UNIVERSITY OF DHAKA

FACULTY OF BUSINESS STUDIES

ACCOUNTING & INFORMATION SYSTEMS
Thesis on Reportin !n" "is#$os%re o& IASs !n" IFRS
'ith
O(er(ie) & Co*p$i!n#e in the +!n,in In"%str-.
S%per(isor/
Amirus Salat
Assistant Professor
Department of Accounting & Information Systems
Faculty of Business Studies
University of Dhaka
S%+*itte" B-/
Md Mahasin
Dept of A&IS
!oll" #$#%&
Section'B
BBA #$
th
Batch
S%+*ission "!te/ &( march) %&#%
Letter of Transmittal
# 0 P a g e
Date" (
th
march) %&#%
Amirus Salat
Assistant Professor
Faculty of Business Studies
University of Dhaka
Su*+ect" Su*mitting thesis on reporting and disclosure of IASs and IF!S'( ,ith
revie, and compliance in the *anking industry
-onora*le Sir)
I have the great pleasure to place *efore you my report on reporting and disclosure of
IASs and IF!S'( ,ith .vervie, and /ompliance in the *anking industry 0o prepare
this report) I have tried to devote my *est effort to find out study relevant materials A
careful attention has *een taken ,hile preparing this report 0he information provided in
this report is very much authentic and mostly taken from the records) te1ts2 printed
documents like annual reports of the respective companies) internets and other
sources I sincerely hope and *elieve that my report ,ill secure your approval and its
purpose I ,ill *e al,ays availa*le for ans,ering any 3uery a*out this report
I re3uest you to forgive me for any mistake that may occur in this report despite my *est
effort
Sincerely yours
Md mahasin
Section" B
Batch" #$th
Department of Accounting & Information Systems
% 0 P a g e
S%per(isor1s Certi&i#!te
0his is to certify that the thesis paper on 4A Study on reporting and disclosure of IASs
and IF!S'( ,ith revie, and compliance in the *anking industry5 has *een su*mitted for
the re3uirement of BBA degree from the Department of Accounting and information
system) University of Dhaka) carried out *y Md Mahasin) ID 6o'#$#%&) Sec'B) #$
th
Batch under my supervision
-e is permitted to su*mit the Internship !eport
7777777
Amirus Salat
Assistant Professor
Accounting and information system
University of Dhaka
8 0 P a g e
Acknowledgement

At the commencement of this report) I ,ould like to e1press my gratitude to the Almighty
for ena*ling me to complete the report 6o ,ork is possi*le to *e completed *y one
individual 0his thesis paper is an accumulation of many people9s endeavor I am
inde*ted to a num*er of people ,ho helped me to prepare this and for their advices)
suggestions) directions) and proper guidelines for this
:e ,ould like to e1press our gratitude and ackno,ledge our inde*tedness to our
honora*le teacher' Amirus Salat) assistant professor) Department of Accounting &
Information Systems) University of Dhaka) for his overall co'operation) guidance) advice
and support to prepare this report -e inspired and motivated us ,ith his cordial nature
and attitude to learn and to collect & analysis on the information relating to overvie, of
IAS & compliance ,ith it
0hanks for all from deep of my heart
Executive summary
$ 0 P a g e
Over the years the business community has admitted that the accounting is the language of
business and financial information is a form of language. And undoubtedly, to ensure its
usefulness, financial information should not only be intelligible, but also be comparable so that
investment and credit decisions can more readily be taken. In such circumstances, a set of
international accounting standards will allow new horizons of evolution due to the fact that
comparative analysis of the rates of returns established based on the balance sheets and profit
and loss account between the companies being in competition become relevant.
Also harmonization is absolutely necessary because national standards of financial statements
are virtually useless financial markets in more regulated countries are threatened with a loss of
market share and multinational corporations must prepare multiple reports for different nations
they do business in. In order to accomplish this target the accounting profession developed the
solutions like the !AA" or the IA#$I%&#.
Among all these standards, I%&# is rapidly gaining acceptance as over '(( countries have
recently moved to I%&# reporting or decided to re)uire the use of these standards in the near
future and even the *.#. #ecurities and +,change -ommission .#+-/ is considering allowing
*.#. firms to prepare their financial statements in accordance with I%&#.
In 0angladesh, the IA#s adoption process was initiated in August '111 following a 2orld 0ank
grant to the 0angladeshi !overnment for the development of Accounting and Auditing #tandards
in 0angladesh. 3he grant was targeted at enhancing the institutional capacity of the I-A0 for the
adoption of IA#s in the country. 3he !overnment then delegated the process to the #ecurities
and +,change -ommission .#+-/ as the main institution responsible for overseeing the process.
3he #+- empowered the I-A0 to adopt those standards specified by the #+- and the
!overnment of 0angladesh. 3hrough the passage of time, the adoption and monitoring of the
IA# implementation has been improved. 3he governance regarding this issue has been more
strong and efficient.
As in the compliance process banking companies in 0angladesh has been adopting different
IA#s for their reporting purposes so they can say that they have been complied with I%&# while
preparing financial statement. 0anking industries in 0angladesh is flourishing day by day. As a
result their compliance with different standards becomes important for them for effective and
efficient control of their daily activities. It is important to comply with reporting standards as
well. #o here our concern is to check out the compliance with different IA# by different banking
companies as far for their reporting purposes.
Table of Contents
S$. No. 2!e no.
E3e#%ti(e S%**!r-
; 0 P a g e
Chapter -01 -Introductory part
## Introduction &<
#% .rigin of the report &<
#8 .*+ective of the report &=
#$ Methodology &=
#; >imitations of the study &=
Chapter -02 - Brief Description about Our Concerned Companies
%# Shah+alal Islami Bank >td &(
%% I/B Islamic Bank >td &(
%8 .ne Bank >td &?
%$ 6// Bank >td &?
%; Pu*ali Bank >td #&
Chapter -03 - Overview of IAs and I!"-#
8# IAS'&#" Presentation of Financial
Statements
#&
8% IAS'&=" Statement of /ash'Flo,s #8
88 IAS'#&" @vents After !eporting Period #;
8$ IAS'%$"!elated Party Disclosures #<
8; IF!S'&(" .perating Segments #?
Chapter -0$ -Compliance with the re%uirement of IAs & I!"-#
$# IAS'&#" Presentation of Financial
Statements
%&
$% IAS'&=" Statement of /ash'Flo,s %8
$8 IAS'#&" @vents After !eporting Period %$
$$ IAS'%$"!elated Party Disclosures %;
$; IF!S'&(" .perating Segments %<
$< /omments on the /ompliance :ith
the !e3uirements of IASs and IF!S'(
%<
Ch!pter 4564 Con#$%"in 2!rt
;# Pro*lem Identified %<
;% /onclusion %=
;8 !eferences %(
< 0 P a g e
Chapter -01 -Introductory 'art
Introduction
Pu*lic limited companies need to provide information a*out the financial position)
financial performance and cash'flo,s for the accounting period they have performed to
the different users) ie stockholders) de*tors) investors) suppliers) customers) ta1
authority) government) social groups) of this information But this information is normally
prepared *y those ,ho normally have the tendency to violate the information for the
sake of their o,n interest For this reason) accounting standards have *een set in order
to ensure that information provided is fair @very pu*licly traded company need to follo,
those standards in order to make sure that they have provided information fairly tailored
to stakeholders According to IAS'#) the su*mission of financial statements for purposes
of general information has to make ensure that they are compara*le) *oth ,ith the
financial statements of the same entity in prior years) as ,ith those of various other
entities 0o achieve this o*+ective) the Standard states) firstly) general re3uirements for
su*mitting financial statements) and then provides guidelines for determining its
structure) ,hile laying do,n minimum re3uirements on its contents IAS'= ensures
preparation of cash'flo, statements according to the information a*out the net
operating cash'flo,s) cash'flo,s from financing activities and cash'flo,s from investing
activities and to make sure disclosures relating to cash'flo,sIAS'#& standard shall *e
applied for accounting for and disclosure of the events after the reporting period
Application of IAS'%$ makes sure that information a*out the financial position and
performance may affect *y the e1istence of related parties and *y transactions and
outstanding *alance ,ith such parties is true and fair IF!S ( applies to the separate or
individual financial statements of an entity Aand to the consolidated financial statements
of a group ,ith a parent for providing information a*out the operating segments In our
report) ,e have studied ,hether these accounting standards are properly follo,ed *y
*anking companies in practice
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Origin of the Study
Bachelor of Business Administration ABBAB program is a specialiCed course
Department of accounting & information systems arranges many effected education
programs to provide some efficient people in the *usiness sector of Bangladesh 0he
,hole program is not only *ased on the theoretical *ut also practical through the survey
program
0his paper is entitled D9reporting and disclosure of IASs and IF!S'( ,ith revie, and
compliance in the *anking industry 4emerged from the fulfillment of the internship
program 0o cope ,ith our practical kno,ledge our department has provided us this
opportunity @very student is attached ,ith an organiCation for the completion of the
internship program I have focused on the reporting and disclosure of IASs and IF!S'(
,ith revie, and compliance in the *anking industry *ecause reporting and discloser is
the today9s concern issue
Ob!ectives of the "e#ort
.ur o*+ectives is
#B 0o introduce the concepts of different IASs
%B 0o gather practical kno,ledge a*out implication of IASs in *anking industries
8B 0o analyCe the prospects of compliance of IASs in our country
$B 0o sho, difference *et,een theoretical and practical kno,ledge
;B 0o concentrate on the improvement of practical area of kno,ledge
<B 0o evaluate the disclosure of the annual report
=B /ompliance status of annual repot related to IASs #)=)#&)%$)8%)8? and I@!S (
(B /omparison among different company a*out reporting status
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?B Usefulness of disclosure to the entities financial information
#&BEovernment regulation a*out disclosure
##BPeople perception a*out reporting and disclosure
#%B@ntities ethical status a*out disclosure
#8B@ffectiveness of disclosure
#$BPeople e1pectation a*out disclosure
#;B>egal steps a*out disclosure and presentation
$ethodology of the "e#ort
My study is *ased on primary as ,ell as secondary data I have collected data from
secondary source :e mainly collect our information a*out companies9 financial
statements and their focus on the implication of IASs I mainly collect information from
annual report of those companies & through their ,e*sites
2ri*!r- In&or*!tion7D!t!
Practical desk ,ork
.*servation
File and documents of the *ank
!elevant document9s study as provided *y the officers concerned
In depth face'to'face intervie,s ,ith concerned *anker9s personnel

Se#on"!r- In&or*!tion7D!t!
Annual reports of Fanata Bank >imited
!elevant *ikes) ne,spaper and +ournals
:e* sites
Different Pu*lished Data such as circulars) periodicals) statistical reports
? 0 P a g e
Moreover I use different articles to analysis our su*+ect matters Follo,ing are the key
to *e noted)
#B :e have used *oth primary and secondary information for the purpose of
preparing our reports
%B :e have taken many our information from pu*lished annual reports of
concerned companies
8B Some other information has *een collected from net through Eoogle
searching
$B 0e1t *ooks have *een used for thorough analysis
Limitations of Our "e#ort
During the course of preparation of the report I faced some pro*lems that might *e
termed as the limitation of study It is difficult to include all the se3uence of this study for
*eing of G
0ime limitation
>ack of Eood o*servation and personal in3uiries in the
related matters
>ack of trustiness
>ack of material related to thesis
>ack of strong reference
>ack of third party information
>ack of kno,ledge a*out IASs And IF!S
Insufficient data
At first) ,hen I ,as going to start the report then I didn9t have any strong reference *y
,hich I can easily collect our information
#& 0 P a g e
Chapter -02 - Brief Description about Our Concerned
Companies
(nited Commercia) Ban* +td,
Sponsored by some dynamic and reputed entrepreneurs and eminent industrialists of the country
and also participated by the Government, UCB started its operation in mid 1983 and has since
been able to establish one of the largest netor! of 11" branches among the first generation
ban!s in the private sector#
$ith its firm commitment to the economic development of the country, the Ban! has already
made a distinct mar! in the realm of %rivate Sector Ban!ing through personali&ed service,
innovative practices, dynamic approach and efficient 'anagement# (he Ban!, aiming to play a
leading role in the economic activities of the country, is firmly engaged in the development of
trade, commerce and industry thorough a creative credit policy#
Management
(he Ban! has in its 'anagement a combination of highly s!illed and eminent ban!ers of the
country of varied e)perience and e)pertise successfully led by 'r# '# Shah*ahan Bhuiyan, a
dynamic ban!er, as its 'anaging +irector and ell educated young, energetic and dedicated
officers or!ing ith missionary &eal for the groth and progress of the institution#
CORPORATE INFORMATION
Registered Office:
Bulus Center
%lot,C$S,-./,1
0oad1 2o,33
Gulshan avenue, +ha!a,1414
%hone 1
588,64,8874766
8a) 1
588,64,8874766,"666
588,64,8874763
9,'ail 1
$ebsite1 #ucbl#com
## 0 P a g e
Shah!alal Islami %ank
Shah+alal Islami Bank commenced its operation as a commercial *ank on #& May) %&&#
under the Bank /ompanies Act) #??# 0his *ank follo,s Islamic Shariah strictly 0his
*ank started functioning ,ith a vision to develop itself as a uni3ue Islami *ank of the
country ,ith all modern services and products availa*le for the clients And at the same
time it ,ould contri*ute for sustaina*le gro,th of the national economy
All the activities of the *ank are continuously monitored *y the Shariah /ouncil of the
*ank for implementation and compliance of Islamic Shariah principles 0he council is
constituted of prominent ulemas) e1perienced *ankers) reputed la,yers and eminent
economists of the country
Corporate Information
-ead .ffice"
Uday SanC) Plot 6oS@AAB
%HB) Eulshan South Avenue)
Eulshan ' #) Dhaka'#%#%
:e*site" ,,,shah+alal*ankcom*d
IC% Islamic %ank Ltd&
I/B Islamic Bank >td has *een incorporated on April) #?(= as a pu*lic limited company
under the /ompanies Act) #?#8 to undertake and carry out all kinds of *anking)
financial and *usiness activities) transactions and operations in strict compliance ,ith
the principles of Islamic >a, AShariahB relating to *usiness activities in particular
avoiding usury in credit and sales transactions and any practice ,hich amounts to
usury /ertificate for commencement of *usiness has *een issued to the *ank on April)
8&) #?(= 0he Bank has *een authoriCed *y the Bangladesh Bank to carry on the
*anking *usiness in Bangladesh ,ith effect from May $) #?(= -o,ever) actually
*anking operations commenced on May %&) #?(= I/B Islamic Bank >td Bangladesh
and another thirteen *anks in different countries of Africa) Asia and @urope are the
mem*ers I/B Financial Eroup -oldings AE I/B Banking Eroup has presence in #$
#% 0 P a g e
countries of Africa) Asia and @urope !ecently it has e1panded its horiCon to >ao PD!
and Mala,i
Significant Accounting Polices Basis of Accounting :
(he accompanying financial statements, comprising Balance Sheet, %rofit and :oss .ccount and
2otes thereto have been prepared according to Ban!ing Companies .ct, 1991 and Bangladesh
Ban! circulars applicable to accounts, on a going concern basis, under historical cost
convention and are based on generally accepted accounting principles#
All kinds of commercial *anking services are provided *y the *ank to the customers
o*serving the provisions of the Bank /ompany Act #??#) Bangladesh BankIs directives
and the principles of Islamic Shariah
One %ank Ltd&
.ne Bank >imited incorporated in Bangladesh as a pu*lic limited company ,as
esta*lished in #??? under the /ompanies Acts #??$ It started *anking operations on
#$ Fuly #??? Its authoriCed and paid up capital ,ere 0k #)&&& million and %&%; million
respectively 0he capital is divided into ordinary shares of 0k #&& each Fifty percent of
its total share capital is reserved for the promoters designated as Eroup'A shareholders
and the remaining ;&J for general pu*lic designated as Eroup'B shareholders
0he head office of the *ank is at Dhaka A #&'mem*er *oard of directors including the
chairman and a vice'chairman governs the overall affairs of the *ank 0he managing
director is its chief e1ecutive In %&&#) it had =8 employees) and $ *ranches) all in ur*an
areas
THIRD GENERATION 2RIVATE COMMERCIAL BANK/
.B> is a private sector commercial *ank dedicated in the *usiness line of taking deposits from
pu*lic through its various saving schemes and lending the fund in various sectors at a higher
margin -o,ever) due attention is given in respect of risk undertaking) risk hedging and if not
appropriately hedged) reflection of the same in pricing In the financing side) the *ankIs ma+or
concentration is in trade finance covering a*out %&((J of total financing as on K@%&&< ,hich
is mainly a short'term investment 0he *anks financing concentrate in *oth) ,orking capital
finance and long'term finance .B> has ma+or concentration of financing in medium and large
industries Since the short'term finance carries lo, risk compared to long'term finance2 the
financing strategy of .B> ,ill assist the *ank to keep the risk at minimal
Functions of the *ank are deposit mo*iliCation) lending) investment) foreign e1change
*usiness and other traditional *anking services 0otal deposits of the *ank amounted to
#8 0 P a g e
0k %)%<#% million in Decem*er %&&& and the deposit'mi1 comprised term deposits)
savings *ank deposits and current and contingency accounts) etc As a ne, *ank) it
could not reach *reak'even and therefore) could not create any reserve funds till 8#
Decem*er %&&&
'ational Credit ( Commerce %ank Ltd&
6ational /redit and /ommerce Bank >imited A6//B>B started *anking operations on #=
May #??8 ,ith an authoriCed capital of 0k =;& million divided into =; million ordinary
shares of 0k #&& each and paid up capital of 0k #?; million 0he paid up capital ,as
enhanced to 0k 8?& million in %&&& 6//B> is the restructured form of the first
investment company in the country) the 6ational /redit >imited A6/>B) ,hich started
*usiness ,ith a paid up capital of 0k ;& million and survived ( years *efore its normal
operations ,ere suspended
A %8'mem*er *oard of directors) including the chairman and a vice'chairman oversees
the affairs of the *ank 0he managing director is its chief e1ecutive In %&&#) the *ank
had 8( *ranches and ;&% employees 0he registered head office of the *ank is at
Dhaka
0he *ank conducts traditional commercial *anking functions as ,ell as foreign
e1change *usiness and provision of other financial services At present) the *ankIs main
focus is on the delivery of personaliCed customer services and e1pansion of its clientele
*ase Since its inception 2CC Ban! :td# has ac;uired commendable reputation by providing
sincere personali&ed service to its customers in a technology based environment#
)ubali %ank Ltd&
Pu*ali Bank is a private commercial *ank in Bangladesh It has more *ranches than any
other private *ank in the country Pu*ali Bank >imited ,as initially esta*lished in @ast
Pakistan as Eastern Mercantile Bank Limited in #?;?) under the Bank /ompanies Act of
#?#8 In #?=% @astern Mercantile Bank >imited ,as nationaliCed and renamed as
Pubali Bank 0he *ank ,as denationaliCed in #?(8) and ,as renamed as Pubali Bank
Limited 0he PeopleIs !epu*lic of Bangladesh handed over all assets and lia*ilities of
Pu*ali Bank to Pu*ali Bank >imited Since then Pu*ali Bank >imited has *een involved
in /ommercial Banking services as the largest *ank in the private sector of Bangladesh
having $&& *ranches 0he management of the *ank is vested in a #$'mem*er *oard of
directors ,ith the managing director as its chief e1ecutive
#$ 0 P a g e
Among the private *anks) 2%+!$i B!n, Lt". has the most e1tensive net,ork all over the
country It has $&& *ranches in total connecting all economic gro,th centers and
commercially promising localities of the country As the first local *ank of the country
2BL is effectively serving the nation since its very inception and it9s still carrying out the
responsi*ility very efficiently

Chapter -03 - Overview of IAs and I!"-#
IA - 1. 'resentation of !inancia) tatements
IAS'# deals ,ith presentation of financial statements Basically) this IAS identifies its
o*+ectives and scope It also discloses o*+ectives of financial statements and
components of financial statements 0he general feathers of financial statements along
,ith the structure and contents of such financial statements in general are also
composed in the IAS'#
IAS 8 2RESENTATION OF FINANCIAL STATEMENTS
HISTORY OF IAS 8/
March #?=$ @1posure Draft @# Disclosure of Accounting Policies
Fanuary
#?=;
IAS # Disclosure of Accounting Policies
Fune #?=; @; Information to Be Disclosed in Financial Statements
.cto*er
#?=<
IAS ; Information to Be Disclosed in Financial Statements
Fuly #?=( @#$ Current Assets and Current Liabilities
6ovem*er
#?=?
IAS #8 Presentation of Current Assets and Current Liabilities
August #??= IAS # A#??=B Presentation of Financial Statements superseded IAS #
#; 0 P a g e
A#?=;B) IAS ;) and IAS #8 A#?=?B
# Fanuary
%&&?
@ffective date of May %&&( amendment to IAS #
#< April %&&?
IAS # amended for Annual Improvements to IF!Ss %&&? a*out
classification of lia*ilities as current
# Fanuary
%&#&
@ffective date of the April %&&? revisions to IAS #
< May %&#& IAS # amended for Annual Improvements to IF!Ss %&#&
%= May %&#&
@1posure Draft of proposed amendments to IAS # relating to
Presenting /omprehensive Income
# Fanuary
%&##
@ffective date of May %&#& amendment to IAS #
#< Fune
%&##
Amendments to IAS # issued /lick for More Information
# Fuly %&#% @ffective date of Fune %&## amendments to IAS #
O+9e#ti(e/
0he o*+ective of IAS # is to prescri*e the *asis for presentation of general purpose
financial statements) to ensure compara*ility *oth ,ith the entityIs financial statements
of previous periods and ,ith the financial statements of other entities IAS # sets out the
overall re3uirements for the presentation of financial statements) guidelines for their
structure and minimum re3uirements for their content LIAS ##M Standards for
recogniCing) measuring) and disclosing specific transactions are addressed in other
Standards and Interpretations LIAS #8M
S#ope/
#< 0 P a g e
IAS'# applies to all general purpose financial statements *ased on international
financial reporting standards for the reporting entity
Ob!ective of *inancial Statements
(he ob*ective of general purpose financial statements is to provide information about the
financial position, financial performance, and cash flos of an entity that is useful to a ide
range of users in ma!ing economic decisions# (o meet that ob*ective, financial statements
provide information about an entity<s1
assets
lia*ilities
e3uity
income and e1penses) including gains and losses
contri*utions *y and distri*utions to o,ners
cash flo,s
(hat information, along ith other information in the notes, assists users of financial statements
in predicting the entity<s future cash flos and, in particular, their timing and certainty#
Com#onents of *inancial Statements
. complete set of financial statements should include1
a statement of financial position A*alance sheetB at the end of the period
a statement of comprehensive income for the period Aor an income statement and a
statement of comprehensive incomeB
a statement of changes in e3uity for the period
a statement of cash flo,s for the period
notes) comprising a summary of accounting policies and other e1planatory notes
:hen an entity applies an accounting policy retrospectively or makes a retrospective
restatement of items in its financial statements) or ,hen it reclassifies items in its financial
statements) it must also present a statement of financial position A*alance sheetB as at the
*eginning of the earliest comparative period
#= 0 P a g e
.n entity may use titles for the statements other than those stated above#
0eports that are presented outside of the financial statements = including financial revies by
management, environmental reports, and value added statements = are outside the scope of
>80Ss#
*air )resentation and Com#liance with I*"Ss
(he financial statements must ?present fairly? the financial position, financial performance and
cash flos of an entity# 8air presentation re;uires the faithful representation of the effects of
transactions, other events, and conditions in accordance ith the definitions and recognition
criteria for assets, liabilities, income and e)penses set out in the 8rameor!# (he application of
>80Ss, ith additional disclosure hen necessary, is presumed to result in financial statements
that achieve a fair presentation#
>.S 1 re;uires that an entity hose financial statements comply ith >80Ss ma!e an e)plicit and
unreserved statement of such compliance in the notes# 8inancial statements shall not be described
as complying ith >80Ss unless they comply ith all the re;uirements of >80Ss -including
>nterpretations/#
>nappropriate accounting policies are not rectified either by disclosure of the accounting policies
used or by notes or e)planatory material#
>.S 1 ac!noledges that, in e)tremely rare circumstances, management may conclude that
compliance ith an >80S re;uirement ould be so misleading that it ould conflict ith the
ob*ective of financial statements set out in the 8rameor!# >n such a case, the entity is re;uired
to depart from the >80S re;uirement, ith detailed disclosure of the nature, reasons, and impact
of the departure#
+oing Concern
.n entity preparing >80S financial statements is presumed to be a going concern# >f management
has significant concerns about the entity<s ability to continue as a going concern, the uncertainties
must be disclosed# >f management concludes that the entity is not a going concern, the financial
statements should not be prepared on a going concern basis, in hich case >.S 1 re;uires a series
of disclosures#
#( 0 P a g e
Accrual %asis of Accounting
>.S 1 re;uires that an entity prepare its financial statements, e)cept for cash flo information,
using the accrual basis of accounting#
Consistency of )resentation
(he presentation and classification of items in the financial statements shall be retained from one
period to the ne)t unless a change is *ustified either by a change in circumstances or a
re;uirement of a ne >80S#
$ateriality and Aggregation
9ach material class of similar items must be presented separately in the financial statements#
+issimilar items may be aggregated only if the are individually immaterial#
Offsetting@ .ssets and liabilities, and income and e)penses, may not be offset unless re;uired or
permitted by an >80S#
Com#arative Information
>.S 1 re;uires that comparative information shall be disclosed in respect of the previous period
for all amounts reported in the financial statements, both face of financial statements and notes,
unless another Standard re;uires otherise#
>f comparative amounts are changed or reclassified, various disclosures are re;uired
Clearly identify1
the financial statements
the reporting enterprise
,hether the statements are for the enterprise or for a group
the date or period covered
the presentation currency
the level of precision Athousands) millions) etcB
#? 0 P a g e
"e#orting )eriod
(here is a presumption that financial statements ill be prepared at least annually# >f the annual
reporting period changes and financial statements are prepared for a different period, the entity
must disclose the reason for the change and a arning about problems of comparability#
Statement of Financial Position (Balance Seet!
.n entity must normally present a classified statement of financial position, separating current
and noncurrent assets and liabilities# Anly if a presentation based on li;uidity provides
information that is reliable and more relevant may the currentBnoncurrent split be omitted# >n
either case, if an asset -liability/ category combines amounts that ill be received -settled/ after
14 months ith assets -liabilities/ that ill be received -settled/ ithin 14 months, note
disclosure is re;uired that separates the longer,term amounts from the 14,month amounts#
Current assets are cashC cash e;uivalentC assets held for collection, sale, or consumption ithin
the entity<s normal operating cycleC or assets held for trading ithin the ne)t 14 months# .ll other
assets are noncurrent# D>.S 1#""E
Current liabilities are those e)pected to be settled ithin the entity<s normal operating cycle or
due ithin 14 months, or those held for trading, or those for hich the entity does not have an
unconditional right to defer payment beyond 14 months# Ather liabilities are noncurrent#
$hen a long,term debt is e)pected to be refinanced under an e)isting loan facility and the entity
has the discretion the debt is classified as non,current, even if due ithin 14 months#
>f a liability has become payable on demand because an entity has breached an underta!ing
under a long,term loan agreement on or before the reporting date, the liability is current, even if
the lender has agreed, after the reporting date and before the authori&ation of the financial
statements for issue, not to demand payment as a conse;uence of the breach# Foever, the
liability is classified as non,current if the lender agreed by the reporting date to provide a period
of grace ending at least 14 months after the end of the reporting period, ithin hich the entity
can rectify the breach and during hich the lender cannot demand immediate repayment#
'inimum items on the face of the statement of financial position
AaB property) plant and e3uipment
A*B investment property
AcB intangi*le assets
AdB
financial assets Ae1cluding amounts sho,n under AeB) AhB)
and AiBB
%& 0 P a g e
AeB investments accounted for using the e3uity method
AfB *iological assets
AgB inventories
AhB trade and other receiva*les
AiB cash and cash e3uivalents
A+B assets held for sale
AkB trade and other paya*les
AlB provisions
AmB
financial lia*ilities Ae1cluding amounts sho,n under AkB and
AlBB
AnB lia*ilities and assets for current ta1) as defined in
AoB deferred ta1 lia*ilities and deferred ta1 assets) as defined in
ApB lia*ilities included in disposal groups
A3B non'controlling interests) presented ,ithin e3uity and
ArB
issued capital and reserves attri*uta*le to o,ners of the
parent
.dditional line items may be needed to fairly present the entity<s financial position#
>.S 1 does not prescribe the format of the balance sheet# .ssets can be presented current then
noncurrent, or vice versa, and liabilities and e;uity can be presented current then noncurrent then
e;uity, or vice versa# . net asset presentation -assets minus liabilities/ is alloed# (he long,term
financing approach used in UG and elsehere = fi)ed assets 5 current assets , short term
payables H long,term debt plus e;uity = is also acceptable#
0egarding issued share capital and reserves, the folloing disclosures are re;uired1
num*ers of shares authoriCed) issued and fully paid) and issued *ut not fully paid
par value
reconciliation of shares outstanding at the *eginning and the end of the period
description of rights) preferences) and restrictions
treasury shares) including shares held *y su*sidiaries and associates
shares reserved for issuance under options and contracts
%# 0 P a g e
description of the nature and purpose of each reserve ,ithin e3uity
0o provide the information) a complete set of financial statements should include'
a A statement of financial position
* A statement of comprehensive income
c A statement of changes in e3uity
d A statement of cash flo,
e 6otes & disclosures
f /omparative statement of financial position
1/ Str%#t%re !n" #ontent o& &in!n#i!$ st!te*ents" An entity should clarify "
0he name of the statements
0he name of the reporting enterprise
:hether the financial statements are for the enterprise or for a group
Date or period covered
Presentation currency
>evel of precision Athousands) millions etcB
4/ A st!te*ent o& &in!n#i!$ position" there is no specific guideline But the assets
and lia*ilities should *e classified under current and non'current As per the
re3uirement all of our selected companies sho, the follo,ing minimum items on
the face of the *alance sheet
IAS # A#%B suggested that follo,ing items should *e mentioned on the face of
financial statements"
property) plant and e3uipment
Investment
Deferred ta1 asset
Inventories
0rade and others receiva*les
/ash and /ash e3uivalents
Share capital together ,ith share premium) !etained earnings
0rade and other paya*les
%% 0 P a g e
Provision for income ta1
3/ Dis#$os%res" regarding issued capital and reserves) the follo,ing disclosures are
re3uired
6um*er of shares authoriCed) issued) su*scri*ed and paid up capital
Par value of share
Description of rights) preference and restrictions
0reasury share if any
Shares reserved for issuance under options if any
Statement of Comprehensive Income
Comprehensive income for a period includes profit or loss for that period plus other
comprehensive income recogni&ed in that period# .s a result of the 4663 revision to >.S 1, the
Standard is no using <profit or loss< rather than <net profit or loss< as the descriptive term for the
bottom line of the income statement#
.ll items of income and e)pense recogni&ed in a period must be included in profit or loss unless
a Standard or an >nterpretation re;uires otherise# D>.S 1#88E Some >80Ss re;uire or permit that
some components to be e)cluded from profit or loss and instead to be included in other
comprehensive income#
(he components of other comprehensive income include1
changes in revaluation surplus AIAS #< and IAS 8(B
actuarial gains and losses on defined *enefit plans recogniCed in accordance ,ith IAS
#?
gains and losses arising from translating the financial statements of a foreign operation
gains and losses on remeasuring availa*le'for'sale financial assets
0he effective portion of gains and losses on hedging instruments in a cash flo, hedge
.n entity has a choice of presenting1
a single statement of comprehensive income or
t,o statements"
o an income statement displaying components of profit or loss and
%8 0 P a g e
o a statement of comprehensive income that *egins ,ith profit or loss A*ottom line
of the income statementB and displays components of other comprehensive
income
'inimum items on the face of the statement of comprehensive income should include1
revenue
finance costs
share of the profit or loss of associates and +oint ventures accounted for using the e3uity
method
ta1 e1pense
a single amount comprising the total of AiB the post'ta1 profit or loss of discontinued
operations and AiiB the post'ta1 gain or loss recognised on the disposal of the assets or
disposal groupAsB constituting the discontinued operation
profit or loss
each component of other comprehensive income classified *y nature
share of the other comprehensive income of associates and +oint ventures accounted for
using the e3uity method
total comprehensive income
(he folloing items must also be disclosed in the statement of comprehensive income as
allocations for the period1
profit or loss for the period attri*uta*le to non'controlling interests and o,ners of the
parent
total comprehensive income attri*uta*le to non'controlling interests and o,ners of the
parent
.dditional line items may be needed to fairly present the entity<s results of operations#
2o items may be presented in the statement of comprehensive income -or in the income
statement, if separately presented/ or in the notes as <e)traordinary items<#
Certain items must be disclosed separately either in the statement of comprehensive income or in
the notes, if material, including1
,rite'do,ns of inventories to net realisa*le value or of property) plant and e3uipment to
recovera*le amount) as ,ell as reversals of such ,rite'do,ns
restructurings of the activities of an entity and reversals of any provisions for the costs of
restructuring
disposals of items of property) plant and e3uipment
%$ 0 P a g e
disposals of investments
discontinuing operations
litigation settlements
other reversals of provisions
9)penses recogni&ed in profit or loss should be analy&ed either by nature -ra materials, staffing
costs, depreciation, etc#/ or by function -cost of sales, selling, administrative, etc/# D>.S 1#99E >f
an entity categori&es by function, then additional information on the nature of e)penses = at a
minimum depreciation, amorti&ation and employee benefits e)pense = must be disclosed#
3/ St!te*ent o& #h!nes in e:%it-. .ur o*serving companies have made
discloser regarding Profit for the year) income and e1pense for the period this can
*e directly tracea*le to e3uity and effects of change in accounting policies to cash
flo, Statement
7/ Notes" As per the re3uirement of IAS #) companies should give the follo,ing
disclosures
a statement of compliance ,ith IF!S
summary of significant accounting policies
measurement *asis
other accounting policies
other disclosures including contingent lia*ilities) non financial disclosures
From %&&8 a ne, provision has *een made that an entity must disclose in the summery
of significant accounting policies the +udgment) apart from those involving estimations)
that management has made in the process of applying the entity9s accounting policies
AIAS # #&8B
IA - 0/. tatement of Cash !)ows
Objective of IAS 7
%; 0 P a g e
(he ob*ective of >.S I is to re;uire the presentation of information about the historical changes
in cash and cash e;uivalents of an entity by means of a statement of cash flos, hich classifies
cash flos during the period according to operating, investing, and financing activities#
IAS ; STATEMENT OF CASH FLO'S
HISTORY OF IAS ;
Fune #?=< @1posure Draft @= Statement of Source and Application of Funds
.cto*er
#?==
IAS = Statement of Changes in Financial Position
Fuly #??# @1posure Draft @8< Cash Flo Statements
Decem*er
#??%
IAS = A#??%B Cash Flo Statements
# Fanuary
#??$
@ffective date of IAS = A#??%B
< Septem*er
%&&=
!etitled from Cash Flo Statements to Statement of Cash Flos as a
conse3uential amendment resulting from revisions to IAS #
#< April %&&?
IAS = amended *y Annual Improvements to IF!Ss %&&? ,ith respect
to e1penditures that do not result in a recognised asset
# Fuly %&&?
@ffective date for amendments from IAS %=A%&&(B relating to changes
in o,nership of a su*sidiary
# Fanuary
%&#&
@ffective date of the April %&&? revisions to IAS =
Fundamental Princi"le in IAS #
.ll entities that prepare financial statements in conformity ith >80Ss are re;uired to present a
statement of cash flos#
%< 0 P a g e
(he statement of cash flos analyses changes in cash and cash e;uivalents during a period# Cash
and cash e;uivalents comprise cash on hand and demand deposits, together ith short,term,
highly li;uid investments that are readily convertible to a !non amount of cash, and that are
sub*ect to an insignificant ris! of changes in value# Guidance notes indicate that an investment
normally meets the definition of a cash e;uivalent hen it has a maturity of three months or less
from the date of ac;uisition# 9;uity investments are normally e)cluded, unless they are in
substance a cash e;uivalent -e#g# preferred shares ac;uired ithin three months of their specified
redemption date/# Ban! overdrafts hich are repayable on demand and hich form an integral
part of an entity<s cash management are also included as a component of cash and cash
e;uivalents#
Presentation of te Statement of Cas Flo$s
Cash flos must be analy&ed beteen operating, investing and financing activities#
Gey principles specified by >.S I for the preparation of a statement of cash flos are as follos1
oper!tin !#ti(ities are the main revenue'producing activities of the entity that are not
investing or financing activities) so operating cash flo,s include cash received from
customers and cash paid to suppliers and employees
in(estin !#ti(ities are the ac3uisition and disposal of long'term assets and other
investments that are not considered to *e cash e3uivalents
&in!n#in !#ti(ities are activities that alter the e3uity capital and *orro,ing structure of
the entity
interest and dividends received and paid may *e classified as operating) investing) or
financing cash flo,s) provided that they are classified consistently from period cash
flo,s arising from ta1es on income are normally classified as operating) to period
unless they can *e specifically identified ,ith financing or investing activities
for operating cash flo,s) the direct method of presentation is encouraged) *ut the
indirect method is accepta*le
(he direct metod shos each ma*or class of gross cash receipts and gross cash
payments# (he operating cash flos section of the statement of cash flos under the
direct method ould appear something li!e this1
/ash receipts from customers
11)11
1
/ash paid to suppliers
11)11
1
/ash paid to employees 11)11
%= 0 P a g e
1
/ash paid for other operating
e1penses
11)11
1
Interest paid
11)11
1
Income ta1es paid
11)11
1
Net #!sh &ro* oper!tin
!#ti(ities
33<33
3
(he indirect metod ad*usts accrual basis net profit or loss for the effects of non,cash
transactions# (he operating cash flos section of the statement of cash flos under the
indirect method ould appear something li!e this1
Profit *efore interest and income
ta1es

11)11
1
Add *ack depreciation
11)11
1
Add *ack amortisation of good,ill
11)11
1
Increase in receiva*les
11)11
1
Decrease in inventories
11)11
1
Increase in trade paya*les
11)11
1
Interest e1pense
11)11
1
>ess Interest accrued *ut not yet
paid
11)11
1

Interest paid
11)11
1
%( 0 P a g e
Income ta1es paid
11)11
1
Net #!sh &ro* oper!tin
!#ti(ities

33<33
3
the e1change rate used for translation of transactions denominated in a foreign currency
should *e the rate in effect at the date of the cash flo,s
cash flo,s of foreign su*sidiaries should *e translated at the e1change rates prevailing
,hen the cash flo,s took place
as regards the cash flo,s of associates and +oint ventures) ,here the e3uity method is
used) the statement of cash flo,s should report only cash flo,s *et,een the investor
and the investee2 ,here proportionate consolidation is used) the cash flo, statement
should include the venture9s share of the cash flo,s of the investee
Aggregate cash flo,s relating to ac3uisitions and disposals of su*sidiaries and other
*usiness units should *e presented separately and classified as investing activities) ,ith
specified additional disclosures LIAS =8?M 0he aggregate cash paid or received as
consideration should *e reported net of cash and cash e3uivalents ac3uired or disposed
of
cash flo,s from investing and financing activities should *e reported gross *y ma+or
class of cash receipts and ma+or class of cash payments e1cept for the follo,ing cases)
,hich may *e reported on a net *asis"
o cash receipts and payments on *ehalf of customers Afor e1ample) receipt and
repayment of demand deposits *y *anks) and receipts collected on *ehalf of and
paid over to the o,ner of a propertyB
o cash receipts and payments for items in ,hich the turnover is 3uick) the amounts
are large) and the maturities are short) generally less than three months Afor
e1ample) charges and collections from credit card customers) and purchase and
sale of investmentsB
o cash receipts and payments relating to deposits *y financial institutions
o cash advances and loans made to customers and repayments thereof
investing and financing transactions ,hich do not re3uire the use of cash should *e
e1cluded from the statement of cash flo,s) *ut they should *e separately disclosed
else,here in the financial statements
the components of cash and cash e3uivalents should *e disclosed) and a reconciliation
presented to amounts reported in the statement of financial position
the amount of cash and cash e3uivalents held *y the entity that is not availa*le for use
*y the group should *e disclosed) together ,ith a commentary *y management
%? 0 P a g e
IAS,-. Events after the "e#orting )eriod
IAS 85 EVENTS AFTER THE RE2ORTING 2ERIOD
HISTORY OF IAS 85 /
Fuly #?==
@1posure Draft @#& Contingencies and E!ents "ccurring After the
Balance Sheet Date
.cto*er
#?=(
IAS #& Contingencies and E!ents "ccurring After the Balance Sheet
Date effective # Fanuary #?(&
#??$ IAS #& A#?=(B ,as reformatted
August #??=
@1posure Draft @;? Pro!isions# Contingent Liabilities and Contingent
Assets
Septem*er
#??(
IAS 8=) Provisions) /ontingent >ia*ilities and /ontingent Assets
# Fuly #???
@ffective date of IAS 8=) ,hich superseded those portions of IAS #&
A#?=(B dealing ,ith contingencies
6ovem*er
#??(
@1posure Draft @<8 E!ents After the Balance Sheet Date
#(
Decem*er
%&&8
!evised version of IAS #& issued *y the IASB
8& 0 P a g e
# Fanuary
%&&;
@ffective date of IAS #& A!evised %&&8B
< Septem*er
%&&=
!etitled E!ents after the $eporting Period as a conse3uential
amendment resulting from revisions to IAS #
IAS'#& discusses a*out the events that take place after the end of reporting period It is
defined in the follo,ing ,ays
9vent after the reporting period 1 .n event, hich could be favorable or unfavorable, that
occurs beteen the end of the reporting period and the date that the financial statements
are authori&ed for issue#
.d*usting event 1 .n event after the reporting period that provides further evidence of
conditions that e)isted at the end of the reporting period, including an event that indicates
that the going concern assumption in relation to the hole or part of the enterprise is not
appropriate#
2on,ad*usting event 1 .n event after the reporting period that is indicative of a condition
that arose after the end of the reporting period#
S#ope/
0his standard is solely applica*le for accounting treatment and disclosure of events
after the reporting period
Re#onition !n" *e!s%re*ent/
An entity shall ad+ust the amounts recogniCed in the financial statements to reflect
ad+usting event after the period
0he events or conditions that arose after the end of the reporting period shall not *e
ad+usted in financial statements But) significant events re3uire proper disclosure
Eoing concern issues arising after end of the reporting period should *e disclosed and
reported properly in financial statements
Dis#$os%re/
6on'ad+usting events should *e disclosed if they are of such importance that
non'disclosure ,ould affect the a*ility of users to make proper evaluations and
decisions 0he re3uired disclosure is
8# 0 P a g e
AaB 0he nature of the event and
A*B An estimate of its financial effect or a statement that a reasona*le estimate
of the effect cannot *e made LIAS #&%#M
. company should update disclosures that relate to conditions that e)isted at the end of
the reporting period to reflect any ne information that it receives after the reporting
period about those conditions# D>.S 16#19E
Com"anies must disclose
(he date hen the financial statements ere authori&ed for issue and ho
gave that authori&ation#
>f the enterprise<s oners or others have the poer to amend the financial
statements after issuance, the enterprise must disclose that fact# D>.S 16#1IE
IAS, /0 "elated )arty 1isclosures
0his IAS is related ,ith related party disclosures As a significant part of the entities) the
transactions and dealing ,ith related parties should *e disclosed properly as regulated
*y this IAS
O+9e#ti(e/
0he o*+ective of IAS %$ is to ensure that an entityIs financial statements contain the
disclosures necessary to dra, attention to the possi*ility that its financial position and
profit or loss may have *een affected *y the e1istence of related parties and *y
transactions and outstanding *alances ,ith such parties
Who Are Related Parties?
. related party is a person or entity that is related to the entity that is preparing its
financial statements -referred to as the <reporting entity</#
AaB A person or a close mem*er of that personIs family is related to a
reporting entity if that person"
o AiB has control or +oint control over the reporting entity2
8% 0 P a g e
o AiiB has significant influence over the reporting entity2 or
o AiiiB Is a mem*er of the key management personnel of the reporting
entity or of a parent of the reporting entity
A*B An entity is related to a reporting entity if any of the follo,ing conditions
applies"
o AiB 0he entity and the reporting entity are mem*ers of the same
group A,hich means that each parent) su*sidiary and fello,
su*sidiary is related to the othersB
o AiiB .ne entity is an associate or +oint venture of the other entity Aor
an associate or +oint venture of a mem*er of a group of ,hich the
other entity is a mem*erB
o AiiiB Both entities are +oint ventures of the same third party
o AivB.ne entity is a +oint venture of a third entity and the other entity is
an associate of the third entity
o AvB 0he entity is a post'employment defined *enefit plan for the
*enefit of employees of either the reporting entity or an entity related
to the reporting entity If the reporting entity is itself such a plan) the
sponsoring employers are also related to the reporting entity
o AviB0he entity is controlled or +ointly controlled *y a person identified
in AaB
o AviiB A person identified in AaBAiB has significant influence over the
entity or is a mem*er of the key management personnel of the entity
Aor of a parent of the entityB
(he folloing are deemed not to be related1
t,o entities simply *ecause they have a director or key manager in common
t,o ventures ,ho share +oint control over a +oint venture
providers of finance) trade unions) pu*lic utilities) and departments and
agencies of a government that does not control) +ointly control or
significantly influence the reporting entity) simply *y virtue of their normal
dealings ,ith an entity Aeven though they may affect the freedom of action
of an entity or participate in its decision'making processB
a single customer) supplier) franchiser) distri*utor) or general agent ,ith
,hom an entity transacts a significant volume of *usiness merely *y virtue
88 0 P a g e
of the resulting economic dependence
What Are Related Party ransactions?
. related party transaction is a transfer of resources, services, or obligations
beteen related parties, regardless of hether a price is charged# D>.S 43#9E
%isclosure
Relationsi"s &et$een "arents and su&sidiaries' 0egardless of hether there
have been transactions beteen a parent and a subsidiary, an entity must disclose the
name of its parent and, if different, the ultimate controlling party# >f neither the
entity<s parent nor the ultimate controlling party produces financial statements
available for public use, the name of the ne)t most senior parent that does so must
also be disclosed#
Management com"ensation' +isclose !ey management personnel compensation in
total and for each of the folloing categories1
short'term employee *enefits
post'employment *enefits
other long'term *enefits
termination *enefits
share'*ased payment *enefits
Gey management personnel are those persons having authority and responsibility for
planning, directing, and controlling the activities of the entity, directly or indirectly,
including any directors -hether e)ecutive or otherise/ of the entity#
Related "art( transactions' >f there have been transactions beteen related parties,
disclose the nature of the related party relationship as ell as information about the
transactions and outstanding balances necessary for an understanding of the
potential effect of the relationship on the financial statements# (hese disclosure
ould be made separately for each category of related parties and ould include1
the amount of the transactions
the amount of outstanding *alances) including terms and conditions and
guarantees
provisions for dou*tful de*ts related to the amount of outstanding *alances
e1pense recogniCed during the period in respect of *ad or dou*tful de*ts
due from related parties
8$ 0 P a g e
E3!*p$es o& the Kin"s o& Tr!ns!#tions th!t Are Dis#$ose" I& The-
Are )ith ! Re$!te" 2!rt- /
purchases or sales of goods
purchases or sales of property and other assets
rendering or receiving of services
leases
transfers of research and development
transfers under license agreements
transfers under finance arrangements Aincluding loans and e3uity
contri*utions in cash or in kindB
provision of guarantees or collateral
commitments to do something if a particular event occurs or does
not occur in the future) including e1ecutor contracts ArecogniCed
and unrecogniCedB
settlement of lia*ilities on *ehalf of the entity or *y the entity on
*ehalf of another party
. statement that related party transactions ere made on terms e;uivalent to those
that prevail in arm<s length transactions should be made only if such terms can be
substantiated# D>.S 43#41E
De&inition o& re$!te" p!rt-"
A related party is a person or entity that is related to the entity that is preparing its
financial statements Areferred to as the Ireporting entityIB LIAS %$?M
AaB A person or a close mem*er of that personIs family is related to a reporting
entity if that person"
AIB has control or +oint control over the reporting entity2
AiiB -as significant influence over the reporting entity2 or
8; 0 P a g e
AiiiB Is a mem*er of the key management personnel of the reporting entity
or of a parent of the reporting entity
A*B An entity is related to a reporting entity if any of the follo,ing conditions
applies"
AiB 0he entity and the reporting entity are mem*ers of the same group
A,hich means that each parent) su*sidiary and fello, su*sidiary is related
to the othersB
AiiB .ne entity is an associate or +oint venture of the other entity
AiiiB Both entities are +oint ventures of the same third party
AivB.ne entity is a +oint venture of a third entity and the other entity is an
associate of the third entity
AvB 0he entity is a post'employment defined *enefit plan for the *enefit of
employees of either the reporting entity or an entity related to the reporting
entity If the reporting entity is itself such a plan) the sponsoring employers
are also related to the reporting entity
AviB 0he entity is controlled or +ointly controlled *y a person identified in AaB
AviiB A person identified in AaB AiB has significant influence over the entity or
is a mem*er of the key management personnel of the entity Aor of a parent
of the entityB
S#ope/
Applica*le on *oth separate and consolidated financial statements
2%rpose o& re$!te" p!rt- "is#$os%res/
# !elated party transactions may affect financial performance and position
% Presence of control) +oint control and significant influence
Dis#$os%res re$!tin to re$!te" p!rties/
8< 0 P a g e
#B !elationships *et,een parents and su*sidiaries . !egardless of ,hether
there have *een transactions *et,een a parent and a su*sidiary) an entity
must disclose the name of its parent and) if different) the ultimate controlling
party If neither the entityIs parent nor the ultimate controlling party produces
financial statements availa*le for pu*lic use) the name of the ne1t most
senior parent that does so must also *e disclosed LIAS %$#<M
%B Management /ompensation . Disclose key management personnel
compensation in total and for each of the follo,ing categories"
short'term employee *enefits
post'employment *enefits
other long'term *enefits
termination *enefits
share'*ased payment *enefits
8B !elated Party 0ransactions . If there have *een transactions *et,een related
parties) disclose the nature of the related party relationship as ,ell as
information a*out the transactions and outstanding *alances necessary for
an understanding of the potential effect of the relationship on the financial
statements 0hese disclosure ,ould *e made separately for each category of
related parties and ,ould include" LIAS %$#('#?M
0he amount of the transactions
0he amount of outstanding *alances) including terms and conditions
and guarantees
provisions for dou*tful de*ts related to the amount of outstanding
*alances
@1pense recogniCed during the period in respect of *ad or dou*tful
de*ts due from related parties
I*"S , .2 O#erating Segments
8= 0 P a g e
S#ope/
IF!S ( applies to the separate or individual financial statements of an entity Aand to the
consolidated financial statements of a group ,ith a parentB"
:hose de*t or e3uity instruments are traded in a pu*lic market2 or
0hat files) or is in the process of filing) its AconsolidatedB financial
statements ,ith a securities commission or other regulatory organiCation
for the purpose of issuing any class of instruments in a pu*lic market
-o,ever) ,hen *oth separate and consolidated financial statements for the parent are
presented in a single financial report) segment information need *e presented only on
the *asis of the consolidated financial statements
Oper!tin Se*ents/
As per IF!S G () an operating segment is a component of an entity"
0hat engages in *usiness activities from ,hich it may earn revenues
and incur e1penses Aincluding revenues and e1penses relating to
transactions ,ith other components of the same entityB2
:hose operating results are revie,ed regularly *y the entityIs chief
operating decision maker to make decisions a*out resources to *e
allocated to the segment and assess its performance2 and
For ,hich discrete financial information is availa*le
Report!+$e se*ents/
IF!S ( re3uires an entity to report financial and descriptive information a*out its
reporta*le segments !eporta*le segments are operating segments or aggregations of
operating segments that meet specified criteria"
Its reported revenue) from *oth e1ternal customers and inter segment sales or
transfers) is #&J or more of the com*ined revenue) internal and e1ternal) of all
operating segments2 or
0he a*solute measure of its reported profit or loss is #&J or more of the greater) in
a*solute amount) of AiB the com*ined reported profit of all operating segments that
did not report a loss and AiiB the com*ined reported loss of all operating segments
that reported a loss2 or
8( 0 P a g e
Its assets are #&J or more of the com*ined assets of all operating segments
If the total e1ternal revenue reported *y operating segments constitutes less than =;J
of the entityIs revenue) additional operating segments must *e identified as reporta*le
segments Aeven if they do not meet the 3uantitative thresholds set out a*oveB until at
least =;J of the entityIs revenue is included in reporta*le segments
IFRS)#* IAS)+, and +-: Financial Instruments
Ab*ectives and scope of Financial instruments are addressed in three standards1 >.S
34, hich deals ith distinguishing debt from e;uity and ith nettingC >.S 39, hich
contains re;uirements for recognition and measurementC and >80S I hich deals ith
disclosures' (he ob*ective of the three standards is to establish re;uirements for all
aspects of accounting for financial instruments* including distinguishing debt from
e;uity, netting, recognition, derecognation, measurement, hedge accounting and
disclosure' (he scope of the standards is ide,ranging# (he standards cover all types of
financial instrument, including receivables, payables, investments in bonds and shares,
borroings and derivatives# (hey also apply to certain contracts to buy or sell non,
financial assets -such as commodities/ that can be net settled in cash or another
financial instrument# 2ature and characteristics of financial instruments 8inancial
instruments include a ide range of assets and liabilities# (hey can mostly be
e)changed for cash# (hey are recogni&ed and measured according to >.S 39
re;uirements and are disclosed in accordance ith >80S I#
8inancial instruments represent contractual rights or obligations to receive or pay cash
or other financial asset# . financial asset is cashC a contractual right to receive cash or
another financial assetC a contractual right to e)change financial assets or liabilities
ith another entity under conditions that are potentially favorableC or an e;uity
8? 0 P a g e
instrument of another entity#
. financial liability is a contractual obligation to deliver cash or another financial asset
or to e)change financial instruments ith another entity under conditions that are
potentially unfavorable# .n e;uity instrument is any contract that evidences a residual
interest in the entityJs assets after deducting all its liabilities#
. derivative is a financial instrument that derives its value from an underlying price or
inde), re;uires little or no initial investment and is settled at a future date# >n some
cases contracts to receive or deliver a companyJs on e;uity can also be derivatives#
Presentation and %isclosure
(here have been significant developments in ris! management concepts and practices
in recent years# 2e techni;ues have evolved for measuring and managing e)posures
to ris!s arising from financial instruments# (he need for more relevant information and
improved transparency about an entityJs e)posures arising from financial instruments
and ho those ris!s are managed has become greater# 8inancial statement users and
other investors need such information to ma!e more informed *udgments about ris!s
that entities run from the use of financial instruments and their associated returns#
Foever, the disclosures in >.S 36 -disclosure re;uirements for ban!s and similar
financial institutions/ and >.S 34 ere no longer in !eeping ith such developments,
and there as a need to revise and enhance the disclosure frameor! for ris!s arising
from financial instruments# >80S I K8inancial instruments disclosuresJ as issued in
.ugust 4667 to address this need#
>80S I sets out disclosure re;uirements that are intended to enable users to evaluate
the significance of financial instruments for an entityJs financial position and
performance and to understand the nature and e)tent of ris!s arising from those
financial instruments to hich the entity is e)posed#
>80S I does not *ust apply to ban!s and financial institutions# .ll entities that have
financial instruments are affected, even simple instruments such as borroings,
accounts payable and receivable, cash and investments#
$& 0 P a g e
IAS => Interi* &in!n#i!$ report
O&.ecti/e of IAS +0
(he ob*ective of >.S 33 is to prescribe the minimum content of an interim financial
report and to prescribe the principles for recognition and measurement in financial
statements presented for an interim period#
1e( %efinitions
>nterim period1 a financial reporting period shorter than a full financial year -most
typically a ;uarter or half,year/#
>nterim financial report1 a financial report that contains either a complete or
condensed set of financial statements for an interim period#
Matters 2eft to 2ocal Regulators
>.S 33 specifies the content of an interim financial report that is described as
conforming to >nternational 8inancial 0eporting Standards# Foever, >.S 33 does
not mandate1
,hich entities should pu*lish interim financial reports)
ho, fre3uently) or
ho, soon after the end of an interim period
Such matters ,ill *e decided *y national governments) securities regulators) stock
e1changes) and accountancy *odies
Foever, the Standard encourages publicly,traded entities to provide interim
financial reports that conform to the recognition, measurement, and disclosure
principles set out in >.S 33, at least as of the end of the first half of their financial
year, such reports to be made available not later than "6 days after the end of the
interim period#
Minimum Content of an Interim Financial Re"ort
(he minimum components specified for an interim financial report are1
a condensed *alance sheet Astatement of financial positionB
either AaB a condensed statement of comprehensive income or A*B a
condensed statement of comprehensive income and a condensed income
statement
$# 0 P a g e
a condensed statement of changes in e3uity
a condensed statement of cash flo,s
selected e1planatory notes
If a complete set of financial statements is pu*lished in the interim report) those
financial statements should *e in full compliance ,ith IF!Ss
>f the financial statements are condensed, they should include, at a minimum, each
of the headings and sub,totals included in the most recent annual financial
statements and the e)planatory notes re;uired by >.S 33# .dditional line,items or
notes should be included if their omission ould ma!e the interim financial
information misleading#
>f the annual financial statements ere consolidated -group/ statements, the interim
statements should be group statements as ell#
(he periods to be covered by the interim financial statements are as follos1
*alance sheet Astatement of financial positionB as of the end of the current
interim period and a comparative *alance sheet as of the end of the
immediately preceding financial year
statement of comprehensive income Aand income statement) if presentedB
for the current interim period and cumulatively for the current financial year
to date) ,ith comparative statements for the compara*le interim periods
Acurrent and year'to'dateB of the immediately preceding financial year
statement of changes in e3uity cumulatively for the current financial year to
date) ,ith a comparative statement for the compara*le year'to'date period
of the immediately preceding financial year
statement of cash flo,s cumulatively for the current financial year to date)
,ith a comparative statement for the compara*le year'to'date period of the
immediately preceding financial year
If the companyIs *usiness is highly seasonal) IAS 8$ encourages disclosure of
financial information for the latest #% months) and comparative information for the
prior #%'month period) in addition to the interim period financial statements
Note %isclosures
(he e)planatory notes re;uired are designed to provide an e)planation of events and
transactions that are significant to an understanding of the changes in financial
position and performance of the entity since the last annual reporting date# >.S 33
states a presumption that anyone ho reads an entity<s interim report ill also have
access to its most recent annual report# Conse;uently, >.S 33 avoids repeating
$% 0 P a g e
annual disclosures in interim condensed reports#
E3!*p$es o& Note Dis#$os%res in Interi* Con"ense" Reports/
accounting policy changes
seasonality or cyclicality of operations
unusual and significant items
changes in estimates
issuances) repurchases) and repayments of de*t and e3uity
securities
dividends paid
a fe, items of segment information Afor those entities re3uired *y
IF!S ( to report segment information annuallyB
significant events after the end of the interim period
*usiness com*inations
long'term investments
restructurings and reversals of restructuring provisions
discontinued operations
changes in contingent lia*ilities and contingent assets
corrections of prior period errors
,rite'do,n of inventory to net realiCa*le value
impairment loss on property) plant) and e3uipment2 intangi*les2 or
other assets) and reversal of such impairment loss
litigation settlements
any de*t default or any *reach of a de*t covenant that has not
*een corrected su*se3uently
$8 0 P a g e
related party transactions
ac3uisitions and disposals of property) plant) and e3uipment
/ommitments to purchase property) plant) and e3uipment
Accounting Policies
(he same accounting policies should be applied for interim reporting as are applied
in the entity<s annual financial statements, e)cept for accounting policy changes
made after the date of the most recent annual financial statements that are to be
reflected in the ne)t annual financial statements#
. !ey provision of >.S 33 is that an entity should use the same accounting policy
throughout a single financial year# >f a decision is made to change a policy mid,year,
the change is implemented retrospectively, and previously reported interim data is
restated#
Measurement
'easurements for interim reporting purposes should be made on a year,to,date
basis, so that the fre;uency of the entity<s reporting does not affect the measurement
of its annual results#
Several important measurement points1
!evenues that are received seasonally) cyclically or occasionally ,ithin a
financial year should not *e anticipated or deferred as of the interim date) if
anticipation or deferral ,ould not *e appropriate at the end of the financial
year
/osts that are incurred unevenly during a financial year should *e
anticipated or deferred for interim reporting purposes if) and only if) it is also
appropriate to anticipate or defer that type of cost at the end of the financial
year
Income ta1 e1pense should *e recogniCed *ased on the *est estimate of
the ,eighted average annual effective income ta1 rate e1pected for the full
financial year
.n appendi) to >.S 33 provides guidance for applying the basic recognition and
measurement principles at interim dates to various types of asset, liability, income,
and e)pense#
!ateriality
>n deciding ho to recogni&e measure, classify, or disclose an item for interim
$$ 0 P a g e
financial reporting purposes, materiality is to be assessed in relation to the interim
period financial data, not forecasted annual data#
%isclosure in Annual Financial Statements
>f an estimate of an amount reported in an interim period is changed significantly
during the financial interim period in the financial year but a separate financial
report is not published for that period, the nature and amount of that change must be
disclosed in the notes to the annual financial statements#
Chapter -0$ -Co mpliance with the "e%uirements of IAs
& I!"-#
IAS - 3 )resentation of *inancial Statements
Serial
No.
Content Compliance
Status
Explanation
'. Ob4ective of %inancial #tatements 5 to
provide information about financial
position, financial performance, and
cash flows of an entity that is useful to
a wide range of users in making
economic decisions. .IA#6'.7/
/omplied *y
Pu*ali Bank
>imited) .ne
Bank >imited)
Shaha+al Bank
>imited) 6//
Bank >imited)
I/B Islamic
Bank >imited)
U/B> Bank ltd
For meeting the
o*+ective) the entity has
provided information
a*out assets) lia*ilities)
e3uity) income and
e1penses) including
gains and losses) other
changes in e3uity) cash
flo,s
8. All components of financial
statements are included .IA#6'.9/
Do All entities have provided
all components) ie
Balance Sheet) Profit &
>oss Account) /hange in
@3uity) /ash'Flo,
Statement) 6otes &
Disclosures) *ut they
$; 0 P a g e
have not changed the
name of the their
financial statements
according to re3uirement
of IASs in time
7. %air presentation and compliance with
.I%&# 6'.'76'.'9/
Do All entities9 financial
statements have fairly
presented the financial
position) financial
performance and cash'
flo,s of the entities
:. ;isclosure about entity<s ability to
continue as !oing -oncern .IA#6'.87/
Do All entities have prepared
the financial statements
on the *asis of going
concern assumption2
there is no uncertainty
a*out the going concern
of the entities
=. %ollow accrual basis of accounting
.IA#6'.8=/
Do All entities have prepared
their financial statements
follo,ing the accrual
*asis) *ut not cash'flo,
statement
>. "resentation ? classification of
financial statement are on consistency
basis..IA#6'.8@/
Do All entities have
presented & classified all
items of financial
statements from period to
period consistently
@. Aaterial class of similar items to be
presented separately ? immaterial
dissimilar items to be aggregated.
.IA#6'.81/
Do 0hey have presented
material class of similar
items separately)
aggregated immaterial
dissimilar items
9. Assets ? liabilities and income ?
e,penses should not be offset. .IA#6
'.78/
Partially
complied *y
Pu*ali Bank
>imited) .ne
Bank >imited)
Shaha+al Bank
>imited) 6//
Bank >imited)
I/B Islamic
Bank >imited
Under general *anking
transactions) lia*ilities
against acceptance)
endorsement and other
o*ligations and *ills
against ,hich
acceptances have *een
given and claims e1ist
their agreement have
*een sho,n as off'
*alance sheet items
Financial assets and
financial lia*ilities are
offset and the net amount
reported in the *alance
sheet ,hen they is a
legally enforcea*le right
$< 0 P a g e
to offset the recogniCed
amounts and there is an
intention to settle on a
net *asis or realiCe the
assets and settle the
lia*ility su*stantially
1. -omparative information. .IA#6'.79/ /omplied *y
Pu*ali Bank
>imited) .ne
Bank >imited)
Shaha+al Bank
>imited) 6//
Bank >imited)
I/B Islamic
Bank >imited)
U/B> Bank ltd
0hey have disclosed
comparative information
in respect of the previous
period for amounts
reported on the face of
the financial statements
and notes
'(. %inancial #tatements are to be
prepared annually. .IA#6'.:1/
Do All the entities have
prepared the financial
statements annually2 they
have follo,ed accounting
year ,hich is from the
first Fanuary to 8#
st
Decem*er
''. #eparation of current and non6current
assets and liabilities. Ainimum items
on the face of the 0alance #heet.
.IA#6'.=8,'.=@,'.>:, '.>9,'.>1/
Do 0hey have separated
current and non'current
assets and lia*ilities All
items re3uired for
*alance sheet have
presented properly) *ut
they have not provided
information a*out
*iological assets)
investments accounted
for using e3uity method)
inventories *ecause
these entities are in
*anking industries
'8. Ainimum items on the face of Income
#tatement, allocation of profit, certain
special items, analysis of e,penses on
the basis of nature or function.. IA#6
'.9','.98,'.9=,'.9>, '.9@,'.99,'.17/
Do 0hey have properly
presented all information
re3uired *y the IAS'#(#
for preparation of the
income statement) *ut
not presented any
information a*out the
other comprehensive
income 0hey have
sho,n allocation of their
profit and loss) other
information re3uired *y
IAS'#(<) #(=) #((
$= 0 P a g e
0hey have not analyCed
their e1pensed *ased on
the nature) *ut on
function
'7. Ainimum items on the face of the
#tatement of -hanges in +)uity are
presented ,disclosure about issued
share capital and reserve .IA#6
'.1>,'.1@/
Do 0hey have provided
information a*out the
statement of changes of
e3uity) including profit
and loss for the period)
capital transactions ,ith
o,ners and disclosure
a*out issued share
capital and reserve
':. Botes to the financial statements.IA#6
'.(7,'.(:,'.(=/
Do All entities have provided
information a*out the
*asis of preparation of
the financial statements)
other information
re3uired for the
understanda*ility of
information provided
'=. ;isclosure of 4udgment.'.'7/ 6ot complied *y
Pu*ali Bank
>imited) .ne
Bank >imited)
Shaha+al Bank
>imited) 6//
Bank >imited)
and I/B Islamic
Bank >imited
6o information has *een
provided a*out the
disclosure of +udgment
'>. ;isclosure of key sources of
estimation uncertainty
Do 0hey have not provided
any information a*out the
key source of estimation
uncertainty
'@. ;isclosure about dividend.'.1=/ /omplied *y
Pu*ali Bank
>imited) .ne
Bank >imited)
Shaha+al Bank
>imited) 6//
Bank >imited)
I/B Islamic
Bank >imited
Sufficient information has
*een provided regarding
dividend
'9. -ertain items about domicile,
registered office, activities, country of
incorporation .IA#6'.'8=/
Do 0hey have provided
information a*out the
domicile of the *usiness)
country of incorporation)
address of registered
office) operation &
principal activities of the
$( 0 P a g e
enterprise
IAS 07: Cash Flow Statement
Serial
No.
Content Compliance
Status
Explanation
'. "roper classification of activities /omplied *y
Pu*ali Bank
>imited) .ne
Bank >imited)
Shaha+al Bank
>imited) 6//
Bank >imited)
I/B Islamic
Bank >imited
Almost all the companies
are complied ,ith this
provision
8. -lassification of activities followed
consistently from year to year
Do Almost all the companies
are complied ,ith this
provision
7. %ollow the recommendation of using
direct method for presenting operating
activities
Do All the companies follo,
the direct method of
presenting cash flo,
statements All though
under indirect method it
is easy to prepare the
cash flo, statements *ut
companies prepare its
financial statement under
direct methods for
presenting information
properly
:. +,clusion of non6cash transactions /omplied *y one
*ank) pu*ali
*ank) 6// *ank
*ut other t,o did
not comply
Although non cash
transactions are properly
recorded in the cash flo,
statements *y some
companies /ompanies
like I/B Islamic *ank)
Shah+alal *ank did not
provide any non cash
transaction in its
statement
=. &eporting cash flows on gross basis /omplied *y
Pu*ali Bank
>imited) .ne
Bank >imited)
Shaha+al Bank
>imited) 6//
As companies prepare
their statements under
direct method So the
prepare it on gross *asis
$? 0 P a g e
Bank >imited)
I/B Islamic
Bank >imited
>. "roper and ade)uate disclosures are
provided
Do As they prepare their
cash flo, statement *y
direct method 6otes
sho,ing the cash
receipts and payment
from & to different
sources is provided
IAS 10: Events after Balance Sheet Date
Serial
No.
Content Compliance
Status
Explanation
'. Ad4ustment of the ad4usting events in
the %inancial #tatements
/omplied *y
Pu*ali Bank
>imited) .ne
Bank >imited)
Shaha+al Bank
>imited) 6//
Bank >imited)
I/B Islamic
Bank >imited
All the companies
ad+usted necessary
ad+usting events in the
financial statements
8. ;isclosures about non6ad4usting
events
/omplied *y
6// Bank) I/B
Islami Bank)
Pu*ali *ank
>0D
Most of the companies
disclosed the significant
non ad+usting events
although some
companies like Shah+alal
Islami *ank & .ne *ank
Didn9t disclosed any
information regarding
this
7. ;isclosure about authorization date of
issue
/omplied *y
Pu*ali Bank
>imited) .ne
Bank >imited)
Shaha+al Bank
>imited) 6//
Bank >imited)
I/B Islamic
Bank >imited
Al the companies make
disclosure a*out
authoriCation date of
issue
IA - 2$. "e)ated 'arty Disc)osure
;& 0 P a g e
Serial
No.
Content Compliance
Status
Explanation
'. ;isclosure of the name of related
parties.
/omplied *y
Pu*ali Bank
>imited) .ne
Bank >imited)
Shaha+al Bank
>imited) 6//
Bank >imited)
I/B Islamic
Bank >imited
All the companies
disclosed the name of
related parties
8. ;isclosure relationship with related
parties.
Do All the companies
provided necessary
information a*out
relationship ,ith related
party
7. ;isclosure of types of transactions and
their total value.
Do All the companies
disclosed the types of
transactions and their
total values
I!" - 0#. Operatin0 e0ments
Serial
No.
Content Compliance
Status
Explanation
'. Information about the primary format
for segment
6ot applica*le 0here are no operating
segments availa*le in the
companies
8. &eview of operating results by
management
6ot applica*le 0here are no operating
segments availa*le in the
companies
7. "rocess of identification of operating
segment
6ot applica*le 0here are no operating
segments availa*le in the
companies
:. #egment Information 6ot applica*le 0here are no operating
segments availa*le in the
companies
=. "roper disclosures as re)uired 6ot applica*le 0here are no operating
segments availa*le in the
companies
;# 0 P a g e
I!" - 3$. Interim !inancia) "eportin0
Serial
No.
Content Compliance
Status
Explanation
'. Information about interim financial
reporting
6ot applica*le 0here are no interim
financial information
8. -ondensed balance sheet 6ot applica*le 0here are no interim
financial information
7. -ondensed different sratement 6ot applica*le 0here are no interim
financial information
:. #elected +,planatory notes 6ot applica*le 0here are no selected
e1planatory notes
=. "roper disclosures as re)uired 6ot applica*le 0here are no interim
financial information
I!" - /1 IA 32 and 32 !inancia) instrument
Serial
No.
Content Compliance
Status
Explanation
'. &isk management /omply ,ith
every *ank
0here are financial
information a*out risk
and related policy
8. #ignificant financial Instrument U/B> Bank)
.ne Bank and
partly ,ith other
Bank
0here are presented
accordance significantly
7. Bature and +,tend of risk /omply ,ith
every Bank
0here are presented
nature and e1tend of risk
of instrument
:. 0orrowing and payable /omply ,ith
every Bank
0hey presented their
Borro,ing and paya*le
=. "roper disclosures as re)uired All the Bank
does not provide
properly
0here are information
,hich is not sufficient
;% 0 P a g e
Comments on the Com#liance with the "e4uirements of IASs and
I*"S,2
%rom the compliance status table and the information provided in the annual reports of the
companies selected, it is clearly evident that almost all of the companies are adopting the best
practices and following rules and regulations of International Accounting #tandards .IA#/
properly and strongly. All of the companies move forward for achieving their desired goals
through the adoption and monitoring of corporate strategies, prudent business plan, monitoring
of ma4or risks of the company<s business and ensuring that the company pursues policies and
procedures to satisfy its legal, ethical and reporting responsibilities.
All of companies have fulfilled the ob4ectives of providing financial statements meaning that
they provide proper information about financial position, financial performance and cash flows.
3he managements of the companies ensure that their resources are ade)uate to support the
operation and that sufficient business opportunities e,ist to )ualify the organization as a going
concern! 3he accounting policies have been applied consistently to all periods presented in their
financial statements. 3he minimum re)uired items for all the components of financial statements
are included in the annual report of all the companies. 0esides, proper disclosures about entities<
issued share capital and reserve, dividend, 4udgment and key sources of estimation have also
been provided.
All the companies that we selected prepare the #tatement of -ash %low thoroughly in
accordance with IA# 5 (@. 3hey properly classified the activities in to Operating, Investing, and
%inancing activities and followed the classification consistently from year to year. 3he cash flow
from operating activities has been presented under ;irect Aethod, as recommended by IA# 5
(@, by all the companies. As our selected companies are pharmaceutical companies and they are
;8 0 P a g e
non6financial institutions by nature, they report the cash flows on gross basis. In addition to
these, proper and ade)uate disclosures under IA# 5 (@ are also presented.
All selected companies provided ade)uate and useful disclosures about the name of related
parties, relationships, types of transactions and nature and their total value.
%inally, I can state that the selected companies e,cept some re)uirements, have adopted and
followed the process, procedures and re)uirements stated by IA# 5 (', IA# 5 (@, IA# 5 '(, IA#
5 8:.
As I am concerned with banking industries, this industry has no product segmentation, only
segmentation can have is geographical segmentation. 0ut they do not show any information
about geographical segmentation because they prepare financial statements as a whole for the
financial reporting purposes.
Chapter -03- Conc)udin0 'art
)roblem Identified
#B @nough information regarding /ompliance of different IASs are not provided *y the
company
%B /ompanies do not follo, all the provisions of different IASs
8B @nough disclosure has not *een provided in the financial statements
$B 0he presentation of financial statements of the companies is not properly sho,n
according to all the provisions of IASs
;B Financing polices of the companies are not sho,n in proper ,ay
Conclusion
+nsuring high6)uality corporate financial reporting environment depends on effective
enforcement mechanisms. Aerely adopting international accounting and auditing standards is not
enough. Accounting profession is seeking to adopt all applicable IA#s but such decision is
continually driven by institutional legitimization rather than careful appreciation of the differing
conte,tual variables in 0angladesh. In fact, after a long period without any involvement or
interference with the practice of accounting, the government of 0angladesh, in response to the
;$ 0 P a g e
immense pressure by the international lending and donor agencies to standardize financial
reporting, has started lobbying the accounting profession to adopt all applicable IA#s$I%&#s for
use in 0angladesh. In spite of several problems and difficulties, the I-A0 is continuously trying
to ensure the world class )uality of the financial statements produced by the local and
multinational companies operating in 0angladesh. In 0anking Industry of our country, e,cept
some deviations, the overall compliance status with the selected IA#s for the purpose of
preparation of this report is satisfactory.
"eferences
# Annual !eport of Shah+alal Islami Bank ltd
% Annual !eport of .ne Bank ltd
8 Annual !eport of 6// Bank ltd
$ Annual !eport of I/B Islamic Bank >td
; Annual reporr on U/B> *ank ltd
< Annual !eport of Pu*ali Bank ltd
= International Accounting Standards'&#
( International Accounting Standards'&=
? International Accounting Standards'#&
#& International Accounting Standards'%$
## International Financial !eporting Standards'&(
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