What is the Bangladesh standard on Audit(BSA-300) ? Describes in details

Bangladesh Accounting & Financial Reporting Standard (BAS & BFRS)

   IAS, IFRS, BAS, and BFRS are all accounting and financial reporting standards used in different   regions or countries. Here's a brief explanation of each:

1. IAS (International Accounting Standards): The International Accounting Standards (IAS) were a set of accounting standards issued by the International Accounting Standards Committee (IASC) from 1973 to 2001. These standards were widely used by companies around the world, but they have since been replaced by International Financial Reporting Standards (IFRS).

2. IFRS (International Financial Reporting Standards): International Financial Reporting Standards (IFRS) are a set of accounting standards developed and maintained by the International Accounting Standards Board (IASB). IFRS has become the global standard for financial reporting in many countries. It provides a common framework for companies to prepare and present their financial statements, ensuring comparability and transparency across different jurisdictions.

3. BAS (Bangladesh Accounting Standards): Bangladesh Accounting Standards (BAS) are accounting standards developed and issued by the Institute of Chartered Accountants of Bangladesh (ICAB). BAS is based on International Financial Reporting Standards (IFRS) with necessary modifications to suit the local legal and regulatory requirements in Bangladesh. BAS is applicable to companies in Bangladesh for the preparation and presentation of their financial statements.

4. BFRS (Bangladesh Financial Reporting Standards): Bangladesh Financial Reporting Standards (BFRS) are another set of accounting standards developed by the Institute of Chartered Accountants of Bangladesh (ICAB). BFRS is largely aligned with International Financial Reporting Standards (IFRS) and is applicable for companies in Bangladesh. BFRS has been developed to replace the previously used Bangladesh Accounting Standards (BAS) and to align the financial reporting practices in Bangladesh with international standards.

It's worth noting that accounting standards can change over time, and it is important to refer to the latest versions and updates of the respective standards issued by the relevant accounting standard-setting bodies in each country or region. BAS are mention below...

  BAS-01 < Presentation of Financial Statements

  BAS-02 <Inventories

  BAS-07 < Statement of Cash flows

  BAS-08 <Accounting Policies & changes Accounting Estimates & Errors

  BAS-10 <Events after the Balance sheet Date

  BAS-11 <Construction Contract

  BAS-12 < Income Taxes

  BAS-16 <Property Plan & Equipment (PPE)

  BAS- 17 < Leases

  BAS-18 <Revenue

  BAS-19 <Employee Benefits

  BAS-20 <Accounting of Government Grant & Disclosure of Government Assistance

   BAS-21 <Effect of changes in foreign exchange Change

   BAS-23 <Borrowing cost

   BAS-24 <Related party Disclosure

   BAS-26 <Accounting and Reporting by Retirement Benefit Plans

   BAS-27 <Consolidated and Separate financial statements

   BAS-28 <Investment in Associates

   BAS-29 <Financial reporting in hyperinflationary economics

   BAS-31< Interest in Joint Ventures

   BAS-32 <Financial instruments presentation

   BAS-33 <Earnings Per share (EPS)

   BAS-34 <Interim Financial Reporting

   BAS-36 <Impairment of Assets

   BAS-37 <Provisions, Contingent liabilities, Contingent assets,

   BAS-38 <Intangible assets

   BAS-39 < financial instruments: recognition & Measurement

   BAS- 40 <Investment Property

   BAS-41 <Agriculture

 

What is IAS?

IAS stands for International Accounting Standards. The IAS was a set of standards that was developed by the International Accounting Standards Committee (IASC). They were originally launched in 1973 but have since been replaced by the IFRS.

IAS vs. IFRS – what’s the difference?

 

The IAS and IFRS are incredibly similar. In fact, only a handful of the updates in the IFRS make the IAS redundant, meaning that many countries continue to follow IAS and defer to IFRS only when the two differ.

So, what does IFRS and IAS does?

 Both IFRS and IAS are standards to which companies must adhere in their financial statements. It is required by EU regulation within Europe. Following Brexit, Britain is expected to adopt a new set of standards as set out by the IASB, though these are not expected to differ very much from the IFRS that the EU will follow. The IFRS are required around the world, well beyond Europe, so it’s unlikely that the UK will seek to create vastly different standards.

To better illustrate how standards are set out and precisely what they entail, here’s a quick look at a few of them:

The Purpose of International Standards in Accounting (ISA):

 The purpose of these standards is to ensure that the financial centers of the world, which have become more interconnected than ever, can use a global financial reporting framework that ensures effective regulation of financial markets. The growing volume of cross-border capital flows makes having international standards that are high in quality and testable across the board, a priority. By having these standards in place, capital markets that are located in different jurisdictions can create the most efficient capital flows that are beneficial to regulators, organizations, and the market as a whole.

Offering transparency, accountability, and efficiency, IFRS provides an internationally recognized set of accounting standards. But what do they mean for your business? Find out everything you need to know about the international financial reporting standards with our comprehensive guide.

What is IFRS?

IFRS stands for international financial reporting standards. It’s a set of accounting rules and standards that determine how accounting events should be reported in your business’s financial statements. Issued by the International Accounting Standards Board (IASB), IFRS aims to make financial statements consistent, comparable, and transparent across the world.

The United States is one notable country that doesn’t prescribe to IFRS, instead following a system called GAAP.

 What are the benefits of IFRS? 

Today, cross-border transactions are commonplace, with vast numbers of businesses seeking investment opportunities across the globe. In the past, this sort of internationalism was hampered by different countries maintaining different accounting standards, adding cost, complexity, and risk to business deals. IFRS eliminates that problem by ensuring that different countries adopt the same, globally applicable set of accounting standards.

What is IFRS compliance?

International financial reporting standards are used in a wide range of countries and jurisdictions. You can see the IFRS website to work out exactly where IFRS is used. If you aren’t compliant with IFRS standards, it may be more difficult to receive investment or business credit. However, by taking a proactive approach to achieving compliance, you can set your business up for success.

What is the difference between GAAP and IFRS?

The standards that are used to govern the rules of financial reporting can vary across countries. In the United States, these standards are grouped under GAAP (generally accepted accounting principles). However, in over 100 countries across the world, accounting standards are organized within the IFRS framework. So, what is the difference between GAAP and IFRS? On the whole, the difference comes down to methodology. IFRS is principles-based, whereas GAAP is rules-based. Practically, this means that IFRS goes into much less detail than gap, leaving more room for interpretation. 

For US-based businesses, GAAP is still the standard to adhere to. However, there is a chance that the U.S. Securities and Exchange Commission (SEC) will change to IFRS at some point in the future. The global adoption of IFRS may reduce the costs of comparing international businesses, while it would also cut down on the time and expense of duplicating accounting work.

The International Financial Reporting Standards (IFRS) are accounting standards that are issued by the International Accounting Standards Board (IASB) with the objective of providing a common accounting language to increase transparency in the presentation of financial information.

What is IASB?

The International Accounting Standards Board (IASB), is an independent body formed in 2001 with the sole responsibility of establishing the International Financial Reporting Standards (IFRS). It succeeded the International Accounting Standards Committee (IASC), which was earlier given the responsibility of establishing the international accounting standards. IASB is based in London. It has also provided the ‘Conceptual Framework for Financial Reporting’ issued in September 2010 which provides a conceptual understanding and the basis of the accounting practices under IFRS.

Purpose of financial statements

 Financial statements are a structured representation of the financial position and financial performance of an entity. The objective of financial statements is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions. Financial statements also show the results of the management’s stewardship of the resources entrusted to it. To meet this objective, financial statements provide information about an entity’s:

(a) Assets;

(b) Liabilities;

(c) Equity;

(d) Income and expenses, including gains and losses;

(e) Contributions by and distributions to owners in their capacity as owners; and

(f) Cash flows.

This information, along with other information in the notes, assists users of financial statements in predicting the entity’s future cash flows and, in particular, their timing and certainty.

A complete set of financial statements comprises: 01. A statement of financial position 02. A statement of profit or loss and other comprehensive income 03.A statement of changes in equity 04. A statement of cash flows 05. Notes to the financial statements including summary of Accounting policies

The components of other comprehensive income include:

(a) Changes in revaluation surplus (see IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets);

(b) Measurements of defined benefit plans (see IAS 19 Employee Benefits);

(c) Gains and losses arising from translating the financial statements of a foreign operation (see IAS 21 the Effects of Changes in Foreign Exchange Rates);

(d) Gains and losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with paragraph 5.7.5 of IFRS 9 Financial Instruments;

(da) gains and losses on financial assets measured at fair value through other comprehensive income in accordance with paragraph 4.1.2A of IFRS 9.

(e) the effective portion of gains and losses on hedging instruments in a cash flow hedge and the gains and losses on hedging instruments that hedge investments in equity instruments measured at fair value through other comprehensive income in accordance with paragraph 5.7.5 of IFRS 9 (see Chapter 6 of IFRS 9);

(f) for particular liabilities designated as at fair value through profit or loss, the amount of the change in fair value that is attributable to changes in the liability’s credit risk (see paragraph 5.7.7 of IFRS 9);

(g) changes in the value of the time value of options when separating the intrinsic value and time value of an option contract and designating as the hedging instrument only the changes in the intrinsic value (see Chapter 6 of IFRS 9); and

(h) Changes in the value of the forward elements of forward contracts when separating the forward element and spot element of a forward contract and designating as the hedging instrument only the changes in the spot element, and changes in the value of the foreign currency basis spread of