BUSN20019 (HT1, 2017) Professional Project BAS (Bangladesh Accounting Standard) compliance on ACI Formulations Limited Dewan Ishtiaque Ahmed Student ID: S0279955 4/22/2017   Table of Contents Introduction 2 Project Context 2 Project Proposal 3 Background 3 Definition and Justification 4 Aim and Objectives/Research Questions 4 Literature Review 5 Organisation of the Project 5 Conclusion 7 References 8 Appendix 10   Introduction To proceed with the report below, it is necessary to illuminate the notion of accounting standards and how organisations are affected by such standards. Accounting standards refer to a set of guiding principles that standardise every accenting practice (Khan, 2010). The GAAP or the “Generally Accepted Accounting Principles” demonstrate the accounting standards that are widely embraced as the fundamental necessity that would validate the accounting practices that are being undertaken by numerous organisations across various industries. The report below would incorporate two different segments that would further classify the report requirements and implementation in compliance on ACI Formulations Limited. Project Context This particular segment of the report would incorporate a broad description regarding the future profession I would like to pursue my career within. Accounting standards as defined previously are the precise set of principles that drive the accounting practices across organisations within every industry or sector (Belal & Roberts, 2010). I believe every competent accounting professional for their business would always be a priceless or precious asset that would drive positive and constructive outcomes every time. These professionals deploy an inquisitive or curious mind precisely within their work endeavours in consideration of their knowledge regarding the organisation and their financial condition. These professionals are highly dependent on the set of skills and talents they develop throughout their previous experiences. The business environment, intimate organisational understanding of the financial and other conditions assists the accounting professionals to come up with probable circumstances and how the organisation must prepare itself or its financial foundation to meet the changing requirements. The training that the accounting professionals often go under helps them to build their professional foundation, which allows them to adopt objective and pragmatic approach every time they face certain issues. Often regarded as useful, precisely for small to mid-sized organisations (SMEs), I believe professional foundation can be constructive for any organisation or professional body, despite their nature and size (Siddiqui, 2010). Here, I choose ACI Formulations Limited from Bangladesh. These individuals (accounting professionals) often provide their assistance to the business organisations in the operations like "developing corporate strategies," "assisting the management to reduce expenditure," "providing assistance apart from financials" and others. Most importantly, these professionals provide their assistance to the management for reducing any risk that they recognise to be severe or enormous. Just as the BODs (board of directors), the accountants for every organisation represent equivalent interests on behalf of the business owners of the organisation (Bratton, 2010). The set of roles and responsibilities I would be taking over as a professional accounting personnel, includes- governing organisation (including approval of the annual budgets, replicating the actual standpoint or current position of the organisation especially in front of the stakeholders of the organisation), appointing the CEO, along with ascertaining compensation of the management. I would as well be well aware of the organisation’s financial condition or health, being the chief financial executive or officer (Bose, 2012). This would also incorporate designing along with driving the tactical course of the organisation for analysing, designing and then communicating precise and accurate monetary information to the stakeholders of the organisation. Professional accountants do have to play multiple roles; being internal auditors, these individuals do take over the responsibility to inform and assure the management regarding the internal control procedure, governance along with the risk management activities are working effectively (Madawaki, 2012). Project Proposal Background Companies Act 1994 does facilitate fundamental requirements precisely for the purpose of financial reporting that every company operating in Bangladesh must adhere by (Jensen & Berg, 2012). However, it has always been silent regarding either international reporting standards or the Bangladesh reporting standards (BAS/BFRS or IFRS/IAS). Here, the paper will implement the BAS compliance on ACI Formulations Limited. Listed organisations: The SEC (Securities and Exchange Commission) of the Bangladesh does regulate monetary reporting precisely for the listed firms/companies. The SER (1987) demands compliance with the IFRS/IAS as the Bangladesh adopted, these can be referred to be the BAS or the BFRS. Banks: Bank Company Act 1991, commands disclosures along with the reporting formats that are based over BAS 30 that is identical to the IAS 30. Insurance firms: Insurance Act 1938 never commands compliance to the BFRS or the BAS. The insurance companies also never consider following the BFRS/BAS. Other companies: Unlisted companies never forced or directed to comply with the BFRS or BAS standards. However, actual compliance does vary widely; the ICAB has also been successful regarding publishing BFRS especially for the SMEs and mid-sized entities across Bangladesh (Islam & Dellaportas, 2011). Definition and Justification The BAS can be defined as the set of reporting standards that every business organisation must adhere by and be transparent as far as possible for displaying their information. Companies according to the BAS or BFRS standards are liable for making transparent (clear and precise) projection of their financial condition and situation for they are liable to their stakeholders. Thus, they must comply with these standards in the best possible manner. Despite their nature, scope or location, every business entity is liable or answerable to their stakeholders. The BAS or the BFRS does clear justification in favour of each one of the stakeholders that an organisation has (Nurunnabi & Alam Hossain, 2012). Aim and Objectives/Research Questions The aim and objective of this particular research would be the following:  To identify how the accounting standards are applied in ACI Formulations Limited Literature Review The literature on this particular environment has always been impenetrable and multidisciplinary. The research paper does make a significant appraisal of the literature of contemporary or modern environmental accounting and also scrutinizes if the international financial reporting standards do contribute towards protection and monitoring of the surrounding. One of the authors has also defined four fundamental environments or atmosphere accounting mechanism. The list of such accounting mechanism includes- pollution disbursement accounting, physical accounting which calculates stocks about environmental assets over a particular period; "Green Indicators." This is a mechanism that is closely associated with traditional GDP measure and also adjusted to Nordhaus-Tobin measure for economic welfare along with the SNA (Cormier et.al, 2013). The economic literature associated with the environment does analyse sustainability, welfare measurement, technological changes, green accounting and externality within general symmetry model framework. Organisation of the Project The organisation that has been selected for this particular report is ACI Formulations Limited. These organisation has been justified enough regarding projecting the entire set of monetary statements along with the statement of their monetary position, followed by their comprehensive income statement, statement of amendments in equity, cash flow statement along with the periodical notes in consideration to the BAS 7. (Referred to Appendix) Overseas currencies must be converted into “Taka” (Bangladeshi Currency) in consideration of the prevailing exchange rate in consideration to the BAS 21 (Neogy, 2015). Statement Projecting Financial Standpoint The organisation must project their information prominently within the financial statement. The statement itself must incorporate the following information or items that would project data regarding the below aspects:  Equipment, plan, and property  Investment property  Intangible assets  Financial assets  Biological assets  Inventories  Trade receivables  Cash and other equivalents  Trade payables The company did follow BAS-1 for finalising the statement of financial position. However, their statement seemed to miss out some of the elements. The list of such elements included:  Profit and loss for a particular period attributable to: o Interests that are non-controlling o Parent’s owners  Complete income for a period that is attributable to: o Parent’s owners o Interests that are non-controlling ACI Formulations Limited did follow the BAS- 1 requirements. A firm might consider presenting in a precise and individual income statement (BAS Para 81), line items within (Para 82) along with the revelations precisely within the BAS (Para 83a). Considering the situation, the entities of ACI Formulations Limited followed the format of the inclusive income statement in consideration of the BAS-1 (following paragraphs). Milestones and Scheduling A Gantt chart applied in project management, is one of the most essential and helpful ways of persuading actions, performed against time. Gantt charts conduct the data visually. They describe all of the responsibilities included in the project, and their position, shown corresponding a timeline. It provides the quick summary of this project, its tasks, and when these must be completed. Tasks Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Finding the existing standards Specify those standards Planning Testing Implementation Documentation In a situation when income or expense items are material, any entity must reveal their amount and nature individually (Nisha, 2015). Organisational entities have also been justified in the case of this particular requirement, they have made a projection prominent enough showing every income or expense item individually within their notes and statements. Every entity must be clear enough regarding identifying individual monetary statements along with the vital notes. The entity is also liable for making a clear and prominent projection of the below-mentioned information, and they must also repeat such information whenever needed:  Names and other identification along with any prominent and clear change within such information  If such financial statements belong to any group of the entity or any individual entity Conclusion The above report makes a clear projection of how the organisational entities have been justifying regarding adhering to the accounting standard BAS, which certainly has different segments. It has been recognised to be one of the most important and vital industries within an economy. It is also necessary for an entity serving within such vital industry to be precise regarding complying with the fundamental requirements of the accounting standards (Das et.al, 2015).   References ACI. (2015). ACI Formulations Limited, Annual Report 2014. Dhaka, Bangladesh: ACI Formulations Limited. Retrieved from https://www.aci-bd.com/ACIFormulations/2015/ACIFlAnnualReport%202014.pdf Belal, A. R., & Roberts, R. W. (2010). Stakeholders’ perceptions of corporate social reporting in Bangladesh. Journal of Business Ethics, 97(2), 311-324. Bose, S. (2012). Environmental accounting and reporting in fossil fuel sector: a study on Bangladesh Oil, Gas and Mineral Corporation (Petrobangla). Bratton, W. W. (2010). Private standards, public governance: A new look at the Financial Accounting Standards Board. Cormier, D., Houle, S., & Ledoux, M. J. (2013). The incidence of earnings management on information asymmetry in an uncertain environment: Some Canadian evidence. Journal of International Accounting, Auditing and Taxation, 22(1), 26-38. Das, S., Dixon, R., & Michael, A. (2015). Corporate social responsibility reporting: a longitudinal study of listed banking companies in Bangladesh. World Review of Business Research, 5(1), 130-154. Islam, M., & Dellaportas, S. (2011). Perceptions of corporate social and environmental accounting and reporting practices from accountants in Bangladesh. Social responsibility journal, 7(4), 649-664. Jensen, J. C., & Berg, N. (2012). Determinants of traditional sustainability reporting versus integrated reporting. An institutionalist approach. Business Strategy and the Environment, 21(5), 299-316. Khan, H. U. Z. (2010). The effect of corporate governance elements on corporate social responsibility (CSR) reporting: Empirical evidence from private commercial banks of Bangladesh. International Journal of Law and Management, 52(2), 82-109. Madawaki, A. (2012). Adoption of international financial reporting standards in developing countries: The case of Nigeria. International Journal of Business and management, 7(3), 152. Neogy, T. K. (2015). Evaluation of the Legal Framework and Accounting Standards: A Study on Mobile Telecommunication Companies in Bangladesh. ABC Journal Of Advanced Research, 4(1), 27-38. Nisha, N. (2015). Inventory valuation practices: A developing country perspective. International Journal of Information Research and Review, 2(7), 867-874. Nurunnabi, M., & Alam Hossain, M. (2012). The voluntary disclosure of internet financial reporting (IFR) in an emerging economy: a case of digital Bangladesh. Journal of Asia Business Studies, 6(1), 17-42. Siddiqui, J. (2010). Development of corporate governance regulations: The case of an emerging economy. Journal of Business Ethics, 91(2), 253-274.   Appendix Figure 1: Cash Flow Statement of ACI Formulations Limited (Source: ACI, 2015)   Figure 2: Sales Contribution by Business Unit (Source: ACI, 2015)