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1 ISSN ICAB News BulletinNo. 260 Monthly News briefing from the Institute of of Bangladesh MEMBER OF: International Federation of Accountants (IFAC) International Accounting Standards Board (IASB) South Asian Federation of Accountants (SAFA) National Budget ICAB suggests increasing direct tax, reducing income disparity Confederation of Asian and Pacific Accountants (CAPA) IN THIS ISSUE Press Conference President's Communication CPD Seminar CRC News Monthly Activities DD-Technical off to London CPD Seminar IFAC News Members' Status CMA Conference Campus News CPD Seminar ICAB organized a press conference on pre-budget discussion at its Auditorium. The Institute of of Bangladesh (ICAB), the main platform of the country s professional accountants, urged the government for imposing a minimum charge for the renewal of Tax Identification Number (TIN) certificates in the upcoming National Budget to increase revenue. On the eve of the announcement of the National Budget , ICAB organized a Press Conference on 06 at Institute s Auditorium where they put forward some suggestions from their 47-point recommendations relating to direct tax and indirect tax for consideration in the budget. The Institute suggested introducing a fee of taka 2,500 for renewal of TIN for individuals who do not declare any taxable income. Addressing the Press Conference, Parveen Mahmud FCA President-ICAB ICAB President Ms. Parveen Mahmud FCA suggested involving in auditing the public sector down to the union level to bring about transparency and accountability in every step. It will ensure good governance of the government agencies, help make public bodies stronger, more powerful and useful to the grassroots people while facilitating timely and proper implementation of all development projects as well as monitoring and controlling expenditure of a recurring and nonrecurring nature, she said. Ms. Parveen asserted employment could be generated by utilizing local resources adding, We shouldn t delude ourselves into believing that only foreign direct investment can result in employment generation. She also proposed to raise the current tax-free income limit for male and

2 female citizens to Tk. 200,000 and Tk. 225,000 respectively, from the current limits of Tk 165,000 and Tk 180,000. The limit of tax-free perquisites (house rent, conveyance and medical allowances) in case of salary income could also be increased up to Tk. 400,000 from Tk. 250,000, extending tax holiday facility for another five years, providing tax exemption to more IT-related organizations, reducing existing corporate taxes and awarding tax rebate facility to all eligible companies who meet the condition of paying dividend she suggested. She urged the government to cut the VAT (Value Added Tax) imposed on the practicing from the existing 15 percent to 4.5 percent. ICAB President also appealed to the government to establish transparency in social safety net programmes by using the services of which would lead to a greater access to funds from various sources for such purposes based on audited accounts. The Non-Government Organisations A section of the Press Conference. (NGOs) who do not submit tax returns must be asked for producing current tax clearance certificate before renewing enlistment with the help of government bodies concerned, she suggested. On behalf of ICAB she said the National Board of Revenue (NBR) might take initiative to develop unique VAT software while there should be one single VAT registration for all services including business premises. Mr. Md. Shahadat Hossain FCA, Mr. Md. Abdus Salam FCA, Mr. Nasim Anwar FCA, Vice Presidents, Mr. M J Abedin FCA, Mr. A K Chowdhury FCA, Mr. Zahiruddin Ahmed FCA, Former Presidents, Mr. Abbas Uddin Khan FCA, Council Members & Former President, Mr. Masih Malik Chowdhury FCA, Council Member, Mr. Amanullah Khan FCA, Mr. Abdul Khalek FCA, Members and Mr. N I Chowdhury FCA, Secretary were also present at the Conference. On restoring capital market stability ICAB suggested bringing more public and private companies in the capital market to buttress the supply side and stabilize the market. They also stressed the need for making available the official English version of VAT Act so that foreigners did not find any difficulty in understanding and interpreting it. ICAB also suggested creating a quasijudicial unit under NBR empowered to issue advance rulings on customs, VAT and income tax matters referred to it with the aim of facilitating and expediting settlement of any queries made and clarifications sought by multi-national and locally based companies, firms and individuals. They said that ICAB also felt that Physical Infrastructure Facility (PIF) companies should enjoy the same fiscal incentives and benefits as those allowed to entities like private power generation companies, BEPZA enterprises and others. They suggested that the government should increase the subsidy on agricultural inputs like fertilizer and seeds for better overall growth. Left to Right, Vice Presidents, Md. Shahadat Hossain FCA and Nasim Anwar FCA, former Presidents, M. J. Abedin FCA, A. K. Chowdhury FCA and Abbas Uddin Khan FCA and Member, Abdul Khalek FCA. 2

3 President's Communication Dear Fellow Members, Greetings to you all! As June is the month when Bangladesh Budget is expected, so, one of the focus in this month was on Budget Today I would like to share with you the major activities and initiatives we have undertaken in. Progress with Twinning arrangement with ICAEW and World Bank A meeting was held on June 01, 2011 with World Bank on twinning arrangement with ICAEW and future work plan of ICAB. Mr Humayun Kabir, FCA, Council Member and Past President, ICAB have attended Global Conference 2011 in Washington DC, US on June 20, 2011 organized by the Financial Management Sector Board, World Bank to strengthen Accounting Professional Bodies. I am grateful, that Mr Humayun Kabir, FCA had represented ICAB in a very short notice and our twinning arrangement progress has been well appreciated there as a show case model. Mr. Mahbub Ahmed Siddique, ACA, Deputy Director, Training, ICAB have left for London, UK for an exposure visit and on hand training on Quality Assurance Framework. He will be there till July 14th, CMA Conference at Colombo, Sri Lanka Attended from June Presented paper on Sustainable Development through Innovative Intervention. CMA arranged International conference on the theme of CMAs to Innovate and Drive Value, which will help bring excellence in accounting profession. I sincerely hope, that the knowledge and ideas shared was a great learning experience for all participants both nationally and internationally. Above all, the platform will promote greater connectivity within the SAARC region and in SAFA.. June Examination of ICAB Exam started on June 04, 2011.Visited exam hall at Shiddeswari College, Bailey Road, Dhaka on 7th June and on the last day on June 18, I also visited exam hall in Commerce College, Agrabad, Chittagong on June 15, Review of Tax Act ICAB had interactions with National Board of Revenue (NBR) on Draft Direct Tax Act, 2011, made various recommendations, it, was formally handed over to NBR on June 01, Press Conference on Budget Press Conference was held on June 06, 2011 at CA Bhaban. We have informed the press media about ICABs recommendations on Budget Post Budget CPD 8th CPD Seminar on Budget was held on June 25, Chief guest was Mr Lotus Kamal, MP, Special guest Dr Nasiruddin Ahmed, Secretary, Internal Resources Division, Ministry of Finance and Chairman, National Board of revenue (NBR), GOB. Keynote paper presenter was Mr Akhter Matin Chaudhury, FCA Council Member and Chairman, Editorial Board. Panel speakers were, Mr Md Aminur Rahman, Member (Income Tax Policy), Mr. Md. Shahadat Hossain, FCA, Vice President ICAB respectively. Meeting with Commerce Minisry Mr. Md. Shahadat Hossain FCA, Vice President, ICAB had a meeting with Ministry of Commerce. They discussed on Company Act and Direct Sale Act Budget Session and Post Budget Dinner The President attended Budget Session on June 09, 2011 and post Budget Dinner hosted by the Honourable Finance Minister on June 30, 2011 at Bangabandhu International Conference Centre. Meeting with ACCA and BPP Meeting with ACCA on June 06 and with BPP on June 08 held. We discussed on pertinent issues related to our upgradation of education materials and e-learning materials. Courtesy visit by UK Chapter member and donation Mr. A K M Fazlur Rahman FCA, Chairman, ICAB UK Chapter Management Committee have donated a book on UK GAAP for ICAB Library. We deeply appreciate thoughtful gesture of him to enrich ICAB Library. CPD Seminars Dhaka 7th CPD Seminar on SMPs was held on June 15, Mr. M. Farhad Hussain, FCA, Past President was keynote Paper Presenter. Session Chairman was Mr. AKM Rafiqul Islam FCA, Past President, ICAB. Mr. Ahmed Ataul Hakeem, Comptroller and Auditor General of Bangladesh was the Chief Guest, while Mr. Burhunuddin Ahmed FCA, Senior Financial Management Specialist, World Bank, Dhaka Office attended the Seminar as Guest Speaker. 9th CPD Seminar on IFRS for SMEs was held on June 29, Mr Dilip Barua, Minister for Industries was Chief Guest, Mr Khorshed Alam, Additional Secretary, MOI and Mr. Morshed Kuli Khan, Deputy Governor were Special Guests, Mr. ASM Nayeem, FCA, Council Member, Past President and Chairman, Taxes Committee was the Session Chairman. Mr. Md Shahadat Hossain, FCA, Vice President ICAB and Chairman TRC was the Paper Presenter. On this occasion BFRS for SMEs book was unveiled published by TRC. Chittagong 3rd CPD seminar was held on June 18, 2011 in Chittagong titled IPO Issue Management, Pricing and Role of External Auditor. Honorable Paper Presenter was Dr. Mahmood Osman Imam, Professor, Department of Finance, University of Dhaka. IPO moves a company from the private to the public domain. As chartered accountants, we need to work with various stakeholders to strengthen corporate governance in listed companies as well as provide audit services throughout the IPO process for certifying the financial statements and furnishing sufficient disclosures to correctly determine the offer price. This was the repetition of the CPD held earlier in Dhaka on the same topic. Standing and Other Committee Meetings Held The following standing and other committee meetings were held in June: On June 2 the following meetings were held: Meeting of IFRS Trainers - ICTC Sub-Committee meeting - 1st PDC meeting was held on June 7, nd RCPAR meeting was held on June 9, th EB meeting was held on June 14, A joint meeting between ICAB and ICMAB was held on June 19, th Executive Committee meeting was held on June 26, th Council Meeting was held on June 27, A meeting of the IFRS Trainer was held on June 28, We are trying our best to keep pace with global advancement and to avail global opportunities for our present and potential members. Board of Studies, VP- Education and the Secretariat are constantly vigilant to address issues related to Quality Education. Our teamwork will lead to a brighter tomorrow for all of us. Best Regards, Parveen Mahmud, FCA July 04,

4 ICAB organizes CPD Seminar on Small and Medium Practices (SMPs) Seen on the dias (L-R) Paper Presenter, M. Farhad Hussain FCA, ICAB, Guest Speaker, Burhanuddin Ahmed FCA, ICAB President, Parveen Mahmud FCA, Chief Guest, Ahmed Ataul Hakeem FCMA, Session Chairman, AKM Rafiqul Islam FCA, Vice Presidents, ICAB, Md. Abdus Salam FCA and Md. Shahadat Hossain FCA. ACPD Seminar on Small and Medium Practices (SMPs) was held at ICAB Auditorium on 15. Mr. Ahmed Ataul Hakeem FCMA, Comptroller and Auditor General of Bangladesh was the Chief Guest. Mr. Burhanuddin Ahmed FCA, Senior Financial Management Specialist, World Bank, Dhaka office was present as the Guest Speaker. Mr. AKM Rafiqul Islam FCA, Past President, ICAB conducted the Seminar as Session Chairman. Mr. M. Farhad Hussain FCA, Council Member & Past President, ICAB presented the keynote paper. Ms. Parveen Mahmud FCA, President, ICAB, in her address of welcome, thanked the participants and said that SMPs can Parveen Mahmud FCA President-ICAB enhance the capacity by networking, joint venture, merger etc. and enhance the skills by employing individual specialists. Ms. Mahmud invited the participants to interact on the topic for better understanding of Small and Medium Practices (SMPs) such as relevance of international standards to SMEs/SMP, capacities of SMP/SME to implement and comply with the standards, the problem being faced by SMPs and the quality of services rendered by the SMEs. Keynote Speaker and Past President and Council Member, Mr. M. Farhad Hussain FCA emphasized in his presentation that Bangladesh is a country where most of the companies are M Farhad Hussain FCA Paper Presenter Small and Medium Enterprises (SMEs) in context to the International/Multinational companies. Except for the Government Organizations and large industries, most of the companies (SME) have limited access to Chartered Accountants and their services. This is where the SMPs will come in effect. From his international experience he also cited examples from our neighboring countries like India, where the SMPs have created networks amongst them and have a larger exposure to the market and also wider working capabilities. This also facilitates firms spread across wider geographical locations to attain clientele for the networked SMPs. Guest Speaker, Mr. Burhanuddin Ahmed FCA mainly focused on SMPs issues and expected roles of stakeholders. He Burhanuddin Ahmed FCA said that if SMPs Guest Speaker want to enhance their acceptability they should enhance skills and provide joint orientation programme with clients/stakeholders. SMPs should deliver services conforming to timeliness and agreed specifications.. Mr. Ahmed suggested monitoring the progress of works to get qualitative output. He also said that ICAB can empower the sub-committee for SMP with resources and guidance to promote and strengthen SMPs. Mr. Ahmed Ataul Hakeem FCMA, in his speech as Chief Guest thanked the Institute for organizing such an important Seminar which he remarked would be very helpful 4

5 for the Small and Medium Enterprises of the country. Session Chairman and Past President, ICAB, Mr. AKM Rafiqul Islam FCA, Ahmed Ataul Hakeem FCMA summed up the Chief Guest session by appreciating the measures taken by ICAB C R C NEWS for strengthening the needs of SMPs and concluded that it was essential for the SAFA regional Institute to strengthen the SMPs AKM Rafiqul Islam FCA to address the wide Session Chairman variety of professional services with requisite quality Md Abdus Salam FCA Vice President, ICAB assurance for e f f e c t i v e management of the professional risks. Mr. Md. Abdus Salam FCA, Vice President, ICAB offered the vote of thanks. DD-ICAB leaves for London to attend Training Programme Chittagong Regional Committee (CRC), ICAB organized a CPD Seminar on IPO Issue Management, Pricing and Role of External Auditor on 18 at Conference Hall of CRC- ICAB, Chittagong. Professor Md. Helal Uddin Nizami, Member, Securities and Exchange Commission graced the occasion as Chief Guest. Nasim Anwar FCA, Vice President, ICAB conducted the Seminar as Session Chairman. Dr. Mahmood Osman Imam, Professor, Department of Finance, University of Dhaka presented the keynote paper. Md. Salim Uddin FCA, Professor, Department of Accounting & Information System, University of Chittagong acted as Commentator. Subrata Kumar Bhwmick FCA, Chairman, CRC delivered the welcome address. Monthly Activities Date Meeting/Programmes 1/6/2011 World Bank Delegation and ICAB ACAEW Coordination committee 2/6/2011 ICAB President attended in the CMA Conference in Colombo, Sri Lanka 2/6/2011 Meeting of IFRS Trainers and ICTC meeting 6/6/2011 ICAB Press Conference Meeting between ICAB and ACCA at ACCA office 7/6/2011 PDC meeting 9/6/2011 RCPAR meeting 14/6/2011 Editorial Board meeting 15/6/2011 CPD Seminar on SMP 16/6/2011 Meeting between Deputy Director, PDB and ICAB 19/6/2011 Joint meeting with ICMAB 23/6/2011 Meeting of 6th 5 year plan under Ministry of Commerce at Secretariat 25/6/2011 CPD Seminar on National Budget for /6/2011 Executive Committee meeting 27/6/2011 Council meeting 28/6/2011 Meeting of the IFRS trainer 29/6/2011 CPD Seminar on IFRS for SME Mahbub Ahmed Siddique ACA Mr. Mahbub Ahmed Siddique ACA, Deputy Director (Technical) of the Institute of of Bangladesh (ICAB) left Dhaka on 25 June 2011 for London at the invitation of ICAEW for advanced training on Quality Assurance and related technical matters. During his 2 week visit, he will work closely with counterpart officials in ICAEW and accompany them on visits to different audit firms as well as attending briefing sessions on various aspects. It may be mentioned here that a Memorandum of Understanding (MOU) was signed in 2009 between the Institute of of Bangladesh (ICAB) and the Institute of Chartered Accountants in England and Wales (ICAEW) to enhance mutual cooperation between the two Institutes and accelerate the development of the accountancy profession. 5

6 Speakers at CPD Seminar IFRS for SMEs provides an acceptable framework to prepare financial statements for all sectors Dilip Barua, Hon ble Minister for Industries, GoB, (Chief Guest), (4th from left), is seen with (L-R) Md. Shahadat Hossain FCA, Paper Presenter, Murshid Kuli Khan, Deputy Governor, Bangladesh Bank, Special Guest, Parveen Mahmud FCA, President, ICAB, AKM Aftabul Islam FCA, President and CEO, SME Foundation, Dhaka, Session Chairman, ABM Khorshed Alam, Additional Secretary, Ministry of Industries, GoB and. Md. Abdus Salam FCA, Vice President, ICAB. In her welcome speech at a CPD Seminar on IFRS for Small and Medium Enterprise (SME) organized by the Institute of Parveen Mahmud FCA C h a r t e r e d President, ICAB Accountants of Bangladesh (ICAB) on 29 June, Ms. Parveen Mahmud FCA, President, ICAB said that in Bangladesh the IFRS for SMEs is very important because a substantial part of total bank loan is disbursed to the private companies. In order to strengthen the financial discipline for SMEs, it is necessary to prepare financial statements in accordance with IFRS for SMEs. IFRS requires disclosure of all types of policies based on which financial statements have been prepared. These disclosures are also required as per Companies Act. In this regard another important issue is change of accounting policy. As per IFRS for SMEs the nature of changes in accounting policy, the amount of adjustment needed for such changes in current period and prior period should be disclosed. Mr. Md. Shahadat Hossain FCA, Vice President, ICAB described in his paper that IFRS for SMEs shall measure inventories at the lower of cost and Md Shahadat Hossain FCA Paper Presenter estimated selling price less costs to complete and sell. As per Companies Act value of inventories to be stated in the financial statements are placed at the lower of historical cost and net realizable value. It is also mentionable here that there is no difference between IFRS for SMEs and Companies Act as regards to recognizing components and calculation of cost of inventories, he added. Mr. ABM Khorshed Alam, Additional Secretary to the Industries Ministry and Mr. Murshid Kuli Khan, Deputy G o v e r n o r, Bangladesh Bank, spoke at the Seminar ABM Khorshed Alam Special Guest as Special Guests. They said SMEs are labor intensive sector with relatively low capital intensity. The SME policy strategies have been formulated to assist in the achievement of Murshid Kuli Khan the goals and target Special Guest the Millennium Development Goals (MDGs). They urged all members of ICAB to extend cooperation in the greater interests of the nation. "Accounting is the heart of capitalism and business, which over the years has 6

7 dramatically changed due to the globalization process. The globalization force has been significantly impacting the scenario of business all over the world. The globalization has also been impacting the need and move for harmonizing of accounting language throughout the globe", Hon ble Minister for Industries Mr. Dilip Barua said while addressing as Chief Guest. Lauding the role of ICAB, he said as the regulatory of accountancy Dilip Barua profession in the Chief Guest country, is responsible for adopting and promoting of IFRS in the country so that accountability, transparency and good governance are ensured. Mr. Barua appreciated ICAB for holding this Seminar on IFRS for SME in timely. This Seminar undoubtedly will help the participants to have more knowledge on IFRS for SME. Participants will share their knowledge on implementation and application of IFRS for SME which will pave the way for the overall development of the country including industrialization of the country. Mr. Barua formally unveiled the cover of a Book on BFRS for Dilip Barua, Hon ble Minister for Industries, GoB, unveiling the cover of the Book on BFRS for SME. SME Published by ICAB. Mr. AKM Aftabul Islam FCA, President and CEO, SME Foundation, Dhaka acted as AKM Aftabul Islam FCA Session Chairman of Session Chairman the seminar. Summing up the session he said SMEs are recognized as engine of economic growth and employment generation for sustainable industrialization in both developed and developing countries of the world. In the context of Bangladesh, there is no alternative to small and medium enterprises for rapid industrialization and national economic growth through lower capital investment and employment generation. Md Abdus Salam FCA Vice President, ICAB thanks. Mr Md Abdus Salam FCA, Vice President, ICAB offered the vote of A section of audience of the seminar. 7

8 I F A C NEWS Small and Medium Practices January/February SMP Quick Poll The first SMP Quick Poll, launched in the January issue of enews, received 425 responses from all regions of the world over a 14-day period (January 27, 2011 to February 9, 2011). The results showed that professional accountants operating in smalland medium-sized practices (SMPs) are optimistic despite economic uncertainty for their small- and medium-sized entity (SME) clients. The following is a summary of key findings. The full January/February SMP Quick Poll results are also available. Nearly 30% of respondents indicated that economic uncertainty is still the biggest challenge faced by SMEs, followed closely by burden of regulation (27%). Access to finance was a distant third with 17%. Similarly, when asked about the most important issue facing their practice right now, most cited keeping up with regulations and standards (41%), followed by attracting and retaining clients (27%). Despite economic uncertainty, respondents were generally optimistic about the future. When asked how they expect their practice to perform this year compared with last year, 38% said better than last year; only slightly more (43%) said about the same, and just 19% said worse than last year. According to the poll results, SMPs continue to generate the largest proportion of their revenue from more traditional accountancy-based services. Most indicated that their main source of revenue is audit and assurance (45%), followed closely by accounting and compilation (40%). Tax, advisory, and consulting services comprise only 15% combined. The IFAC SMP Quick Poll aims to take a snapshot of the key issues confronted by SMPs and their SME clients, and to help raise awareness of the SMP community and its vital role in supporting business and shaping policy. The poll will be issued quarterly in this e-newsletter throughout Thank you to everyone who participated in our first poll. Would you like to share your views? Take the April SMP Quick Poll! Global Leadership Survey: Global Accountancy Leaders Urge IFAC to Increase Role in SMP Arena In March, IFAC released the results of the 2010 IFAC Global Leadership Survey of the Accounting Profession (GLS). Ninety-five percent of respondents to the GLS said that addressing the needs of SMEs and SMPs is crucial. A number of participants called for greater recognition by IFAC of SMEs needs, their economic value, and their significant importance in many national economies. IFAC was also urged to build the profile of SMPs by emphasizing their professional capabilities, produce innovative ideas for alternatives to audit for use in the SME environment, and provide greater support for SMPs in terms of standards and guidelines tailored to their needs. A significant majority said that addressing the needs of SMEs and SMPs would increase in importance over the coming three years. Standards IESBA SME/SMP Working Group: Progress and Next Steps Last November, the International Ethics Standards Board for Accountants (IESBA) approved the formation of the IESBA SME/SMP Working Group to help address the unique and challenging issues faced by this constituency in complying with the IESBA Code of Ethics for Professional Accountants (the Code). A progress report appears in the background papers for the February IESBA meeting. So far, the group has focused on research and data gathering to identify issues for consideration. As a part of its data gathering, the group hosted a breakout session at IFAC s recent SMP Forum in Istanbul. Following the forum, the Working Group Chair met with the SMP Committee to gain additional input. The group plans to present its recommendations to the IESBA at its October meeting. Two questions about the Code have been included in this issue s SMP Quick Poll, the results of which will provide additional data for the Working Group to consider. SMP Committee Contributes to Standard Setting The SMP Committee recently submitted comments on the following exposure drafts. See the Exposure Drafts and Consultation Papers page of the IFAC site to view the comments (summarized below) from the SMP Committee and others. Education The International Accounting Education Standards Board (IAESB) s exposure draft on International Education Standard (IES) 7, Continuing Professional Development: A Program of Lifelong Learning and Continuing Development of Professional Competence proposes revisions to align the standard with the IAESB drafting conventions. The SMP Committee supports this initiative and believes that the requirements set out in the proposed standard are consistent with the current IES 7. However, in its submission to the IAESB, the SMP Committee did question whether the proposed standard gave sufficient recognition to the importance of workplace learning and offered suggestions for how this may be addressed. Auditing and Assurance The International Auditing and Assurance Standards Board (IAASB) s Proposed Strategy and Work Program for highlights issues facing the accountancy profession and suggests priority activities for the IAASB during The SMP Committee commended the IAASB for producing a comprehensive and balanced strategy document, which gives due regard to the needs of SMPs and SMEs, while recognizing the need for further proactive steps to be taken to ensure sufficient SMP representation on the IAASB and its project task forces. The committee s submission commented on the entire proposal, but with a particular focus on the assurance needs of SMEs. In particular, the committee emphasized the importance of developing standards for alternative assurance and non-assurance services for SMEs and the related need for implementation assistance for International Standard on Quality Control (ISQC) 1. 8

9 Admission as Fellows The following members have been admitted as Fellows of the Institute with effect from the dates mentioned against their names: Name Effective Date Mr. Mohammad Abdul Ohab Miah FCA (901) 24 May 2011 AGM & CFO IDLC Finance Limited Eunus Centre (Level-21) 52-53, Dilkusha Com. Area Dhaka-1000 Mr. Mustaq Ahammed FCA (924) 09 Head of Internal Control and Compliance IDLC Finance Limited Bay's Galleria 57, Gulhan Avenue Gulshan-1, Dhaka-1212 Mr. Jagannath Chandara Roy FCA (913) 21 General Manager (Audit) Destiny 2000 Ltd. Ally's Centre (Level06) 40 Bijoynagar, Dhaka-1000 Mr. Shatadal Das FCA (914) 23 Partner Chowdhury Arup & Co. Eastern Mansion (2nd Floor) Room No. 2/01 67/9, Kakrail, Dhaka Permission to Start Practice The following members have been granted permission to start Practice as Public Accountants with effect from the dates as shown against their names. Name Effective Date Mr. Kazi Ahmmed Monowar FCA (822) 08 May 2011 Partner K M Alam & Co. 80 Motijheel C/A, Dhaka-1000 Mr. Muhammed Akram Hussain FCA (91) 03 May 2011 Partner M A Quader Kabir & Co. KABIRS' House No.11 Road # 1A, Sector # 5, Uttara, Dhaka-1230 Mr. Nasir Uddin Ahmed FCA (535) 16 Partner Saha Mazumder & Co. 21, Purana Paltan Line (4th & top Floor), Dhaka-1000 Mr. Hedayet Ullah FCA (281) 01 July 2011 Partner K M Hasan & Co. 87, New Eskaton Road (8th Floor), Dhaka-1000 Name Effective Date Mr. Tariquzzaman Khan FCA (687) 01 July 2011 Partner K M Hasan & Co. 87, New Eskaton Road (8th Floor), Dhaka-1000 Permission to join as Partner The following members have been permitted to form partnership and continue practice under the names and style metioned with their names: Mr. Kazi Ahmmed Monowar FCA (822) Name Effective Date M/s K M Alam & Co. 08 May , Motijheel C/A, Dhaka-1000 The other partners of the Firm are: Mr. Kazi Mesbah-ul Alam FCA (40), Mr. Md. Mossarref Hossain FCA (334) and Mr. Kazi Ahmmed Monowar FCA (822) Mr. Muhammed Akram Hussain FCA (91) M/s M A Quader Kabir & Co. 30 May 2011 "KABIRS" House No. 11 Road No. 1A, Sector No. 5 Uttara, Dhaka-1230 The other partners of the Firm are: Mr. Mohammed Toha FCA (31), Mr. M A Quader Kabir FCA (47) and Mr. Muhammed Akram Hussain FCA (91) Mr. Nasir Uddin Ahmed FCA (535) M/s Saha Mazumder & Co. 01 July , Purana Paltan Line 4th & top floor), Dhaka-1000 The other partners of the Firm are: Mr. C R Mazumder FCA (178), Mr. Bihuti Bhusan Saha FCA (200), Mr. J C Biswas FCA (199) and Mr. Nasir Uddin Ahmed FCA (535) Mr. Hedayet Ullah FCA (281) Mr. Tariquzzaman Khan FCA (687) M/s K M Hasan & Co. 01 July , New Eskaton Road (8th floor) Dhaka-1000 The other partners of the Firm are: Mr. K M Hasan FCA (413), Mr. Ali Mohammad Chowdhury FCA (362), Mr. Hedayet Ullah FCA (281) and Mr. Tariquzzaman Khan FCA (687) Restoration of Membership The following member has been approved restoration of Membership of the Institute with effect from the date mentioned against his name: Name Effective Date Mr. ATM Abdul Bari FCA (423) 06 May 2011 C/o. ACNABIN BDBL Bhaban (13th floor) 12, Kawran Bazar, Dhaka

10 ICAB President attends CMA Conference A View of CMA Management Accountants Conference held at Sri Lanka. Ms. Parveen Mahmud FCA President of the Institute of of Bangladesh (ICAB) attended the CMA Management Accountants Conference held on at Sri Lanka. The theme of the conference was CMAs to Innovate and Drive Value. To successfully compete on the battlefields of 21st-century business, companies must reinvent their processes and culture in order to sustain innovative solutions. The New Age of Innovation is a complete program for achieving this transformation to meet the needs of the end consumer of the future. Within this perspective CMA conducted the Management Accounting conference of At the Inauguration ceremony the Chief Guest was Dr. Sarath Amunugama, Senior Minister of the International Monetary Cooperation. The Key Note Address was made by Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka and the Guest Speaker was the President of the South Asian Federation of Accountants A.N. Raman. The CMA Business Excellence Awards and the CMA Academic Excellence Awards were presented at this forum. Parveen Mahmud, President of ICA Bangladesh presented a paper on Sustainable Value in a Technical Session. This session was chaired by Hemaka Amarasuriya Chairman of Singer Sri Lanka. Technical Sessions were commenced with Establishing a Globally Competitive Programme for Management Accountants. Papers were presented by Ms. Desley Ward, Manager Education of CPA Australia, Prof. Mangala Fonseka and Mr. Nuwan Gunarathna, Accounting Dept. of the Univ. of Sri Jayawardenepura, Ms. Philippa Riley, Director of BPP Ltd, UK. This session focused on education and practical experience and built a globally competitive designation for the accounting profession, the CMA management accounting curriculum, and the role of educational institutes. Parveen Mahmud FCA President-ICAB ICAB Campus News The Pre-Examination Evening Coaching Classes of Professional Stage-Knowledge Level (3 rd Batch), Application Level (2 nd Batch), Advanced Stage (1 st Batch) and PE-III Level for Examination Session: May- were concluded smoothly on 29 May A total of 771 students participated in 4-levels. Furthermore, during this session, Conversion Course on Preparing Limited Company Accounts (3 rd and 4 th Batch) was held for 541students. Meanwhile, another session of classes of Professional Stage-Knowledge Level (4 th Batch) have started since 01 and it will continue upto 28 August Total number of students enrolled for this session is 418. The entire programme was organized by ICAB Academic Campus (under the guidance of Secretary-ICAB) with overall supervision of Vice President (E&T)-ICAB. 10

11 Mostafa Kamal urges at a Seminar should encourage their client companies and individuals to pay tax AHM Mustafa Kamal FCA, MP, Chairman, Parliamentary Standing Committee on Finance, delivering his speech as Chief Guest. Parveen Mahmud FCA President, ICAB Ms. Parveen Mahmud FCA, President, ICAB said in her welcome address that the allocation which has been given for old age allowance, poor allowance for widow and divorced female, allowance for the insolvent disabled programme, maternity allowance for poor working mothers, underprivileged freedom fighter allowance, fund for acid burnt women, rehabilitation of physically disabled people and fund for women self employment of women are undoubtedly admirable. But necessary assistance from professional accountants need to be taken for proper distribution of those allowances. She was delivering her address at a CPD Seminar organized by the Institute of Chartered Accountants of Bangladesh (ICAB on National Budget on 25. at ICAB Auditorium, C A Bhaban, 100 Kazi Nazrul Islam Avenue, Kawran Bazar, Dhaka Mr. AHM Mustafa Kamal FCA, MP, Chairman, Parliamentary Standing Committee on Finance was the Chief Guest. Dr. Nasiruddin Ahmed, Secretary, Internal Resources Division, Ministry of Finance and Chairman, NBR, GoB was present as Special Guest. Mr. Md. Aminur Rahman, Member (Income Tax Policy), NBR, GoB, and Mr. Md. Shahadat Hossain FCA, Vice President, ICAB were present as Panel Speakers. Mr. A S M Nayeem FCA, Council Member & Past President, ICAB and Chairman, Professional Ethics and Independence, SAFA conducted the Seminar as Session Chairman. Mr. Akhter Matin Chaudhury FCA, Council Member and Chairman, Editorial Board, ICAB presented the keynote paper. She also added that ICAB expresses its thanks to NBR for inclusion of some important recommendations in the National Budget from 47 nos. of recommendations which were forwarded before announcement of budget. In addition to that, ICAB has asked for reduction of VAT on bill from 15 percent to 4.5 percent like other professionals. "Budget is a national plan for economic development, social development, national development, governance and housekeeping", Mr. Chaudhury said Akhter Matin Chaudhury FCA Paper Presenter while presenting his paper on National Budget He also highlighted the salient features of the Budget as well as the major changes proposed by the Finance Minister. The proposed Budget of Taka 1.63 trillion is the largest in the country s history with a projected growth rate of 7% and increased reliance on internal resource mobilization. However, corporate tax rates remained among the highest in the region. 11

12 Shahadat Hossain FCA Panel Speaker Mr. Md. Shahadat Hossain FCA, Vice President, ICAB said that in context of Bangladesh to prepare a National Budget the most important objective should be equal distribution of asset and it should come first as priority basis. Presently economy is growing no doubt and poverty is reducing but inequality level is increasing day by day. Aminur Rahman, Member, NBR, said there are two basic principles in tax and public finance benefit principle and ability to pay principle. He stressed the need for paying more attention Md Aminur Rahman to ability to pay Panel Speaker principle which will help increase revenue and reduce poverty. Dr Nasiruddin Ahmed Special Guest Dr. Nasiruddin agreed to the issues raised by the paper presenter and said the paper was presented in a pragmatic manner. He admitted that the rate of corporate income tax in the country is very high. Explaining the reason, he said the rate is still high because the NBR could not bring many companies under the tax net. The number of individual income taxpayers is also less, he said adding that NBR will look into the issue. The NBR chairman said income tax and VAT are two major sources of revenue earning, and to increase the revenue in future the tax rates should be pragmatic. He pointed out that main obstacle in the revenue sector is lack of a link between policy and research. He suggested that scientific methodology should be used to rationalize tax rates. Tax policy, customs duties, VAT, income tax structure everything need to be updated through discussion. It is not enough to discuss these issues just before and after budget presentation. Dialogues should be held throughout the year and we have to formulate policies on the basis of discussions, he noted. Dr Nasiruddin said NBR has already done two major tasks drafting the direct tax code and formulating the VAT Act incorporating some new provisions. "An initiative is needed to strengthen the professional and technical capacity of the revenue AHM Mustafa Kamal FCA Chief Guest administration to monitor potential tax payers, counting tax evasion and transform it into a quality institution to meet revenue needs. The collection of income tax collection rose in the last 2 years", Mr. Kamal suggested that individual income tax rate should be reduced so that people are encouraged to pay tax while giving speech as Chief Guest at a CPD Seminar. Mr. Kamal, said when the present government came to power, the country s economy was in a very bad shape. Capital market was weak. There was a global recession resulting in massive job cuts in America. Many feared that the future of market economy was uncertain. In such a precarious situation, the government took some bold and timely steps that protected Bangladesh economy from a major setback, said Mr. Kamal. He appreciated the performance of National Board of Revenue (NBR), and said During the tenure of the previous government, growth of revenue was 16 to 17 percent which rose to 25 percent in a couple of years under the present government. The Chief Guest mentioned that the country s energy and gas sector growth is now 40 percent while industrial growth is more than 9 percent. This helped the country achieve a GDP growth of 6 percent in the last fiscal year from an average 4 percent over the last few years. The government has targeted 7 percent growth in the next fiscal year. He said for economic development, Bangladesh must ensure proper use of its natural energy resources, particularly coal. Besides, tax and revenue collection has to be increased. Dependency on foreign loans should be reduced in implementing the Annual Development Programme. Mr Kamal urged chartered accountants to work for the country s economic development and encourage their client companies and individuals to pay tax. Mr. ASM Nayeem FCA, acted as Session Chairman of the Seminar. He conducted A section of audience of the seminar ASM Nayeem FCA Session Chairman the floor discussion and summed up the session. Mr. Md. Abdus Salam FCA, Vice President, ICAB offered vote of thanks. Published by the Editorial Board of the Council, The Institute of of Bangladesh (ICAB) 100 Kazi Nazrul Islam Avenue, Dhaka 1215; Tel , , , Fax: secretary@icab.org.bd Website: Chittagong: HBFC Building (3rd Floor), 1/D, Agrabad Com. Area, Chittagong, Bangladesh Tel: Fax: icabctg@spctnet.com UK Chapter: Suite One, 2 Haydons Road, London SW19 1HL, United Kingdom Tel: Fax: hossain@ahmed13.fsworld.co.uk North American Chapter: 5 Massey Square, Suite-2519, Toronto, Ontario M4C 5L6, Canada Tel: Fax: sarwarchowdhury@hotmail.com 12