project report on “International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) reported by the banking industry in the context of Bangladesh”

Abstract

This research paper examines the implementation of International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) in the banking industry of Bangladesh, with a focus on NCC Bank Limited. The study begins with an introduction to the concept of accounting standards and the role of IFRS and IAS in financial reporting. The research then moves on to discuss the historical background of National Credit and Commerce (NCC) Bank Limited, one of the leading private commercial banks in Bangladesh, and its adoption of IFRS and IAS. The study finds that the adoption of IFRS and IAS has brought about several advantages for the banking industry in Bangladesh, such as enhanced comparability and transparency in financial reporting, improved access to international finance markets, and increased foreign direct investment attractiveness. However, the transition has also presented several challenges, such as the high cost and complexity of implementation, limited understanding of new standards by financial statement users, the requirement for thorough training of accountants and financial professionals, and the necessity for legal and regulatory adjustments. The research also highlights the role of the board of directors and senior management in the adoption and effective use of IFRS and IAS at NCC Bank Limited. The study finds that top management and the board of directors are crucial to the adoption and effective use of IFRS at NCC Bank Limited. Along with that, the research looks at how IAS and IFRS affect the financial performance of NCC Bank Limited. The study reveals that while the implementation of IFRS has enhanced the accuracy of financial reporting, it has also changed how financial instruments, revenue, and leases are recognized and measured. In addition, the research suggests the following suggestions for the banking sector in Bangladesh: continuous education and training, strengthening the role of the board of directors, legal and regulatory adjustments, encouraging foreign direct investment, promoting transparency and comparability, monitoring and evaluation, public awareness and education.