Background

The Financial Reporting Council (FRC) in Bangladesh was established in 2015 as an autonomous regulatory institution. The main activities of the FRC in Bangladesh include setting audit standards based on international guidelines and ensuring their effective implementation, registering auditors and audit firms and monitoring their quality and performance, developing policies to ensure company financial reports are transparent and reliable, creating and monitoring policies to promote good governance in organizations, overseeing financial activities of government, autonomous, and private organization, and assisting in implementing laws in coordination with the Ministry of Finance and other regulatory bodies.

Accounting Standards

Bangladesh has adopted IFRS Accounting Standards. Domestic companies whose securities trade in a public market and other large public accountability companies are required to use IFRS Accounting Standards. Banks, insurance companies and Non-Banking Financial Institutions (NBFI) prepare financial statements in accordance with their respective Acts and guidelines and at present have some deviations from IFRS Accounting Standards.

Sustainability Disclosure Standards

In December 2023, Bangladesh Bank issued a circular, Guideline on Sustainability and Climate-related Financial Disclosure for Banks and Finance Companies, that mandates application of IFRS S1 and IFRS S2, to be implemented for all banks and financial institutions regulated by the Bangladesh Bank, for financial years starting from January 2024.

*The information above has been translated and compiled from publicly available sources, including the official websites of relevant institutions and the website of IFRS.