The main objective of this presentation is to demonstrate how do accounting as a tool of business and economics can contribute in sustainable economic development of an emerging economy like Bangladesh. More specifically, it sheds light on the role of accounting and professional accountants to improve the overall accounting environment and credibility of accounting information to attract domestic and foreign investors for ensuring the required fund flow of economic growth.

1. Syed A. Mamun, PhD, FCMA, CSRS
Deputy CEO
Credit Rating Information and Services Limited (CRISL)
Role of Accounting and Professional
Accountants for Sustainable Economic
Development in Bangladesh

3. What did they do?
Manipulated Sales figure of $310m; £250m
from Q2 to Q4 of Year 2019 which about
40% of its estimated annual sales.
Consequences?
Investors lost
their
confidence in
Luckin Coffee
Inc.

4. Agenda
Professional
Accountants
Accountability,
Transparency
&
Credible
Corporate
Reporting
Sustainable
Economic
Growth

5. Accounting & its Thousand Years History
“Once upon a Time,
there was no Time
(watch) but there was
Accounting”
Historical Analysis shows
the evidence of recording
the Income of Temples
in the Ancient
Mesopotamia in
4000B.C.

6. Luca Pacioli & International Accounting Day
"Summa de Arithmetica, Geometria, Proportioni et
Proportionalita", which translates to "Everything About
Arithmetic, Geometry and Proportion“ published on
10th November, 1494.
Luca Pacioli was an Italian mathematician and
philosopher.
Since 1972/1976, the date 10th November is celebrated
as International Accounting Day around the world to
promote Accounting Profession.

7. Accounting, Financial Reporting and Investors’
Decision
Business
Environment
Business Strategy
Business
Activities &
Transactions
Accounting
System
Accounting
Environment
Financial
Statements
Accounting
Strategy
Source: Palepu et al., 2005
Investors’
Decisions

8. Accounting Environment of Bangladesh
Professional
Accountants &
Professional
Accounting Bodies:
ICMAB & ICAB
Laws & Legal
Systems
Regulations:
FRC & Other
regulators
Economic System:
Mix Economy
Tax Environment
Accounting Education :
Universities & Colleges
Accounting
Environment
in Bangladesh
Business
Environment
Corporate
Governance
Environment

9. Accounting Environment in Bangladesh (cont..)

10. What do Professional Accountants Do?
Shareholders
& Creditors
Management
Decisions,
Operation
&
Corporate
Reporting
Financial &
Non-Financial
Disclosure
Conflict of
Interests (COI) &
Info. Asymmetry
(IA)
Other
Stakeholders &
Society
(COI)
&
(IA)
Independent
Auditors

11. What do Professional Accountants Do?
Internal External
Audit Role
• Internal Audit
• Compliance
• Cost Audit
• Financial Audit
Management
& Policy Level
Role
• CEO
• CFOs
• Business Strategist
• Other Accounting and
Finance Executives
• Business Executives
• Management
Consultants
• Investment
Analysts
• Regulators
• Policy Makers

12. GDP Growth Rate of Bangladesh
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

13. Per Capita Income (USD)
940
1466
1909
0
500
1000
1500
2000
2500
2012 2016 2019
Per Capital Income (USD)

14. Key Challenges to Sustain the Growth
Lower Productivity
Lack of Effectiveness in Fiscal Policy
Funding Gap & Insufficient FDI
Weaker Internal Capital Generation
Poor Ease of Doing Business Position
Weaker Corporate Governance
Lack of Credible Information

15. Global Competitive Index 2019:
Position of Bangladesh 105 of 141 Countries

16. Funding Gap
2016-2040
Infrastructure
Funding
Requirement:
USD 608
billion
If Current Trend Prevails:
Available Fund:
USD 417 billion
Funding Gap :
USD 192 Billion

17. Internal Capitalization: Stock Markets in Bangladesh
Elements Dhaka Stock Exchange
(DSE)
Chittagong Stock
Exchange (CSE)
Establishment Year 1954 1995
No. of Listed Securities 371 (without T-securities) 334
Major indices DGEN, DSE30, DSEX CSE30, CSE X, CSE50, CSI
index & CASPI
Market Capitalization
(in BDT Billion)
4285.05 3326. 94
Market Capitalization
as % of GDP
15% 12%
• India: 75%
• Sri Lanka: 30%
• Pakistan: 33%
• Nepal: 50%

18. Sources of Infrastructure Financing in Bangladesh

19. Lack of Fiscal Policy Effectiveness

20. Lack of Fiscal Policy Effectiveness (cont…)

21. FDI Flow in Bangladesh
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
FDI (in Million USD) % of FDI to GDP

22. FDI Flow in South Asia
-0.5
0
0.5
1
1.5
2
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Bangladesh India Srilanka Pakistan Nepal

23. Ease of Doing Business Index by World Bank:
Position of Bangladesh

24. Ease of Doing Business Index (cont…)

25. Professional Accountants, Investors’
Confidence, Capitalization
Professional
Accountants &
Credible Corporate
Reporting
Investors’
Confidence
Local & Foreign
Capitalization

26. 3 Es: Three Expectations of Professional Accountants
Empowering
• Legally
• Financially
Educating
• Accounting
Education Policy
• National &
International
Training
Accountability
• Monitoring
• Timely Rules &
Regulation

27. THANK
YOU !!!