A Research Report on Financial Disclosure Regulation and Its Observance in Bangladesh: A Study of the Listed Non-Financial Companies

(As a partial fulfillment of the requirements of Master of Business Administration (M.B.A) Degree)

Submitted To Dr.Mahmuda Akter Professor Department of Accounting and Information Systems Faculty of Business Studies University of Dhaka.

Submitted By Md.Shalauddin Ahmed Roll No:(BBA)-13169 Roll No:(MBA)-347 MBA 13th Batch Section:A

Date of Submission: 15th January, 2013.

Declaration
This document is a working paper version and can be used by the author(s) as a partial fulfillment to the degree requirement in the Department of Accounting & Information Systems, University of Dhaka. The paper is an output of the research project entitled The Role of Accounting for Capital Market Development in Bangladesh, administered under the Higher Education Quality Enhancement Project (HEQEP) of the World Bank and the University Grants Commission (UGC) of Bangladesh. The paper has not been peer-reviewed or been subject to review by the editorial board of the sub-project management. The views expressed herein are those of the author(s) and do not represent the views of the sub-project management or any of the institutions related to this sub-project (Contract# 47/2012). Responsibility for all errors and misrepresentations rests with the author(s).

Copyright 2013 by Accounting for Capital Market Development (ACMD). All rights reserved. No part of this working paper may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by information storage or retrieval system, without permission from the sub-project management.

LETTER OF TRANSMITTAL January 13, 2013 Dr.Mahmuda Akter Professor Department of Accounting & Information Systems Faculty of Business Studies University of Dhaka Subject: Submission of internship report titled Financial Disclosure Regulation and Its Observance in Bangladesh: A Study of the Listed Non-Financial Companies Dear Sir, As the Internship Program is an inseparable part of our MBA Program, I was placed to a World Bank Project run by the department of Accounting and Information Systems, University of Dhaka and the project title is The role of Accounting for the capital market development of Bangladesh. The three months internship program was a great experience to me as it provided me with wide exposure to the professional environment. I have been supposed to prepare and submit a report from my findings of working in this project. I have prepared this report titled Financial Disclosure Regulation and Its Observance in Bangladesh: A Study of the Listed Non-Financial Companies. I will be glad to clarify for any queries about this report. I, therefore, hope your kind humane and consideration. Sincerely yours, Md.Shalauddin Ahmed MBA 13th Batch Section: A; ID(BBA) 13169 ( MBA-347) Department of Accounting & Information Systems Faculty of Business Studies University of Dhaka (i)

ACKNOWLEDGEMENT

At the very outset, I would like to thank Allah and then to express my gratitude towards Professor. Dr. Riazur Rahman Chowdhury, Program Director of MBA 13th Batch, Department of Accounting & Information Systems for allowing me to join this project as an intern. I am profoundly indebted to my supervisor Dr.Mahmuda Akter Professor, Department of Accounting & Information Systems, University of Dhaka. Especially I am greatly indebted to my cordial Associate Professor, Dr.Mizanur Rahman for his guidance that helped me enormously in preparing this report resourcefully. He provided overall support and assistance to the development of work plan and report outline, data analysis, and writing of this report.

The intelligence, expertise, and labor of all the staff members of the project worked behind this study and invaluable contribution to its success. I take this privilege to thank them all. Without their support I was not be able to prepare this report.

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Abstract
The study examines financial disclosure regulation and its observance in Bangladesh: a study of listed non-financial companies in Bangladesh. In doing that, the study first evaluates mandatory disclosure requirements as per the Companies Act 1994, Securities and Exchange Commission (SEC) Rules 1987 , the International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs) that have been adopted by the Institute of Chartered Accountant of Bangladesh (ICAB). Financial disclosures are identified across financial elements and for different parts of financial statements. An assessment is also made of financial disclosures in the Corporate Governance Report-2012 and other means of communicating financial information. An account is also made for disclosure requirements that are perceived to be useful but yet voluntary. At last frequency of firms compliance and disclosure adequacy across the annual report is shown in this study. Key Words: Regulatory Framework, Financial Reporting, IAS, IFRS

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Table of Contents
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