Bangladesh needs structured financial reporting framework: WB

Bangladesh needs to develop a structured financial reporting framework for state-owned enterprises and other public sector entities to accelerate economic growth and quality of service delivery, says a new World Bank report.
The report launched on Sunday marking the Observance of Standards and Codes (ROSC) 2014 also recommends that the Company Act needs to clarify the financial reporting and auditing frameworks, supported by a strong and effective enforcement mechanism, reports UNB.
The report identified several challenges, including the absence of a financial reporting framework in the state-owned commercial banks, and suggested having a well-defined strategy and regulatory framework for the accountancy and audit profession.
It said key regulators should strengthen their capacity for reviewing the financial statements of the companies they regulate to ensure compliance with laws and financial reporting standards. To make this happen, the country needs more qualified accountants to meet the evolving demands of both the public and private sectors.
"Bangladesh needs to increase investor's confidence and boost private investment to achieve its vision of moving up comfortably to middle- income country status from the current low middle-income status," said Christine Kimes, Acting Country Head, World Bank Bangladesh.
"Accelerating reforms to improve the quality of financial reporting and auditing will strengthen capital markets and enhance accountability and transparency of public and private sector entities." she added.
The ROSC- Accounting and Audit report is part of a 12-module joint World Bank-IMF initiative to assist member countries to strengthen their financial systems by improving their capacity to comply with internationally recognized standards and codes in respect of accounting and auditing. This is the second ROSC for Bangladesh, a follow-up to the previous 2003 report.

Bangladesh needs structured financial reporting framework: WB

Bangladesh needs to develop a structured financial reporting framework for state-owned enterprises and other public sector entities to accelerate economic growth and quality of service delivery, says a new World Bank report. The report launched on Sunday marking the Observance of Standards and Codes (ROSC) 2014 also recommends that the Company Act needs to clarify the financial reporting and auditing frameworks, supported by a strong and effective enforcement mechanism, reports UNB. The report identified several challenges, including the absence of a financial reporting framework in the state-owned commercial banks, and suggested having a well-defined strategy and regulatory framework for the accountancy and audit profession. It said key regulators should strengthen their capacity for reviewing the financial statements of the companies they regulate to ensure compliance with laws and financial reporting standards. To make this happen, the country needs more qualified accountants to meet the evolving demands of both the public and private sectors. Bangladesh needs to increase investors confidence and boost private investment to achieve its vision of moving up comfortably to middle- income country status from the current low middle-income status, said Christine Kimes, Acting Country Head, World Bank Bangladesh. Accelerating reforms to improve the quality of financial reporting and auditing will strengthen capital markets and enhance accountability and transparency of public and private sector entities. she added. The ROSC- Accounting and Audit report is part of a 12-module joint World Bank-IMF initiative to assist member countries to strengthen their financial systems by improving their capacity to comply with internationally recognized standards and codes in respect of accounting and auditing. This is the second ROSC for Bangladesh, a follow-up to the previous 2003 report.