Call for Articles by ICAB

Call for Articles on 'Capital Market-Risk and Opportunity' for the January-March 2011 issue of "Bangladesh Accountant"

Articles are invited from Honorable members for the January-March 2011 issue of "Bangladesh Accountant", the quarterly Journal of the Institute. The theme of this issue would be "Capital Market-Risk and Opportunity".Write up on other issues not related to the theme can also be sent. But Editorial Board will select the articles for publication. The Editorial Board of the Council-ICAB expects that the members of the Institute would regularly contribute Articles to “The Bangladesh Accountant” keeping in view their responsibility to strengthen the Accounting Profession. Honorable members are therefore requested to please send Articles on the theme within 28 March 2011 for publication in “The Bangladesh Accountant”. It is to mention that honorarium is paid to the contributors of the original write-ups. CONTRIBUTORS OF ARTICLES ARE REQUESTED TO PLEASE ENCLOSE FULL ADDRESS AND CONTACT NUMBER ALONG WITH THE ARTICLE.

SOME IMPORTANT DEFINITIONS AS PER CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS IN SAFA COUNTRIES

In this Code, the following expressions have the following meanings assigned to them:

Advertising: The communication to the public of information as to the services or skills provided by professional accountants in public practice with a view to procuring professional business.

Audit client: An entity in respect of which a firm conducts an audit engagement. When the audit client is a listed entity, audit client will always include its related entities.

Audit engagement: An assurance engagement to provide a high level of assurance that financial statements are free of material misstatement, such as an engagement in accordance with International Standards on Auditing (ISAs) as adopted by the respective Member Body of SAFA. This includes a Statutory Audit which is an audit required by national legislation or other regulation.

Assurance client: An entity in respect of which a firm conducts an assurance engagement.

Assurance engagement: An engagement conducted to provide:

(a) A high level of assurance that the subject matter conforms in all material respects with identified suitable criteria; or

(b) A moderate level of assurance that the subject matter is plausible in the circumstances. This would include an engagement in accordance with the International Standard on Assurance Engagements (IASE) issued by the International Auditing and Assurance Standards Board (IASSB) or in accordance with specific standards for assurance engagements issued by the IASSB such as an audit or review of financial statements in accordance with ISAs as adopted by the respective Member Body of SAFA.

Assurance team: (a) All professionals participating in the assurance engagement;

(b) All others within a firm who can directly influence the outcome of the assurance engagement, including: those who recommend the compensation of, or who provide direct supervisory, management or other oversight of the assurance engagement partner in connection with the performance of the assurance engagement. For the purposes of an audit engagement this includes those at all successively senior levels above the lead engagement partner through the firm's chief executive; those who provide consultation regarding technical or industry specific issues, transactions or events for the assurance engagement; and those who provide quality control for the assurance engagement; and

(c) For the purposes of an audit client, all those within a network firm who can directly influence the outcome of the audit engagement.

Client account: Any bank account, which is used solely for the banking of clients' monies.

Close family: A parent, non-dependent child or sibling.

Direct financial interest: A financial interest:

(a) Owned directly by and under the control of an individual or entity (including those managed on a discretionary basis by others); or

(b) Beneficially owned through a collective investment vehicle, estate, trust or other intermediary over which the individual or entity has control.

Directors and officers: Those charged with the governance of an entity, regardless of their title, which may vary from country to country.

Existing accountant: A professional accountant in public practice currently holding an audit appointment or carrying out accounting, taxation, consulting or similar professional services for a client.

Financial interest: An interest in an equity or other security, debenture, loan or other debt instrument of an entity, including rights and obligations to acquire such an interest and derivatives directly related to such interest.

Firm: (a) A sole practitioner, partnership or corporation of professional accountants;

(b) An entity that controls such parties; and

(c) An entity controlled by such parties.

Immediate family: A spouse (or equivalent) or dependent.

Independence: Independence is:

(a) Independence of mind - the state of mind that permits the provision of an opinion without being affected by influences that compromise professional judgment, allowing an individual to act with integrity, and exercise objectivity and professional skepticism; and

(b) Independence in appearance - the avoidance of facts and circumstances that are so significant a reasonable and informed third party, having knowledge of all relevant information, including any safeguards applied, would reasonably conclude a firm's, or a member of the assurance team's, integrity, objectivity or professional skepticism had been compromised.

Indirect financial interest: A financial interest beneficially owned through a collective investment vehicle, estate, trust or other intermediary over which the individual or entity has no control.

Lead engagement partner in connection with an audit: the partner responsible for signing the report on the consolidated financial statements of the audit client, and, where relevant, the partner responsible for signing the report in respect of any entity whose financial statements form part of the consolidated financial statements and on which a separate stand-alone report is issued. When no consolidated financial statements are prepared, the lead engagement partner would be the partner responsible for signing the report on the financial statements.

Listed entity: An entity whose shares, stock or debt are quoted or listed on a recognized stock exchange, or are marketed under the regulations of a recognized stock exchange or other equivalent body.

Network firm: An entity under common control, ownership or management with the firm or any entity that a reasonable and informed third party having knowledge of all relevant information would reasonably conclude as being part of the firm nationally or internationally.

Objectivity: A combination of impartiality, intellectual honesty and a freedom from conflicts of interest.

Office: A distinct sub-group, whether organized on geographical or practice lines.

Practice: A sole practitioner, a partnership or a corporation of professional accountants, which offers professional services to the public.

Professional accountant: A person who is a member of a SAFA member body.

Professional accountant in business: A professional accountant employed in such areas as commerce, industry, service, the public sector, education, the not for profit sector, regulatory bodies or professional bodies.

Professional accountant in public practice: Each partner or person occupying a position similar to that of a partner, and each employee in a practice providing professional services to a client irrespective of their functional classification (e.g., audit, tax or consulting) and professional accountants in a practice having managerial responsibilities. This term is also used to refer to a firm of professional accountants in public practice.

Publicity: The communication to the public of facts about a professional accountant, which are not designed for the deliberate promotion of that professional accountant.

Receiving accountant: A professional accountant in public practice to whom the existing accountant or client of the existing accountant has referred audit, accounting, taxation, consulting or similar appointments, or who is consulted in order to meet the needs of the client.

Related entity: An entity that has any of the following relationships with the client:

(a) An entity that has direct or indirect control over the client provided the client is material to such entity;

(b) An entity with a direct financial interest in the client provided that such entity has significant influence over the client and the interest in the client is material to such entity;

(c) An entity over which the client has direct or indirect control;

(d) An entity in which the client, or an entity related to the client under (c) above, has a direct financial interest that gives it significant influence over such entity and the interest is material to the client and its related entity in (c); and

(e) An entity which is under common control with the client (hereinafter a "sister entity") provided the sister entity and the client are both material to the entity that controls both the client and sister entity.

Solicitation: The approach to a potential client for the purpose of offering professional services.

Bangladesh Professional: Professional Links

Bangladesh Professional: Professional Links: "The Institute of Chartered Accountants of Bangladesh









International Federat..."

What is PERSONALITY?

Personality:

Personality is a concept that we use continuously in our day-to-day routine when dealing with people. We talk about people as having a good personality or a bad personality or arrogant and aggressive personality. 

 According to -

Salvatore Maddi “personality is a stable set of characteristics and tendencies that determine those commonalties and differences in the psychological behavior (thought, feeling and actions) of people that have continuity in time and that may not be easily understood as the sole result of the social and biological pressures of the moment.”

S.P.ROBBINS  “personality is the sum total of way in which an individual reacts and interacts with others”

KREITNER “personality is defined as the combination of stable physical and mental characteristics that given the individual his or her identity”

ATKINSON “personality refers to the characteristic patterns of behavior and way of thinking that determine a person’s adjustments to his environment”

LUTHANS “personality means how people affect others and how they understand and view themselves”

Above definition summarized following features

• Identifies stable,physical and mental characteristics.
• Values and interest
• Individual identity
•  Identify whole interaction

Definition of Terms as per IFRS 1(Appendix A)

This appendix is an integral part of IFRS. 

Date of transition to IFRS 

The year starts oldest for which the entity presenting format complete comparative IFRS within its financial statements presented in accordance with IFRS. 

Cost attributed 

An amount is used as a substitute for the cost or the depreciated cost at the date determined. In the subsequent depreciation or amortization the entity use the initially recognized asset or liability at certain date, and that this cost was equivalent to the cost attributed. 

Fair value 

The amount by which an asset could be exchanged or cancelled a liability among stakeholders and duly informed in a transaction realizable arm's length. 

First financial statements in accordance with the IFRS 

The first annual financial statements in which an entity adopts International Financial Reporting (IFRS), through declaration, explicit and unreserved compliance with IFRS. 

Entity adopts IFRS for the first time (or first-time adopter) 

The entity that presents its first financial statements in accordance with lFRS. 

International Financial Reporting Standards (IFRS)

Rules and Interpretations adopted by the Council of International Accounting Standards (IASB). These standards include: 

(a) International Financial Reporting Standards; 

(b) International Accounting Standards; 

(c) Interpretations, whether caused by the Committee on International Standards Interpretations of Information Financier (IFRIC), or the old Interpretations (SIC). 

Balance opening IFRS 

The stock of the entity (published or not) on the date of transition to IFRS. 

Previous GAAP

 By: http://www.WorldGAAPInfo.com

The basis of accounting that the entity to take last for the first time, used immediately before applying IFRS. 

Date 

Presentation 

First reporting period under IFRS 

The end of last year covered by financial statements or by an interim financial report. The reporting period ending on the date of submission of first financial statements as per IFRS.

Bangladesh Professional: Taxation

Bangladesh Professional: Taxation: "Tax Rate (Assessment Year- 2010-2011) : Other than Company : For individuals (other than female taxpayers, senior taxpayers of 65 years a..."

Objective of internal audit

The role of internal auditor has expanded in recent years as internal auditors seek to monitor all aspects (not just accounting) of organization, and add value to their employee. The work of internal auditor still prescribed by the management but it may cover the following broad areas:

• Review the accounting and internal control system
• Examination of financial and operating information
• Review of the economy, efficiency and effectiveness of operations
• Review of compliance with laws, regulation and other external requirements with the policies and procedures
• Review of the safeguarding of assets
• Review of the implementation of corporate objectives
• Identification of significant business and financial risks, monitoring the organization risk management policies
• Special investigation into particular areas, for example suspected fraud

                                                                                                                      

Internal Audit

Internal Audit

Internal audit is an appraisal or monitoring activity designed by the management and directors for the review of the accounting and internal control systems as a service to the entity. It functions by, amongst other things, examining, evaluating and reporting to management and the directors on the adequacy and effectiveness of the components of accounting and internal control system.

Why needed:

Internal audit departments are normally a feature of larger organization. The need for internal audit will depend on:

• The scale, diversity and complexity of company’s activities
• The number of employees
• Cost benefit considerations
• Changes in organizational structures, reporting process or underlying information systems
• Changes in key risks
• Problems with internal control systems
• An increase no of unexplained or unacceptable events

Example: Cynthia Cooper who was the vice president internal audit dept. of World Com and discovering the fact that billions of dollars of operating costs had been capitalized turning a $662 million loss into a $2.4 million profit in 2001.

IAASB meeting was held on September 20-24, 2010 in St. Julian's, Malta.

IAASB Meetings
The most recent IAASB meeting was held on September 20-24, 2010 in St. Julian's, Malta.
In addition to the projects discussed in this eNews, the IAASB deliberated issues relating to the following projects:

• Revision of International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Statements
• Development of ISAE 3410, Assurance on a Greenhouse Gas Statement
• Revision of International Standard on Review Engagements (ISRE) 2400, Engagements to Review Financial Statements
• Revision of International Standard on Auditing (ISA) 720, The Auditor's Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements
• Issues relating to the audit of financial statement disclosures

The IAASB will meet in Orlando, Florida, on December 6-10, 2010. As a reminder, all meeting agenda materials are publicly available and posted on the IAASB's website in advance of IAASB meetings. In addition, audio recordings are posted after the meetings. Visit www.iaasb.org/Meetings.php.

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Professional Examination Routine December 2010

ICAB New Curriculum

1/15/ICAB-2010 04 October 2010


CIRCULAR
In continuation of the Institute’s Circular of even number dated 28 March, 2010 regarding ICAB New Curriculum, the Council ICAB in its meeting held on 05 July & 19 July 2010 respectively resolved that the Examination Structure and Conversion Criteria as under would be followed by the examinees of ICAB:

Eligibility for examination after registration:

The students will be allowed to sit for the examination for the first time after 10(ten) months from the date of registration and this ten-month period will be counted from the date of registration up to the first day of May for the examination of May-June session and up to the first day of November for the examination of November-December session.

Clarification of Attempts

a. All the papers of Knowledge Level must be completed within 4 (four) years from the date of registration, or in 06 (six) consecutive attempts counting from the first eligible attempt of the student concerned, whichever is later. Here an available opportunity to sit for any or more or all papers of Knowledge Level examination will be considered to be an attempt irrespective of whether the student concerned actually avails the opportunity or not (i.e. whether he/she actually sits for the examination or not);

b. All the papers of Application Level must be completed within 3(three) years after the completion of Knowledge Level (i.e. in maximum six consecutive examinations after the completion of Knowledge Level); and

c. All the papers of Advanced Stage (Integration +Case Study) must be completed within 3(three) years after the completion of Application Level (i.e. in maximum six consecutive examinations after the completion of Application Level).

Old Stream Students

1. PE-I Level:

Students who: (i) have neither passed, nor got exemption from, any paper or half paper of PE-I level, or (ii) have either passed, or got exemption from, one or more full/half papers (but not all the papers) of PE-I level must complete:

a. All the relevant papers of Knowledge Level by November-December 2012 examination (inclusive);

b. All the relevant papers of Application Level within 3(three) years after the completion of Knowledge Level (i.e. in maximum six consecutive examinations after the completion of Knowledge Level); and

c. All the papers of Advanced Stage including Case Study within 3(three) years after the completion of Application Level (i.e. in maximum six consecutive examinations after the completion of Application Level).

2. PE-II Level:

Students who have passed PE-I, but: (i) have neither passed, nor got exemption from, any paper of PE-II Level, or (ii) have either passed, or got exemption from, one or more papers (but not all the papers) of PE-II Level must complete:

a. All the relevant papers of Knowledge Level by November-December 2013 examination (inclusive);

b. All the relevant papers of Application Level within 3(three) years after the completion of Knowledge Level (i.e. in maximum six consecutive examinations after the completion of Knowledge Level); and

c. All the papers of Advanced Stage including Case Study within 3 (three) years after the completion of Application Level (i.e. in maximum six consecutive examinations after the completion of Application Level).

3. PE-III Level:

Students who have passed PE-II, but: (i) have neither passed, nor got exemption from, any paper or half paper of PE-III Level, or (ii) have either passed, or got exemption from, one or more full/half papers (but not all the papers) of PE-III Level, and (iii) thus have not qualified as CA, must complete:

a. All the relevant papers of Knowledge Level and Application Level by May-June 2014 examination (inclusive); and

b. All the papers of Advanced Stage including Case Study within 3(three) years after the completion of Knowledge and Application Levels (i.e. in maximum six consecutive examinations after the completion of Knowledge and Application levels).

The above students will be allowed to sit for the relevant papers of both the Knowledge Level and Application Level examinations in the same session.

Note: Item No.1 will come into force immediately. Item No.2 & 3 will come into force immediately after the PE-II and PE-III level examinations are discontinued respectively.

Conversion Course

1. PE-I: Passed, or exempted from, Financial Accounting

Attend and successfully complete a conversion course on “Preparing Limited Company Accounts” (30 hours), organized by ICAB to obtain exemption from PS(K) Accounting.

2. PE-II: Passed Advanced Financial Accounting

Attend and successfully complete a conversion course on “Principal differences between IFRS and Bangladesh GAAP and most commonly applicable BAS/BFRS” (30 hours), organized by ICAB to obtain exemption from Financial Accounting.

Note: Students will be assessed by a combination of end-of-course test, attendance records and in-course test(s) by teachers. If on assessment a student does not pass, he/she will have to pass the re-sit test to be arranged within 02 months after the end-of-course test. Students who do not satisfactorily complete the course will have to sit the main paper(s) for which they were working to obtain exemption.

By order of the Council-ICAB

N I Chowdhury FCA

Secretary-ICAB

TO : ALL CA FIRMS

ALL NOTICE BOARDS OF ICAB

Members of the Institute of Chartered Accounts of Bangladesh (ICAB) are eligible to join the ICAEW

Members of the Institute of Chartered Accounts of Bangladesh (ICAB) are eligible to join the ICAEW. Below are details of your entry requirements and how to apply for ICAEW membership. Once you have joined the ICAEW, you will be entitled to use the designation 'ACA'.

Minimum entry requirements

Members of the ICAB who have obtained membership by complying with its training and examinations requirements can become a member of the ICAEW. You must maintain ICAB membership to continue to be eligible for ICAEW membership, and comply with our CPD regulations and Code of Ethics.
ICAB members must pass ICAEW’s final three examinations:

• Technical Integration - Business Reporting
• Technical Integration - Business Change
• Case Study

You must also complete ICAEW’s Structured Training in Ethics which is an online programme accessed via the ICAEW website or follow the link -http://www.icaew.com/index.cfm/route/171219/icaew_ga/en/Qualifications/Train_for_the_ACA/ACA_international/Bangladesh/ACA_in_Bangladesh

A good news

Bangladesh Professional is now listed with http://www.bgdportal.com/

 and

You can view the listing here:


http://www.bgdportal.com/Education/Student-Association/Bangladesh-Professional-l4159.html

ICAB's Clarification on Advertisement published on the Daily Prothom Alo dated 16 September 2010

1/1/ICAB(10)


17 September 2010



To

Honourable Council Members

The Institute of Chartered Accountants of Bangladesh (ICAB)

Dhaka



Dear Sirs,



ICAB's Clarification on Advertisement published on the Daily Prothom

Alo dated 16 September 2010



On September 15, 2010 ICAB issued a Work Order in favour of the Daily

Prothom Alo for publication of the following Advertisement in their

daily. The daily Prothom Alo Advertisement Section duly received our

Work Order and Advertisement matter under signature and seal for

publication on 16 September 2010.



Quote



Notice

Special Coaching Classes for PE-II and PE-III examinees



This is for information of all concerned that the PE-II and PE-III

examinations will be held for the last time in Nov-Dec 2010 and

May-June 2011 respectively. The Institute has decided to provide

special coaching assistance to the examinees which will be commenced

from 30 September 2010. Students intending to attend the Special

Coaching Classes will be required to Enroll/Register their names and

deposit fee @ Tk. 5000/- per subject in the form of Pay Order/Demand

Draft drawn in favour of ICAB from any scheduled Bank of Bangladesh.

The fees are to be deposited to the Accounts Section of ICAB. The

last date for payment of fees is 23 September 2010.



For further information, please contact:



Sr. Assistant Director (Education)-ICAB

Tel: 9115340, 9117521





N I Chowdhury FCA

Secretary-ICAB

Unquote



Instead of publishing our above mentioned Advertisement, they

published a different Advertisement which was not relevant to our

supplied matter. The Prothom Alo Editor has however, regretted the

incidence and assured ICAB that the above Advertisement will be

published on September 17, 2010.

We are extremely sorry for what has happened due to inadvertence of

the Prothom Alo Advertisement section.

This is for your kind information and reference please.







NI Chowdhury FCA

Secretary-ICAB



Copy to: All Members of the Institute

Bangladesh Professional: Professional Links

Bangladesh Professional: Professional Links: "www.icab.org.bd/ http://www.ifac.org/ http://www.ifrs.com/ http://www.ifrs.org/ http://www.ebook.com/"

Bangladesh Professional: VAT

Bangladesh Professional: VAT: "Value Added Tax (i) VAT is imposed on goods and services at import stage, manufacturing, wholesale and retails levels; (ii) A unifo..."

information aid: Economics

information aid: Economics: " What is monetary policy? What are the principle objectives of the monetary policy? Monetary policy is the attitude of the political autho..."

Issues of monthly News Bulletin June 2010 of ICAB

• Power Development Vital for Economic Growth


• IFAC News

• An Interview with Sylvie Voghel - Chair, SMP Committee, IFAC

• Library Attendance June 2010

• Admission as Associate

• Admission as Fellow

• Permission to Start Practice

• Meetings and Programmes held in the Month of June 2010

• Member's Achievement

• News Office Bearers of UK Chapter for 2010-11

For more details visit http://www.icab.org.bd/

What is SAP?

The name SAP is acronym for Systems, Applications and Products in Data Processing.
SAP is an extremely complicated system where no one individual can understand all of it.
SAP runs on a fourth generation programming language language called Advance Business Application Programming (ABAP).
It have many of the features of other modern programming languages such as the familiar C, Visual Basic, and Power Builder.

What is ERP?

Enterprise Resource Planning (ERP)

- is an integrated computer-based system used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment.