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Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

Abstract
Generally by the word Banking Sector easily understandable that it includes the financial institutions and all other business organizations which deal with different activities according to their own business area. Banking sectors are the primary contributor to the economy of a country. Banking sectors are doing different activities and making profit as per their requirements. For these, people and government are very much dependent on these Banking sectors. As Banking sectors are rendering services and concern about profit earning. Banking sector is spending its hand in different financial event every day. At the same time the Banking process is becoming faster, easier and this sector is becoming wider. As a result, it has become essential for every person to have some idea on the Banking sector and Banking procedures. Generally these types of Banking Sectors are collecting their capital from market that is through their activities. So it is necessary to report annually to its shareholders and other necessary stakeholders. To ensure the various rules & procedure of the banking operations, several standards must follow by banks. International Accounting Standard (IAS) 1 prescribes the basis for presentation of general purpose financial statements, to ensure comparability both with the entitys financial statements of previous periods and with the financial statements of other entities. IAS 1 specifies the minimum line item disclosures on the face of, or in the notes to, the balance sheet, the income statement, and the statement of changes in equity. Current and non-current assets and current and non-current liabilities are presented as separate classifications on the face of the balance sheet. IAS 1 specifies disclosures about information to be presented in the financial statements, including judgments, key sources of estimation uncertainty, and accounting policies.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 The thesis on Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 explains the various financial & non-financial disclosures & its rules & procedure followed by various bank as per IAS 1. Chapter 1 provides a review and analysis of the study and provides a background expression of the study. Define what is the objective of the study is & the methodology used to conduct the survey to prepare the thesis. Define the limitation hindrances to make the thesis. Chapter 2 provides a complete overview of the study bank that covered the following topicshistory & background of bank, principles of the banks that consider as foundations, performance of the bank. Chapter 3 mention the overview of IAS 1- A summary of complete set of financial statements comprises a balance sheet; an income statement; a statement of changes in equity; a cash flow statement; and notes, comprising a summary of significant accounting policies and other explanatory notes. Chapter 4 shows an analysis on the practice of IAS 1 in Bangladeshi banking sector, by conducting survey, to various companies & professional accountants. Study data put by appropriate coding into SPSS and derive the findings.

Chapter 5 provides finding of the study that is found from the previous analysis covered various essential issues & recommend the action of the thesis topic- Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

Chapter 1

Introduction

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

1.1 Origin of the Report


The report was originated to make a study on the Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 with special reference to International Accounting Standards -1 (IAS - 1) and as a part of the fulfillment of thesis program required for the completion of the BBA program of the Accounting Faculty of Business Administration of Stamford University Bangladesh. The report was prepared under the supervision of Sazzadur Rahman Khan, Lecturer of Business Administration, Stamford University Bangladesh. I am very much thankful to him for assigning me such types of project work.

1.2Background of the Report


International Accounting Standards -1 are the authoritative statements of how particular types of transactions and other events should be reflected in IAS -1 prepared by the public limited companies listed in the Stock Exchanges of our country. According to Securities and Exchange Rules 1987, every listed company is required to prepare its Financial & Non Financial Disclosure in conformity with International Accounting Standards -1. Some companies follow the requirements of IAS -1in presenting information with few exceptions.

1.3 Objectives of the Report


The main objectives of this report are to analyze the IAS-1 of various companies and help their management in future policy formulation that is likely to improve the quality of their IAS-1. The specific objectives are: To gain an understanding of relevant laws and rules followed in preparing financial statements. To analyze the Financial& Non Financial Disclosure to explain the IAS - 1 adopted in preparing International Accounting Standard -1.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 To review the voluntary disclosure issues and reporting procedure of every financial information. To provide some recommendations on the basis of my findings.

1.4 Scope of the Report


Financial reporting of a public limited company is a broad area. Within the limited time period of thesis, it is virtually impossible to cover all aspects of financial reporting. So, the scope of my report is limited only to the compliance of those International Accounting Standards (IASs) as followed by various companies in preparing its financial statements and some other areas of voluntary information disclosure. In preparing the report, I review and analyze the information published in the annual report for the year 2008. Any change in accounting policies in respect of providing information after this period is beyond the scope of my report.

1.5 Methodology
This report has been prepared on the basis of experience gathered through learning various companies annual report. For preparing this report, I have also get information from website of various companies. I have presented my experience and finding by using different charts and tables, which are presented in the analysis part. The details of the work plan are furnished below: Data collection method: Relevant data for this report has been collected primarily by direct investigations of different Banks annual report and website. Data sources: The information and data for this report have been collected from secondary sources. The secondary sources of information are annual reports, websites and different manuals. Data processing: Data collected from secondary sources have been processed manually and qualitative approach in general and quantitative approach in some cases has been used throughout the study. Data analysis and interpretation: Qualitative approach has been adopted for data analysis and interpretation taking the processed data as the base. So the report relies primarily on an analytical judgment and critical reasoning.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

1.6 Limitations of the report


The scope of the study is only limited to annual report and website. The report covers various Banks IAS-1 reporting system that is whether they followed applicable laws and regulations to prepare their IAS-1 reporting. Following are the main limitations of the report-

It was very different to collect the information form various Banks Company policy was not disclosing some data and information for obvious reasons. Because of the limitation of information some assumption was made. The time was insufficient to know all activities of the different banks.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

Chapter 2

Overview of the Bank

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

2.1 Profile:

South East Bank Limited


Southeast Bank Limited is a scheduled commercial bank in the private sector established under the ambit of Bank Company Act, 1991 and incorporated as a Public Limited Company under Companies Act, 1994 on March 12, 1995. The Bank started commercial banking operations on May 25, 1995. During this short span of time the Bank has succeeded in positioning itself as a progressive and dynamic financial institution in the country. The bank has been widely acclaimed by the business community, from small entrepreneurs to large traders and industrial conglomerates, including the top-rated corporate borrowers, for its forward - looking business outlook and innovative financial solutions.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

Financial Information Stability (Taka in million) Authorized Capital 3,500.00 Paid-up Capital 2,852.20 Paid-up Capital and Reserve in 2008 7,657.01 Deposit December 31, 2008 68,714.67 Loans and advances December 31, 2008 60,281.26 Investments December 31, 2008 12,299.61 Operating Profit December 31, 2008 3,012.58 * Initial public offering of shares of Tk. 150.00 million was completed in 1999

Southeast Bank Limited has been licensed by the Government of Bangladesh as a Scheduled commercial bank in the private sector in pursuance of the policy of liberalization of banking and General I Events & Brief Profile Certificate of Incorporation Certificate of Commencement of Business Bangladesh Bank license First Branch opened Dividend offered in 2008 Number of Branches Number of Employees Global Correspondents Listing of Shares March 12, 1995 March 12, 1995 March 23, 1995 May 25, 1995 35% 46 as on 31/12/2008 1231 as on 31/12/2008 587 as on 31/12/2008 DSE & CSE

financial services and facilities in Bangladesh. In view of the above, the Bank, within a period of 14 years of its operation, achieved remarkable success fully meeting capital adequacy requirement of Bangladesh Bank. As evident from the financial statements for the last 10 years,

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 it has been growing rapidly as one of the leaders of the new generation banks in the private sector in term of business and profitability.

2.02 Profile:

National Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. Established as the first private sector Bank fully owned by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with the passage of time after facing many stress and strain. The member of the board of directors is creative businessman and leading industrialist of the country. To keep pace with time and in harmony with national and international economic activities and for rendering all modern services, NBL, as a financial institution automated all its branches with computer network in accordance with the competitive commercial demand of time. Moreover, considering its forthcoming future the infrastructure of the Bank has been rearranging. The expectation of all class businessman, entrepreneurs and general public is much more to NBL. Keeping the target in mind NBL has taken preparation to open 15 new branches and 5 SME centers by the year 2009. In addition we are further expanding our presence through developing and expanding the SME financing, Any Branch Banking, Off-shore Banking facilities. The emergence of National Bank Limited in the private sector is an important event in the Banking arena of Bangladesh. When the nation was in the grip of severe recession, Govt. took the farsighted decision to allow in the private sector to revive the economy of the country. Several dynamic entrepreneurs came forward for establishing a bank with a motto to revitalize the economy of the country. National Bank Limited was born as the first hundred percent Bangladeshi owned Bank in the private sector. From the very inception it is the firm determination of National Bank Limited to

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 play a vital role in the national economy. We are determined to bring back the long forgotten taste of banking services and flavors. We want to serve each one promptly and with a sense of dedication and dignity. The then President of the People's Republic of Bangladesh Justice Ahsanuddin Chowdhury inaugurated the bank formally on March 28, 1983 but the first branch at 48, Dilkusha Commercial Area, Dhaka started commercial operation on March 23, 1983. The 2nd Branch was opened on 11th May 1983 at Khatungonj, Chittagong. At present, NBL has been carrying on business through its 106 branches spread all over the country. Besides, the Bank has drawing arrangement with 415 correspondents in 75 countries of the world as well as with 37 overseas Exchange Companies located in 13 countries. NBL was the first domestic bank to establish agency arrangement with the world famous Western Union in order to facilitate quick and safe remittance of the valuable foreign exchanges earned by the expatriate Bangladeshi nationals. NBL was also the first among domestic banks to introduce international Master Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card. The Bank has in its use the latest information technology services of SWIFT and REUTERS. NBL has been continuing its small credit program for disbursement of collateral free agricultural loans among the poor farmers of Barindra area in Rajshahi district for improving their lot. Alongside banking activities, NBL is actively involved in sports and games as well as in various Socio-Cultural activities. Up to 2008, the total number of employee of NBL stood at 2,737

2.3 Profile:

Prime Bank Ltd. created and commencement of business started on 17 April 1995. The sponsors are reputed personalities in the field of trade and commerce and their stake ranges from shipping to textile and finance to energy etc. As a fully licensed commercial bank, a highly professional and dedicated team with long experience in banking is managing Prime Bank Ltd.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition. Prime Bank Ltd. offers all kinds of Commercial Corporate and Personal Banking services covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software. The bank has consistently turned over good returns on Assets and Capital. During the year 2007, the bank has posted an operating profit of Tk. 3257 million and its capital funds stood at Tk 6382 million. Out of this, Tk. 2275 million consists of paid up capital by shareholders and Tk. 2659.21 million represents reserves and retained earnings. The banks current capital adequacy ratio of 11.50% is in the market. In spite of complex business environment and default culture, quantum of classified loan in the bank is very insignificant and stood at less than 1.35%. Prime Bank Ltd., since its beginning has attached more importance in technology integration. In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, its strategy is to serve the customers through capacity building across multi delivery channels. Past performance gives an indication of its strength.

2.4 Profile:

Trust Bank Limited a domestic private sector commercial bank in Bangladesh incorporated in June 1999 as a public limited company under the company act 1994. It started business operations in July 1999 with an authorized capital of Tk 1,000 million divided into 1 million ordinary shares of Tk 1,000 each. The bank's initial paid up capital was Tk 200 million, 50% of which are held by Army Welfare Trust designated as group-A shareholder. The public designated as group-B shareholders holds the remaining 50%.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Trust Bank Limited is one of the leading private commercial bank having a spread network of 39 branches across Bangladesh. Since banks business volume increased over the years and the demands of the customers enlarged in manifold, our technology has been upgraded to manage the growth of the bank and meet the demands of our customers. In January 2007, Trust Bank successfully launched Online Banking Services, which facilitate Any Branch Banking, ATM Banking, Phone Banking, SMS Banking, & Internet Banking to all customers. Customers can now deposit or withdraw money from any Branch of Trust Bank nationwide without needing to open multiple accounts in multiple Branches. Trust Bank is about to introduce Visa Credit Cards to serve its existing and potential valued customers. Credits cards can now be used at shops & restaurants all around Bangladesh and even internationally. Trust Bank is a customer oriented financial institution. It remains dedicated to meet up with the ever-growing expectations of the customer because at Trust Bank, customer is always at the center. Compliance of IAS/BAS Banks applied most of BAS and BFRS as adopted by ICAB-

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

Name of the BAS


Presentation of Financial Statements Inventories Cash Flow Statements Accounting Policies, Changes in Accounting Estimates and Errors Events after the Balance Sheet Date Construction Contracts Income Taxes Segment Reporting Property, Plant and Equipment Leases Revenue Employee Benefits Accounting for Government Grants and Disclosure of Government Assistance The Effects of Changes in Foreign Exchange Rates Borrowing Costs Related Party Disclosures Accounting for Investments Accounting and Reporting by Retirement Benefit Plans Consolidated and Separate Financial Statements Investment in Associates Disclosures in the Financial Statements of Banks and similar Financial Institutions Interests in Joint Ventures Earnings per share Interim Financial Reporting Impairment of Assets Provisions, Contingent Liabilities and Contingent Assets Intangible Assets Investment Property Agriculture

IAS/ BAS
1 2 7 8 10 11 12 14 16 17 18 19 20 21 23 24 25 26 27 28 30 31 33 34 36 37 38 40 41

R-1
A A A A A N/A A A A A A A A A A A A A A A A N/A A A A A A A N/A

Status R-2 R-3


A A A A A N/A A A A A A A A A A A A A A A A N/A A A A A A A N/A A A A A A N/A A A A A A A N/A A A A A A A N/A A N/A A A A A N/A A N/A

R-4
A A A A A N/A A A A N/A A A A A A A A N/A A A A N/A A A A A A N/A

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

Chapter 3

Overview of IAS 1

3.01 Key features of IAS 1: IAS 1 includes guidance on the meaning of present fairly and emphasizes that the application of IFRS is presumed to achieve a fair presentation. It requires departure from a standard in very rare circumstances where compliance would be misleading (except where not permitted by the relevant regulatory framework).

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 The contents of a complete set of financial statements are specified and there is a general requirement for comparatives. Criteria for the classification of assets and liabilities as current/ non-current are defined. A choice is given as to the presentation of the balance sheet between separating current and non-current assets and liabilities, and presenting assets and liabilities in order of their liquidity (or in reverse order of liquidity) without a current/non-current distinction. Liquidity presentation of assets and liabilities is required only when it provides a more relevant and reliable presentation. The standard specifies minimum items on the face of the balance sheet and minimum items on the face of the income statement. Additional items may be needed to comply with another standard or to present fairly the entity's financial position or when such presentation is relevant to an understanding of the entitys financial performance. Disclosure of extraordinary items is prohibited. An analysis of expenses, either by nature or by function, should be given either on the face of the income statement or in the notes. A statement of changes in equity is to be presented although this requirement may be met in various ways. Disclosure in the notes is required of accounting policies followed, information required by other IAS, narrative descriptions or detailed analyses of items shown on the face of the financial statements, and other disclosures necessary for an understanding and fair presentation of the financial statements. Judgments of estimations and key assumptions concerning the future that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year must be disclosed.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

3.02 Key impact on Bangladeshi companies: Income statement headings under IAS 1 are less detailed than in the Companies Act formats IAS 1 describes two classifications for expenses (nature and function) which equate to Companies Act formats 1 and 2. There is more flexibility over balance sheet formats than permitted by the Companies Act formats. There is no equivalent under IFRS of the requirement in FRS 3 to disclose the effects of acquisitions. IAS 1 goes further than FRS 18 in respect of the disclosure of judgments made in the application of accounting policies and key sources of estimation uncertainty. There are some differences in the definitions of current assets and current liabilities. For example, a liability will be classified as current when it is expected to be settled in the entitys normal operating cycle, even if it is not due to be settled within twelve months after the balance sheet date. IAS 1 does not use the term exceptional item and, in particular has no equivalent of the FRS 3 paragraph 20 items which are shown below operating profit. But there is a requirement for separate disclosure of material items of income and expense. Companies wishing to show operating profit would need to include in it items such as reorganization and restructuring costs. The statement of recognized gains and losses and reconciliation of movements in shareholders funds are combined into a single statement of changes in equity under IAS 1. But the statement of changes in equity is not a performance statement and, therefore, amounts reported in certain cases are required to be recycled to the income statement.

3.03 Summary of IAS 1:Objective

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 The objective of IAS 1 (revised 1997) is to prescribe the basis for presentation of general purpose financial statements, to ensure comparability both with the entity's financial statements of previous periods and with the financial statements of other entities. IAS 1 sets out the overall framework and responsibilities for the presentation of financial statements, guidelines for their structure and minimum requirements for the content of the financial statements. Standards for recognizing, measuring, and disclosing specific transactions are addressed in other Standards and Interpretations.
Scope

Applies to all general purpose financial statements based on International Financial Reporting Standards. General purpose financial statements are those intended to serve users who do not have the authority to demand financial reports tailored for their own needs.
Objective of Financial Statements

The objective of general purpose financial statements is to provide information about The financial position, Financial performance, and Cash flows of an entity that is useful to a wide range of users in making economic decisions. To meet that objective, financial statements provide information about an entity's: Assets. Liabilities. Equity. Income and expenses, including gains and losses. Other changes in equity. Cash flows. That information, along with other information in the notes, assists users of financial statements in predicting the entity's future cash flows and, in particular, their timing and certainty.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1
Components of Financial Statements

A complete set of financial statements should include: A statement of financial position at the end of the period, A statement of comprehensive income for the period, A statement of changes in equity for the period Statement of cash flows for the period, and Notes, comprising a summary of accounting policies and other explanatory notes. When an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements, it must also present a statement of financial position as at the beginning of the earliest comparative period. An entity may use titles for the statements other than those stated above. Reports that are presented outside of the financial statements -- including financial reviews by management, environmental reports, and value added statements -- are outside the scope of IFRSs.
Fair Presentation and Compliance with IFRSs

The financial statements must "present fairly" the financial position, financial performance and cash flows of an entity. Fair presentation requires the faithful representation of the effects of transactions, other events, and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the Framework. The application of IFRSs, with additional disclosure when necessary, is presumed to result in financial statements that achieve a fair presentation. IAS 1 requires that an entity whose financial statements comply with IFRSs make an explicit and unreserved statement of such compliance in the notes. Financial statements shall not be described as complying with IFRSs unless they comply with all the requirements of IFRSs (including Interpretations).

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Inappropriate accounting policies are not rectified either by disclosure of the accounting policies used or by notes or explanatory material. IAS 1 acknowledges that, in extremely rare circumstances, management may conclude that compliance with an IFRS requirement would be so misleading that it would conflict with the objective of financial statements set out in the Framework. In such a case, the entity is required to depart from the IFRS requirement, with detailed disclosure of the nature, reasons, and impact of the departure.
Going Concern

An entity preparing IFRS financial statements is presumed to be a going concern. If management has significant concerns about the entity's ability to continue as a going concern, the uncertainties must be disclosed. If management concludes that the entity is not a going concern, the financial statements should not be prepared on a going concern basis, in which case IAS 1 requires a series of disclosures.
Accrual Basis of Accounting

IAS 1 requires that an entity prepare its financial statements, except for cash flow information, using the accrual basis of accounting.
Consistency of Presentation

The presentation and classification of items in the financial statements shall be retained from one period to the next unless a change is justified either by a change in circumstances or a requirement of a new IFRS.
Materiality and Aggregation

Each material class of similar items must be presented separately in the financial statements. Dissimilar items may be aggregated only if the are individually immaterial.

Offsetting

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Assets and liabilities, and income and expenses, may not be offset unless required or permitted by a Standard or an Interpretation.
Comparative Information

IAS 1 requires that comparative information shall be disclosed in respect of the previous period for all amounts reported in the financial statements, both face of financial statements and notes, unless another Standard requires otherwise. If comparative amounts are changed or reclassified, various disclosures are required.
Reporting Period

There is a presumption that financial statements will be prepared at least annually. If the annual reporting period changes and financial statements are prepared for a different period, the enterprise must disclose the reason for the change and a warning about problems of comparability.
Structure and Content of Financial Statements in General

Clearly identify: The financial statements The reporting enterprise Whether the statements are for the enterprise or for a group The date or period covered The presentation currency The level of precision - thousands, millions, etc.
Balance Sheet

An entity must normally present a classified balance sheet, separating current and noncurrent assets and liabilities. Only if a presentation based on liquidity provides information that is reliable and more relevant may the current/noncurrent split be omitted. In either case, if an asset (liability) category commingles amounts that will be received (settled) after 12 months with

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 assets (liabilities) that will be received (settled) within 12 months, note disclosure is required that separates the longer-term amounts from the 12-month amounts. [IAS 1.52] Current assets are cash; cash equivalent; assets held for collection, sale, or consumption within the enterprise's normal operating cycle; or assets held for trading within the next 12 months. All other assets are noncurrent. [IAS 1.57] Current liabilities are those to be settled within the enterprise's normal operating cycle or due within 12 months, or those held for trading, or those for which the entity does not have an unconditional right to defer payment beyond 12 months. Other liabilities are noncurrent. [IAS 1.60] Long-term debt expected to be refinanced under an existing loan facility is noncurrent, even if due within 12 months. [IAS 1.64] If a liability has become payable on demand because an entity has breached an undertaking under a long-term loan agreement on or before the balance sheet date, the liability is current, even if the lender has agreed, after the balance sheet date and before the authorization of the financial statements for issue, not to demand payment as a consequence of the breach. [IAS 1.65] However, the liability is classified as non-current if the lender agreed by the balance sheet date to provide a period of grace ending at least 12 months after the balance sheet date, within which the entity can rectify the breach and during which the lender cannot demand immediate repayment. [IA 1.66] Minimum items on the face of the balance sheet [IAS 1.68] Property, plant and equipment; Investment property; Intangible assets; Financial assets (excluding amounts shown under (e), (h) and (i)); Investments accounted for using the equity method; Biological assets; Inventories;

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Trade and other receivables; Cash and cash equivalents; Trade and other payables; Provisions; Financial liabilities (excluding amounts shown under (j) and (k)); Liabilities and assets for current tax, as defined in IAS 12; Deferred tax liabilities and deferred tax assets, as defined in IAS 12; Minority interest, presented within equity; and Issued capital and reserves attributable to equity holders of the parent. Additional line items may be needed to fairly present the entity's financial position. [IAS 1.69] IAS 1 does not prescribe the format of the balance sheet. Assets can be presented current then noncurrent, or vice versa, and liabilities and equity can be presented current then noncurrent then equity, or vice versa. A net asset presentation (assets minus liabilities) is allowed. The long-term financing approach used in UK and elsewhere fixed assets + current assets - short term payables = long-term debt plus equity is also acceptable. Regarding issued share capital and reserves, the following disclosures are required: [IAS 1.76] Numbers of shares authorized, issued and fully paid, and issued but not fully paid Par value Reconciliation of shares outstanding at the beginning and the end of the period Description of rights, preferences, and restrictions Treasury shares, including shares held by subsidiaries and associates Shares reserved for issuance under options and contracts A description of the nature and purpose of each reserve within owners' equity
Income Statement

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 In the 2003 revision to IAS 1, the IASB is now using "profit or loss" rather than "net profit or loss" as the descriptive term for the bottom line of the income statement. All items of income and expense recognized in a period must be included in profit or loss unless a Standard or an Interpretation requires otherwise. Minimum items on the face of the income statement should include: Revenue; Finance costs; Share of the profit or loss of associates and joint ventures accounted for using the equity method; A single amount comprising the total of (i) the post-tax profit or loss of discontinued operations and (ii) the post-tax gain or loss recognized on the disposal of the assets or disposal group(s) constituting the discontinued operation; and; Tax expense; and Profit or loss. The following items must also be disclosed on the face of the income statement as allocations of profit or loss for the period: Profit or loss attributable to minority interest; and Profit or loss attributable to equity holders of the parent. Additional line items may be needed to fairly present the enterprise's results of operations. No items may be presented on the face of the income statement or in the notes as "extraordinary items". Certain items must be disclosed either on the face of the income statement or in the notes, if material, including: Write-downs of inventories to net realizable value or of property, plant and equipment to recoverable amount, as well as reversals of such write-downs;

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Restructurings of the activities of an entity and reversals of any provisions for the costs of restructuring; Disposals of items of property, plant and equipment; Disposals of investments; Discontinuing operations; Litigation settlements; and Other reversals of provisions. Expenses should be analyzed either by nature (raw materials, staffing costs, depreciation, etc.) or by function (cost of sales, selling, administrative, etc.) either on the face of the income statement or in the notes. [IAS 1.88] If an enterprise categorizes by function, additional information on the nature of expenses -- at a minimum depreciation, amortization, and staff costs -- must be disclosed.
Cash Flow Statement

Rather than setting out separate standards for presenting the cash flow statement, IAS 1.102 refers to IAS 7, Cash Flow Statements
Statement of Changes in Equity

IAS 1 requires an entity to present a statement of changes in equity as a separate component of the financial statements. The statement must show: Profit or loss for the period; Each item of income and expense for the period that is recognized directly in equity, and the total of those items; Total income and expense for the period (calculated as the sum of (a) and (b)), showing separately the total amounts attributable to equity holders of the parent and to minority interest; and For each component of equity, the effects of changes in accounting policies and corrections of errors recognized in accordance with IAS 8.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 The following amounts may also be presented on the face of the statement of changes in equity, or they may be presented in the notes: Capital transactions with owners; The balance of accumulated profits at the beginning and at the end of the period, and the movements for the period; and Reconciliation between the carrying amount of each class of equity capital, share premium and each reserve at the beginning and at the end of the period, disclosing each movement.
Notes to the Financial Statements

The notes must: Present information about the basis of preparation of the financial statements and the specific accounting policies used; Disclose any information required by IFRSs that is not presented on the face of the balance sheet, income statement, statement of changes in equity, or cash flow statement; and Provide additional information that is not presented on the face of the balance sheet, income statement, statement of changes in equity, or cash flow statement that is deemed relevant to an understanding of any of them. Notes should be cross-referenced from the face of the financial statements to the relevant note. IAS 1.105 suggests that the notes should normally be presented in the following order:

A statement of compliance with IFRSs; A summary of significant accounting policies applied, including: [IAS 1.108]
o the measurement basis used in preparing the financial statements; and o The other accounting policies used that are relevant to an understanding of the financial statements.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

Supporting information for items presented on the face of the balance sheet, income
statement, statement of changes in equity, and cash flow statement, in the order in which each statement and each line item is presented; and

Other disclosures, including:


o o

contingent liabilities and unrecognized contractual commitments; and Non-financial disclosures, such as the entity's financial risk management objectives and policies.

Disclosure of judgments:- New in the 2003 revision to IAS 1, an entity must disclose, in the summary of significant accounting policies or other notes, the judgments, apart from those involving estimations, that management has made in the process of applying the entity's accounting policies that have the most significant effect on the amounts recognized in the financial statements. Examples cited in IAS 1.114 include management's judgments in determining: Whether financial assets are held-to-maturity investments; When substantially all the significant risks and rewards of ownership of financial assets and lease assets are transferred to other entities; Whether, in substance, particular sales of goods are financing arrangements and therefore do not give rise to revenue; and Whether the substance of the relationship between the entity and a special purpose entity indicates that the special purpose entity is controlled by the entity. Disclosure of key sources of estimation uncertainty: - Also new in the 2003 revision to IAS 1, an entity must disclose, in the notes, information about the key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. [IAS 1.116] These disclosures do not involve disclosing budgets or forecasts.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 The following other note disclosures are required by IAS 1.126 if not disclosed elsewhere in information published with the financial statements: Domicile of the enterprise; Country of incorporation; Address of registered office or principal place of business; Description of the enterprise's operations and principal activities; Name of its parent and the ultimate parent if it is part of a group.
Other Disclosures: - Disclosures about Dividends

The following must be disclosed either on the face of the income statement or the statement of changes in equity or in the notes: The amount of dividends recognized as distributions to equity holders during the period, and The related amount per share. The following must be disclosed in the notes: The amount of dividends proposed or declared before the financial statements were authorized for issue but not recognized as a distribution to equity holders during the period, and the related amount per share; and The amount of any cumulative preference dividends not recognized. Capital Disclosures As part of its project to develop IFRS 7 Financial Instruments: Disclosures, the IASB also amended IAS 1 to add requirements for disclosures of: The entity's objectives, policies and processes for managing capital; Quantitative data about what the entity regards as capital; Whether the entity has complied with any capital requirements; and

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 If it has not complied, the consequences of such non-compliance. These disclosure requirements apply to all entities, effective for annual periods beginning on or after 1 January 2007, with earlier application encouraged. Illustrative examples are provided as guidance.

Chapter 4 Evaluation on Financial & Non Financial Disclosures

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

4.1 Financial Disclosures


IAS 1.126(a) (b) The Banks and its activities All the banks are scheduled commercial bank in the private sector established under the Bank Companies Act 1991 and incorporated in Bangladesh as a public limited company to carry out banking business in Bangladesh. All the offers services for all commercial banking needs of the customers, which includes deposit banking, loans and advances, export import financing, inland and international remittance facility, etc. The bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly traded company. Islamic banking Some of the bank operates Islamic banking for the purpose in complying with the rules of Islamic Shariah, the modus operandi. IAS 1.103(a)

Summary of significant accounting policies as per IAS 1


IAS 1.126(b) Basis of preparation of the Financial Statements The financial statements of the banks are made up to 31 December each year and are prepared under the historical cost convention and in accordance with the First Schedule (Sec. 38) of the Bank Companies Act 1991, BRPD Circular No. 14 dated 25 June 2003, other Bangladesh Bank

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 circulars, International Accounting Standards (IAS)/ International Financial Reporting Standard (IFRS) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), the Companies Act 1994, the Securities & Exchange Rules 1987 and other laws & regulations applicable in Bangladesh. The financial statements of the Islamic branches have also been prepared as per Bank Companies Act 1991, Bangladesh Accounting Standards (BAS)/Bangladesh Financial Reporting Standard (BFRS) and other relevant laws & regulations. Books & records are maintained separately. Separate balance sheet and profit and loss account are shown with the figures under different heads appearing been converted into relevant heads of counts under conventional banking for consolidation and incorporate. References have been made according to International Accounting Standards (IAS) and interpretations as at 1st January 2007. IAS 1.46(d) (e) Functional and presentation currency These financial statements are presented in Taka, which is the Bank's functional currency. Except as indicated figures have been rounded to the nearest taka. IAS 1.110 Basis of consolidation A separate set of records for consolidating the statement of affairs and income and expenditure statements of the branches were maintained at the Head Office of the Bank in Dhaka based on which these financial statements have been prepared. IAS 1.113,116 Use of estimates and judgment The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected. IAS 21.23 Foreign currency conversion Transactions in foreign currencies are translated into Bangladeshi Taka and recorded at the ruling exchange rates applicable on the date of transaction. i) Assets and liabilities denominated in foreign currency are translated into Taka at the weighted average rates at the balance sheet date. ii) Transactions in foreign currencies are converted into Taka currency at the rate of exchange prevailing on the dates of such transactions and any gains or losses thereon are adjusted to revenue through foreign exchange trading account. The following assumptions have been applied in preparing the maturity analysis: 1. Balance with other banks and financial institutions, Money at call on short notice are on the basis of their maturity. 2. Investments are on the basis of their maturity. 3. Fixed assets including premises land & buildings, furniture & fixtures are on the basis of their useful life. 4. Other assets are on the basis of their adjustment. 5. Borrowings from Bangladesh Bank, other banks, financial institutions and agents are on the basis of their payment. 6. Deposits and other accounts are on the basis of their maturity and payment.
7. Provision and other liabilities are on the basis of their adjustment.

IAS 1.36,38 Comparative Information

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 As guided in paragraph 36 and 38 of BAS 1 Presentation of Financial Statements, comparative information in respect of the previous year have been presented in all numerical information in the financial statements and the narrative and descriptive information where, it is relevant for understanding of the current year's financial statements. IAS 1.49 Reporting period These financial statements of some banks cover one calendar year form 1 January to 31 December 2008.

IAS 1.102 Cash flow statement Paragraph 102 of BAS 1 presentation of financial statements requires that a cash flow statement is to be prepared as it provides information about cash flows of the enterprise which is useful in providing users of financial statements with a basis to asses the ability of the enterprise to generate cash and cash equivalents and the needs of the enterprise to utilize those cash flows. Cash flow statement has been prepared under the direct method for the period, classified by operating, investing and financing activities as prescribed in paragraph 10 and 18 (a) of BAS 7 Cash Flow Statements. IAS 1.95 Statement of Changes in Equity The Statement of changes in Equity reflects information about the increase or decrease in net assets or wealth. IAS 1.110 Assets and basis of their valuation Cash and cash equivalents

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank and highly liquid financial assets which are subject to insignificant risk of changes in their fair value, and are used by the bank management for its short term commitments. Loans, Advances/Investments and provisions a) Loans and advances of conventional Banking / Investments of Islamic Banking branches are stated in the Balance Sheet on gross value. b) Provision for loans and advances is made on the basis of periodical review by the management and of instructions contained in Bangladesh Bank BRPD Circular no. 5 dated 5 June 2006. The classification rates are given below:

Particulars Rate
General provision on: Unclassified loans and advances 1% Small Enterprise 2% Consumer finance for house building loan and loans for professional setup 2% Other consumer finance 5% Special mention account 5% Specific provision on: Substandard loans and advances 20% Doubtful loans and advances 50% Bad/loss loans and advances 100% Loans and advances are written off to the extent that1. There is no realistic prospect of recovery, and 2. Against which legal cases are filed and classified as bad loss for more than five years as per guidelines of Bangladesh Bank. These write off however will not undermine/affect the claim amount against the borrower. Detailed memorandum records for all such write off accounts are maintained and followed up.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 IAS 1.109 Investments Investments are valued in compliance with BAS-25. All investment in securities are initially recognized at cost, being fair value of the consideration given, including acquisition charges associated with the investment. Premiums are amortized and discounts accredited, using the effective yield method and are taking to discount income. The valuation of investment has been enumerated as follows: Items Applicable accounting value Government Treasury bill (HTM) at present value T&T Treasury bond at cost price Zero coupon bond at present value Bangladesh Government Treasury bond at present value Prize bond at cost price Investment in shares (quoted) at cost or market value at the balance sheet date whichever is lower. Investment in Shares (Unquoted) At cost price IAS 16.73(a) Recognition of Fixed Assets All Property and equipment are classified and grouped on the basis of their nature as required in Paragraph 75(a) of BAS-1 Presentation of Financial Statements. The major categories of Property and equipment held by the bank are property (land & Buildings), Furniture and fixtures, office appliance, electrical appliances and motor vehicles. As per Para 31 of BAS 16 after recognition as an asset, an item of property, plant and equipment whose fair value can be measured reliably shall be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. IAS 1.108(b) Assets acquired under own finance

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 As guided in paragraph 30 of BAS-16Property Plant and equipment these are capitalized at cost of acquisition and subsequently stated at coat less accumulated depreciation. The cost of acquisition of an asset comprises its purchase price and directly attributable cost of brining the assets to its working condition for its intended use inclusive of inward fright, duties and refundable taxes. The opening and closing carrying amounts of all property and equipment are presented including the amount of additions, disposals and depreciation charged during the year as required by paragraph 73(a-e) of BAS- 16,Maintanance expenses that does not increase in the future economic benefit of assets is charged to profit & loss account.

IAS 17.31(e) Assets acquired under lease finance As per BAS 17 "Lease" all fixed assets acquired under finance lease is accounted for recording the asset at the lower of present value of minimum lease payments under the lease agreements and the fair value of assets. The related obligation under the lease is accounted for as liability. Financial charges are allocated to accounting period in a manner so as to provide a constant rate of charge on the outstanding liability. IAS 16.73(b) (c) Depreciation on Fixed assets As required in paragraph 43 of BAS-16 property Plant and equipment depreciation has been charged at the following rates on reducing balance method on all fixed assets other than vehicles, which are depreciated on straight line basis. Category of the assets Rate of depreciation Land Nil Building 4% Furniture and fixtures 10% Electrical installation including computer 20%

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Typewriter, adding and calculating machine 20% Vehicles 20% Depreciation has been charged from the month of purchase and in case of sale up to the month of sale. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognized in the profit and loss account.

IAS 1.110 Liabilities and basis of their valuation IAS 1.76(b) Statutory reserve As per section 24 of the Bank Companies Act 1991, 20% of the net profit i.e. profit before tax require to transfer to statutory reserve until such reserve equals to its paid up capital. IAS 1.76(b) Exchange equalization fund This represents the amount arise from exchange gain due to devaluation of Bangladesh taka with foreign currencies and is accounted for as per instruction issued by the Bangladesh bank from time to time. IAS 19.120 Retirement benefit schemes Accounting recognition & measurement, as well as the disclosures requirements for different benefit schemes for employees are the followings. IAS 19.120

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Provident fund Provident fund benefits are given to the staff of the bank in accordance with the registered Provident fund rules. The commissioner of Income Tax, Large Tax Payers Unit, Dhaka has approved the Provident Fund as a recognized fund within the meaning of section 2(52) read with the provisions of part - B of the First Schedule of Income Tax Ordinance 1984. The fund is operated by a Board of Trustees consisting of 6 (six) members of the bank. All confirmed employees of the bank are contributing 10% of their basic salary as subscription of the fund. The bank also contributes equal amount to the fund. Contributions made by the bank are charged as expense. Interest earned from the investments is credited to the members' account on half yearly basis.

IAS 19.120 Gratuity Gratuity fund benefits are given to the staff of the bank in accordance with the approved Gratuity fund rules. National Board of Revenue has approved the gratuity fund as a recognized gratuity fund with effect from December 2001. The fund is operated by a Board of Trustees consisting of 7 (seven) members of the bank. Employees are entitled to gratuity benefit after completion of minimum 7 (seven) years of service in the Company. The gratuity is calculated on the basis of last basic pay and is payable at the rate of one month's basic pay for every completed year of service. Gratuity so calculated are transferred to the fund and charged to expenses of the bank. IAS 19.120 Superannuation The banks also contributes yearly amount to employees superannuation fund as per rules and regulations of the fund recognized by the Tax Authority. Contribution of the bank to such fund charged as expense of the bank. IAS 1.110 Taxation Income tax represents the sum of the current tax and deferred tax payable.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 IAS 12.46 Current tax Provision for current income tax has been made @ 45% as prescribed in the finance Act 2008 on the accounting Profit made after considering some of the taxable add back income and disallowance of expenditure in compliance with BAS-12. IAS 12.47,15,24 Deferred taxation The Bank has adopted deferred tax accounting policy as per Bangladesh Accounting Standard (BAS) 12. Deferred tax liabilities are the amounts of Income tax payable in future periods in respect of taxable temporary difference. Deferred tax assets are the amount of income tax recoverable in future periods in respect of Deductable temporary differences The carry forward of unused tax losses and Carry forward of unused tax credits Deferred tax is computed at the prevailing tax rate as per Finance Act 2008. IAS 37.85 Provisions and accrued expenses In compliance with BAS-37, Provisions and accrued expenses are recognized in the financial statements when the bank has a legal or constructive obligation as a result of past event, it is probable that an outflow of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. IAS 1.110 Revenue recognition Moment of recognition, amount to be recognized and disclosure requirements of revenue has been made as per BAS-18 IAS 18.35(a)

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Interest income The interest receivable is recognized on accrual basis. Interest on loans and advances ceases to be taken into income when such advances are classified. It is then kept in interest suspense account as per Bangladesh Bank instructions and such interest/profit is not accounted for as income until realized from borrowers. Interest/ Profit are not charged on bad and loss loans as per guideline of Bangladesh Bank. Such interest/profit is kept in separate memorandum account. IAS 18.35(a) Profit on investment (Islamic banking) Mark-up on investment is taken into income account proportionately from profit receivable account. Overdue charge/compensation on classified investments transferred to profit suspense account instead of income account. IAS 18.35(a) Investment income Income on investments is recognized on accrual basis. IAS 18.35(a) Fees and commission income Fees and commission income arises on services provided by the Bank and recognized on a cash receipt basis. Commission charged to customers on letters of credit and letters of guarantee are credited to income at the time of effecting the transactions. IAS 18.35(a) Dividend income on shares Dividend income from shares is recognized during the period in which they are declared and actually received. IAS 18.35(a) Gain on sale of security Capital gain on sale of securities listed in the stock exchanges is accounted as per BAS-39 i.e. only the realized profit from sale of securities are taken into Profit & Loss Account.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 IAS 1.108(b) Interest paid and other expenses (conventional banking) Interest paid and other expenses are recognized on accrual basis. IAS 1.108(b) Profit paid on deposits (Islamic banking) Profit paid to mudaraba deposits are recognized on accrual basis as per provisional rate.

IAS 1.108(b) Reconciliation of inter-bank and inter-branch account Accounts with regard to inter bank (in Bangladesh and outside Bangladesh) are reconciled regularly and there are no material differences which may affect the financial statements significantly. Unmatched entries/balances in case of inter branch transactions as on the reporting date are not material. IAS 1.110 Risk Management Risk Management is the key element for sound corporate governance of the Bank. With a recent addition in regulatory mandates and increasingly active participation of shareholders, the Bank has become increasingly concerned to identify areas of risks in the business, whether it is financial, operational, ICT or reputation risk. Southeast Bank identifies, measures, monitors and manages all risks of the Bank. Sophisticated risk management framework is being implemented to carry out efficient risk management exercises of the Bank including documenting and assessing risks, defining controls, managing assessments and audit, identifying issues, implementing recommendations and corrective plans. In accordance with Bangladesh Bank Guidance Notes, the Bank has established a risk framework

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 that consists of six core factors, i.e. (i) Credit Risk (ii) Asset and Liability/Balance Sheet Risk (iii) Foreign Exchange Risk (iv) Internal Control and Compliance Risk (v) Money Laundering Risk and (vi) Information and Communication Technology Risk. The Banks has also identified the following four key infrastructure components for effective risk Management programs: 1. Proactive Board of Directors and Senior Managements Supervision, 2. Adequate Policies and Procedures, 3. Proper Risk-Measurement, Monitoring and Management Information Systems and 4. Comprehensive Internal Controls.

Business Risk

a) Credit Risk Credit Risk is the probability of failure of a borrower or counterparty to meet its obligations in accordance with agreed terms causing a loss of all or part of the replacement value of ongoing contracts. Default signals an inability or unwillingness of the borrower to fulfill its obligations. The goal of credit risk management is to maximize a Bank's risk-adjusted rate of return by maintaining credit risk exposure within acceptable levels. The effective management of credit risk is a critical component of a comprehensive approach to risk management and essential to the long-term success of any banking organization. The Basel Committee is encouraging Banks to promote sound practices for managing credit risk. Following are the prerequisites of the credit risk management structure: Notes to the Financial Statements for the year ended 31 December 2008 (i) Establishing an appropriate credit risk monitoring environment, (ii) Operating under a sound credit-granting process, (iii) Maintaining an appropriate credit administration, measurement and monitoring process, & (iv) Ensuring adequate controls over credit risk. The sound credit risk management practices focus on the following key elements/ processes:

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 (i) Identification of risks, (ii) Analysis of risks (qualitative & quantitative), (iii) Response planning, & (iv) Continuous Monitoring and Control. IAS 1.110 b) Operational Risk Operational Risk is the risk of loss arising from the potential that inadequate information system, technology failures, breaches in internal controls, fraud, unforeseen catastrophes, or other operational problems may result in unexpected losses or reputation problems. Failure to understand and manage this risk may greatly increase the possibility that some risks will go unrecognized and uncontrolled. Southeast Bank Limited has established an effective, integrated operational risk management framework to mitigate the Operational Risk. Internal Control and Compliance Division of the Bank with three units has been performing the supervisory and monitoring works to manage this risk. c) Market Risk i) Foreign Exchange Risk Management Foreign exchange risk is defined as the potential change in earnings due to unfavorable movement in exchange rates. Generally, the Bank is less exposed to foreign exchange risk as all the transactions are carried out on behalf of the customers against L/C commitments and other remittance requirements. The Bank has undertaken policy guidelines to minimize the foreign exchange risk for exposure in currency movement. Treasury department has separate front office. Its back office desks are responsible for deal verification limit monitoring and settlement of transactions separately. The Bank continuously revalued all foreign exchange positions at market rate as per the guidelines of Bangladesh Bank. All Nostrum Accounts are timely reconciled and all outstanding entries are reviewed on a regular basis. ii) Interest Rate Risk Interest rate risk arises from the unanticipated change in interest rate that may adversely affect the earnings of bank and / or net worth. The more rate sensitive assets and liability the bank has

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 the more it is exposed to its interest rate risk. The interest rate risk is measured from earning perspective and the economic value perspective. The Asset Liability Committee (ALCO) of the bank monitors the interest rate movement on a regular basis and takes effective measure to minimize the interest rate risk. iii) Investment Risk Investment risk arises from movement in market value of investment in equities held. The risks are monitored by Investment Division under a well designed policy framework.

Liquidity Risk

Asset Liability Risk Management The Asset Liability Management technique designed to earn an adequate return while maintaining a comfortable surplus of Assets beyond Liabilities, takes into consideration interest rates, earning power and degree of willingness to take on debt. Southeast Bank has a committee called the Asset Liability Committee (ALCO) which is meeting at least once every month to analyze, review and formulate strategy to manage the balance sheet. The ALCO of the bank monitors market risk and liquidity risk, at the same time it interpret the market views and the competition. Reputation Risk

IAS 1.110 Money Laundering Risk Management Money laundering is the process of criminals use to hide, control, invest and get benefit from the proceeds of their criminal activities. This process is of critical importance, as it enables the criminal to enjoy these proceeds without jeopardizing their source. According to the best corporate governance, practices and aiming at protecting the Bank and its Employees, Shareholders, Management and Customers, all the applicable laws, regulations, rules and guidelines of Bangladesh Bank are complied with. The Bank actively prevents and takes

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 measures to guard against being used as a means of money laundering/terrorist financing and other activities that facilitate the funding of terrorist or criminal activities. Control Risk

IAS 1.110 Internal Control & Compliance Risk Management Effective internal control is essential to a bank for management of risk and it is the foundation of safe and sound banking. A good system of internal controls helps the management to safeguard the banks resources. The Board of Directors and Management of Southeast Bank Limited (SEBL) take the plan of the Bank and adopt all the methods, policies & procedures as per standard guidelines with a view to continually recognize and assess all of the material risks that could adversely affect the achievement of the banks goals. The system of Internal Control of SEBL has been designed with intention to provide reasonable assurance in achieving objectives against material misstatement or loss and ensure the: 1. Reliability of the financial information; 2. Effectiveness of operations; 3. Compliance with applicable laws and regulations; 4. Adherence to management policies; 5. Safeguarding of Banks Assets; 6. Prevention and detection of fraud and errors; and 7. Accuracy and completeness of the accounting records. Board of Directors, Board Audit Committee, Senior Management, each Division including Internal Control & Compliance Division and Branches of SEBL are discharging their role on the issue of managing the risk of Internal Control & Compliance effectively. Information Technology Risk

IAS 1.110 Information and Communication Technology (ICT) Risk Management The Bank is aware of the method of ICT Risk Management which is based on the syntax of Risk Management. Information assets are critical to the services provided by the Bank to its

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 customers. Protection and maintenance of these assets are critical to its sustainability. The Bank has already taken initiatives for protecting the information from unauthorized access, modification, disclosure and destruction to protect customers interest. The Bank has already developed its own ICT policies for different operation and services. Those are very detailed and are closely in line with the ICT guidelines of Bangladesh Bank. The Bank has developed a critical human resource fall tolerance plan with detail job description for each IT personnel, segregation of duties for IT tasks and system support in respect of severity.

4.2 Non Financial Disclosure: -

Southeast Bank
Chairman's Report The growth of our economy depends on the growth of capital. Capital depends on the growth of productivity. The idea of productivity should, therefore, be part of our industrial culture. Looking ahead for a brighter future, we shall try hard to: Add further value to our company Add new products to our product-family Start full-fledged merchant banking in 2009 Provide adequate logistic support to our dealing room for further expansion of trading operations Maintain required capital adequacy for Basel-II compliance Provide clients with active and comprehensive financial counseling Seek to attract additional fund to manage Expand business and network further Maintain high quality of assets Long for and encourage closer co-operation with our customers Achieve return on equity for more than 20%

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Integrate our research work to be tailored to customer needs Maximize profit We shall pursue quality at every stage of our operations. Quality is both a professional pride and a recipe for our success. With the continued commitment of our staff members, we look forward into a new year with a considerable optimism. As forward looking statements involve uncertainties and risks, they should be viewed accordingly taking into consideration the time and the circumstances throughout the year -2009.

Report on Corporate Governance


It actively reviews appropriateness of the accounting policies, internal annual audit plan, and audit reports, risk management of the Bank and Banks technological needs. It also oversees the discharge of responsibilities of the external auditors. The Audit Committee consists of 3 (three) members of the Board as per BRPD Circular No. 12 dated December 23, 2002 of Bangladesh Bank. Mr. Azim Uddin Ahmed is the Chairman of the Audit Committee. The Audit Committee held 04 (four) meetings in 2008. The minutes of meetings of the Audit Committee were submitted before the Board of Directors and the Board reviewed them. iii) Loan to Director No loan was allowed to any Director of the Bank during the year 2008 B) Bank Management The Bank is manned and managed by a team of efficient professionals. The functions of the Board and the Management are clearly defined and sharply bifurcated. The Management implements and acts within the policies and manuals approved by the Board. i) Management Committee (MANCOM) To address general issues of importance, evaluate different types of risks, monitor internal control structure and to review effectiveness of the internal control system, a Management Committee (MANCOM) is working in the Bank. It is composed of senior members of the Management.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 ii) Asset Liability Management Committee (ALCO) Asset Liability Management Committee consists of the Managing Director, the Deputy Managing Director and strategically important Divisional Heads of Head Office. The Managing Director and in his absence the Deputy Managing Director chairs the meeting of the Asset Liability Management Committee. iii) Credit Committee A Credit Committee headed by the Deputy Managing Director I [Managing Director (Current Charge)] of the Bank has been constituted at Head Office of the Bank for minute appraisal and quick disposal of credit proposals

C) Independent External Auditors M/S Huda Vasi Chowdhury and Co., the Number-1 Audit Firm as per Bangladesh Banks list of the qualified Chartered Accountants have been re-appointed as the External Auditors of the Bank in the 13th Annual General Meeting held on April 28, 2008 for the second term. D) Regulatory Authorities The role of regulatory authorities is very important in respect of corporate governance practices of Southeast Bank Limited. We are pledge-bound to comply with all the requirements of regulatory authorities. E) The Shareholders The shareholders of the Bank voice their views in the Annual General Meetings. The constructive suggestions of the shareholders are implemented in the interest of the Bank. Our Share Division is shareholders relationship department

Report on Corporate Social Responsibility


Southeast Banks banking practice is based on a network of relationship with its employees, customers, suppliers, business associates, shareholders, regulatory authorities, and the

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 community. The Banks corporate social responsibility is about addressing the needs of all the stake holders in a way that advances its business and makes a positive and meaningful contribution to the society. 01. Employees The Banks business is dynamic and growing. This dynamism and growth comes from its skilled and experienced human resource that can be found at every level of the organization. The Bank offers its employees very competitive pay package and bonus that are reviewed on a continuous basis in line with the market forces. 02. Customers The need to focus on the need of customers is fundamental to banking business. Southeast bank discharges this vital responsibility by offering financial products and services that truly meets their needs. 03. Shareholders The Southeast bank is fully committed to protect the interest of its shareholders. Their constructive suggestions are implemented for the betterment of the company. It releases enough disclosures for the information of the shareholders in the Annual Reports, half-yearly financial statements, the print and electronic media and in the Banks website. 04. The Banks Business Associates The Bank continuously endeavors to create a long-lasting win-win relationship with its suppliers and business associates for mutual growth. Its relationship with them is based on mutual trust and respect. It deals with them in a fair and transparent way. Southeast Bank enjoys credit lines from Correspondents and Foreign Banks and special credit line from ADB and IFC 05. Environment The Bank continuously strives to ensure that its operations are environment-friendly and discourages financing projects contrary to it. It has extended its helping hands to initiatives of community leaders for environment protection and development. 06. Regulators

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Southeast bank firmly believes that it is imperative to comply with the relevant laws, rules and regulations of all regulatory authorities to be a responsible corporate citizen 07. Community Southeast Bank works to promote good community relations to foster a relationship of understanding, trust and credibility. It has a long history of support for charitable causes. In 2008, Southeast Bank has spent Tk.14.82 million as donations for education, sports, art, culture, health-cares, community development, relief operations etc. The major areas of donations are given in the table below:

Report of the Audit Committee Report of the Banks Shariah Council


The Audit Committee of the Board of Directors of the Bank held 4 meetings in 2008. In these meetings, the Committee stressed upon efficiency and adequacy of internal control, risk management and reviewed the circumstances that may adversely affect the sustainability of the Banks operations. The Committee also provided the following guidelines / instructions for compliance by the management: Comprehensive audit of each branch should be undertaken twice in a year on best effort basis to unearth irregularities, if any, committed at the branches and rectify them at the earliest. At the time of submitting an audit report about an irregularity at a branch of the bank, the modus operandi has to be clearly spelt out and the responsibility of the concerned officials has to be fixed without fear or undue influence from any quarter. The Management must make all out efforts to recover the classified loans and overdue installments from defaulting borrowers within the shortest possible time. The Management must take pragmatic steps to arrest further classification of loans and advances to keep the percentage of non-performing loans at the lowest level.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Appropriate disciplinary action must be taken against the officials of the Bank who are found responsible for committing gross irregularities leading to classification of Banks dues. Loans and advances should not be allowed before completion of prime documentation formalities. Loans and advances should be allowed to the clients after ascertaining their integrity, commitments, market reputation, credit worthiness and track-record for ensuring safety of Banks lending. Regular follow up for rectification of the lapses and irregularities detected by the auditors must be ensured to vanguard the Banks interest. Both centralized and branch level constant monitoring of classified and stuck-up loans should be made mandatory for their early recovery. Branches / unit with high concentration of classified loans in percentage must be brought under special monitoring function of Credit Administration Division of Head Office for timely recovery of Banks overdue. Branch-wise Loan Accounts which are showing signs of weakness with big exposures should be listed and monitored by the Credit Administration Division of Head Office so that that they do not turn into classified loans. Special Mention Accounts of different branches should be listed quarterly and followed up so that they do not get worse and instead rather turn into regular accounts. Cases filed by the Bank in courts against defaulting borrowers must be monitored every day. The presence of the Banks lawyers in the courts of law on the date of hearing of the case must be ensured. CAD squad and personnel of branches shall personally chase defaulting and recalcitrant borrowers for recovery of Banks overdue. Vigorous efforts must be made for recovery of classified loans from the defaulting credit card holders of the Bank.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Vision

To be a premier banking institution in Bangladesh and contribute significantly to the national economy. Missions High quality financial services with state of the art technology Fast customer service Sustainable growth strategy Follow ethical standards in business Steady return on shareholders equity Innovative banking at a competitive price Attract and retain quality human resource Commitment to Corporate Social Responsibility 2. Commitment to Clients Ours is a customer focused modern banking institution in Bangladesh. We deliver unparalleled financial services to Retail, Small and Medium Scale Enterprises (SMEs), Corporate. Our commitments to the clients are the following: Provide service with high degree of professionalism and use of modern technology. Create long-term relationship based on mutual trust. Respond to customer needs with speed and accuracy. Share their values and beliefs. Grow as our customers grow. Provide products and service at competitive pricing. Ensure safety and security of customers valuables in trust with us

National Bank
Chairpersons Message

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Bismillahir Rahmanir Rahim Respected Shareholders Assalamu A'Iaikum. I, on behalf of the Board of Directors would like to share the success of National Bank Limited during 2008.1 warmly welcome you to the 26th Annual General Meeting of the Bank. Starting the journey on March 23, 1983, the Bank within a span of 26 years has turned into one of the biggest private sector banks in the country having 106 branches and assets over Tk. 72,212 million. This is the result of the prudent policies and farsighted decisions taken by the board, active support from shareholders, depositors, borrowers, other clients and well-wishers, a strong regulatory framework and team work by the efficient executives. During the year, the Bank has not only made good profit, but also it has enhanced its image further. NBL has now established itself as a local financial institution with international corporate culture, state-of-the art systems, flawless process, superior business ethics, strong control & compliance, good governance, visionary & dynamic leadership, commendable market & product depth and strong financials. NBL is now regarded as a local brand having regional and global potential. Our customers are increasingly placing their trust on us. This would not have been possible without the strong commitment of our personnel who have set a very high standard of service, which goes to promote our image with our customers as well as the entire business community. The world economy that registered an unprecedented average growth of 5 percent a year for consecutive four years is now entering a major downturn in the face of the most severe shock in mature financial markets since 1930. The major advanced economies are already in recession while a number of emerging and developing countries are under inflationary pressure. Despite such difficult conditions, the Bank had another excellent year of successful performance. The Bank earned a profit before tax of Tk. 2,828.80 million for 2008, a growth of Tk. 793.70 million or 39 percent, over the normalized profit before tax for 2007. The Bank's profit after tax and provision for 2008, at Tk. 1,517.40 million reflected an even stronger growth of 22.51 percent or Tk. 1,238.10 million, over the normalized profit after Bank's revenue was Tk. 8,893.10 million, which was up by Tk. 1,710.50 million or 23.81 percent. The bank's total loans and advances portfolio was Tk.49, 665.10 million at the end of December 2008 compared to Tk.36, 475.70 million at the end of December 2007. The deposit base of the bank registered a growth of 25.51 percent in the reporting year over the last year and stood at Tk. 60,195.20 million in December 2008. This was achieved with better management of interest margins in volatile market conditions and adequate Balance Sheet growth during the period. Being a regular tax payer, we have made a direct contribution to Government Exchequer

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 of Tk. 761.70 million in the calendar year 2008 against Tk. 449.70 million in previous year registering a staggering growth of 69.38percent. The measures we are using to siege the market share comprises of shifting towards developing and expanding the SME financing, Any Branch Banking, Off-shore Banking facilities, etc. In addition we are further expanding our presence through opening new branches. In 2008, we have opened 5 new branches and plan to open 15 new branches and 10 SME centers in2009. National Bank, has now acquired strength and expertise to support the banking needs of the foreign investors. NBL stepped into a new arena of business and opened its Off Shore Banking Unit at Mohakhali to serve the wage earners and the foreign investors better than before. National Bank, since its inception, was aware of complying with Corporate Social Responsibility. In this direction, we remain associated with the development of education, healthcare and sponsored sports, and culture and during the times of natural disasters like floods, cyclones, landslides we have extended our hand to mitigate the sufferings of victims. The bank established the National Bank Foundation in 1989 to remain involved with social welfare activities. The foundation is running the NBL Public School & College at Moghbazar where present enrolment is 1140. Besides awarding scholarship to the meritorious children of the employees, the bank has also extended financial support for their education. It provided financial support to Asiatic Society of Bangladesh at the time of their publication of Bangla pedia and observance of 400years of Dhaka City. Besides financial help to various organizations, the bank has also been sponsoring sports like Badminton, Football, Volleyball, Shooting and Golf. NBL has also played a major role in the health sector by creating a provision of a Harmon dialysis machine at the BIRDEM Hospital. In addition to the regular social activities the bank has been extending credit facility without collaterals at a lower rate to the entrepreneurs having small capital and to the women folk to make them self reliant. With a view to develop the socio-economic condition of the country the bank is expanding its credit in the SMEsector.NBL has been extending agri-credit jointly with Barind Multipurpose development Authority to the marginal farmers of Barind area of Rajshahi since 1993 with a view to increase agri-output. The project has changed the socio-economic conditions of the farmers for 2007. In 2008andhas made ecological improvement of the area through massive tree plantation. Instant action for extending agri-loan for marginal farmers, taking a pilot project in the Beverly affected Sirajgonj district immediately after the devastating flood of 2007 saved the farmers from setback. Tremendous success of the project led its expansion not only in the

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Sirajgonj district, but also, in other areas of the country. In dearth of capital, growth of weaving industry, the traditional heritage of our country is being hampered. NBL has stepped forward by extending credit to save the industry. We express our abhorrence at the recent gruesome killing that took place in Plikhana BDR Headquarters and also our deepest sympathy to the members of bereaved families. Our bank donated Tk.25.00 lac to the honorable Prime Minister's fund. Besides, among the bereaved families, NBL decided to give Tk.40, 000/- per month to each five families, which will continue for ten years. Ladies and Gentlemen, , the Bank has recorded rapid and consistent growth in a tough and competitive sector. One of the major reasons for this success has been the commitment of its motivated staff with a strong work ethic. We have a fine team of people, shared set of priorities and a proud tradition of success. I sincerely appreciate the efforts of the entire workforce led by our Managing Director for their outstanding achievements. I would like to give my sincere thanks to the Finance Ministry, Bangladesh Bank, National Board of Revenue, Securities and Exchange Commission, other government agencies, Dhaka and Chittagong Stock Exchanges, Depositors, Borrowers, Well-wishers and last but not the least, the Shareholders for providing us with continuous support to run the bank smoothly. I would also like to take this opportunity to thank my colleagues on the Board, who have given their best, in the face of adverse internal and external conditions and has made 2008 yet another year of success for the Bank. We not only opted for the growth of the organization, but also, wanted to share our financial success with shareholders in an appropriate manner. Hence, the Board of Directors proposed to the Annual General Meeting of shareholders for stock dividend at the rate of 52percent on the profit of 2008. In fine, considering the Bank's present shape and strength, we hope that National Bank is well poised to meet the challenges of 2009 and beyond. Since the very beginning, the Bank exerted much emphasis on overseas operation and handled a sizeable quantum of homebound foreign remittance. The Bank established extensive drawing arrangement network with Banks and Exchange Companies located in important countries of the world. Expatriates Bangladeshi wage earners residing in those countries can now easily remit their hard-earned money to the country with confidence, safety and speed. The Bank earned a profit before tax of Tk. 2,828.80 million for 2008, a growth of Tk. 793.70 million or 39 percent, over the normalized profit before tax for 2007.The Bank's profit after tax and provision for 2008, at Tk. 1,517.40 million reflected an even stronger growth of 22.51

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 percent or Tk. 1,238.10 million, over the normalized profit after tax for 2007. In 2008 Bank's revenue was Tk. 8,893.10 million, which was up by Tk. 1,710.50 million or 23.81 percent. The bank's total loans and advances portfolio was Tk.49, 665.10 million at the end of December 2008 compared to Tk.36, 475.70 million at the end of December 2007. The deposit base of the bank registered a growth of 25.51 percent in the reporting year over the last year and stood at Tk. 60,195.20 million in December 2008. This was achieved with better management of interest margins in volatile market conditions and adequate Balance Sheet growth during the period. Being a regular tax payer, we have made a direct contribution to Government Exchequer of Tk. 761.70 million in the calendar year 2008 against Tk. 449.70 million in previous year registering a staggering growth of 69.38 percent. National Bank, has now acquired strength and expertise to support the banking needs of the foreign investors. NBL stepped into a new arena of business and opened its Off Shore Banking Unit at Mohakhali to serve the wage earners and the foreign investors better than before. National Bank, since its inception, was aware of complying with Corporate Social Responsibility. In this direction, we remain associated with the development of education, healthcare and sponsored sports, and culture and during the times of natural disasters like floods, cyclones, landslides we have extended our hand to mitigate the sufferings of victims. The bank established the National Bank Foundation in 1989 to remain involved with social welfare activities. The foundation is running the NBL Public School & College at Moghbazar where present enrolment is 1140. Besides awarding scholarship to the meritorious children of the employees, the bank has also extended financial support for their education. It provided financial support to Asiatic Society of Bangladesh at the time of their publication of Bangla pedia and observance of 400 years of Dhaka City. Transparency and accountability of a financial institution is reflected in its Annual Report containing its Balance Sheet and Profit & Loss Account. In recognition of this, NBL was awarded Crest in 1999 and 2000, and Certificate of Appreciation in 2001 by the Institute of Chartered Accountants of Bangladesh.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 A team of highly qualified and experienced professionals headed by the Managing Director of the Bank who has vast banking experience operates bank and at the top there is an efficient Board of Directors for making policies National Bank Limited is one of the leading private commercial bank having a spread network of 106 branches across Bangladesh and plans to open few more branches to cover the important commercial areas in Dhaka, Chittagong, Sylhet and other areas in 2008. National Bank Limited has been licensed by the Government of Bangladesh as a Scheduled commercial bank in the private sector in pursuance of the policy of liberalization of banking and financial services and facilities in Bangladesh. In view of the above, the Bank within a period of 25 years of its operation achieved a remarkable success and met up capital adequacy requirement of Bangladesh Bank. With a wide range of modern corporate and consumer financial products National Bank has been operating in Bangladesh since 1985. In 1997, the bank introduced automated branch banking system to increase efficiency and improve customer service. The bank is one of the leading banks which introduced first Credit Card in Bangladesh. Our technology has been upgraded to manage the growth of the bank and meet the demands of our customers. ATMs now allow customers to retrieve 24x7 hours cash withdrawals. National Bank Limited is a customer oriented financial institution. It remains dedicated to meet up with the ever growing expectations of the customer because at National Bank, customer is always at the center. Mission

Efforts for expansion of our activities at home and abroad by adding new dimensions to our banking services are being continued unabated. Alongside, we are also putting highest priority in ensuring transparency, account ability, improved clientele service as well as to our commitment to serve the society through which we want to get closer and closer to the people of all strata. Winning an everlasting seat in the hearts of the people as a caring companion in uplifting the

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 national economic standard through continuous up gradation and diversification of our clientele services in line with national and international requirements is the desired goal we want to reach. Vision

Ensuring highest standard of clientele services through best application of latest information technology, making due contribution to the national economy and establishing ourselves firmly at home and abroad as a front ranking bank of the country are our cherished vision.

Prime Bank
Economic trends and their impact Fiscal year 2007 was another year of achievement for Bangladesh and its financial sector. The economy of Bangladesh maintained a strong GDP growth of 6.5 percent resulting from robust performance in services and manufacturing sector. The growth was substantially contributed by increased inflow of remittances from Bangladeshi expatriates and reasonable growth in export. The performance is praiseworthy despite high commodity price specially Petroleum products in international market which influenced the domestic market adversely. Bangladesh Bank increased the capital adequacy requirement of the banks from 9 percent to 10 percent of RWA and also introduced general provision on Off-balance sheet items in an effort to reduce inflation and strengthen lending facilities of Commercial banks for better asset & liability management. These affected both banks and borrowers. The loss of business confidence and cautionary monetary policy resulted to excess liquidity in the banking sector. The growth of deposits and lending activities slowed down from the level of last fiscal year. Increased provisioning requirement on the off-balance sheet items will improve capital adequacy but reduce the ROA and ROE of the banking sector. The banks are now facing increasingly interest sensitive customers who are demanding higher rate of return against their deposits. Coupled with these rising interest cost and reduced spread, the rise in prices of oil and other importable items have exerted pressure on dollar which have squeezed the exchange and fee earnings of the banks. However, banking sector particularly the private commercial banks showed its resilience and continued to perform better by diversifying the asset portfolio to Retail, SME and Capital

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Market. The available statistics indicate that share of business of PCBs are increasing in deposits, lending and other business operations. In this competitive situation, PBL remained focused in all key areas and achieved higher growth in operating profit during 2007. Strategy

PBL has consistently remained focused on efficient customer service by providing wide range of products and services. Our products and services are as diverse as the market segments demand. Our customer group range from individuals, big corporate clients, NGOs to Non residents. Financing to, NGOs were done for extending micro finance to cover less', privileged people who are struggling to fight poverty. PBL will also focus on its delivery platform, its people and its brand to support the growth. PBL will focus more on off balance sheet services for the clients by enhancing the cash management and other advisory services through its state of art IT platform. Improvement in mix of deposits by developing more retail savings products remained in our policy objective and shall continue to remain so in 2008 as well. It will try to remain ahead of the peer group bench mark. PBL's core value to remain socially responsible corporate citizen will remain integral part to its strategy and communicating them to all stakeholders is intrinsic to the plan.

Leveraging on diversification
Loans & Advances The growth of Loans & Advances was 28.11 percent during the year as against 40 percent of previous year. The Loans and Advances cover following core areas: Corporate, SME, Retail and Credit Card. Corporate operations Prime Bank's corporate business provides tailored services to corporate and institutional clients. The financing is based on both conventional and Islamic Shariah mode. While providing large loans to our customer, the policy of Bangladesh Bank is strictly followed. The Customer Relationship Program has been strengthened and frequent interaction has been ensured to cater the growing needs of our customers. Corporate finance in both modes (Conventional and Islamic Shariah) showed steady growth. PBL has been a dominant player in arranging syndicated loan for its customers. PBL already proved itself as a trusted partner of both syndication participants and large loan borrowers and it is expected that demand for structured loan would increase

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 during 2008 for infrastructure projects. The sectors of financing include pharmaceutical, chemical, cement, ceramic, steel, micro finance, food and allied industry, power station, infrastructure. It raises funds from the market for financing term loans, working capital at the most competitive rates under secured terms & condition. SME PBL took a strategic shift towards developing and expanding the SME financing which has received considerable attention of the policy makers. During 2007, Prime Banks strategy was focused on marketing the Bank's products to wider range of customers and provided working capital and term loan to different manufacturers, traders and service providers including backward and forward linkage industry that fall working abroad to provide fastest delivery of remitted fund to local beneficiary. Having this objective, we are continuously increasing our rural branches and making arrangements with other local banks to extend fastest delivery service of inward remittances. In addition to the opening of exchange house at Singapore, Prime Bank entered into agreement with various exchange houses in USA, UK, and Middle East and South Asian countries to arrange inward foreign remittances of the Bangladeshi expatriates. This strategy of the Bank allowed the rural people to have modern banking facilities. PBL also participated in various trade fairs organized by trade bodies abroad to bring more customers under its net. Capital Market Operation Capital market of the country experienced a very vintage year in 2007. The total market capitalization reached to a level of USD 10 billion mark. New inflow of liquidity and entry of fresh investors pulled the stock market to its record height. Merchant Banking and Investment Unit (MBU) has been reorganized and now actively participating in the secondary market under appropriate risk management policies and guidelines approved by the Board. The Bank launched a scheme titled "Prime Investment Portfolio Management Services" for the individuals and institutional investors to invest in the stock market. Assistance services facilities are also provided to portfolio account holder on the basis of published information and accounts. Merchant Banking Unit contributed record operating profit during 2007. Its share to total operating profit is 14.88 percent. From the 2nd quarter of 2007, SEC issued number of regulations via Margin Rules, Margin ratio for Merchant Bankers which are far reaching and conducive to investors' safety. MBID had to comply with regulations and took corrective actions.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Off-Shore Banking The impressive growth of the economy during last couple of years and the facilities provided to the foreign investors through opening of special export zones have attracted lot of foreign investments in the country. Prime Bank has now acquired strength and expertise to support the banking needs of the foreign investors. PBL opened its Off Shore Banking Unit at DEPZ, Savar, Dhaka. Opening of the Offshore Banking Unit will allow the bank to serve the wage earners and the foreign investors better than before. PBL also obtained a license for opening another offshore branch at Patenga, Chittagong.

Performance of Subsidiary Prime Exchange Co. Ltd. in Singapore finished its one and half year operation and has substantially reduced its operating loss in 2007. Opening of the fully owned subsidiary in Singapore has added a new dimension to the Bank's remittance operation widening its global reach for remittance services. We hope that opening of the subsidiary will help the country in augmenting the flow of inward foreign remittance through banking channel.

Capital Management Bank continues to manage its capital efficiently in order to support its annual business plan and to ensure adequate return on capital to shareholders. Prime Bank recognizes the impact on shareholders returns of the level of equity and seeks to maintain a prudent balance between TierI and Tier II capital. PBL gave due attention to internal generation of capital by improving the ROA & ROE and was successful in doing so during 2007. The capital adequacy of the Bank rose to 11.50 percent from 9.95 percent of 2006. It not only met the enhanced regulatory requirement of 10 percent but also remained over 1 percent to mitigate risks. Bangladesh Bank is contemplating to start implementing Risk based capital accord "Basel II" from the year 2009 and advised the banks for capacity building of its officers. PBL has already imparted training to the officers and also streamlined the risk management process in order to be prepared for implementation of Basel II on time. The Bank has formed an implementation team as per guidelines of Bangladesh Bank.

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Corporate Governance

To comply the ICT Guideline of Bangladesh Bank and to ensure the smooth operation of business, an Independent "IT Audit & Security" Department has been formed in May, 2007. The main aim of the department is to identify the inherent risks and vulnerabilities associated with the use of IT, its operation and operation of core banking system Pc Bank /T24, to implement controls to mitigate the risks and provide recommendations for improvement in controls for reducing risks. Internal IT Audit provides an objective means of reviewing the risks faced by the Bank in relation to use of Information Technology and assesses whether they are being controlled/mitigated in an effective and efficient manner; provides an assessment of the Bank's IT control against Guideline on ICT for Scheduled Banks and Financial Institutions of Bangladesh Bank. Internal IT Audit has carried out audit of 43 branches during 2007. Internal Control and Compliance Internal Control contains self -monitoring mechanisms, and actions are taken to correct deficiencies as they are identified. Even with effective internal control, no matter how well designed, has inherent limitations including the possibility of the circumvention or overriding of controls and therefore can provide only reasonable assurance with respect to financial statement preparation. Further, because of changes in conditions, internal control effectiveness may vary over time. PBL has taken all-out efforts to mitigate all sorts of risk as per guidelines issued by Bangladesh Bank. As a part of robust risk management process, the Bank has formulated a comprehensive Credit Risk Management Policy to address credit risk. To mitigate operational risk, money laundering and terrorist financing risk, circumvention or overriding the internal control procedure, Internal Audit, Board Audit Cell and Central Compliance and Internal Control Divisions are carrying out regular audit and inspection of the functions of the Branches. Deficiencies /lapses /irregularities detected by these audit and inspection are rectified/ regularized by the concerned Branches at the earliest and submit compliance report to the Head Office. The Bank has already prepared the Risk Assessment Matrix of various banking functions and incorporated the same in Departmental Control Function Checklist (DCFCL). The Branches and Divisions of Head Office are following the DCFCL attaching due importance to high risk and medium risk functions. The Bank also prepared Internal Control and Compliance Manual to

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 strengthen internal control function. The Bank has already introduced international standard policies and standard operating procedures (SOP) prepared by reputed foreign consultant PricewaterhouseCoopers. This will upgrade operational efficiency, reduce operational and other risks, reduce major mistake, fraud and forgery, and ensure proper internal control, risk mitigation and accurate financial reporting. To assess the position of internal control and anti-money laundering compliance in various Branches of PBL, Central Compliance and Internal Control Division carried out on site inspection of 44 Branches during 2007. Corporate Social Responsibility

It is being widely recognized by the corporate sector that augmented Corporate Social Responsibility (CSR) designed to respond to huge unmet needs of the society can be one of the important means in the achievement of long term and persistent business value. The high level of awareness of CSR has also strongly come about as a result of the United Nations Millennium Development Goals (MDG), in which a major goal is the increased contribution of assistance from a range of organizations to help alleviate poverty and hunger, and for businesses to be more aware of their impact on society. In the context of current global and local scenarios, customers and public together with the development players and partners are very much aware of the CSR and its synergistic effects on national development process. There is no "one-size-fits-all" for pursuing a CSR approach. Each company has unique characteristics and circumstances that will affect how it views its operational contexts and its defining social responsibilities. One of the nicest things about CSR as perceived by Prime Bank is the extent to which it takes real social and community problems or issues in the way bank does business and innovates responses to them. PBL supports the concept of "Triple Bottom Line" which focuses on: Good economic performance Good social practice Good environmental practice In respect of CSR, PBL has focused on following specific key areas of: Nation building Enhancement of market place Promotion of the work place

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Support to the community Protection of environment Benefits to the employees The retirement benefits accrued for the employees of the Bank as on reporting date have been accounted for in accordance with the provisions of Bangladesh Accounting Standard-19, "Employee Benefit". Bases of enumerating the retirement benefit schemes operated by the Bank are outlined below: a) Provident fund Provident fund benefits are given to the permanent employees' of the Banking accordance with Bank's service rules. Accordingly a trust of deed and provident fund rules were prepared. The Commissioner of Income Tax, Taxes Zone - 5, Dhaka has approved the Provident Fund as a recognized provident fund within the meaning of section 2(52), read with the provisions of part B of the First Schedule of Income Tax Ordinance 1984. The recognition took effect from 07 July 1997. The Fund is operated by a Board of Trustees consisting six members (03 members from management and other 03 members from the Board of Directors) of the Bank. All confirmed employees of the Bank are contributing 10% of their basic salary as subscription to the Fund. The Bank also contributes equal amount of the employees' contribution. Interest earned from the investments is credited to the members' account on yearly basis. b) Gratuity fund The Bank operates an unfunded gratuity scheme, provision in respect of which is made annually covering all its permanent eligible employees. Actuarial valuation of gratuity scheme had been made to assess the adequacy of the liabilities provided for the scheme as per BAS-19 Employee Benefits" c) Welfare fund Prime Bank's employees' welfare fund is subscribed by monthly contribution of the employees. The Bank also contributes to the Fund from time to time. The Fund has been established to

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 provide coverage in the event of accidental death or permanent disabilities of the employees. Disbursement from the fund is done as per rules for employees' welfare fund. d) Incentive bonus Prime Bank started a incentive bonus scheme for its employees. 10% of net profit after tax is given to the employees in every year as incentive bonus. This bonus amount is being distributed among the employees based on their performance. The bonus amount is paid annually, normally first quarter of every following year and the cost are accounted for the period to which it relates.

Chapter 5
3

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

Analysis

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

5.01 Case Processing Summary:R-1 1 Did the organization follow IAS? 1 Did the organization maintain the guideline to ensure R-2 1 1 1 1 1 1 R-3 1 1 1 1 1 1 R-4 1 1 1 1 1 1 %Y %N 100 0 100 0 100 100 100 100 0 0 0 0

presentation of financial statement (F/S)? Did the company F/S under IAS 1 depart from IFRs? Did the company using accrual basis accounting? Did the company prepared F/S on consistency basis? Did the company maintain the presentation & classification of item in the F/S from one period to next period? Did the organizations reporting period of F/S is at least annually? Did the organization disclose comparative information in F/S? Did the organization disclose any disclosure for any changed comparative amount? Did the company's material items presented separately in the F/S? Did the company's current & non current assets & liabilities presented separately? Did the company disclose specifies disclosure about information presented in F/S? Did the company offset the assets & liabilities, income & expenses? Did the company maintain the requirement for minimum item in B/S? Did the company disclose profit or loss attribute to minority interest? Did the company setting out separate standards for presenting the cash flow statement? Did the company maintain separate component to present entities change in equity? Did the company disclose significant disclosure & note for changing accounting policies? Did the company disclose any disclosure for the amount of dividends proposed or declared before the F/S? Did the company disclose the amount of dividend recognized as distributions & amount per share?

1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1

1 2 1 2 1 1 1 1 1 1 2 1 2

1 1 1 1 1 1 1 1 1 1 1 1 2

1 2 1 1 1 1 1 1 1 1 1 1 2

100 50 100 75 100 100 100 100 100 100 75 100 25

0 50 0 25 0 0 0 0 0 0 25 0 75

100

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

5.02 Table of Frequencies:1 4 0 1.0 1.0 1.00 11 4 0 1.00 1.00 1.00 2 4 0 1.00 1.00 1.00 12 4 0 1.00 1.00 1.00 3 4 0 1.00 1.00 1.00 13 4 0 1.00 1.00 1.00 4 4 0 1.00 1.00 1.00 14 4 0 1.00 1.00 1.00 5 4 0 1.00 1.00 1.00 15 4 0 1.00 1.00 1.00 6 4 0 1.00 1.00 1.00 16 4 0 1.00 1.00 1.00 7 4 0 1.00 1.00 1.00 17 4 0 1.25 1.00 1.00 8 4 0 1.25 1.00 1.00 18 4 0 1.00 1.00 1.00 9 4 0 1.00 1.00 1.00 19 4 0 1.75 2.00 2.00 10 4 0 1.25 1.00 1.00 20 4 0 1.00 1.00 1.00

Valid Missing Mean Median Mode

N Valid Missing Mean Median Mode

Percentage of the organization follow IAS

Did the organization follow IAS


120

100

80

60

40

20

0 Y es 100%

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Percentage of the organization disclose for any changed comparative amount in F/S

No 25%

Yes 75%

Percentage of the company's material items presented separately in the F/S

80

60

40

20

0 Yes 75% No 25%

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Percentage of the company disclose any disclosure for the amount of dividends proposed before the F/S

Yes 25%

No 75%

Percentage of the company maintain separate component to present entities change in equity?
80

60

40

20

0 Yes 75% No 25%

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

Chapter 6

Findings of the Study

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

6.01 Findings:In general, actual accounting and disclosure practices in Bangladesh fall far short of the applicable requirements as per IAS. Some examples follow:
Consolidated financial statements - It is common practice not to comply with the IAS requirements on consolidation.

Statement of changes in equity - Many companies financial statements did not include this.

Segment reporting - Few companies reported segment sales and only one company disclosed segment assets and liabilities in addition to segment income and expenditure. Most companies that apparently had business segments and geographical segments did not comply with the segment reporting requirements.

Effects of changes in foreign exchange rates - Some companies that had exchange difference arising on outstanding foreign currency loans on the balance sheet date adopted a capitalization method instead of expensing. Although this is permitted under Companies Act 1994, it is a violation

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1
of IAS. In other cases, export receivables were disclosed at the exchange rate prevailing on transaction date instead of balance sheet date as required by IAS.

Related party transactions - Detailed disclosures in accordance with IAS requirements were not found in any sets of financial statements. For instance, the ownership structure of many companies suggested that related parties and related party transactions existed, but in most cases there were limited or no disclosures.

Revenue recognition - Many companies did not properly disclose the accounting policy on revenue recognition. It is common practice for installment sale business in Bangladesh to recognize sales on cash rather than accrual basis as required by IAS.

Property, plant, and equipment - In cases where fixed assets were revalued, detailed disclosures required under the IAS were not available. Moreover, none of the companies addressed the IAS requirements on impairment of assets. Employee benefits - Many companies disclosed the existence of employee pension benefits but failed to disclose information required by the relevant IAS. In many cases, the liability for employee benefit expenses was not recognized on an accrual basis. No disclosure was made as to whether actuarial or any other forms of valuations had been made to quantify outstanding liabilities for employees post-employment benefits. One of the major listed companies in Bangladesh was discovered to have appropriated loans from the employee provident fund and the workers profit participation fund. The loans outstanding are several times the annual contributions made to these funds. Details of the terms and conditions of these loans and reconciliation of the movements of these funds were not disclosed.

Pre-operating expenses - Bangladesh accounting practice generally treats pre-operational expenses as assets on the face of the balance sheet, and then writes off these expenses over several years. These assets are not intangible and should have been expensed. .

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

Contingencies: - Many reviewed companies do not disclose contingent liabilities for obligations that may arise from past events.

Leases - There are a number of leasing companies operating in Bangladesh. The principal business operations are in the nature of finance leases, but very attractive fiscal incentives encourage lessor and lessees to treat them as operating leases, contrary to IAS requirements.

Interim financial reporting - While presenting half-yearly reports, all companies failed to present the Statement of Changes in Equity and Notes to the Financial Statements.

Additional disclosure by banks - Banks did not disclose aggregate amounts included in the balance sheet for loans and advances on which interest is not being accrued. Banks provided no information or commentary on the risk management policy. For financial instruments, terms and conditions, particularly the rate of interest and security for financial assets and liabilities, were not disclosed. Several banks included as assets in their financial statements large amounts as suspense accounts and inter-branch balances (un-reconciled differences), and no explanation was provided for such treatment.

6.02 Recommendation:The recommendations outlined in this thesis will be useful as inputs for preparing financial statements and implementing a country action plan for accounting improvement in Bangladesh. Improve the statutory framework of accounting and auditing. Steps should be taken to ensure that the legal and regulatory requirements on accounting, auditing, and financial reporting fully protect the public interest. This might require the passing of a new Financial Reporting Act and

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 the repeal of the provisions on accounting, auditing, and financial reporting in Companies Act 1994, Bank Companies Act 1991, Insurance Act 1938, and other related regulations. The new Act should focus on making legal arrangements for the following: Fully adopts IAS/IFRS and ISA with modifications and ensure mandatory observance of these standards. Adopt IAS/IFRS and related interpretations issued by the IASB as legally enforceable standards applicable to the preparation of the legal entity and consolidated financial statements of all public interest entities Develop a simplified financial reporting framework for small and medium enterprises. Establish an independent oversight body to monitor and enforce accounting and auditing standards and codes. Empower the oversight body to monitor and enforce accounting and auditing requirements with respect to general-purpose financial statements. Monitoring compliance with accounting standards. A monitoring unit of the Financial Reporting Council will be responsible for identifying and forwarding findings on noncompliance to the Enforcement Unit along with recommendations on the nature of sanctions to be imposed on the parties responsible for infractions. Reviewing auditors practice & enforcing sanctions for violations Strengthen capacity of the regulatory bodies & take preventive measures to improve the degree of compliance with accounting requirements by the publicly traded companies. Improve the professional education and training arrangement of ICAB & Ensure effective continuing professional education and development of the accountants and auditors in public practice.

6.03 Conclusion:Reporting practices of listed banking companies in any county of the world is subject to regulatory control. In Bangladesh, Listed banking companies of Bangladesh are required to prepare annual report complying with the relevant provisions of regulations such as Companies

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1 Act, 1994 and Securities and Exchange Commission Rules, 1987. Besides, ICAB has adopted IAS-1: Presentation of Financial Statement for the preparation and publication of statutory annual report of business enterprises of the country. But this has not been followed compulsory by some company on the part of business enterprises. Reporting practices of business enterprises are found to be not satisfactory. Because, these enterprises do not comply with the relevant provisions of the aforementioned regulations including IAS-1.This is why, the thesis has examined the relevant provisions of regulatory frameworks that influence the reporting practices of listed banking companies in the country. The study has identified the legal flaws in reporting practice and suggested the policy measures for improving the annual reporting practices of listed banking companies in Bangladesh. Bangladesh Bank has adopted International Accounting Standards (IAS) as its accounting framework and International Standards on Auditing (ISA) for auditing standard from financial year 2003. In order to support the strengthening initiative, BB has utilized the services of Financial Management Consultant BCA and FIA) and submitted their recommendations for necessary amendments to these Acts to transform them into modern pieces of legislatures & prepared by the Legal Counsels and then translate the same into Bengali, in order to build inhouse legal capacity. The banking regulator has no much mechanism to monitor and enforce accounting and financial reporting requirements. The Bangladesh Bank, as the regulator of banking and nonbanking financial institutions, conducts routine supervision exercises to monitor and enforce prudential regulations. Bangladesh Bank inspectors examine whether financial statements have been prepared in accordance with established regulations such as IAS. In this inspection process, no attempt is made to assess the degree of compliance with requirements on preparing generalpurpose financial statements.

References:Annual Report:-

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

Web Site:www.nblbd.com www.sebankbd.com www.trustbank.com.bd/ www.prime-bank.com

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Appendix Survey Questionnaire


Im Nasir Uddin Shah Mamun student of Stamford University Bangladesh. You are inviting to join a part of the survey of Practice the International Accounting Standards in an organization, whose mission is to find out the proper practice and implementation IAS. Part-A Bank Name: Participant Name: .... Designation:Contract Number:Part-B Q1:- Did the organization follow International accounting standards?
Yes No

Q2:- Did the organization maintain the guideline to ensure presentation of financial statements as per IAS 1?
Yes No

Q3:- Did the companys financial statements under IAS 1 depart from IFRSs and Provide require disclosure?
Yes No

Q4:- Did the companys financial statements prepared on going concern basis?

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1

Except for cash flow did the company using accrual basis of accounting?
Yes No

Q5:- Did the company prepared financial statements on consistency basis?


Yes No

Q6:- Did the company maintain the presentation and classification of items in the financial statements from one period to the next?
Yes No

Q7:- Did the organizations reporting Period of financial statements is at least annually as per IAS1?
Yes No

Q8:- Did the organization disclose comparative information in respect of the previous period for all amounts reported in the financial statements?
Yes No

Q9:- Did the organization disclose any disclosures for any changed comparative amounts?
Yes No

Q10:- Did the companys material items presented separately in the financial statements?
Yes No

Q11:- Did the companys Current and non-current assets and current and noncurrent liabilities are presented as separate classifications on the balance sheet?
Yes No

Q12:- Did the company disclose specifies disclosures about information presented in the financial statements?
Yes No

Q13:- Did the company offset or counterbalance the assets and liabilities, and income and expenses?
Yes No

Q14:- Did the company maintain the requirement for minimum items on the face of the statement of financial position as per IAS 1?

Report on - Corporate Mandatory Disclosure in Financial Statement by Some Selected Bank in Bangladesh as per IAS-1
Yes No

Q15:- Did the company disclose profit or loss attributable to minority interest; and to equity holders of the parent on the face of the income statement?
Yes No

Q16:- Did the company setting out separate standards for presenting the cash flow statement?
Yes No

Q17:- Did the company maintain separate component /statement to present entities changes in equity?
Yes No

Q18:- Did the company disclose significant disclosures and notes for management applying or changing the entity's accounting policies?
Yes No

Q19:- Did the company disclose any disclosure for the amount of dividends proposed or declared before the financial statements were authorized for issue but not recognized as a distribution to equity holders during the period?
Yes No

Q20:- Did the company disclose the amount of dividends recognized as distributions to equity holders during the period, and the related amount per share either in the income statement or in the statement of changes in equity or in the notes?
Yes No