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To focus on
harmonization and reducing the differences among accounting principles used in
major capital markets, the first global standards-setting body, the
International Accounting Standards Committee (IASC) was formed in 1973. (FASB,
2017). As a successor to the IASC, International Accounting Standards Board
(IASB) was established in April 2001, which is based in London, England
(Hossain, et al., 2015; IFRS, 2017).  The
IASB is responsible for developing and implementing International Financial
Reporting Standards (IFRS) by its member around the globe. Over the last decade
adoption of International Accounting Standards (IAS) (new name IFRS issued
after 2001) has gained considerable attention in the professional and academic
literature of the developed, emerging and developing economies (Hossain, et
al., 2015). IFRS is considered a high-quality principles-based set of
accounting standards which use professional judgment and different
interpretation of similar transactions rather than reliance of a specific rule
or standard (Tomaszewski & Showerman, 2010) i.e. U.S GAAP Generally
Accepted Accounting Practice).

Accounting (i.e.

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International Financial Reporting Standard) is considered as the global
business language and due to the globalization and accounting harmonization,
the adoption of IFRS in emerging and developing economies has received strong
support. In addition, IFRS is a high quality and well-structured set of accounting
standards which will increase transparency, understandability and promote
universal acceptance of financial reporting (Edwards, 2009).

 

The Institute of
Chartered Accountants of Bangladesh (ICAB) is the national professional
accountancy body which is responsible for the development of accounting
profession in Bangladesh, and has been working for the adoption and improvement
of accounting reporting standards (Bhattacharjee & Islam, 2009; Hossain, et
al., 2015). The Institute of Cost and Management Accountants of Bangladesh
(ICAMB) another professional body which guides the accounting profession in
Bangladesh (ICMAB, 2017). The ICAB has a program to adopt International
Accounting Standards (IAS) as their national standards.  Security and Exchange Commission (SEC) of
Bangladesh became responsible and oversee the IRFS compliance adopted by the
ICAB and that financial statements are prepared by the listed companies in
Dhaka Stock Exchange (DSE) and Chittagong stock exchange (CSE) in according
with the requirement of law and regulation (Mir & Rahaman, 2005;
Bhattacharjee & Islam, 2009).

 

According to the
International Monetary Fund (IMF) and World Bank (WB), Bangladesh has become a
low middle country in 2014 (World Bank, 2016). 
A World Bank’s Country Director for Bangladesh has said “Despite
daunting challenges, Bangladesh has made remarkable progress in reducing
poverty and advancing growth and development”- Qimiao Fan

World Bank
Country Director for Bangladesh, Bhutan and Nepal

In addition,
PwC’s the world in 2050, published in 2015 vision report Bangladesh will be
28th largest economy in the world and Bangladesh as a country hugely depends on
foreign aids. So they need a global accounting standard in order to provide
transparency credibility and

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