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Accounting Pattern in
Bangladesh
In the twenty first century Chartered Accountancy (CA) has
emerged as a uniqueProfession of paramount importance and is now
discussed at various economicseminars, capital markets, investments
and such other forums. To cope with the
increasing demand in the field of economy, innovative financial
instruments are beingconstantly introduced and the profession
world-wide, apart from accounting, taxation,financial management
and other financial consultancy is in the forefront in
launching
these financial products.In today's free globalized world,
Chartered Accountants are in public practice, inall sizes of
accounting firm from sole practitioners to affiliates of large
internationalfirms. They are also employed in industries, finance
and commerce playing a widevariety of financial, management and
senior policy making roles both at home andabroad. The members of
the Institute of Chartered Accountants of Bangladesh are
known as the Chartered Accountants of Bangladesh.
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Accounting
Accounting is the process of communicating financial
informationabout a business entity to users such as shareholders
andmanagers. The communication is generally in the form of
financialstatements that show in money terms the economic resources
underthe control of management; the art lies in selecting the
informationthat is relevant to the user and is reliable.[2] The
principles of
accountancy are applied to business entities in three divisions
ofpractical art, named accounting, bookkeeping, and auditing.The
American Institute of Certified Public Accountants (AICPA)defines
accountancy as "the art of recording, classifying, andsummarizing
in a significant manner and in terms of money,transactions and
events which are, in part at least, of financialcharacter, and
interpreting the results thereof."
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Roadmap for Accountancy Profession in Bangladesh.
ACCOUNTANCY is a critical component of the infrastructure for a
market economy.No economically sound activity would be possible
without accountancy. Beyond theinformation it provides on the
financial position and profitability of operations, it is
thefoundation of countries' fiscal systems and it plays a key role
in corporategovernance. Accountancy is relied on when enforcing
prudential managementrequirements for banks, insurance companies,
securities dealers, and other marketparticipants. As a result, the
accountancy sector is among the most regulated in theworld's
advanced economies in terms of its liabilities towards to the
society.
Appropriate accountancy can ensure accountability for finances,
fairness, andperformances and prescribe way to guarantee good
governance by institutionalizing a
powerful accountability structure that holds every public and
private sector officialanswerable for his or her actions as public
or corporate official.
However, no detailed manpower forecast for Chartered Accountants
yet exists inBangladesh, though the second five-year plan says that
financial administrationshould be given a high priority (Para
20.44). The two-year plan (1978-80) set a targetfor the number of
Chartered Accountants for the plan period, which was envisaged
as3,200 persons (table 11.6, p: 246). In India the ratio of
Chartered Accountants to
overall population is 1: 23,333. Applying this as a standard for
Bangladesh, Parry,1990 estimated a figure that entails an increase
of more than 4,000 CharteredAccountants. It obviously needs
reassessment after the introduction of the marketeconomy.
Currently, Bangladesh has more than 800CAs,
