Standard-setting bodies establish financial reporting standards to promote uniformity, comparability, and prevent economic chaos. They include the FASB, SEC, IASB, national bodies like BSEC and ICAB, and the FRC. The FASB establishes GAAP in the US, the SEC oversees organizations in securities markets, and the IASB develops global IFRS standards. These bodies issue statements, oversee changes to standards, and ensure compliance to accounting principles and regulations.

1. Standard Setting
Bodies of Accounting

2. 2
Group Roster - 3
Name ID
DEEPAN BISWAS 74
HASAN TAHRIM UL ISLAM 72
FARHANA AFRIN 50
MD. SAZZAD BIN AZAD 84
SHADMAN SAKIB KHAN 22
MARZIA BINTE WALI 76

3. 3
• Standard-setting bodies establish financial reporting standards.
• They are typically private sector, not-for-profit, self-regulated organizations with
board members consisting of experienced accountants, auditors, users of financial
statements and academics.
Introduction

4. 4
A common set of principles, standards, and procedures that define the basis of financial accounting policies
and practices is called Accounting Standards.
To prevent
economic chaos
and confusion
Investment
Decisions
To prevent frauds
and manipulation
Importance
Uniformity
Comparability

5. 5
Accounting Standard Bodies
International
FASB SEC IASB
National
BSEC ICAB FRC
Accounting standards setting bodies are national or international organizations that have been
delegated responsibility for setting accounting standards by statute in a country or jurisdiction.

6. 6
Financial Accounting
Standards Board (FASB)

7. 7
Background (FASB)
Main Purpose
To establish and improve standards of financial accounting and
reporting standards for the guidance and education.
• An independent, private sector, not-for-profit organization and custodian of
accounting practices in the United States.
• The FASB was formed in 1973 and based in Norwalk, Conn.
• It has the authority to establish and interpret generally accepted accounting
principles (GAAP) in the United States.

8. Functions of FASB
Develop and improve the
implementation of GAAP.
Issue statements with
Accounting Standards.
Oversight over SEC’s staff
decisions, draft reporting
requirements, and compliance.
Ensure investors receive
information.
Establish and interpret GAAP.
Overseeing changes to existing set
standards, and making sure
proposed changes meet legal
requirements.

9. Generally Accepted Accounting Principles
GAAP is a set of
standards that
companies, nonprofits,
and governments should
follow when preparing
and presenting their
financial statements,
including any related
party transactions.
1. Business Entity
Assumption
2. Money Measurement
Assumption
3. Going Concern
Assumption
4. Accounting Period
Assumption
9

10. Basic Accounting Principles or Accounting
Conventions in GAAP
Objectivity Principle
The accounting data should
be definite, verifiable, and
free from the personal bias of
the accountant.
Revenue Recognition
Principle
Revenue recognition generally
occurs (1) when realized or
realizable and (2) when earned.
Full Disclosure Principle
The financial statements
should act as a means of
conveying and not
concealing.
Historical Cost Principle
An asset is ordinarily
recorded in the accounting
records at a price paid to
acquire it at the time of its
acquisition.
Matching Principle
The expenses incurred in an
accounting period should be
matched with the revenues
recognized during that period.
10

11. The US Securities and Exchange
Commission (SEC)
An independent federal
government regulatory
agency responsible for
protecting investors,
maintaining fair and
orderly functioning of the
securities markets, and
facilitating capital
formation.
Primary function is to
oversee organizations
and individuals in the
securities markets,
including securities
exchanges, brokerage
firms, dealers,
investment advisors, and
investment funds.
11

12. Divisions of SEC
The Division of Economic
and Risk Analysis
provides the data analytics
the SEC needs to pursue its
mission.
The Division of Corporation
Finance
ensures companies disclose
important information to the
investing public.
The Division of Law and
Enforcement
investigates securities law
violations and initiates civil
and criminal actions.
The Division of Trading
and Markets
in charge of developing
and overseeing the
standards for the securities
markets.
The Division of Investment
Management
helps protect investors and
encourages capital
formation through
regulation of the investment
management industry.
12

13. International Accounting
Standards Board (IASB)
13

14. ◉ Independent & private sector body.
◉ It was formed in 2001 to replace the IASC.
◉ IASB has 14 members.
◉ Independent group of experts with an appropriate mix of recent
practical experience in setting accounting standards.
◉ It operates under the oversight of IFRS Foundation.
Background of
International Accounting Standards Board
14

15. Objectives of IASB
15
IASB are to develop, in the public interest, a single set of
high quality, understandable, enforceable and globally
accepted financial reporting standards based upon clearly
articulated principles.

16. IASB VS FASB
16
• Bases its decisions on
worldwide financial
accounting principles.
• To produce standards that
would promote the
harmonization
• Bases its findings on US
financial accounting
regulations.
• Primary purpose is to
construct GAAP.
• It is a non-profit
organization that operates
on a global scale.
• The Securities and
Exchange Commission
established the FASB
Board as a private, non-
profit institution (SEC)

17. International Financial
Reporting Standards(IFRS)
17

18. 18
 A set of accounting rules for the financial statements of public companies that are
intended to make them consistent, transparent, and easily comparable around
the world.
 Originated in the European Union with the intention of making business affairs
and accounts accessible across the continent.
 Currently has complete profiles for 166 jurisdictions.
 IFRS requires that financial statements be prepared using four basic
principles: Clarity, Relevance, Reliability, and Comparability.
IFRS

19. OBJECTIVES OF IFRS
.
19
To promote and facilitate adoption.
To develop, in the public interest, a single set
of high quality,
To promote the use and rigorous application of
those standards.

20. Which is better GAAP or IFRS?
GAAP uses a rules-based
approach while the IFRS uses
a principle-based approach.
Under GAAP, once inventory
has been written down, any
reversal is prohibited.
Under IFRS, a write-down of
inventory can be reversed in
future periods if specific
criteria are met.
By being more principles-
based, IFRS, arguably,
represents and captures the
economics of a transaction
better than GAAP.
20

21. The Bangladesh Securities and
Exchange Commission
21

22. Background of BSEC
 It was established on 8th June, 1993.
 The Commission consists of the Chairman and four
Commissioners.
 BSEC is an ‘A’ category member of International
Organization of Securities Commissions.
22

23. MISSION OF BSEC
.
23
To Protect
To Develop
To Formulate

24. Functions Of BSEC
Regulating the
business .
Registering,
monitoring and
regulating of
collective investment
scheme .
Prohibiting fraudulent
and unfair trade
practices
Prohibiting insider
trading in securities
Undertaking
investigation and
inspection, inquiries
and auditing
Conducting research
and publishing
information
24

25. Recent Achievements
25
They organized a week-long
roadshow in USA for potential
investors.
Double-digit growth in the
market

26. The Institute of Chartered
Accountants of Bangladesh
(ICAB)
26

27. Background OF ICAB
27
An Autonomous Body established under the Bangladesh Chartered
Accountants Order in 1973.
Standards Set by the ICAB.

28. ICAB VALUES
28

29. FUNCTIONS OF ICAB
 Regulate the Profession of Accountants
 Administer its members and students
 Ensure professional ethics and the code of conduct
 Provide specialized and professional training Impart
Continuing Professional Development (CPD) to members
 Foster acceptance and observance of different
International Accounting Standards/ International Financial
Reporting Standards (IAS/IFRS)
 Keep abreast of the latest developments in accounting
techniques,
 Liaise with international and regional organizations
29

30. Financial Reporting Council
30

31. Background (FRC)
Financial Reporting Council
Bangladesh was
established on 9 September
2015 as an independent
regulatory agency.
It was created through the
passage of Financial
Reporting Act 2015 in the
parliament of Bangladesh.
31
12 Members Governing Body
• Government,
• Bangladesh Bank,
• Bangladesh Securities and Exchange Commission,
• Federation of Bangladesh Chambers of Commerce & Industries etc.

32. 32
Mission
To bring corporate confidence in
auditing, financial and non-
financial reporting among users
of financial statements.

33. OBJECTIVES of FRC
Promote
Provision
To promote the
provision of high-quality
reporting of financial
and non-financial
information by public
interest entities
Promote
Standards
To promote the highest
standards among
licensed auditors
Enhance
Credibility
To enhance the credibility
of financial reporting
33
Quality of
Accountancy
To improve the quality of
accountancy and audit
services

34. Functions of FRC
Setting Standards
Setting Standards for
Financial Reporting,
Auditing, Valuation and
Actuarial Services
Licensing, Approving
and Review
Licensing of Auditors,
approving of audit firms and
audit practice review
Reporting Review
Financial / Non-
Financial Reporting
Review
Adherence
Ensure adherence to
International Financial
Reporting Standards (IFRS)
and International Standards
of Auditing (ISA)
Compliance
Ensure compliance with
code of corporate
governance
Traning/Seminars
Provision of training/
seminars to facilitate
implementation of
accounting standards
34

35. CONCLUSION
35
The basic purpose of the Standards Setting Bodies is to develop new or revised standards to
deal with issues which are not explicitly dealt with by the local standards and for uniformity of
Financial Statement all over the world, while the local Standards Setting Body is to provide
assistance and guidance in developing new or revised standards in addition to assisting the
preparers of financial statements in applying the standards and in the case of the
international setting bodies.

36. THANK YOU!
Any questions?
36