Question No 1. Briefly write down what you have learned from your accounting course at NSU.

Answer:Accounting is a critical resource for an executive to monitor, track, evaluate and use info
rmation on all business economic activities in order to assess the company's history, current and f
uture results. Throughout the course I have developed an understanding of the different
accounts that are commonly use in day-to-day business; got depth knowledge about how to
prepare different financial statements; and to analyze & interpret them for correct decision
making.

I got the understanding to recognize the main accounts of accounting assets, liabilities,
income, expense, owners’ equity. Accounting equation (Assets= Liability+ Owners
equity) and its effect on business transactions.

Knowing how debit credits are used, how to entry and journal and ledger posting helps
recording process, preparing trial balance. Journal is the business transaction record book
which later used to make ledger book. Journal helps to reduce the error of the financial
records. Ledger is record book for accounting where different accounts are maintained
according to transactions of the company. It represents the perfect financial position of a
company if it is maintained properly. Ledger then helps to produce trial balance. Trial
balance ensures if the ledger entries are recorded perfectly by analyzing debit and credit
accounts.

Understanding the users of the accounting information, how they use it for their benefits.
The internal users of accounting are the employees who work for the company. On the other
hand, external users are the company owners, investors, customers, government etc. This
accounting course helped me to understand both of their perspectives and how to use the
accounting information in good use.

Accrual basis accounting helps me to understand how to analyze quickly if the company is
profitable or not, where the major expenditure happening. Accrual basis of accounting
happen in real time. So managers can plan for future by using this method. Reasons to make
adjusting entries are ensuring income statement and balance sheets are up-to-date.

I learned about preparing worksheet, closing entries & identifying classified balance sheet.
Different types of merchandising operations and inventory management system. Worksheet
solves problems of permanent record books of accounting. Worksheet eliminates
highlighting the error which made in journals and ledgers. Closing entries work is to fix
company’s temporary accounts.

Different types of depreciation methods (Straight-line, Units-of-activity, Declining-balance

method). It helps me to notice which type of depreciation method a company is using for its
assets.
Natural resources and intangible assets (patents, copyright, goodwill, trademark, and
franchise) play a vital role in conducting business. This course helped me to recognize those
assets and how I can evaluate the properly.

Different types of frauds occur in the organization and how to avoid them. Financial
Statement fraud, misappropriation of assets, stealing inside information and transaction
secrets, customer fraud etc. can shake the company from its base. Many well-known
companies has been destroyed for the reason of fraud. The accounting course have taught
me about these fraud with real life examples and how I can deal with them and detect them
in my professional life as well.

Different sorts of financial ratios like liquidity ratio, profitability ratio, solvency ratios
helps to compare how company is performing compared to previous years.

Technological aspects of accounting and how it is manipulating the present and future of
accounting and its effect on accountants. This course gave me a concept of Artificial
intelligence, cloud computing, accounting software etc. has changed the way of traditional
accounting.

The annual report of a company is picture of a company’s comparison between different

years and understanding how the company is doing overall. Financial statements such as
income statement, balance sheet, cash flow statement which gave me clear understand on the
company’s performance. The income statement gives data about the profit and loss of the
company. It shows the major sources of income and expenses of company. Balance sheet
provides a straightforward picture of company’s financial position up to a particular date. It
shows the assets, liabilities and owners’ equity of a company. The cash flow statement provides
idea about the cash inflow and cash outflow of a company. This course helped to understand
financial performance of a company.

Laws and regulation is different from country to country. Accounting course in NSU helps me to
understand the statutory compliance. It also taught me about different accounting systems that
work in different countries.

This accounting course has taught me how to use financial decision and use it for decision
making in real life. It helped me to learn about all the basic accounting process, which I can use
in my professional life. I come to know about the traditional and modern accounting formats.
Technological impact in accounting and modern accounting style as well. I have also understood
how frauds occur in the business and how important to know accounting to detect them by
solving real life scenarios. In the end, I believe this accounting course in NSU will help me in
maintaining the personal finance as well as help my professional carrier.
2. Question: How your accounting knowledge can help to understand the company’s accounting
system?

Answer:In 1976 IFIC Bank began to operate as a finance company. It was founded as a joint ven
ture between the government of Bangladesh as well as several farsighted private sector sponsors. 
When GOB relaxed rules and authorized banks to be formed by the private sector in 1983, IFIC 
was transformed into a commercial bank. From then IFIC Bank is operating successfully by
maintaining their customers, shareholders and others associated with the bank. It’s vision is to
provide financial service through innovative, sustainable and inclusive growth and deliver the
best in class value to all stakeholders. I will try to analyze their annual report of 2018 and try to
explain my understanding.

If we analyze their income statement in 2018, their total revenue was 8,758 million BDT which
is 1199 million less than previous year. The major sources of revenues are interest income on
loans & other borrowings. The other income sources are commission, foreign exchange and
brokerage; Investment income, and other operating incomes like credit cards, bills etc. Compared
to previous years the investment income and commission, exchange and brokerage income has
slightly reduced. In 2018, the major cost were interest paid, salary and allowances, rent taxes,
insurance, electricity. The other costs are legal expenses, postage, stamp, telecommunication
expenses, managing director salary, auditors and directors fees etc. In 2018, deposit increased
only 13% but interest paid 496 million excess, which means they paid 53% excess interest. The
total expenses are little lower than previous year. The dividend paid this year is 1,434,362,930 to
the shareholders. In 2017, deferred tax income was 44 crore BDT but in 2018 the deferred tax
expenditure is 21 crore BDT, which shows a difference of 65 crore tk. For that the net profit after
tax 165 crore BDT, where net profit after tax was 265 crore tk in 2017. 75 crore net profit less
than previous year.

The cash flow statement of 2018, in operating activities section interest received is 20,836
million and interest expense was 12,955 million BDT. The cash payment to employers and
supplier increased than previous years. They paid income tax of BDT 1119million BDT
Operating cash flow has been decreased than previous years. In the investment section they have
purchased government securities and purchased equipment, property. In the end of the year they
have cash in hand 2899 million BDT where last year they had 2251 million BDT. They have
paid 866crore tk fixed deposit interest in 2018, where they paid 466 crore tk in 2017. That shows
the have paid almost 85% excess interest. In 2018 the FDR increases only 13% but 85% interest
excess they have paid. This is an alarming question to the authority.

To analyze the Balance sheet of 2018, we can divide it’s assets into two parts. First current
assets & then long term assets. In current asset, they have cash in hand is 16,020,741,583 which
is higher than previous years which means bank is improving its liquidity. Balances with
Bangladesh Bank and its agent banks, balance with ATM, balance with other banks and financial
institutions and money at call on short notice. Cash and cash equivalents decreased to
BDT 28,077 million at 31 December 2018 from BDT 29,932 million at 31 December 2017
mainly for decrease in the balances with Bangladesh Bank and balance held with other bank &
FIs. Loans and advances have increased 15.4% and reached 206,930 million taka. Bank’s fixed
assets investments have increased 12.4% than previous year. It now stands 31,304 million taka
from 27,858 million in 2017. Land, building & premises, computer & equipment, furniture and
fixtures etc. and it increased to BDT 5,438 million in 2018 from previous year. Other assets like
suspense accounts, advance deposits & prepayment, receivable against paid on Shanchaya Patra,
advance income tax, deferred tax asset, accrued interest receivable, investment in subsidiaries &
associates, non-banking assets, stationery and stamps have decreased by 1,341 million taka than
previous year (2017). In liability section, their biggest liabilities are borrowings from other
banks, FI’s , agents and Subordinated debt. Their total borrowing is 9969 million BDT, which is
1496 million higher than previous year. Their total deposit is 226,333 million BDT in 2018
which increase 26 million BDT than previous year. The shareholders equity has paid up capitals,
statutory reserve, general reserve, surplus profit and loss account. At 2018, the shareholders
equity is 22,116 million which 7.7% greater than previous year is.

Company share distribution shows sponsors and directors are holding majority 38.67% shares,
government is holding 32.75% of company shares. Some institutions and foreign investors are
holding 24% of shares. Rest of the share has been distributed to the general investors. As a big
portion of company share is in government’s owned, there are several directors in the company
elected by the government. Total number of shareholder is 41,721.

Ratio analysis helps us to analyze financial statement properly. Ratio helps us to know
profitability, operational efficiency, and liquidity of companies. In profitability ratio, the return
on assets (ROA) has decreased by 0.3% compared to previous year. Return on equity also
decreased by 5.0%. The administrative cost has decreased by .5%. The operating profit per
employee is 1.52 which is .24% lower than 2017. In liquidity ratio, the cash reserve ratio (CRR)
has decreased by 0.9% and the statutory liquidity ratio(SRR) which 15% also decreased .6%
than previous years.

From the analysis of the financial report 2018 of IFIC Bank I want to highlight on few things.
First, their interest expense is alarmingly higher than the previous years. Provision last
year(2017) was 213 crore, but it has decreased to 103crore tk. Management should justify this
110 crore loss. Their profitability ratio and liquidity ratio both have decreased from previous
years. Management should take steps to solve these problems
c) Suggest how your chosen company can prepare (if they are not presently using SDGs) or
improve (if they are presently using SDGs) report(s) based on the Sustainable Development
Goals (SDGs).
Answer: Sustainable Development Growth(SDG) is  growth that addresses present-
day needs, without undermining future generations' capacity to meet their own needs. A
country’s development doesn’t only need to to be strong and rapid but also standard, enduring
and durable. The members of United nations have marked total 17 goals for a country as
sustainable development growth and by achieving these goals will ensure that the country is
actually developing or not. Here the word sustainable means enduring Suppose, to overcome
poverty, a country build many industries and factories. But the industries or factories are set in a
way that it destroys the environment slowly. After 20 years it might be noticed that, the
industries are performing really well but it messed up the climate in the process. So, that
development cannot be called sustainable because it ultimately causing trouble for us. That’s
why sustainable development goals are build up in a way that it make the development durable.
Bangladesh is performing towards achieves these 17 goals (169 targets) . Currently Bangladesh
is working to fulfill these goals by the year of 2030. Bangladesh government emphasizes their
particular focus on the activities of corporate organizations and it had set bars to fulfill towards
achieving sustainable development growth.

IFIC Bank is one of the leading banking organization in our country. It has been founded 1976
under government regulation. In 1983, it become fully non-governmental. Throughout the
history of the organization, IFIC Bank was dedicated towards their corporate social
responsibility. If we look at their different financial product like are designed to fulfill the
requirement of sustainable development growth. Their major focus is on the few specific goals of
SDG. They are climate action, gender equality industry and innovation and decent work &
economic growth. IFIC BANK supporting IFIC KRISHI SHILPO LOAN, a agricultural loan for
the farmers and entrepreneurs who are looking for a opportunity to invest themselves in
agriculture sector. This loan can be taken with minimum eligibility and lowest interest rate. By
taking this loan many farmers have found a ray of hope. Thus they are fulfilling their needs,
creating employment opportunity and overall contributing to the economy of the country. With
this IFIC Bank fulfilling the decent work & economy growth. IFIC SHILPO SOHAY encourage
the cottage & micro industry. IFIC Bank is encouraging the women entrepreneurs with their
attractive loan schemes. IFIC PRANTONARI & IFIC PROTTASHA are two loan schemes for
women entrepreneurs. IFIC PRANTONARI is business loan for cottage, micro and small
enterprise owned & run by grassroots women entrepreneurs involved in manufacturing unit of
jamdani, nakshikatha, boutiques and other handicrafts, service unit of beauty parlour, catering
service and other income generating trading activities and those who have no access to financial
facilities from banks. IFIC PROTTASHA Any business purpose loan for business enterprises
incorporated in Bangladesh own and run by women entrepreneurs (at least 51% share of a
business hold by women), engaged in manufacturing/ trading/ service business having minimum
2 (two) years successful business experience in the same line of business. Thus IFIC
encouraging women empowerment. IFIC Bank conducted training on SDGs & Financial literacy
for the youth; organized conference on School Banking & participated at “Bankers-SME Women
Entrepreneurs Meeting and Display Fair” in 2018. Green Banking is another great initiative
taken by IFIC Bank. It’s goal is keep environment pollution free.
Green Banking is any form of banking that brings environmental benefits to the country and nati
on from. A traditional bank transforms into a green bank by focusing its core activities toward im
proving the climate.Plenty of the investments made in Bangladesh, especially in the manufacturi
ng sector, have contributed to impressive GDP growth in the recent years, but posed the hazard o
f locking the country into an unsustainable path of growth and development. Green banking
consider social as well as environmental factors. IFIC Bank disbursed BDT 7,452.72 million as
Green Finance in 2018. The bank participated in different Green events to showcase bank’s
green products. First, Domestic Bio-gas plant designed-in cow raring & bio-gas plant setup.
Commercial bio-gas plan.For installation of biogas plants in established cattle/poultry production
and bio gas generated electricity. They have also Financed at Fire Fighting & Safety Equipment.
They have also introduced paperless banking by digitalizing their transactions & products. Many
govt. and non-government organizations still use loads of papers. By supporting paperless
banking is a great initiative to reduce pressure from using excessive paper and taken environment
friendly measures. To improve their activities on sustainable development growth IFIC Bank can
take few more initiatives. They can take initiative environmental friendly measures such as
mobile banking, internet banking, telebanking, solar powered biometric operations.  They can
take various steps for reducing emission and energy consumption. 

Today, business success requires alignment of corporate, environmental and economic interests.
Sustainable development growth & Corporate Social Responsibility (CSR) and it’s relation is
vitalforsociety.CSR alone won't fix all of them, nor should they. Certain of these goals are certai
nly addressed in your CSR activities.Organizations has to be careful on where they spend. CSR i
s about value . And it is up to corporation to find out which SDG will focus on the value it will 
bring to investors, as well as to society and the environment. IFIC Bank’s initiative towards
sustainable development growth is thankworthy. Their products support governments plan to
achieve SDG by 2030. It is designed to improve climate, support gender equality, supporting
industries for economic development and creating employment opportunities. There are few
improvement measure can be taken. Currently IFIC Bank is spending 6% of their overall
spending on Corporate social responsibility. IFIC Bank can be a role model to other corporation
about how to develop a plan for achiving SDG.
Appendix

1. http://www.ificbank.com.bd/public/assets/investor/annual/1570945935_Annual_Report_2018.
pdf
2. https://thefinancialexpress.com.bd/public/index.php/views/analysis/bangladesh-progress-
report-on-sdgs-1588869640
3.