Bangladesh Bank Governor Atiur Rahman yesterday emphasised the need for regional and international harmonisation and convergence of accounting, auditing and financial reporting standards to help flourish intra- and extra-regional investment and trade relationships.

"Foreign investors will feel comfortable with joint venture and the lending relationships with their Bangladesh counterparts only when they're satisfied about the completeness and transparency of financial statements and disclosures of the local partners," he said.

South Asian Federation of Accountants (Safa), The Institute of Chartered Accountants of Bangladesh (ICAB) and International Accounting Standard Board (IASB) arranged the "Regional standard setters' conference" at a conference at Sonargaon Hotel in the city.

Speaking as the chief guest, Rahman said intra- and extra-regional trade will expand in tandem with increasing openness in investment relationships.

South Asia will need to attract massive volumes of equity and loan investments in its emerging role as a significant hub of global growth, the central bank chief added.

"Intra regional cross border investments within South Asia will be growing; and South Asian investments outside the region will also rise gradually with increasing openness."

The central bank is planning to work with ICAB towards full convergence of the local accounting and auditing standards in financial and real sector with the international best practice standards.

"Bangladesh Bank is gradually imposing more demanding financial reporting and the disclosure requirements for bank and financial institutions in closer convergence with international best practice standards," he said.

ICAB President Parveen Mahmud said the convergence of International Financial Reporting Standards is a major initiative for almost all professional accounting institutes in the world.

She hoped that the deliberations made in the conference will give the participants an opportunity to update themselves on the latest efforts of IASB, and provide an input to IASB on the practicability to shape the future of financial accounting.

Safa President AN Raman also spoke.

Source: The Daily Star/ Bangladesh/ 29th Nov 2011