ACCOUNTING AND ITS

HISTORY IN BANGLADESH
1

OVERVIEW

What isaccounting? People in the business world consider

it to be quite important. When you plan to invest in
McDonald's stock, buy new equipment, or forecast future
sales and expenditures, you almost certainly use
accounting information. Why? Because, accounting
provides information for decision-making in the business
world
Accountingis a service-based profession that provides
reliable and relevant financial information useful in
making decisions.
2

INTRODUCTION

Accounting is the language of business. It is the system of

recording, summarizing, and analyzing an economic
entity's financial transactions. Effectively communicating
this information is key to the success of every business.
Those who rely on financial information include internal
users, such as a company's managers and employees, and
external users, such as banks, investors, governmental
agencies, financial analysts, and labor unions
Accounting is now in modern stage, most of the work is
done by software. Now you need ERP system in yours
company to ensure real-time service. The importance of
accounting is start when you start working with the
numbers in any firm or company.
3

Accounting and its History in Bangladesh

The profession ofaccountancydeveloped during

the British colonial period.Today it is represented

by two professional bodies, theInstitute of Cost &
Management Accountants of Bangladesh(ICMAB)
and theInstitute of Chartered Accountants of
Bangladesh(ICAB)
The history of accounting profession in Bangladesh
can be describe under two section Pre-Independence History
Post-Independence History

>>1850-1914: The accounting profession was legally accepted in Indian

Subcontinent by bringing company law into force in 1850
1947-1972: After separation of Indian sub-continent, the Government of
Pakistan accepted the Companies Act 1913 and the Auditors Certificate Rule
of 1932
After corrections Auditors Certificate Rule, 1950
After liberation war in 1971, Bangladesh which was formerly known as East
Pakistan was separated from Pakistan and appeared as an independent country.
The Parliament of Bangladesh made some additions and alterations of the
Companies Act 1913 and passed the Companies Act1994

Current General
Information

Generally Accepted Accounting Principles (GAAP)is a term

used to refer to the standard framework of guidelines for financial
accounting.

The Financial Reporting Standards prescribed by the Institute of

Chartered Accountants in Bangladesh (ICAB) are known as
Bangladesh Financial Reporting Standards (BFRS, including
Bangladesh Accounting Standards, BAS).

Cont.
The National Board of Revenue (NBR)

Companies will have to prepare their annual financial statements

by following (BAS) and (BFRS).

Partnership or proprietorship firms certified by chartered

accountants.

Management is responsible for the preparation and fair

presentation of these financial statements in accordance with
Bangladesh Accounting Standards (BAS),Bangladesh financial
reporting standards (BFRS).

Importance of Accounting

Accountancy profession has its importance to record the business

transactions and to verify its accuracy. This profession is also take part
into the fastest economic development of Bangladesh
Proper maintenance of financial institution-Bank, Insurance
Company and other financial institutions are supplying capital to carry
on their business.
Preparing budget-It is necessary to prepare a budget into the
business organizations for economic development.
Determination of national income
Statistical work

Scope for Accounting jobs in Asia:

In bdJobs.com, everyday about 150 jobs are available related
to accounting and finance in Bangladesh.
Table1: Most Active Hiring markets for Accounting and Finance Professionals

2014

% of companies adding
permanent finance &
accounting employees
China
69
Brazil
63
Hong
48
Kong
Singapore 45
Germany
41
France
38
Switzerlan 37
d
The UAE
37

2013

% of companies adding
permanent finance &
accounting employees
China
66
Brazil
65
HK
48
Singapore
UAE
New
Zealand
France

38
35
32
32

Switzerlan 30
d

Software

SAP (Systems, Applications & Products in Data Processing)

Tally
Tally Solutions Pvt Ltdis aBangalore-based software company.
QuickBook
1983 byScott CookandTom ProulxinMountain View,
California,USA
In Bangladesh QuickBooks is established in July-2011
MYOB
Mind Your Own Business, MYOB was founded in the early 1980s by
Christopher Lee and a team of developers atTeleware, Inc.
AccPac
Sage Pro ERP, A full ERP system designed by Sage. Formerly known
as ACCPAC Pro

10

Software
There are about 50 local and foreign
companies use SAP in Bangladesh
ACI Logistic
Bangladesh Bank
Bashundhara Group
British American Toabacco
Berger Paints Bangladesh Limited
Butterfly-LG Bangladesh
Nestle Bangladesh
ROBI
Samsung
Square
Unilever

Companies use Tally in Bangladesh

Bangladesh International Airlines Ltd
University Dental College & Hospital
(UDCH) City Hospital
bKash limited
BGMEA
ALCON PHARMACEUTICALS LTD
Newport Express (BD) Ltd
Landmark Group
Amirati Developments Ltd
Dhaka Shanghai Ceramics Ltd

Companies use QuickBook in

Bangladesh
The Asia Foundation Bangladesh
Transtech
Euro Bangla Glass Ltd.
Desh Television Ltd
Amigo Properties & Developments Ltd
11

CONCLUSION
12

History says accounting is older than Finance, Economy,

Marketing. In our county, Accounting is still very demandable
subject. To work with this subject you have a big scope to get a
job. Not only in Bangladesh, As is shown you the demand for
accountant in Asia Pacific Region. And if you know the use of the
software, it will be easy to get a job and if you know wich
company using which software, and if you have knowledge for
that particular software, it could be a good advantage for you.

Economic tablet with numeric signs. Called Proto Elamite,

period(3200 BC to 2700 BC). Department of Oriental Antiquities,

[1] Iasplus, Financial reporting framework in Bangladesh [online] available from:

http://www.iasplus.com/en/jurisdictions/asia/bangladesh [Accessed Date: 26 December 2014]

[2] The Daily Star, Strict accounting standards for firms to stem tax evasion [online] available from:
http://www.thedailystar.net/strict-accounting-standards-for-firms-to-stem-tax-evasion-27503
[Accessed Date: 26 December 2014]
[3] Md.Bazlur Rahman Khan, Accounting Practice in Bangladesh [online] available from:
https://www.scribd.com/doc/60623659/073-116-020-Accounting-Practice-in-Bangladesh#download
[Accessed Date: 26 December 2014]
[4] ICAB, BAS and BFRS [online] available from: http://www.icab.org.bd/index.php?
option=com_content&view=article&id=82&Itemid=116 [Accessed Date: 26 December 2014]

Reference

[5] Hoda Vasi Cjhowdhury & Co, charterd Accountant.Independent correspondant firm, Auditors Report
and audited financeial statements of summit power limited. [Accessed Date: 26 December 2014]
[6] http://203.112.218.66/PageWebMenuContent.aspx?MenuKey=115 [Accessed Date: 26 December
2014]
[7] Wikipedia, SAP SE [online] available from: http://en.wikipedia.org/wiki/SAP_SE [accessed date: 27
December2014]
[8]SAP, A 42-year history of innovation{online] Available from: http://www.sap.com/corporateen/about/our-company/history/index.html [accessed date: 27 December2014]
[9] BD Products 24, Tally Software Bangladesh | Best Provider [online] available from:
http://www.bdproducts24.com/2013/12/tally-software-bangladesh-best-provider.html [accessed date:
27 December2014]
[10] Quick Books Bangladesh, Business Data Automation Bangladesh [online] Available from:
http://quickbooksbangladesh.webs.com/aboutus.htm [accessed date: 27 December2014]
[11] Quick Books Bangladesh, Following Companies are currently using QuickBooks in Bangladesh
[online] Available from: http://quickbooksbangladesh.webs.com/quickbooksuserlist.htm [accessed
date: 27 December2014]
[12] Tally, Clients - Tally Software Bangladesh [online] http://tallysoftware.com.bd/clients/ [accessed date:
27 December2014]
[13] YouTube, Tally Bangladesh: Hospital Management Software in Bangladesh Powered by Tally.ERP 9
[online] https://www.youtube.com/watch?v=8SnfdZUwkpI [accessed date: 27 December2014]
[14]BdJobs,Functional category [online] available from: http://www.bdjobs.com/[accessed date: 27
December2014]

14