Asian Development Bank has asked Bangladesh’s government to enact Financial Reporting Act (FRA), which is one of major conditions to get final tranche of $150m under the ongoing second capital market development programme, officials said.

Director General of ADB Joan Miranda in a recent letter to finance Minister AMA Muhith requested to implement the FRA within next two months to release of second and final tranche.

The letter also revealed the second capital market development programme would end in the second half of 2014.

Meanwhile, the government, after a demand from ICAB, decided to amend the draft of the FRA in accordance with the Sri Lankan model. Sources said the debate on FRA model between the government and Institute of Chartered Accountants of Bangladesh (ICAB) has been delaying the enactment of the law.

At a recent meeting with Finance Secretary Fazle Kabir, ex-chairman and member of Institute of Chartered Accountants of Bangladesh (ICAB) Abdul Salam urged the government to make FRA following the Sri Lankan model.

ICAB’s ex-chairman told other members that the secretary had assured of considering their demand.

ICAB has always been against the proposed FRA as it is claiming there would be duel standards among the accountants and the auditors if the government enacts any such law.

It will also hamper the existing independency of the chartered accountants, it believes.

As ICAB currently regulates such job, there will be a conflict in the overseeing of the overall work if the proposed law is passed,law is passed, according to the body.