Implementation of IFRS standards in the Bangladesh Finance PLC annual report

Abstract

This report is about my four-month internship at Bangladesh Finance PLC in the Internal Control and Compliance department. I was looking at the company’s 2024 report. My main goal was to see if the company was following the International Financial Reporting Standards. I also checked if they were following the rules set by Bangladesh Bank and the Bangladesh Securities and Exchange Commission. I watched how the company worked and analyzed the rules they have to follow. I found out that the company has to deal with two sets of rules at the time. Sometimes the banks’ rules override the International Financial Reporting Standards. The central bank tells the company how to report things and what assets they can recognize. In 2024 the company had to make a provision against their investments because of this. As a result, the company reported a loss. Had negative equity. This shows that the company is prioritizing following the rules over showing the financial picture. To fix this problem the report suggests one thing. The company should use automated systems to report to both the bank and the International Financial Reporting Standards. They should also use models to predict credit losses and try to restructure their capital and recover their assets. The report also says that the company should try to get the rules changed so that they are the same for everyone in the industry. Additionally, the company should improve their internship program by giving interns experience in different departments and access to their systems. This will help interns become financial professionals.