The cabinet on Monday approved in principle the draft Financial Reporting Bill-2013 that aims at bringing the preparation of financial statements in the corporate sector under a regulatory body and also setting a uniform standard for audit practices.
The finance division placed the draft at the weekly cabinet meeting with the prime minister, Sheikh Hasina, in the chair at the secretariat, proposing provisions for five-year imprisonment and Tk one lakh in fine for violation of the law.
‘The proposed law would set a uniform standard in financial reporting and audit practices in the corporate sector and also make the audit firms accountable,’ cabinet secretary Mohammad Musharraf Hossain Bhuiyan told reporters after the meeting.
He said the government would constitute a council to be headed by Bangladesh Bank governor to enforce the law.
Representatives from the Institute of Chartered Accountants of Bangladesh, Institute of Cost and Management Accountants of Bangladesh, National Board of Revenue and Securities and Exchange Commission and two independent experts will be included in the proposed council.
-With New Age input
