Bangladesh

The corporate reporting framework in Bangladesh is established through a combination of legislation, regulations, and sector-specific requirements, including the Companies Act 1994, the Financial Reporting Act 2015, the Income Tax Act 2023, the Finance Act 2024, the Securities and Exchange Ordinance 1969, the Bangladesh Securities and Exchange Commission Act 1993, the Bank Company Act 1991, the Insurance Act 2010, the Microcredit Regulatory Authority Act 2006, the Bangladesh Chartered Accountants Order 1973, and the Cost and Management Accountants Act 2018.

The Companies Act 1994 requires companies to prepare financial statements in accordance with applicable financial reporting standards. The Financial Reporting Act 2015 established the Financial Reporting Council (FRC) as the national authority responsible for setting, adopting, monitoring, and enforcing accounting and auditing standards in Bangladesh. The Act requires public interest entities, as defined therein, to apply accounting standards adopted by the FRC.

Listed companies are required by the Bangladesh Securities and Exchange Commission (BSEC) to prepare financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted in Bangladesh. Banks and non-bank financial institutions are subject to reporting requirements issued by Bangladesh Bank, while insurance companies are regulated by the Insurance Development and Regulatory Authority (IDRA). Public interest entities operating under the Microcredit Regulatory Authority Act are also required to apply the financial reporting framework prescribed by the FRC.

The Financial Reporting Council is responsible for the adoption of accounting and auditing standards applicable in Bangladesh. The Council has adopted IFRS Accounting Standards and International Standards on Auditing (ISA) for application within the jurisdiction, subject to the effective dates and implementation processes established by the FRC.

Statutory audits are required for companies under the Companies Act 1994 and for other entities specified in sectoral legislation. The Bangladesh Chartered Accountants Order 1973 reserves the statutory audit of financial statements to practicing members of the Institute of Chartered Accountants of Bangladesh (ICAB). Cost audits may also be required for certain industries under applicable laws and regulations and are performed by members of the Institute of Cost and Management Accountants of Bangladesh (ICMAB).

Bangladesh has not adopted the IFRS for Small and Medium-sized Entities (IFRS for SMEs). Small and medium-sized entities generally apply the financial reporting requirements prescribed under national legislation and regulations, while public interest entities are subject to the standards adopted by the Financial Reporting Council.

The accountancy profession in Bangladesh is regulated through a shared statutory and professional framework. The Financial Reporting Act 2015 established the Financial Reporting Council (FRC) as the independent oversight authority for financial reporting, auditing, and audit firms serving public interest entities (PIEs). The FRC is responsible for adopting accounting and auditing standards, monitoring financial reporting by PIEs, overseeing auditors and audit firms that provide audit services to PIEs, and enforcing compliance with applicable standards and ethical requirements.

The profession is also regulated through two statutory professional accountancy organizations. The Institute of Chartered Accountants of Bangladesh (ICAB) regulates chartered accountants under the Bangladesh Chartered Accountants Order 1973. ICAB is responsible for establishing entry requirements, administering professional education and examinations, issuing certificates of practice, maintaining the register of members and practicing members, supporting continuing professional development, and investigating and disciplining its members. Membership in ICAB is mandatory for chartered accountants, and only members holding a certificate of practice may practice as chartered accountants in Bangladesh.

The Institute of Cost and Management Accountants of Bangladesh (ICMAB) regulates cost and management accountants under the Cost and Management Accountants Act 2018. ICMAB is responsible for managing and regulating the cost and management accountancy profession, including education, training, examinations, membership, practice arrangements, professional conduct, and related regulatory functions. Members of ICMAB are designated as Associate Cost and Management Accountants or Fellow Cost and Management Accountants. Membership in ICMAB is mandatory for cost and management accountants in Bangladesh.

This framework reflects a shared regulatory model in which the FRC exercises public oversight over financial reporting, audit, and PIE-related audit services, while ICAB and ICMAB retain statutory responsibility for regulating their respective professional designations, education and examination pathways, membership, practice rights, and member conduct.

Independent public oversight of the audit profession in Bangladesh is established under the Financial Reporting Act 2015, which provides the legal framework for the regulation and oversight of financial reporting, auditors, and audit firms.

The Financial Reporting Council (FRC) serves as the independent public oversight authority for the accountancy profession and audit profession in Bangladesh. The FRC became operational following its establishment under the Financial Reporting Act and functions under the oversight framework established by the Government of Bangladesh.

Under the Financial Reporting Act 2015, the FRC is responsible for adopting accounting, auditing, and ethical standards applicable to public interest entities; monitoring compliance with applicable financial reporting requirements; overseeing the activities of auditors and audit firms performing audits of public interest entities; conducting inspections and investigations; enforcing compliance with applicable standards and regulatory requirements; and imposing sanctions where violations are identified.

The FRC also exercises oversight over the activities of the Institute of Chartered Accountants of Bangladesh and the Institute of Cost and Management Accountants of Bangladesh in areas relevant to financial reporting, auditing, and professional regulation. The Council coordinates with sector regulators, including the Bangladesh Securities and Exchange Commission, Bangladesh Bank, and the Insurance Development and Regulatory Authority, in matters relating to financial reporting and audit oversight.

As of June 2026, the Financial Reporting Council is not a member of the International Forum of Independent Audit Regulators (IFIAR).

The Institute of Chartered Accountants of Bangladesh (ICAB)

The Institute of Chartered Accountants of Bangladesh (ICAB) was established under the Bangladesh Chartered Accountants Order 1973 as the statutory professional body for chartered accountants in Bangladesh.

ICAB is responsible for regulating and developing the chartered accountancy profession. Its functions include establishing qualifications for membership, administering professional education and examinations, issuing certificates of practice, maintaining registers of members and practicing members, supporting continuing professional development, and investigating and disciplining members for professional misconduct. Members of ICAB are designated as Associate Chartered Accountants or Fellow Chartered Accountants. Membership in ICAB is mandatory for chartered accountants in Bangladesh, and only members holding a certificate of practice may practice as chartered accountants.

In addition to its national role, ICAB is a member of the International Federation of Accountants, the Confederation of Asian and Pacific Accountants, and the South Asian Federation of Accountants.

The Cost and Management Accountants of Bangladesh (ICMAB):

The Institute of Cost and Management Accountants of Bangladesh (ICMAB) is established under the Cost and Management Accountants Act 2018 as the statutory professional body for cost and management accountants in Bangladesh.

ICMAB is responsible for regulating and developing the cost and management accountancy profession. Its functions include establishing qualifications for membership, administering professional education and examinations, maintaining registers of members and practicing members, issuing certificates of practice, setting professional standards and rules of conduct, and investigating and disciplining members in accordance with applicable laws and regulations. Members of ICMAB are designated as Associate Cost and Management Accountants or Fellow Cost and Management Accountants. Membership in ICMAB is mandatory for cost and management accountants in Bangladesh.

In addition to its national role, ICMAB is a member of the International Federation of Accountants, the Confederation of Asian and Pacific Accountants, and the South Asian Federation of Accountants.

The Bangladesh Parliament passed the Financial Reporting Act of 2015. The new Act calls for the establishment of an independent regulatory oversight body, the Financial Reporting Council (FRC), to oversee the accountancy profession, the performance of auditors and audit firms that conduct audits of financial statements of listed entities and financial institutions, and the two professional accountancy organizations. As of July 2016, the FRC has not been established.

The Financial Reporting Act 2015 established the Financial Reporting Council (FRC) with responsibility for audit oversight, including monitoring audit practice and enforcing compliance with applicable standards. In practice, the Institute of Chartered Accountants of Bangladesh (ICAB) continues to operate the quality assurance (QA) review system through its Quality Assurance Board and Financial Report Monitoring and Practice Review Department, under the broader oversight framework of the FRC.

ICAB’s QA system applies to practicing chartered accountants and audit firms and includes firm-level and engagement-level reviews. ICAB reports that the system has been operational through successive review cycles and is aligned with SMO 1 requirements.

No public evidence was identified confirming that International Standard on Quality Management 1 and International Standard on Quality Management 2 have been formally adopted as binding national standards in Bangladesh.

Current Status: Adopted

The Institute of Chartered Accountants of Bangladesh (ICAB), the Institute of Cost and Management Accountants of Bangladesh (ICMAB), and local universities establish initial professional development and continuing professional development requirements for professional accountants in Bangladesh.

ICAB’s chartered accountancy qualification includes entry requirements, professional education, examinations, practical experience through articleship, and continuing professional development requirements for members. ICMAB’s statutory mandate includes education, training, examinations, and regulation of the cost and management accountancy profession.

Both ICAB and ICMAB have incorporated the International Education Standards (IES) in their respective professional education and continuing professional development frameworks.

The jurisdiction-level framework is aligned with the relevant SMO 2 requirements. Accordingly, IES are assessed as Adopted.

Current Status: Adopted

Under the Financial Reporting Act 2015, the Financial Reporting Council (FRC) is responsible for adopting auditing standards in Bangladesh. The FRC adopted International Standards on Auditing (ISA) without modifications in 2021 and requires their application by public interest entities and their auditors. The Institute of Chartered Accountants of Bangladesh (ICAB) supports the standard-setting process and assists with the dissemination and implementation of auditing standards adopted by the FRC.

ICAB has participated in outreach and awareness activities related to the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE).

Current Status: Adopted

Under the Financial Reporting Act 2015, the Financial Reporting Council (FRC) is responsible for adopting ethical requirements for professional accountants in Bangladesh. In 2021, the FRC adopted the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants. The Institute of Chartered Accountants of Bangladesh (ICAB) supports the standard-setting process and assists with the dissemination and implementation of ethical requirements adopted by the FRC.

Current Status: Adopted

The Constitution of Bangladesh provides that the public accounts of the Republic are to be kept in the form and manner prescribed by the Comptroller and Auditor General of Bangladesh (CAG), with the approval of the President. The CAG is therefore responsible for prescribing the public sector accounting framework, including the form and presentation of government accounts.

Bangladesh prepares annual financial reports using a combination of International Public Sector Accounting Standards (IPSAS) and Government of Bangladesh accounting standards, which accommodate a modified cash basis of accounting. The 2023 Public Expenditure and Financial Accountability assessment notes that Bangladesh’s financial reports are comparable to Cash Basis IPSAS, while the public sector accounting framework has not transitioned to accrual-basis IPSAS.

Current Status: Partially Adopted

The Financial Reporting Act 2015 authorizes the Financial Reporting Council (FRC) to oversee auditors and audit firms that provide services to public interest entities and to enforce compliance with applicable accounting, auditing, and ethical requirements. The Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants of Bangladesh (ICMAB) also operate investigation and discipline systems for their respective members under their enabling legislation and related bye-laws.

ICAB’s framework includes an Investigation and Disciplinary Committee, defined misconduct provisions, and sanctions for professional misconduct. ICMAB’s framework similarly provides for disciplinary arrangements for cost and management accountants. However, available information indicates that the jurisdiction-level system does not fully incorporate all SMO 6 requirements across the profession, including in relation to independent appeals and consistent administrative processes.

Current Status: Partially Adopted

Under the Financial Reporting Act 2015, the Financial Reporting Council (FRC) is responsible for adopting accounting standards in Bangladesh. The FRC adopted International Financial Reporting Standards (IFRS) without modifications in 2020 for application in Bangladesh. IFRS as adopted by the FRC are required for public interest entities and domestic companies within the scope of the financial reporting framework, while banks, insurance companies, and non-bank financial institutions are also subject to sector-specific regulatory requirements.

The IFRS for SMEs Accounting Standard has also been adopted in Bangladesh.

Current Status: Adopted

Relevant Organizations

• Institute of Chartered Accountants of Bangladesh (ICAB)
• Institute of Cost and Management Accountants of Bangladesh (ICMAB)

Relevant Legislation

• Bangladesh Chartered Accountants Order, 1973
• Bangladesh Securities and Exchange Rules, 1987
• Banking Act, 1991
• Companies Act, 1994
• Cost and Management Accountants Ordinance, 1977
• Financial Reporting Act-2015

Relevant Publications

• ICAB, SMO Action Plan, October 2016.
• ICMAB, SMO Action Plan, February 2017.
• IFRS Foundation, “IFRS Application Around the World?Jurisdictional Profile: Bangladesh,” June 2016.
• OGR Legal, “Bangladesh Enacted Financial Reporting Act 2015,” September 2015.
• World Bank, Report on the Observance of Standards and Code—Accounting and Auditing: Bangladesh, April 2015.