
Md. Kishlur Rahman ACA (1197)
-
Arshad Ali Chowdhury FCA (743)
-
Dipok Kumar Roy ACA (1334)
1
Md. Mahbubur Rahman FCA (750)
2
Md. Noor-Ul-Alam ACA (1345)
1
Neaz Mohammed FCA (763)
-
Shayema Akter ACA (1413)
-
Sabbir Ahmed FCA (770)
2
Md. Mosiur Rahman ACA (1418)
1
Md. Moniruzzaman FCA (787)
-
Ashraf-Uz-Zaman Ali ACA (1518)
1
Md. Mahsudur Rahman FCA (815)
-
197
2014
ANNUAL REP ORT
& FINANCIAL STATEMENTS 2013-2014
23.2
198
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
SUMMARY OF THE MEETINGS OF THE NON- STANDING COMMITTEES/ BOARDS HELD IN 2014
Sl #
Other Non- Standing Committees / Boards
Nos. of Meetings held in 2014
1
Real Estate Committee
4
2
Editorial Board
4
3
Professional Development Committee
3
4
Taxation and Corporate Laws Committee
4
5
Project Development and Implementation Committee
2
6
SAFA and International Affairs Committee
1
7
Review Committee for Published Accounts and Reports
6
8
Information and Communication Technology Committee
6
9
Members Services and Welfare Committee
2
10
Amendment of CA Order and Bye-Laws
4
11
Continuing Professional Development Committee
2
12
Committee for Small and Medium Practitioners (SMP)
-
13
Committee on Public Finance and Public Sector Accounting
1
14
ICAB-ICAEW Coordination Committee
1
15
Audit Committee
1
16
Committee on Professional Accountants in Business (PAIB)
1
17
Advisory Committee
1
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
2014
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
FINANCIAL STATEMENTS 2013-2014
2014
ANNUAL REP ORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
The Institute of Chartered Accountants of Bangladesh
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014
Taka in Thousand 2013-14
2012-13
2011-12
2010-11
2009-10
Financial position Building Fund General Fund Members Welfare Fund Employees Gratuity Fund
196,132 190,015 3,086 28,866
156,088 153,699 3,063 25,217
116,043 119,571 3,404 19,859
86,012 86,062 3,137 21,145
60,986 62,647 2,738 18,508
Fixed Assets (WDV) Investment in FDR Advances and Deposits Current Assets Current Liabilities Net Current Assets
75,094 316,599 33,297 350,218 30,745 319,473
69,507 255,056 28,575 274,625 27,324 247,301
70,687 175,283 28,906 188,711 26,348 162,363
52,515 123,684 23,363 135,568 15,219 120,349
54,923 73,393 23,361 80,337 13,554 66,783
Cash Flows Operating Activities Investing Activities Financing Activities Cash & Cash Equivalent at Year-end
78,988 (77,093) (496) 3,998
74,885 (72,502) (2591) 2,599
77,536 (78,836) 1101 2,807
48,436 (52,468) 3,163 3,006
37,934 (43,062) 5,335 3,875
Income & expenditure Income Expenditure Operating Surplus
250,933 174,618 76,315
218,502 144,099 74,403
197,582 134,072 63,510
135,521 87,106 48,415
102,104 74,977 27,127
Five Years Comparative Data
1
Operating Surplus
2
4
5
27,127
74,977
102,104
48,415
63,510 3
87,106
135,521
134,072 74,403
76,315
200
Expenditure
197,582 144,099
174,618
218,502
250,933
Income
2014
ANNUAL R EPORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
FINANCIAL HIGHLIGHTS FIVE YEARS DATA
INCOME
EXPENDITURE
Taka in Thousand
Taka in Thousand 174,618 250,933
144,099 218,502
134,072
197,582
87,106
135,521
74,977 102,104
2013-14
2012-13
2013-14 2011 -12
2010-11
2012-13
2010-11
2009-10
INVESTMENT IN FDR
OPERATING SURPLUS
Taka in Thousand
Taka in Thousand
76,315
2011 -12
2009-10
316,599
74,403
255,056
63,510 48,415
175,283 123,684
27,127
73,393
2013-14
2012-13
2011 -12
2013-14
2010-11
2012-13
2011 -12
2009-10
11
2010-
2009-10
CURRENT LIABILITIES
CURRENT ASSETS
Taka in Thousand
Taka in Thousand
350,218
30,745
274,625
27,324 188,711
26,348
135,568
15,219
80,337 2013-14
2012-13
2011 -12
2013-14
2010-11
2009-10
2012-13
2011-12
2010-11
13,554
2009-10
201
2014
ANNUAL REP ORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
FINANCIAL HIGHLIGHTS FIVE YEARS DATA
Income 2013-14 (Taka in Thousand) (20,426
)
(45,679)
08%
%
18%
3,
(2
9 )0 7 6
3
Membership Fees
6% 98) 0
(14,4
(5,547) 02%
Rental Income Government Grant Contribution for BPA and Conferences Education, Training and Examination
(141,416)
57%
Other Income
Income 2012-13 (Taka in Thousand)
2) 8,31
(2
10%
Membership Fees (2 1,0 ) 49
10
13%
(20,881)
%
Rental Income
(12,500)
06%
(6,846) 0
3%
(128,914)
58%
202
Government Grant Contribution for BPA and Conferences Education,Training and Examination Other Income
2014
ANNUAL R EPORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
FINANCIAL HIGHLIGHTS FIVE YEARS DATA
Expenditure 2013-14 (Taka in Thousand) 51) (17,3
,9
(16,652)
14
)
(51,417)
Education, Training & Examination Depreciation & Amortization
(6,5
%
9 10,
Electricity & Water
29%
%
06
75)
(
09
10%
Salaries & Allowances
10%
(15
63)
04
%
(55,746)
Other Expenses BPA Awards, Seminars & Conferences
32%
Office Expenses
Expenditure 2012-13 (Taka in Thousand) 71)
(13,0 (12
10%
,0
(15,274)
14
(43,881)
08
)
31%
%
10%
Electricity & Water Education, Training & Examination Depreciation & Amortization
6%
(5,
)0 ,110
(9
Salaries & Allowances
00
(45,747)
31%
2)
04
%
Other Expenses BPA Awards, Seminars & Conferences OďŹƒce Expenses
203
2014
ANNUAL REP ORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
FINANCIAL HIGHLIGHTS FIVE YEARS DATA
Vertical Analysis Particulars Income & Expenditure Income Expenditure Operating Surplus Funds and Liabilities General Fund Building Fund Members Welfare Fund Employees Gratuity Fund Scholarship & Relief Fund Current Liabilities Total Assets Fixed Assets (WDV) Investment in FDR Advances and Deposits Current Assets Total
Taka in Thousand
2013-14
%
2012-13
%
2011-12
%
2010-11
%
2009-10
%
2008-09
250,933 174,618 76,315
100 70 30
218,502 144,099 74,403
100 66 34
197,582 134,072 63,510
100 68 32
135,521 87,106 48,415
100 64 36
102,104 74,977 27,127
100 73 27
82,408 60,815 21,593
190,015 196,132 3,086
42 43 1
153,699 156,088 3,063
42 42 1
119,571 116,043 3,404
41 40 1
86,062 86,012 3,137
40 40 1
62,647 60,986 2,738
39 38 2
50,520 45,959 2,567
28,866
6
25,217
7
19,859
7
21,145
10
18,508
11
13,665
5,299
1
4,975
1
4,338
1
3,975
2
3,908
2
3,615
29,676 453,074
7 100
26,843 369,885
7 100
26,348 289,563
9 100
15,219 215,550
7 100
13,554 162,341
8 100
8,727 125,053
75,094 316,599 33,297
17 70 7
69,507 255,056 28,575
19 69 7
70,687 175,283 28,906
24 61 10
52,515 123,684 23,363
24 57 11
54,923 73,393 23,361
34 45 14
56,651 55,282 1,361
28,084 453,074
6 100
16,747 369,885
5 100
14,686 289,562
5 100
15,988 215,550
8 100
10,664 162,341
7 100
11,759 125,053
Horizontal Analysis Particulars
204
Income & Expenditure Income Expenditure Operating Surplus Capital and Liabilities General Fund Building Fund Members Welfare Fund Employees Gratuity Fund Scholarship & Relief Fund Current Liabilities Total Assets Fixed Assets (WDV) Investment in FDR Advances and Deposits Current Assets Total
Change Change Change Change Change over Pre over Pre over Pre over Pre over ceding ceding ceding ceding Pre 2012-13 Year 2012-13 2011-12 2010-11 2009-10 (%) Year (%) Year (%) Year (%) ceding 2009-10 Year (%)
250,933 174,618 76,315
15 21 3
218,502 144,099 74,403
11 7 17
197,582 134,072 63,510
46 54 31
135,521 87,106 48,415
33 16 78
102,104 74,977 27,127
24 23 26
82,408 60,815 21,593
190,015 196,132 3,086
24 26 1
153,699 156,088 3,063
29 35 -10
119,571 116,043 3,404
39 35 9
86,062 86,012 3,137
37 41 15
62,647 60,986 2,738
24 33 7
50,520 45,959 2,567
28,866
14
25,217
27
19,859
-6
21,145
14
18,508
35
13,665
5,299
7
4,975
15
4,338
9
3,975
2
3,908
8
3,615
29,676 453,074
11 22
26,843 369,885
2 28
26,348 289,563
73 34
15,219 215,550
12 33
13,554 162,341
55 30
8,727 125,053
75,094 316,599 33,297
8 24 17
69,507 255,056 28,575
-2 46 -1
70,687 175,283 28,906
35 42 24
52,515 123,684 23,363
-4 69 0
54,923 73,393 23,361
-3 33 1616
56,651 55,282 1,361
28,084 453,074
68 22
16,747 369,885
14 28
14,686 289,562
-8 34
15,988 215,550
50 33
10,664 162,341
-9 30
11,759 125,053
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
2014
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
INDEPENDENT AUDITORS’ REPORT
to the members of the Institute of Chartered Accountants of Bangladesh for the year ended 30 June 2014 We have audited the accompanying financial statements of The Institute of Chartered Accountants of Bangladesh, which comprise the statement of financial position as at 30 June 2014 and statement of comprehensive income and statement of cash flows for the year then ended, and a summary of significant accounting policies and notes 1 to 35 thereto. This report is submitted solely to the members of the Institute, as a body. Our audit work has been undertaken so that we might state to the members those matters which are required to be stated to them in an auditors’ report and for no other purpose. To the extent permitted by law, we do not accept or assume responsibility to anyone other than members of the Institute as a body, for our audit work, generation of audit report, or for the opinions we have expressed therein. The Institute’s Responsibility for the Financial Statements The management of the Institute is responsible for the preparation and fair presentation of these financial statements in accordance with Bangladesh Financial Reporting Standards (BFRS) and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud and error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly in all material respects, the financial position of the Institute as at 30 June 2014 and its financial performance and its cash flows for the year than ended in accordance with Bangladesh Financial Reporting Standards (BFRS’s). Emphasis of Matter We draw attention to Note No-5.01 to the financial statements which describes the matters related to the advanced made on execution of a Baina Nama by the Institute for purchase of land and the outcome of the lawsuit filed by the Institute subsequently against the owner of land. However, our opinion is not qualified in respect of this matter.
Mr. Enamul Haque CHoudhury FCA Partner S. F. Ahmed & Co. Chartered Accountants Date: 11 December 2014
Md. Shamsul Huda FCA Partner Huda Hossain & Co. Chartered Accountants
205
2014
ANNUAL REP ORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
The Institute of Chartered Accountants of Bangladesh
STATEMENT OF FINANCIAL POSITION As at 30 June 2014
Particulars
Note
ASSETS Non-current Assets Property, Plant & Equipment Intangible Assets Advances and Deposits (Non-current portion) Current Assets Inventories Receivables Advances, Deposits and Prepayments (Current Portion) Investments -Fixed Deposits with Banks Cash and Cash Equivalents
30 June 2014 Taka
3 4 5 6 7 8 9 10
Total Assets
30 June 2013 Taka
102,856,136 74,789,824 304,168 27,762,144 350,217,962 4,035,999 20,049,641 5,535,350 316,598,662 3,998,310
95,259,540 69,095,780 411,020 25,752,740 274,625,183 4,183,929 9,963,571 2,822,749 255,056,170 2,598,764
453,074,098
369,884,723
386,146,505 196,131,879 190,014,626 36,182,732 27,797,500 3,086,496 3,041,132 2,071,259 186,345 30,744,861
309,787,377 156,088,017 153,699,360 32,773,153 24,736,140 3,063,175 3,029,692 1,907,801 36,345 27,324,193
1,744,078 23,222,225 4,199,194 1,068,800 510,564
9,123,089 15,160,198 2,049,582 480,760 510,564
453,074,098
369,884,723
3,425,712
3,425,712
FUNDS AND LIABILITIES Funds Land and Building Fund General Fund Long-term Liabilities Employees' Gratuity Fund (Non-current portion) Members' Welfare Fund General Scholarship Fund President Scholarship Fund Relief Fund Current Liabilities World Bank Projects Payable and Accruals Advance Fees and Rent Employees' Gratuity Fund (Current portion) Other Liabilities
11 12 13 14 15 16
17 18 19 13 20
Total Funds and Liabilities CONTINGENT ASSETS
35
The annexed notes 1 to 35 form an integral part of these financial statements.
AKM Rahmat Ullah FCA Secretary
206
Dhaka, 11 December 2014
Nasim Anwar FCA Vice President
Showkat Hossain FCA President
2014
ANNUAL R EPORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
The Institute of Chartered Accountants of Bangladesh
STATEMENT OF COMPREHENSIVE INCOME for the year ended 30 June 2014
Particulars
Note
July'13-June'14
July'12-June'13
Taka
Taka
INCOME Membership Fees Education, Training and Examinations Government Grant Contribution for BPA Awards, Annual Dinner, etc. Rental Income Other Income
21 22 23 24 25 26
20,425,750 141,416,088 14,498,000 5,547,500 23,366,840 45,679,001 250,933,179
20,881,100 128,913,530 12,500,000 6,845,979 21,049,379 28,311,961 218,501,949
47,235,504 55,745,784 17,351,046 7,638,618 6,562,639 3,253,793 3,511,991 2,493,040 2,571,502 714,395 3,613,193 295,030 4,181,260 8,275,429 200,000 10,747,837 226,852 174,617,913 76,315,266 76,315,266 40,000,000 36,315,266 250,933,179
39,163,308 45,747,480 13,071,361 4,576,107 5,002,285 2,941,110 3,246,276 2,661,278 3,368,427 695,580 547,250 527,162 4,718,267 7,437,482 1,285,500 8,907,272 202,852 144,098,997 74,402,952 498,564 73,904,388 40,000,000 33,905,066 218,502,627
EXPENDITURE Salaries and Allowances Education, Training and Examinations Office Expenses Seminars and Conferences Electricity and Water Rent, Rates and Taxes Repairs and Maintenance Journal and News Bulletin Grant and Scholarship to BCACP Subscription to Professional Bodies Legal and Professional Fees Traveling and Conveyance Gratuity Expense BPA Awards, Annual Dinner, Picnic and etc. Donation and CSR Depreciation Amortization
27 28 29 30
31 32 13 33 Annex A Annex B
Excess of Income over Expenditure Less:Provision against Receivables Total Comprehensive Income Transferred to Land and Building Fund Transferred to General Fund
The annexed notes 1 to 35 form an integral part of these financial statements.
AKM Rahmat Ullah FCA Secretary Dhaka, 11 December 2014
Nasim Anwar FCA Vice President
Showkat Hossain FCA President
207
2014
ANNUAL REP ORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
The Institute of Chartered Accountants of Bangladesh
STATEMENT OF CASH FLOWS for the year ended 30 June 2014
Particulars A)
Note
July'13-June'14 Taka
July'12-June'13 Taka
Cash Flows From Operating Activities Receipts: Membership Fees
18,570,137
17,798,954
Rental Income
23,986,520
20,776,483
141,416,088
126,863,030
5,537,500
6,845,979
640,000
530,000
26,283,414
24,801,086
World Bank Project
4,578,000
10,824,000
Other Receipts
5,991,205
7,465,807
227,002,864
215,905,339
7,205,525
4,576,108
Salaries and Allowances
32,089,527
29,420,885
Education, Training and Examinations Expenses
47,909,042
54,343,026
Electricity and Water (net off received from tenants)
7,050,579
4,235,618
BPA Awards, Annual Dinner, Picnic and etc.
8,275,429
7,437,482
45,484,704
41,007,542
148,014,806
141,020,661
78,988,058
74,884,678
Fixed Deposit with Banks
(60,771,031)
(64,683,064)
Addition to Non-Current Assets
(16,567,972)
(7,930,000)
246,410
110,900
(77,092,593)
(72,502,164)
Education, Training and Examinations Contribution for BPA Awards, Annual Dinner, Etc. Firm Inspection Fee Interest Income
Payments: Seminars and Conferences
Other Administrative and Operational Expenses
B)
Net cash generated from operating activities Cash Flows From Investing Activities
Gain on Disposal of Non-Current Assets Net cash used in investing activities
208
Cont..........
2014
ANNUAL R EPORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
Particulars C)
Note
July'13-June'14 Taka
July'12-June'13 Taka
Cash Flows From Financing Activities Government Grant Less: adjusted with: Salary Expenditures Electricity and Water
14,498,000
12,500,000
(13,608,789) (889,211)
(11,733,333) (766,667)
-
-
Net Cash inflow/(out flow) in Fund of the ICAB Land and Building Fund General Scholarship Fund President Scholarship Fund Members Welfare Fund Employees Gratuity Fund Relief Fund
43,862 11,440 163,458 23,321 (538,000) (200,000)
45,019 434,505 354,453 (338,357) (1,086,638) (2,000,000)
Net Cash Used in/Provided by Financing Activities
(495,919)
(2,591,018)
D)
Net Increase / (Decrease) (A+B+C)
1,399,546
(208,504)
E)
Beginning Cash and Cash Equivalents
2,598,764
2,807,268
F)
Ending Cash and Cash Equivalents (D+E)
3,998,310
2,598,764
10
The annexed notes 1 to 35 form an integral part of these financial statements.
AKM Rahmat Ullah FCA Secretary
Nasim Anwar FCA Vice President
Showkat Hossain FCA President
Dhaka, 11 December 2014
209
2014
ANNUAL REP ORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
The Institute of Chartered Accountants of Bangladesh (ICAB)
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2014
1.
CORPORATE HISTORY The Institute of Chartered Accountants of Bangladesh (ICAB), established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973), for the purpose of regulating the profession of accountants and for matters connected therewith. ICAB’s headquarter is located at Dhaka with regional offices in Dhaka, Chittagong and overseas chapters in London & Toronto. ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants).
1.1. OBJECTIVES AND NATURE OF ACTIVITIES The objectives of ICAB are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004. 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting Policies selected and applied by the ICAB’s Council for significant transactions and events that have a material effect within the framework of BAS 1 Presentation of Financial Statements, in preparation and presentation of financial statements. During the year the Institute has reviewed the depreciation policy on additions and disposals of fixed assets. Depreciation on additions is charged from the day on which the asset is put into use and on disposals, upto the day the asset has been in use instead of charging depreciation on additions for full year irrespective of date of purchase/ put into use and no depreciation is charged for the year of disposal. Such change has been accounted for prospectively in the financial statements as a change in accordance with BAS 8. Except the depreciation policy, there were no significant changes, compared to the previous year, in the accounting and valuation principles affecting the financial position and performance of the Institute.
2.1 BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS i)
Accounting Standards The financial statements have been prepared in accordance with ICAB’s accounting policies following Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS), and other applicable laws and regulations.
ii)
Accounting Convention The financial statements are prepared under the historical cost convention. The Institute classified the expense using the function of expense method as per BAS 1.
iii) Compliances The financial statements have been prepared and the disclosures of information made in accordance with Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS) iv) Critical Accounting Estimates, Assumptions and Judgments
210
The preparation of the financial statements is in conformity with BFRS requires the use of certain critical accounting estimates. It also requires council to exercise its judgment in the process of applying the Institute’s accounting policies.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
v)
2014
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
Application of Standards
The following BASs are applicable for the financial statements for the year under review: BAS 1 BAS 2 BAS 7 BAS 8 BAS 10 BAS 16 BAS 18 BAS 19 BAS 20 BAS 21 BAS 26 BAS 32 BAS 36 BAS 37 BAS 38 BAS 39
Presentation of Financial Statements Inventories Statement of Cash Flows Accounting policies, Changes in Accounting Estimates and Errors Events after the Reporting Period Properties, Plant and Equipment Revenue Employee Benefits Accounting for Governments Grants and Disclosure of Government Assistance The Effects of Changes in Foreign Exchange Rates Accounting and Reporting by Retirement Benefit Plans Financial Instruments: Presentation Impairment of Assets Provisions, Contingent Liabilities and Contingent Assets Intangible Assets Financial Instruments: Recognition and Measurement
2.2 STATEMENT OF CASH FLOWS Paragraph 102 of BAS 1 Presentation of Financial Statements, requires that a Statement of Cash Flows is to be prepared as it provides information about cash flows of the Institute which is useful in providing users of financial statements with a basis to assess the ability of the ICAB to generate cash and cash equivalents and the needs of the Institute to utilize those cash flows. Statement of Cash Flows has been prepared under the direct method for the period, classified by operating, investing and financing activities as prescribed in paragraph 10 and 18 (a) of BAS 7 Statement of Cash Flows. 2.3 Functional and Presentation Currency These financial statements are presented in Taka, which is the Institute’s functional currency. 2.4 Foreign Currency Translation Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in accordance with BAS 21 The Effects of Changes in Foreign Exchange Rates. Foreign currency transactions are translated at the exchange rate ruling on the date of transaction. Foreign currency monetary assets and liabilities at the reporting date are translated at the rates prevailing on that date. Exchange differences at the reporting date are charged/ credited to the statement of comprehensive income. 2.5 Reporting Period These financial statements cover one year starting from 01 July 2013 to 30 June 2014. 2.6 Comparative Information As guided in paragraph 36 and 38 of BAS 1 Presentation of Financial Statements, comparative information in respect of the previous year have been presented in all numerical information in the financial statements and the narrative and descriptive information where it is relevant for understanding of the current year’s financial statements.
211
2014
ANNUAL REP ORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
2.7 Non-Current Assets Tangible fixed assets are accounted for according to BAS 16 Property, Plant and Equipment, at historical cost less cumulative depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Non-current Assets also includes investments which are not considered current in nature and advances and deposits which are not adjustable or realizable within next twelve months. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the institute and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. Land is not depreciated. Depreciation on other assets is calculated using the straight-line method. Depreciation on additions is charged from the day on which the asset is put into use and on disposals, upto the day the asset has been in use. The rates of depreciation applied are as follows:
Particulars
Rate
Land
Nil
Building
2%
Exterior Glass Work
25%
Furniture and fixture
10%
Books and periodicals
20%
Civil and Other Works (8th Floor)
20%
Electrical equipment
15%
Computers
20%
Office equipment
15%
Air conditioners
20%
Vehicle
20%
The Institute earns some rental income from part of its building premises which are not being used presently by the Institute. But these premises may anytime be used by the Institute for its operational, training or administrative purposes and due to that reason the entire building is included under building instead of showing the rented portion as investment property. 2.8 Intangible Assets Intangible assets are carried at cost less any accumulated amortization and impairment losses, if any, under BAS 38 Intangible Assets. The cost of intangible asset is amortized over their estimated useful lives, using the straight line method. Amortization is charged from the month the assets are available for use at the rate of 20% per annum. 2.9 Inventories
212
Inventories consist of Study Materials, Practice Management Guide, Sundry Stationery, Suggested Answers, Question Books, etc. and are valued at the lower of cost and net realizable value under BAS 2 Inventories. The costs of inventories are measured on First in First out (FIFO) basis. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an expense in the period the write-down or loss occurs.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
2014
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
2.10 Advances, Deposits and Prepayments ICAB recognizes advances, deposits and prepayments as assets and discloses them at their book value in the categories of long term and short term advances, deposits and prepayments. Short term advances, deposits and prepayments are those which are expected to be settled or recovered within the 12 months period from the date of reporting while the long term one remains unsettled or unrealizable for a longer period of twelve months or more unless there is any significant doubt of recovery for which appropriate provision are made. 2.11 Financial Instruments Financial Instruments are recognized in the statement of financial position when ICAB becomes a party to the contractual provisions of the instruments under BAS 39 Financial Instruments: Recognition and Measurement. i)
Receivables Receivable are carried at original invoice amount based on a review of all outstanding amounts at the year-end.
ii)
Payables
Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the ICAB. 2.12 Impairment of Assets At each statement of financial position date, ICAB reviews the carrying amounts of its assets except building to determine whether there is any indication of impairment under BAS 36 Impairment of Assets, If any such indication exists; impairment is measured by comparing the carrying values of the assets with their recoverable amounts. Recoverable amount is the higher of net selling price and value in use. An impairment loss is recognized as an expense in the statement of income and expenditure immediately. Impairment losses recognized previous year should be revised in the statement of income and expenditure in case of impairment gain. 2.13 Cash and cash equivalents It includes cash in hand, bank deposits for use by the ICAB without any restriction, and there was insignificant risk of changes in value of these current assets. 2.14 Financial Risk Management ICAB Secretariat directly controls day-to-day policies and operations. Council members are regularly updated on any significant issues relating to financial risk management. The major financial risks to which ICAB is exposed are summarized below. i)
Currency Risk The whole of ICAB’s transactions are carried out in BDT except few transactions as regards overseas seminar, conference and subscription to professional bodies. There are no other transactions taking place in foreign currencies. Therefore, ICAB is not exposed to any significant currency risk.
ii)
Credit Risk Working capital and long-term funds are held in interest bearing (FDR) bank account and ICAB’s management covers risk management issues. In respect of receivables, ICAB is not exposed to any significant credit risk. The majority of the counterparts are members and tenants. The management of ICAB continuously monitors defaults of counterparts and incorporate this information into credit risk policies.
iii)
Liquidity and Interest Rate Risk ICAB policy is to maintain strong statement of financial position with cash and cash equivalent and therefore it does not have significant exposure to liquidity risk. Liquidity need is monitored on a day-to day basis for short-term needs. Excess funds are invested in appropriate interest making deposits.
213
2014
ANNUAL REP ORT
& FINANCIAL STATEMENTS 2013-2014
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
2.15 Employee benefits Short-term employee benefits Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service. Festival Bonus ICAB recognizes the cost of festival bonus payment when it has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made under BAS 19 Employees Benefit. Festival bonus is a present obligation of ICAB as it has no realistic alternative but to make the payment. Defined Contribution Plan Provident Fund ICAB maintains recognized contributory provident fund for its permanent employees except for the employees employed on contractual basis. Provident fund is administered by a Board of Trustees and is funded by contribution from both employers and employees equally @ 10% of the basic salary. ICAB recognizes the contribution payable to provident fund when an employee has rendered service to ICAB during a period under BAS 19 Employees Benefit. Defined Benefit Plan Gratuity Fund The ICAB also maintains a gratuity scheme for its permanent employees except for the employees employed on contractual basis. Employees are entitled to receive gratuity benefit after completion of their minimum five years service equivalent to 2 months last basic pay for each completed year in respect of the employees eligible for this benefit. 2.16 Government Grant Government Grant Income is recognized when conditions on which they depend have been met as per BAS 20 Accounting for Government Grants and Disclosure of Government Assistance. Government Grants are for the funding of ICAB’s employees salaries & allowances and utility expenditures. Government grant income is recognized to equate to expenditures incurred on the related heads allowed by the concerned Ministry. Government Grants received are initially recorded as liabilities in Advance Government Grant. Grant utilized for allowed expenditures are transferred to grant income. 2.17 Provisions Provisions are recognized when the ICAB has a present legal or constructive obligation because of past events under BAS 37 Provisions, Contingent Liabilities and Contingent Assets. It is probable that an outflow of resources embodying economic benefits will be repaid to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions for employee benefits and similar other liabilities are determined in accordance with BAS 19 Employee Benefits. 2.18 Revenue Recognition
214
Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities of the ICAB when those inflows result in increases in equity, other than increases relating to contributions from equity participants. Revenue shall be measured at the fair value of the consideration received or receivable. Revenues are recognized following the conditions of BAS 18 Revenue Recognition. Major item-wise recognition policies are briefly described as under:
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
i)
2014
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
Education, Training and Examination: a)
Student Registration Fees Income from Student Registration Fees is recognized base on the number of applications for registration with proper documentation received from the registration department during the period
b)
Examination Fees Examination fees income is recognized twice in a year at the time of examination base on the applicable fees for individual examinees as determined by the Council from time to time.
c)
Training Fees Income from training fees is recognized on accrual basis in the accounting period to which the training is conducted.
ii)
Membership Fees Income from fees and subscriptions is recognized in the accounting period to which the services covered by those relate. Fees and subscription received in advance are included in advance received.
iii)
Bank Interests Interest Income on Bank Deposits is recognized on accrual basis net off taxes deducted by the respective Banks.
iv)
Rental Income Rental Income is recognized on accrual basis. In case of advance rent, it is adjusted with the monthly rent received from tenant.
v)
Income from World Bank Project Income from World Bank project is recognized on the basis of expenditures incurred relevant to the scope of the contract of the project.
vi)
Other Income Other Income is recognized when ICAB’s right to receive such income has been reasonably determined.
2.19 Dhaka and Chittagong Regional Committees All expenses of these Committees have been incorporated in the Financial Statements based on actual payment. 2.20 Events after the Reporting Period Events after the reporting period have been accounted for under BAS-10 Events after the Reporting Period. That provide additional information about the organization’s position at the statement of financial position date is reflected in the financial statements. Events after the statement of financial position date that are not adjusting events are disclosed. 2.21 General i. ii.
Where necessary, comparative figures and accounts titles in the financial statements have been rearranged to conform to the current year’s presentation. The figures appearing in the financial statements have been rounded off to the nearest Taka.
215
2014
ANNUAL REP ORT
& FINANCIAL STATEMENTS 2013-2014
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
30 June 2014 Taka 3.00
Property, Plant & Equipment Cost Less: Accumulated Depreciation Written-down Value
30 June 2013 Taka
148,503,124 73,713,300
133,303,690 64,207,910
74,789,824
69,095,780
4,164,647 3,024,234 6,197,639 1,468,865 1,483,609 6,313,148 1,227,345
4,074,647 3,024,234 4,962,590 1,230,365 1,324,281 6,313,148 1,227,345
23,879,487
22,156,610
1,239,262 935,094
1,119,262 708,242
304,168
411,020
22,000,000 3,400,000 1,150,000 1,212,144 1,210,144 2,000 27,762,144
22,000,000 900,000 1,750,000 1,102,740 1,100,740 2,000 25,752,740
Details of Property, Plant & Equipment are stated in Annexure-"A" 3.01
4.00
Following assets have been fully depreciated and are still in use: Furniture & Fixture Books & Periodicals Electrical Equipment Computers Office Equipment Air-Conditioner Vehicle Intangible Assets Cost Less: Accumulated Amortization Written -down Value Details of Intangible Assets are stated in Annexure-"B"
5.00
Advances and Deposits (Non-current portion) Advance Against Land (Note 5.01) Advance Against Land from RAJUK Advance rent for Academic Campus Security Deposits With: BHBFC and T&T Dhaka Bank Locker
5.00 Advance against land represents advance payments of BDT 2.20 crore for purchase of land measuring 30.02 decimal located at 263 Kawran Bazar (West Tejturi Bazar) Dhaka vide Baina Nama No. 3078 & 3084 dated 16 & 17 May 2010 respectively. The Council decided in its 15th meeting held on 22 September 2012 not to purchase the land rather ICAB took all efforts to recover the money as quickly as possible because of the inability of the sellers to hand over vacant possession to ICAB. As part of the legal action, the Institute served legal notices to the Vendors of the land requiring them to refund of the payment made to them as advance against Baina Nama Deeds. Thereafter in 2013, ICAB filed two Money Suit Cases (Civil) against the respective vendors. Last hearing of the Money Suits was held on 26 November 2014.
216
In line with the decision of the last AGM held on 29 December 2013, the Council formed a 5-Member Sub-committee headed by one of the Council Members to undertake an investigation into the issue. The Committee was authorized to review the matter and recommend action plan for the recovery. The Sub-committee so far completed their investigation and the report is currently being reviewed by Institute's lawyer and vetting of the actions recommended by the committee. In view of the above fact the Council decided not to make any provision for the amount.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
2014
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
30 June 2014 Taka 6.00
7.00
Inventories Study Materials BAS, BSA and Practice Management Guide Sundry Stationery Suggested Aswer, Question Books, etc. Receivables Annual Fees from Members: In Practice (Note 7.01) Not in Practice (Note 7.02) Rental Dues Enem Express Ltd. Omnitrans International Ltd. Media Star Ltd. Dutch Bangla Bank Ltd. Premier Cement Ltd. -T K Bhaban 12th Floor Other Receivables*: Receivables from Bangladesh Bank for Training Receivables from World Bank under WBPPP Receivables against sale of Books
30 June 2013 Taka
1,440,300 1,055,980 525,919 1,013,800
2,842,228 913,675 348,176 79,850
4,035,999
4,183,929
917,700 8,830,055 9,747,755
995,100 6,484,042 7,479,142
9,880 498,564 2,295,968 80,792 805,157 3,690,361
9,880 498,564 1,554,286 52,171 369,528 2,484,429
2,041,500 4,368,000 202,025
-
6,611,525
-
20,049,641
9,963,571
483,000 276,000 94,300 64,400 917,700
823,000 107,700 41,400 23,000 995,100
4,252,413 2,268,400 1,279,542 1,029,700 8,830,055
3,610,600 1,687,442 729,300 456,700 6,484,042
*Above other receivables have subsequently been realized in full. 7.01
7.02
Aging of Receivable from Practicing Members Current year More than 1 year but less than 2 years More than 2 years but less than 3 years More than 3 years
Aging of Receivable from Non-Practicing Members Current year More than 1 year but less than 2 years More than 2 years but less than 3 years More than 3 years
217
2014
ANNUAL REP ORT
& FINANCIAL STATEMENTS 2013-2014
8.00
9.00
Advances, Deposits and Prepayments (Current Portion) Advances to Employees Against Salary Against Expenses Advance Rent for Academic Campus Advance against BCACP Office Rent Advance to Dhaka University and Others Advance against Oracle for Exam Advance to CRC against Petty Expenses Prepaid Insurance Advance to BICC against SAFA Int'l Conference Advance against Documentary of ICAB Student Association Fees paid in advance to BCACP Advance against CRC Office Renovation Security Deposits With City Filling Station for Fuel
30 June 2014 Taka
30 June 2013 Taka
3,175,286 2,926,000 249,286 600,000 197,600 146,340 155,382 100,000 262,222 600,000 180,000 58,210 60,310
942,261 740,833 201,428 600,000 86,400 146,340 155,382 100,000 222,856 550,000 19,510
5,535,350
2,822,749
308,796,734 7,801,928
248,025,703 7,030,467
316,598,662
255,056,170
255,056,170 60,205,580 2,670,090 62,875,670 1,333,178
170,830,929 81,201,729 4,324,517 85,526,246 1,301,005
Closing Balance
316,598,662
255,056,170
Details of sources for Fixed Deposits: General Fund Employees' Gratuity Fund Members' Welfare Fund General Scholarship Fund President Scholarship Fund Chittagong Land Project
277,060,807 29,537,494 4,129,624 3,912,140 1,527,496 431,101
222,979,921 23,235,970 3,586,824 3,503,745 1,362,471 387,239
316,598,662
255,056,170
206,886,329 67,473,917 42,238,416 316,598,662
192,333,542 32,476,524 30,246,104 255,056,170
Fixed Deposits with Banks Deposit Amounts Interest Receivable Movement of Fixed Deposits with Banks Opening Balance Add: New Fixed Deposits During the Year Add: Accrued Interest on above Fixed Deposits Less: Fixed Deposits Encashed during the Year
Maturity grouping of Fixed Deposits with Banks: Within 03 months Within 03 to 06 months Within 06 to 12 months
218
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
Bank-wise breakup of Fixed Deposits with Banks: Southeast Bank Limited, Karwan Bazar Branch Southeast Bank Limited, Dhanmondi Branch Total Southeast Bank Limited Dhaka Bank Limited, Karwan Bazar Branch Social Islami Bank Limited, Agrabad Branch Lanka Bangla Finance Limited
10.00
10.01
10.02
11.00
Reconciliation of various Funds are stated in Annexure-"C" Cash and Cash Equivalents Cash in Hand Cash with Bank Current Accounts (Note 10.01) Savings Accounts (Note 10.02) Current Accounts Dhaka Bank Limited General Fund AB Bank Ltd. General Fund (Dormant) Southeast Bank Limited Exam Fees Fund Sonali Bank Limited Local Branch (Dormant) Sonali Bank Limited London Branch, UK Standard Chartered Bank General Fund Dhaka Bank Limited Exam Fees Fund Savings Accounts Dhaka Bank Ltd.-Chittagong Land Project AB Bank Employee Gratuity Fund Social Islamic Investment Bank Ltd. Chittagong Land and Building Fund Opening Balance Add: Transfer during the year Interest on Fixed Deposits of Chittagong Land Project Closing Balance
2014
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
30 June 2014 Taka
30 June 2013 Taka
220,971,216 6,209,343 227,180,559 62,319,021 1,606,140 25,492,942 316,598,662
186,742,790 5,632,082 192,374,872 61,214,927 1,466,371 255,056,170
57,387 3,940,923 2,950,745 990,178
90,341 2,508,423 2,274,390 234,033
3,998,310
2,598,764
2,140,979 58,766 74,604 98,212 497,238 80,945 1
1,514,396 60,036 43,867 98,212 476,238 81,640 1
2,950,745
2,274,390
18,062 904,069 68,047
18,062 21,459 194,512
990,178
234,033
156,088,017 40,000,000 43,862 196,131,879
116,042,998 40,000,000 45,019 156,088,017
Land and Building Fund was created for the permanent establishment of Dhaka Campus and Chittagong Regional Office. Innitialy, this fund was build up by some contributions from the Council Members and Corporate Bodies. Subsequently, certain portion of the excess of income over expenditure of recent years are transferred to this fund.
219
2014
ANNUAL REP ORT
& FINANCIAL STATEMENTS 2013-2014
12.00
GeneralFund Balance as on 01 July Adjustment Restated Balance Add: During the year
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
30 June 2014 Taka
Balance as on 30 June 13.00
Employees' Gratuity Fund Opening Balance Add: Provision for the year (13.01) Less: Payments to Retired employees (Note 13.02) Closing Balance Status of this fund is as under: Current liabilities Non-current liabilities
1301
Provision was made to meet-up the gratuity liability as of 30.06.2014
13.02
Employees' Gratuity Fund Disbursements Mr. Md. Khandoker Rafiqul Islam Mr. Md. Afsar Uddin ACA Ms. Mirza Tabassum Yesmin Ms. Shangrami Chowdhury
14.00
Members' Welfare Fund Opening Balance Add: Members' Contributions Interest for the Year Less: Disbursed during the year (Note 14.01) Closing Balance
14.01
220 02
Members' Welfare Fund Disbursements Financial Assistance Gifts Refreshment Printing, etc.
30 June 2013 Taka
153,505,963 193,397 153,699,360 36,315,266
119,571,397 222,897 119,794,294 33,905,066
190,014,626
153,699,360
25,216,900 4,181,260 29,398,160 (531,860)
21,585,271 4,718,267 26,303,538 (1,086,638)
28,866,300
25,216,900
1,068,800 27,797,500
480,760 24,736,140
28,866,300
25,216,900
531,860 531,860
499,200 480,438 107,000 1,086,638
3,063,175 829,250 339,886 4,232,311 (1,145,815)
3,403,906 690,950 293,562 4,388,418 (1,325,243)
3,086,496
3,063,175
270,000 624,000 121,790 130,025
410,000 680,400 100,868 133,975
1,145,815
1,325,243
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
2014
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
30 June 2014 Taka 15.00
General Scholarship Fund Opening Balance Add: Contribution from: ABM Azizuddin Scholarship RRH Scholarship S F Ahmed Foundation Scholarship Others Interest for the year
Less: Disbursements during the year ABM Azizuddin Scholarship Masihur Rahman Memorial Scholarship AKM Mizanur Rahman Scholarship RRH Scholarship ACNABIN Scholarship S F Ahmed Foundation Scholarship Total disbursements Closing Balance This fund consists of the balance of the following funds: ACNABIN Scholarship ABM Azizuddin Scholarship AKM Mizanur Rahman Scholarship ICAB Scholarship Masihur Rahman Memorial Scholarship RRH Scholarship SF Ahmed Foundation Scholarship Sena Kallayan Sangstha Scholarship Others 16.00
President Scholarship Fund Opening Balance Add: Contribution from Past President-ICAB Add: Interest for the year Less: Disbursements during the year Closing Balance
30 June2013 Taka
3,029,692
2,596,930
42,000 120,000 7,800 294,640
24,000 300,000 120,000
3,494,132
3,281,692
(42,000) (90,000) (24,000) (96,000) (81,000) (120,000)
(30,000) (120,000) (102,000) -
(453,000)
(252,000)
3,041,132
3,029,692
937,488 24,000 877,032 888,106 123,716 180,000 2,990 7,800
929,386 24,000 24,000 787,166 880,413 201,737 180,000 2,990 -
3,041,132
3,029,692
1,907,801 223,458 (60,000) 2,071,259
1,554,386 300,000 143,415 (90,000) 1,907,801
240,762
221
2014
ANNUAL REP ORT
& FINANCIAL STATEMENTS 2013-2014
17.00
World Bank Projects Opening Balance Add: Receipts/ receivables during the year Less: Transferred to Income during the Year Closing Balance
18.00
19.00
20.00
222
Payable and Accruals Remuneration of Resource Personnel Salaries & Allowances (Incl. Employees' Income Tax) Printing Expenses Advertisement Expenses Repair and Maintenance Utility Bills Traveling Office Rent and Others Articled Students Tax/VAT (on Printing, House Rent, Audit Fees, etc.) DRC and CRC for Invigilators Remunerations Audit Fees Firm Inspection Fee Holding Tax Legal and professional Fees Payable Video Documentary Examination hall rent SAFA Subscription NAPD for Training Expenses of Members Remuneration payable to World Bank Consultant Event Management Expenses payable Fees of Construction Consultant for 8th Floor Renovation Sundry Payables and Accruals Advance Fees and Rent Annual Fees from Members: In Practice Not in Practice Students' Association Fees Tenants Other Liabilities Provision against Receivables Security Deposits
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
30 June 2014 Taka
30 June 2013 Taka
9,123,089 8,946,000 18,069,089 (16,325,011) 1,744,078
10,824,000 10,824,000 (1,700,911) 9,123,089
4,773,175 1,608,688 1,350,588 317,839 597,048 1,048,504 545,178 63,802 241,400 2,936,893 1,560,450 373,750 80,000 899,604 818,000 323,250 195,299 693,000 650,987 574,200 362,250 360,885 2,847,435 23,222,225
4,546,500 71,500 365,237 289,942 419,358 560,564 112,085 3,082 1,231,700 1,744,736 1,772,175 247,250 110,000 674,703 58,000 323,250 692,887 521,400 1,415,829 15,160,198
1,824,901 460,500 1,364,401 2,374,293 4,199,194
1,411,901 592,200 819,701 89,000 548,681 2,049,582
498,564 12,000 510,564
498,564 12,000 510,564
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
2014
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
July'13 - June'14 Taka 21.00
22.00
23.00
Membership Fees Annual Fees from Members: In Practice Not in Practice Admission and Other Fees
8,170,000 10,055,750 2,200,000
8,163,000 9,378,100 3,340,000
20,425,750
20,881,100
2,900 6,047,631 2,633,640 507,805 34,593,822 13,911,400 73,443,800 4,686,350 716,000 4,520,130 80,000 248,000 24,610
1,600 6,144,300 2,404,800 169,195 31,259,400 13,587,500 65,674,800 2,874,875 284,000 4,599,560 1,650,000 147,000 116,500
141,416,088
128,913,530
Less: closing balance
14,498,000 14,498,000 -
12,500,000 12,500,000 -
Grant Income for incurring expenses: Salary Electricity and Water
13,608,789 889,211
11,733,333 766,667
14,498,000
12,500,000
3,625,000 3,625,000 3,625,000 3,623,000
3,125,000 3,125,000 3,125,000 3,125,000
14,498,000
12,500,000
Education, Training and Examinations Income Deed of Articles and Syllabus Sale of Study Manuals Suggested Answers BAS, BSA and Practice Management Guide etc. Enrolment Fees Student Registration Fees Examination Fees Training fees Workshop Library Card and ID Card Charges Special Coaching fees Transcripts Fees Others Government Grant Opening Balance Add: received during the year (Note 23.01)
23.01
July'12-June'13 Taka
Government Grant Received During the Year Encashment Dates 2013-2014 20.08.2013 12.11.2013 06.02.2014 03.06.2014
2012-2013 23.08.2012 18.11.2012 25.02.2013 06.06.2013
223
2014
ANNUAL REP ORT
& FINANCIAL STATEMENTS 2013-2014
24.00
25.00
26.00
27.00
224
Contribution for BPA Awards, Annual Dinner, Etc. National Awards Advertisement National Awards Sponsorship National Awards Members Contribution Annual Dinner Members Contribution Rental Income Ground Floor Ground Floor 1st Floor 2nd Floor 4th Floor 5th Floor T. K. Bhaban
DBBL ATM Booth Media Star Ltd. Media Star Ltd. Media Star Ltd. Media Star Ltd. Media Star Ltd. Premier Cement Ltd.
Other Income Auditorium Rent Advertisement Income through Journal Bank Interest Income from World Bank Project Firm Inspection Fees Gain on Sale of Old Assets and Journals Loss on Sale of Old Assets Net Gain on Sale of Old Assets and Journals Election-2012 Nomination Fee Other Receipts Education, Training and Examination Expenses Examination Related Expenses Remuneration to Resource Personnel Printing Charges Training Expenses CPE Seminar Expenses Academic Campus Rent Conference, Meeting & Workshop Expenses Special Coaching Classes Advertisement Training to Micro Credit Entities Other Education, Training & Exams Expenses
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
July 13-July 14 Taka
July 13-July 14 Taka
1,677,000 3,500,000 185,500 185,000
1,234,979 4,400,000 438,000 773,000
5,547,500
6,845,979
150,000 2,790,180 3,351,240 3,351,240 3,351,240 3,351,240 7,021,700
144,000 2,790,180 3,351,240 3,351,240 3,258,150 3,351,240 4,803,329
23,366,840
21,049,379
390,000 628,584 27,054,875 16,325,011 640,000 252,000 6,090 245,910 394,621
75,000 30,000 24,611,961 1,700,911 630,000 110,879 110,879 570,000 583,210
45,679,001
28,311,961
19,381,229 15,420,350 6,461,056 2,308,526 1,197,781 2,616,000 6,803,299 369,537 798,224 389,782 55,745,784
15,767,618 15,083,571 6,631,918 2,145,028 1,632,864 2,616,000 739,165 685,945 251,664 193,707 45,747,480
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
28.00
Office Expenses Drinking Water Printing & Stationery Fuel and Power Telephone, Internet and Fax AGM and Other Meetings Postage and Courier Advertisement-General Newspaper and Periodicals Bank Charges Entertainment Insurance Premium Firm Inspection Fees Photography & Vediography Employee Medical Expenses Election-2012 Expenses Miscellaneous Expenses
29.00
Seminars and Conferences Overseas Participation (SAFA, CAPA and IFAC) SAFA Meetings and Others
30.00
July'13-June'14 Taka 556,180 4,630,494 488,672 1,232,730 3,189,995 558,483 2,626,186 87,738 69,612 2,014,964 253,260 392,385 471,070 36,310 742,967
July'12-June'13 Taka 364,021 4,049,363 596,588 653,558 2,658,153 470,999 1,189,884 112,192 57,436 1,297,951 251,413 300,000 85,043 613,690 371,070
17,351,046
13,071,361
7,452,931 185,687
4,576,107 -
7,638,618
4,576,107
630,282 2,623,511
556,098 2,385,012
3,253,793
2,941,110
630,000 1,260,000 681,502
945,000 1,890,000 533,427
2,571,502
3,368,427
373,750 2,572,558 498,755 168,130
247,250 300,000 -
3,613,193
547,250
Grant and Scholarship to BCACP General Grant Scholarship Office Rent and Others
32.00
& FINANCIAL STATEMENTS 2013-2014
Rent, Rates and Taxes City Corporation Tax CRC-Office Rent and Utility
31.00
2014
ANNUAL R EPORT
Legal and Professional Fees Audit Fees Legal Fees Consultaancy Fees -SOP Development Consultaancy Fees -HR Assessment
225
2014
ANNUAL REP ORT
& FINANCIAL STATEMENTS 2013-2014
33.00
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
July'13-June'14 Taka
July'12-June'13 Taka
BPA Awards, Annual Dinner, Picnic, etc. National Awards Picnic & Other Cultural Programme Annual Dinner
34.00
Financial Risk Management
34.01
Liquidity Risk
4,492,191 1,959,276 1,823,962
3,558,482 1,898,000 1,981,000
8,275,429
7,437,482
The Liquidity Statement has been prepared in accordance with remaining maturity grouping of Assets and Liabilities as of the period as per following basis: a.Cash and cash equivalent on the basis of their term b.Advance, Deposits and Prepayments on the basis of their term of maturity c.Receivable and Inventorieson the basis of their maturity period and past trend d.Investments are on the basis of their residual maturity term e.Non-current Assets are on the basis of their useful lives f. Advance fees and Rent on the basis of their trend and contract g.Various Fund on the basis of their behavioral past trend and adjustment h. Liquidity position has been stated in Annexure-"D" 30 June 2014 Taka 34.02
30 June 2013 Taka
Credit Risk The Maximum Exposure to Credit Risk at the Reporting Date is as Follows: Advance Against Land Annual Membership Fees Rental Dues Advances to Employees Security Deposits
22,000,000 9,747,755 3,690,361 3,175286 12,72454
22,000,000 7,479,142 2,484,429 942,261 1,122,250
Total
39,885,856
34,028,082
Domestic Receivables Foreign Receivables
39,885,856 -
34,028,082 -
Total
39,885,856
34,028,082
12,873,514 2,544,400 1,373,842 23,094,100
8,986,631 927,838 1,818,142 22,295,471
39,885,856
34,028,082
Analysis of Receivable and advances from local and foreign are as follows:
The ageing of Receivables Not Past Due Past Due up to 1 Year Past Due 1 to 2 Years More than 2 Years Total
226
2014
ANNUAL R EPORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
& FINANCIAL STATEMENTS 2013-2014
Bank balances including fixed deposits are held only in reputable banks with high quality credit rating. Followings are the credit rating of the Banks where the Institute has fixed deposits receipts.
Sl. No.
34.03
Name of the Bank
Credit Rating
Rating by
1
South East Bank Ltd.
AA-Long Term ST2-Short Term
CRISL
2
Dhaka Bank Ltd.
A1-Long Term ST2-Short Term
CRAB
3
Social Islami Bank Ltd.
AA-Long Term ECRL2-Short Term
ECRL
4
LankaBangla Finance Ltd.
A2-Long Term ST3-Short Term
CRAB
Market Risk The Institute does not expose to any interest risk or exchange risk.
35.00
Contingent Assets There is a claim for BDT 3,425,712/-from M/S Omnitrans International Ltd., tenant of 3rd Floor of CA Bhabanagainst rent for the period from September 2011 to July 2013 has been recognized as contingent assets as the Institute has initiated legal proceedings againstthem and believes that the above amount would be recoverable.
AKM Rahmat Ullah FCA Secretary
Nasim Anwar FCA Vice President
Showkat Hossain FCA President
Dhaka, 11 December 2014
227
Description
7,489,076
1,227,840
3,528,895
12,499,268
- 1,321,000 133,303,690 16,447,972 126,037,190 7,505,000
Computers
Vehicle
Office Equipment
Air-Conditioner
Air-Conditioner (8th Floor) 30 June 2014 30 June 2013
12,499,268
3,678,120
1,227,840
8,475,219
1,321,000 1,248,538 148,503,124 238,500 133,303,690
-
-
-
35,000
20% -
20%
15%
20%
20%
15%
20%
10%
10%
2% 2% 25% 20%
64,207,910 55,539,117
10,027,699
1,571,234
1,227,839
4,984,743
11,724,266
5,016,311
-
5,464,345
15,641,759 5,779,939 2,769,775 -
-
1,242,447 238,479
-
-
-
34,999
-
-
1,207,448
-
-
Disposals/ Adjustments -
264,200 10,747,837 8,907,272
1,237,221
347,752
-
1,440,271
303,532
244,878
276,568
773,396
785,162 544,104 2,643,775 1,886,978
Charged During The Year
264,200 73,713,300 64,207,910
11,264,920
1,918,986
1,227,839
6,390,015
12,027,798
5,261,189
276,568
5,030,293
16,426,921 6,324,043 5,413,550 1,886,978
-
1,056,800 74,789,824 69,095,780
1,234,348
1,759,134
1
2,085,204
1,174,760
301,820
2,489,108
7,285,326
22,831,195 20,881,179 5,161,550 7,547,910
981,489
2,765,676 1,321,000
2. Furniture & Fixture (8th Floor)
3. Air-Conditioner (8th Floor) 13,521,564
9,434,888
1. Civil & Other Works (8th Floor)
During the Year 8th floor of ICAB had a major renovation for a total cost of Tk. 13,521,564/- which has been shown in the Addition column in three heads as follows:
-
149,225
-
1,021,143
13,202,558
5,563,009
2,765,676
12,315,619
39,258,116 27,205,222 10,575,100 9,434,888
-
At 1 July 2013
Written Down At 30 June Value at 30 2014 June 2014
& FINANCIAL STATEMENTS 2013-2014
-
-
-
1,213,538
-
981,489
Rate
DEPRECIATION
Amount in Taka
Annexure-'A'
2014
293,275
12,909,283
Electrical Equipment
357,088
2,765,676
1,105,677
9,434,888
-
Addition Disposals/ At 30 June During The Adjustments 2014 Year
5,205,921
-
12,423,480
39,258,116 27,205,222 10,575,100 -
981,489
At 1 July 2013
COST
Books & Periodicals
Furniture & Fixture (8th Floor)
Furniture & Fixture
CA Bhaban T K Bhaban (12th Floor) Exterior (including Glass) Civil & Other Works (8th Floor)
Building:
Land
228 As on 30 June 2014
PROPERTY, PLANT AND EQUIPMENT SCHEDULE
The Institute of Chartered Accountants of Bangladesh
ANNUAL REP ORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
1,119,262
1,119,262
694,262
30 June 2014
01 July 2013
At 1 July 2013
Computer Software
Description
425,000
120,000
120,000
Addition During the Year
-
-
-
Disposals/ Adjustments
COST
1,119,262
1,239,262
1,239,262
At 30 June 2014 20%
Rate
As on 30 June 2014
505,390
708,242
708,242
At 1 July 2013
-
-
-
Disposals/ Adjustments
202,852
226,852
226,852
Charged During the Year
Accumulated Amortization
INTANGIBLE ASSETS SCHEDULE
The Institute of Chartered Accountants of Bangladesh
708,242
935,094
935,094
At 30 June 2014
411,020
304,168
304,168
Net Book Value at 30 June 2014
Amount in Taka
Annexure-'B'
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
2014
229
Description
871,008 (543,763)
General Scholarship Fund
President Scholarship Fund
Liability on 30.06.2014
279,107,623
28,866,300
3,086,496
(1,043,128)
4,129,624
Members Welfare
3,041,132
(871,008)
3,912,140
General Scholarship
2,071,259
543,763
1,527,496
President Scholarship
425,852
(5,249)
431,101
Chittagong Land Project
316,598,662
5,249
(543,763)
871,008
1,043,128
671,194
(2,046,816)
316,598,662
Total
& FINANCIAL STATEMENTS 2013-2014
5,249
1,043,128
Members Welfare Fund
(671,194)
29,537,494
Employees Gratuity
Funds
Amount in Taka
Annexure-'C'
2014
Chittagong Land Project
671,194
277,060,807
General
Employees Gratuity Fund
General and Dhaka Land & Building Fund
Addition/(Deduction) to
Balance on 30.06.2014
230 As on 30 June 2014
RECONCILIATION OF FUND BALANCE
The Institute of Chartered Accountants of Bangladesh
ANNUAL REP ORT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
1,860,042 4,481,257 2,392,000 91,753,223 100,486,522 3,483,334 540,000 4,023,334 96,463,188
2,322,223 180,000 1,068,800 3,571,023 129,862,476
1-3 Month
3,998,310 299,308 12,796,274 1,206,500 115,133,106 133,433,498
0-1 Month
Net result of the Liquidity Statement represent the General Fund of the Institute
ASSETS Cash and Cash Equivalents Advances, Deposits and Prepayments Receivables Inventories Investments Fixed Assets Total Assets LIABILITIES Advance Fees and Rent Payable and Accruals World Bank PPP Project Fund President Scholarship Fund General Scholarship Fund Members' Welfare Fund Employees' Gratuity Fund Land and Building Fund Relief Fund Other Liabilities Total Liabilities Amount of net Liquidity Difference
Particulars
As on 30 June 2014
4,199,194 8,127,779 1,744,078 1,800,000 800,000 60,000,000 76,671,051 41,932,791
6,776,000 1,678,010 437,499 109,712,333 118,603,842
3-12 Month
9,288,890 2,071,259 521,132 2,286,496 13,364,350 27,532,127 28,324,246
30,400,129 55,856,373
24,362,144 1,094,100
1-5 Year
14,433,150 136,131,879 186,345 510,564 151,261,938 (106,568,075)
44,693,863 44,693,863
Above 5 Year
LIQUIDITY STATEMENT (ASSETS & LIABILITIES MATURITY ANALYSIS)
The Institute of Chartered Accountants of Bangladesh
4,199,194 23,222,225 1,744,078 2,071,259 3,041,132 3,086,496 28,866,300 196,131,879 186,345 510,564 263,059,472 190,014,626
3,998,310 33,297,494 20,049,641 4,035,999 316,598,662 75,093,992 453,074,098
Total
Amount in Taka
Annexure-'D'
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH
ANNUAL R EPORT
& FINANCIAL STATEMENTS 2013-2014
2014
231