...Management accounting is not new in any sense of the world. The origins of modern management accounting can be traced to the emergence of managed, hierarchical enterprises in the early nineteenth century (Johnson and Kaplan, 1987) [2]. The Industrial Revolution in the early nineteenth century resulted in the emergence of a factory system that dramatically changed the production process (Ashton, D., Hopper, T. and Scapens, R.W. 1991) [3]. This has created a new demand for accounting information. Market information, which had automatically provided details of materials and piecework labor costs incurred in meeting each customer’s order, was no longer available. In particular, information was required to determine the cost of the internal operations and also to measure the efficiency of converting materials leading to the finished product (Parker, 2002) [4]. Johnson and Kaplan (1987) [2] suggest that, notwithstanding the impact of the Industrial Revolution, the emergence and rapid growth of railways in the mid-nineteenth century was the major driving force in the development of management accounting systems. New measures such as cost per ton-mile, cost per passenger mile and the ratio of operating expenses to revenues were created and reported on a segmental and regional basis. Many of the innovative management accounting measures developed by railway companies were subsequently absorbed and developed by the other business sectors. During the nineteenth century the development...
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...Control Practices of Bangladesh. Abstract This study attempts to examine the influence of national culture and other forces on management control practices of Bangladesh by applying Schneider and Barsoux 2003 culture/ control profiles and some other alternative theories. A triangulation of research methods are followed for this purpose. Evidence from telephone interviews, researcher’s personal experience and other empirical works are used to validate the ingredients of Schneider and Barsoux control profiles for Asian region and different alternative theories on management control practices of Bangladesh. Empirical works from other scholars also suggest that several forces like institutional pressure, ecopolitical conditions and history etc. are more influential than culture in directing the course of management control practices in Bangladesh. The major limitation of this study is its usage of limited data sets. The findings will be useful in understanding different forces that are shaping management control practices in a transitional economy, Bangladesh. 1 1.0 Introduction Previous researches (Hofstede 1991; Schneider and Barsoux, 2003) confirm that management control is practiced differently in different parts of the world and the development of national management practices is a function of its environmental factors. Although it is hoped that globalization, technological development and improved methods will make harmonization of management control practices all over...
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...Abstract Creative accounting, as a matter of approach, is not objectionable by itself. However, when unethical elements make intrusion, the resultant accounting details become anything but true and fair. Creativity in such context is like referring to a half glass of water as half-full instead of describing it as half empty. While both statements are factually correct, they paint different picture and thus convey different images. Creativity in company accounting may arise under at least three different financial market conditions. The first is when a company floats its shares to attract investors to subscribe to such shares either at par or at a premium, depending on the financial market evaluation of the company’s future prospects. The second is when the company whose shares are already listed in a stock exchange, wants to paint an attractive picture of its financial conditions so that the shares may be quoted at a premium. Finally, a company having its shares listed in the stock exchange may declare and pay high dividends based on inflated profits through overvaluation of assets, undervaluation of liabilities and change in systems of stock valuation that may boost the image of the company at least in the short run. Unethical considerations in creative accounts have developed to such depths that terms like fraud audit and forensic accounting have gained currency and are becoming new professions. Accounting practitioners and auditors are increasingly required to appear...
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...Introduction Accounting standards establish the rules for accounting in a country and prescribe what should be reported in a company’s financial statements in that territory. Their purpose is to ensure that consistent approaches of accounting are adopted nationally. They minimize the risk of material misstatement in accounts and help investors make decisions by ensuring they can get comparable information. Accounting standards, as laid down by a country’s law, are applicable to all companies registered within its territory. But in order to ensure the success, the regulating process must be established. In Bangladesh BFRS and BAS are used as the accounting and reporting standards for the companies. Companies are obliged to follow those standards and laws and some are free from such restrictions. In this assignment, a theoretical analysis has been made regarding the accounting regulation and standard setting process in Bangladesh. 2. Accounting Regulation in Bangladesh All the companies in Bangladesh (both public limited companies and private limited companies) are regulated by The Companies Act of 1994 that provides the basic requirements for the companies. It includes the requirements about financial reporting and accounting practices. But most importantly, this act is silent about either Bangladesh Accounting Standards (BAS) or International Accounting Standards (IAS),. description about the laws and regulations for different types of entities in Bangladesh has been given...
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...Governance-Its Problems & Prospects in Banking Industry in Bangladesh Begum Ismat Ara Huq* and Mohammad Zahid Hossain Bhuiyan** Corporate Governance ensures to bring transparency, accountability and professionalism in the management system of a corporate body that enhances the credibility and acceptability to the shareholders, employees, potential investors, customers, lenders, governments and all other stakeholders. This is more true in case of Banking Industry. Since Banks deal in public money, public confidence is of outmost importance in this Industry. The study aims at finding out problems & deficiencies involved in Corporate Governance practice in Banking Industry in Bangladesh and also suggesting ways and means to remove the same in order to make the Corporate Governance practice sound and effective. In this study, both the primary and secondary data were used. The primary data relating to problems involved in Corporate Governance practice and suggestions to remove the same were collected on the basis of a questionnaire by interviewing 24 randomly selected Bank personnel such as Directors of the Board as the internal part of management and the Auditors as the external group. The secondary data were collected through an extensive literature survey on the subject. The study has identified some major problems in Corporate Governance practice in the Banking Industry of the country. The prospect of Corporate Governance practice is bright in Banking Industry in the country as reported...
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...Governance-Its Problems & Prospects in Banking Industry in Bangladesh Begum Ismat Ara Huq* and Mohammad Zahid Hossain Bhuiyan** Corporate Governance ensures to bring transparency, accountability and professionalism in the management system of a corporate body that enhances the credibility and acceptability to the shareholders, employees, potential investors, customers, lenders, governments and all other stakeholders. This is more true in case of Banking Industry. Since Banks deal in public money, public confidence is of outmost importance in this Industry. The study aims at finding out problems & deficiencies involved in Corporate Governance practice in Banking Industry in Bangladesh and also suggesting ways and means to remove the same in order to make the Corporate Governance practice sound and effective. In this study, both the primary and secondary data were used. The primary data relating to problems involved in Corporate Governance practice and suggestions to remove the same were collected on the basis of a questionnaire by interviewing 24 randomly selected Bank personnel such as Directors of the Board as the internal part of management and the Auditors as the external group. The secondary data were collected through an extensive literature survey on the subject. The study has identified some major problems in Corporate Governance practice in the Banking Industry of the country. The prospect of Corporate Governance practice is bright in Banking Industry in the country as reported...
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...International Journal of Accounting and Financial Management Research (IJAFMR) ISSN:2249-6882 Vol.2, Issue 2 June 2012 14-23 © TJPRC Pvt. Ltd., PRACTICE OF HUMAN RESOURCE ACCOUNTING IN BANKING SECTOR OF BANGLADESH SYED MOUDUD-UL-HUQ1 & PANUEL ROZARIO PRINCE 2 1 Lecturer Department Of Business Administration, Mawlana Bhashani Science And Technology University, Santosh, Tangail. 2 Lecturer, Department Of Business Administration, Victoria University Of Bangladesh, 15/11/APanthapath,Dhaka. ABSTRACT Success and failure of corporate undertakings purely depends upon the human resources. Now-adays human resource is a prime concern for all the institutions especially for financial institutions as they have required investing a huge amount of capital. In this context, it is worth while to examine human resource accounting practices in corporate sector i.e. banking sector in Bangladesh. For the convenience of completing the research paper successfully it has been prepared based on a sample of 25 commercial banks and practice of human resource accounting has been measured on five broad indicators which incorporates several sub indicators. In the survey it has found only few banks had mechanism to practice of human resource accounting in 2010 and now in 2011 almost the same number of banks has such mechanism and score improved by .09 due to the some enhancement program in this regard and it has been found that banking sectors in Bangladesh are often alleged as too vague in the...
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...the ever-changing global economic demands dominated by WTO regime, the ICAB is fast becoming a body of professionals whose have ability. The main research objective is to determine "the development of financial accounting and the role of ICAB". Their literature review describes the main viewpoints in the literature, strategies of various viewpoints and so on. The development of accounting not very easy project or analysis subject in accounting policy. So many companies are trying to do their best to develop their accounting in finance. Which prompt us to formulate some hypotheses; this methodology helps us to see the development of financial accounting as a spot shoot. This methodology also enables us to explain the academic value of our research on this topic; and enable us to define the method and technique of financial accounting. The Institute of Chartered Accountants of Bangladesh (ICAB) has been constantly pursuing that noble duty in the CA professionals. ICAB is the sole apex body responsible for regulating the profession of accountants and the matters connected therewith in Bangladesh established under the Presidential Order No. 2 of 1973. ICAB has two regional Offices and two regional committees in Dhaka and Chittagong. Introduction: A field of accounting that treats money as a means of measuring economic performance instead of as a factor of production. It encompasses the entire system of monitoring and control of money as it...
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...Assignment on ACT-201 Role of “ICAB” and “ICMAB” in Accounting Development of Bangladesh Submitted for: Netai Kumar Saha Lecturer Dept. of B.B.A East West University Submitted by: Md. Saim Ur Rahman Id: 2013-1-10-130 ACT-201 Sec-04 Submission Date: 29th March, 2015 Plot No-A/2, Main Road, JahuruIslam City Aftabnagar, Dhaka-1212, Bangladesh. ICAB The Institute of Chartered Accountants of Bangladesh (ICAB) is the national professional accountancy body in Bangladesh. It is the sole organization in Bangladesh with the right to award the Chartered Accountant designation. It has around 1,400 members. The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body of Bangladesh established under the Bangladesh Chartered Accountants Order 1973 (Presidential Order No. 2 of 1973). Top of Form Bottom of Form Establishment: The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body of Bangladesh established under the Bangladesh Chartered Accountants Order 1973 (Presidential Order No. 2 of 1973). ICAB's Administrative Ministry: The Ministry of Commerce, Government of the People's Republic of Bangladesh is the administrative Ministry of ICAB. ICAB's Vision: To meet the ever-changing global economic demands dominated by WTO regime, the ICAB is fast becoming a body of professionals whose expert services will be highly sought after- - To anticipate, meet and exceed the rising...
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...of Management Accounting Techniques in Decision-making: An Empirical Study on Manufacturing Organizations in Bangladesh Farjana Yeshmin* and Md. Amran Hossan** Management accounting is concerned with gathering and reporting internal financial information to facilitate decision-making process. As management accounting is not required to conform to national accounting standards, it allows business to customize the management accounting techniques as per demand of company. As a process of this customization, some advanced quantitative as well as number of qualitative techniques accompany with the traditional techniques, have been emerged to cater the information need in decision making. This study attempts to measure the significance of management accounting techniques in decision making of the selected manufacturing organizations in Bangladesh. In doing so, a total of 74 manufacturing organizations have been surveyed with a structured questionnaire by using 5 point Likert Scale measurement from different categories of manufacturing organizations. Findings reveal that cash flow statement analysis, ratio analysis, budgetary control, CVP analysis, variance analysis and fund flow analysis have been frequently high-ranking techniques. Secondly, the authors have recognized five factors to calculate the variability in decision-making with the help of rotated component matrix which shows that 75.125 % of the total variability has found in the usage of management accounting techniques. Finally...
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...global basis. It also ensures the conformance of corporations with the interests of investors and society, by creating fairness, transparency and accountability in business activities among employees, management and the board (Oman, 2001). Again, GCG increase public confidence in a corporation, and lowers the cost of capital for investment. According to a McKinsey study (2002), over 60% of investors cite Good Governance practices in a corporation as a key factor in their investment decisions. Today, GG becomes a slogan and a pride. Here, we can uses accounting as a mean for establishing and retaining corporate governance. Accounting is a process of compiling information for reporting the internal affairs of any entity to different stakeholders at the end of a certain interval. It is defined as the language of business and can play a vital role for ensuring and continuing with GCG. as a discipline, accounting practice is highly controlled by accounting standards in a global set up. As accounting becomes an international discipline and the practice of accounting is harmonized aligned with the varied needs of stakeholders, it can be used as a tool for ensuring good governance within a...
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...In a country like Bangladesh where the unethical aspects of creative accounting are rampant, the practice of forensic accounting (i.e., investigative accounting done by forensic accounting consultants to solve problems in courts) needs to be introduced and recognized. Forensic accounting’s “Financial Statement Alert” scrutinizes public companies’ questionable accounting practices, advises investors to examine carefully shareholder letters and management’s discussion and analysis of financials, and to try to read between the lines by looking at four basic areas: (i) extent of a company’s earnings from operations, as opposed to onetime occurrences, warning signs in the financial statements (e.g., shrinking profit margins, or fast growing inventories or receivables, or insufficient cash generation, etc.), (iii) changing accounting methods to more favorable one, or using accounting methods different from the ones the competitors use, and (iv) assets or liabilities on (or off) the balance sheet that might affect future earnings . Creative accounting has long been in practice in Bangladesh. Most of the companies in Bangladesh create accounts in an undesirable way to attract investors, while some of the companies practice it with a good motive of refining the accounting system. It is a good sign. Another healthy sign is that experts have started feeling that the unethical practice of creative accounting should be stopped by all means. To detect and prevent the pitfalls of creative...
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... Organizational Behavior: A study on “Analyzing Motivation Strategies, Techniques And Performance of Dhaka Bank Ltd.” Principles of Accounting: Term paper on “Accounting Practices in Square Pharmaceuticals Limited”. Human Resources Management: Research on “Occupational Safety and Health: Status in the Tannery Industry” Microeconomics: Term paper on “Structure of rice market in Bangladesh”. Principles of Management: Term paper on ‘The Management of Beximco Pharmaceuticals limited”. Managerial Accounting: Term paper on “Analyzing how to Managerial Accounting Practice of Square Pharmaceuticals limited”. Financial Management:- Term paper on “Working Capital Management of Textile Industries in Bangladesh” Production & Operation Management: Term paper on “Production & Operation Management of Shinepukur Ceramics Ltd.” Strategic Management: Case study on Sun Microsystems and General Dynamics: Compensation and Strategy (A) and also develop a case BCG Matrix. Marketing Research: A research on “The Effect of Corporate image in Formation of Customer Loyalty of the Mobile Phone industry in Bangladesh”. Corporate Finance: A research on “The Effect of Dividend Policy in Pharmaceuticals industries in Bangladesh” Financial Markets & Institutions: A report on “Investment Banking Operations of ICB Capital Management Limited”. PARTICIPANT OF THE WORKSHOP Workshop on “Research Methodology” organized by BUP, Recourse person: Dr. Muhammad Z Mamun, Professor,...
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...CORPORATE FRAUD & THE ROLES OF AUDITOR (BANGLADESH PERSPECTIVE) Submitted To: Tahmina Ahmed Lecturer Department Of Accounting And Information Systems University Of Dhaka. Submitted By: Group No. 02 ID 18003 18051 18053 18073 18089 18200 NAME Safiqur Rahman Mahadin Anik Mahmudul Islam Arnab Kumar Chakrabartty Abdullah Al Noman Namrata Chakma Date of Submission: November 11, 2014. 1|Page This Report Includes The Following Contents Chapter No. Contents Page No. 01.Introduction 1.1 1.2 1.3 1.4 Introduction. Scope of the report. Objective of the report. Limitations of the report. What is corporate fraud? Kinds of corporate frauds. Reasons for corporate fraud. Auditor’s role. Bangladesh perspective. Findings of the study. 03 03 03 04 04 05 05 06 09 10 02.Literature Review 2.1 2.2 2.3 2.4 2.5 03.Findings Of The Study 3.1 04.Conclusion & Recommendations 4.1 4.2 Conclusion. Recommendations. 12 13 05. References. 5.1 References. 14 2|Page CHAPTER 1 INTRODUCTION 1.1 WHAT IS CORPORATE FRAUD AND WHAT WE ARE GOING TO DO THROUGHOUT THE WHOLE REPORT? The term ‘Fraud’ essentially includes the use of deception to make some personal gains for oneself dishonestly obviously and create some losses for another within the organization or outside the organization. Although definitions of corporate fraud vary in different situations, most of them are based on these general themes. The term ‘Corporate Fraud’ usually includes activities such as corruption, misuse of accounts...
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...financial viability to the enterprise and enhance share holder value. For the retail and customer industry, globalization, which entails multinational operations, various financial reporting systems, and complex supply chain with wholesalers, distributors, and multiple types of retailers, not to mention multiple brand portfolios, and various types of outlets, provides significant rationales for management and boards to develop an effective GRC program. Successful corporate governance depends largely on trade-off among the various conflicting interest groups like government, society, inventors, creditors and employees of the organization. This study critically discusses the implementation practice of the corporate governance guidelines issued by Securities and Exchange Commission (SEC) in Bangladesh. Following the much reported collapses of companies such as Enron, World Com, HIH and One. Tel, corporate governance...
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