Overview of Accounting system in Bangladesh
Companies Act regulates accounting system in Bangladesh. Companies Act is applicable for all of companies in Bangladesh with no relationship of scale. However, if other laws except Companies Act require some kinds of the business to disclosure financial statements, these kinds of business should create financial statements based the laws.
① Accounting period
In Bangladesh, the accounting period can be decided optionally within 15 mouths. And if acquiring the permission of Registration Office, it is possible to be extended for at most 18 mouths. And although generally the taxation period is from June to July, it can be choose by companies to start from December.
② Accounting books
Accounting books must be kept in the registered office and can be checked during the working time. And it must be kept for 12 years and all of the vouchers should also be kept. If Registration Office has a research in companies, accounting books are required.
Accounting Standards in Bangladesh
Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS) are using International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). The accounting standards are applicable for all of the companies in Bangladesh. But because of simplify of the framework for small-medium-sized businesses in the review of World Bank, maybe accounting standards for small-medium-sized businesses will be discussed in the future.
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