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Strengthening Public Financial Management in Bhutan

Consultancy for implementing Bhutanese Accounting Standards Phase I in Bhutan Letter for Expression of Interest

Dear Sir/Madam,

1. Letters for Expression of interests are invited from qualified and experienced Chartered Accountant consulting firms who wish to undertake Consultancy services for Consultancy for implementing Bhutanese Accounting Standards (BAS) Phase I in Bhutan of the World Bank Project. The Royal Government of Bhutan has applied for grant from the World Bank and intends to apply part of the grant for the above Consultancy Services. Royal Government of Bhutan has established Accounting and Auditing Standards Board of Bhutan (AASBB). AASBB has decided to adopt International Financial Reporting Standards (IFRS) and has signed copyright waiver agreement with the IFRS Foundation to adopt IFRS in a phased manner aiming for full adoption and compliance by the year 2021. The standards, will be called Bhutanese Accounting Standards (BAS) during the transition period until 2021, shall be released by the AASBB in three phases. In the first phase, 18 standards (Refer Annex 1) have been issued to be implemented from January 2013 till the end of 2015. 2. The objectives of the Consultancy Services which will be carried out are: i) To assist AASBB by providing technical assistance and guidance to implementing companies, and support select companies in preparing financial statements meeting the requirements of BAS Phase 1. To study the impact of IFRS adoption, at an industry level, on various statutes/regulations and provide recommendations for changes required if any to ensure consistency. These includes the corporate income tax of companies and make recommendations to stream line the Income Tax Act wherever necessary to harmonize the Income Tax Act with the change in financial reporting that will be brought about by IFRS. The impact on Financial Institutions Act of Bhutan 1992 and Securities Exchange Regulations 1993 shall also to be part of the study. To provide recommendations to the AASBB on any revisions required in the BAS.

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3. The expected results of the consultancy services are:

i) Technical Support to AASBB by way of providing technical backstopping to AASBB, Technical Working Committee and companies in the adoption of Phased IFRS in Bhutan. This will also include attending to IFRS related technical queries and interpreting IFRS for making stakeholders understand better in successful implementation. ii) The consultants will guide and monitor the companies in implementing the BAS Phase 1 in Bhutan. iii) Conduct Trainings and workshops iv) Confirmation to the AASBB and management that about 9 companies have prepared the accounts as per IFRS. 4. The consultants who are interested in being considered for this assignment should fulfill the following criteria: i) The consultant shall have necessary infrastructure and team of experts to fulfill the requirements of the Project. ii) The consultant shall have experience in carrying out similar exercises. 5. The duration of the Consultancy Services will be 2 years and should begin from July 2013. 6. Consultants or associations of consultants, who are interested in being considered for the assignment, should submit EoI. They should support their experience in similar exercises. They should also indicate their experience in conducting similar assignment in developing countries. 7. Criteria for Evaluation of EOI The EOIs would be evaluated on the basis of the following criteria. a) Past Experience of the firm - Number of years experience - Past Experience of work of similar nature - Past experience in carrying out work in related sectors. - Experience of working with government. b) Experience of Key Personnel - Qualifications - Relevant Experience c) Financial Strength of the Consultant - Turnover figure of Last three years. 8. Expressions of Interest with the accompanying material should be submitted electronically to the Component Manager by 15 May 2013, 17.00 hrs (Bhutanese time) at the address below.
Mr. Kinzang Component 3 Manager, AASBB, WWF Building Thimphu, Bhutan Email add: kinzangk@gmail.com or thriechu@gmail.com

9. Please note that no proposals are required now. On the basis of obtained information from interested consultants, the project will prepare a shortlist of 4 to 6 consultants who will be invited to submit proposals.

Annexure I
Phase-1 Accounting Standards (2013-2015) Sl. BAS IAS Name of the Standards BAS IAS 01 Presentation of Financial Statements 1 No. 01 BAS IAS 02 Inventories 2 02 BAS IAS 07 Cash Flow Statements 3 07 BAS IAS 08 Accounting Policies, Change in Accounting Estimates 4 08 Errors BAS IAS 10 and Events after the Balance Sheet Date 5 10 BAS IAS 11 Construction Contracts 6 BAS IAS 12 Income Taxes 7 11 BAS IAS 16 Property, Plant & Equipment 12 8 BAS IAS 18 Revenue 16 9 BAS IAS 20 Accounting for Govt. Grants and Disclosure of Govt. 10 18 BAS IAS 21 The Effects of Changes in Foreign Exchange Rates 11 20 Assistance BAS IAS 23 Borrowing Costs 21 12 BAS IAS 24 Related Party Disclosures 13 23 BAS IAS 27 Consolidated and Separate Financial Statements 24 14 BAS IAS 33 Earnings Per Share 15 27 BAS IAS 34 Interim Financial Reporting 33 16 BAS IAS 37 Provisions, Contingent Liabilities and Contingent 17 34 BFRS IFRS 8 Operating Segments 18 37 Assets 8