Institute of Cost and Management Accountants of Bangladesh (ICMAB) requested the government Wednesday not to exclude its representation from the proposed Financial Reporting Council (FRC) saying that a ‘vested quarter’ was working to do so on an ‘unholy’ purpose.
ICMAB president Mohammed Salim FCMA made the request while reading out a written speech at a press conference arranged at a city hotel.
The press conference was also addressed by ICMAB vice president Abu Sayed Md Shaykhul Islam FCMA, Secretary Jamal Ahmed Choudhury FCMA, its past president Rafiq Ahmad FCMA and council member Muzaffar Ahmed FCMA, reports the Financial Express.
FRC is the supreme body at the proposed Financial Reporting Act to oversee the functions of accounting professionals both in the Institute of Chartered Accountants of Bangladesh (ICAB) and the ICMAB. The cabinet approved the draft law on August 19, 2013.
“The FRC will ultimately regulate both the ICAB and the ICMAB. So, FRC without representation of ICMAB will be incomplete and will run the risk of missing to receive independent opinion of one strong professional body,” Mr Salim said.
“Failing to prevent the government from enacting the FRA, the same quarter is now trying to convince it to bring changes in certain provisions of this proposed law including composition of FRC. The changes will make the basic purpose of this law redundant,” he said.
If any changes are needed to be brought in the cabinet-approved draft FRA, “the relevant stakeholders should be consulted before that; the changes should not be done secretly,” the ICMAB president said.
“The FRA should maintain its independent and impartial characteristics and the FRC should be comprised of members from different segments of the society including ICAB and ICMAB as approved by the cabinet for the greater interest of the country,” he added.
Saying that the ICAB has been preventing the enactment of the FRA, Mr Muzaffar Ahmed posed a question, “Who will be benefited if the representation of ICMAB, a knowledgeable body in accountancy profession, is excluded from the FRC?”
He further said the very purpose of those who prevent the passage of FRA will be served by the exclusion of ICMAB representation in the FRC.
In a query, Mr Jamal Ahmed said that there was no conflict between the members of ICMAB and ICAB relating to the audit of financial statements and cost accounts, rather they will continue doing their respective functions, and the FRC will oversee them and review their work, facilitating transparency in the accounting profession.
The FRC, as proposed in the draft law, is comprised of representatives from different regulatory and professional bodies including two specialist accounting members, ICAB and ICMAB, the officials said.
Throughout the long process of development of FRA, ICMAB extended active support to the government and significantly contributed to its drafting by giving important input in line with the relevant laws of other countries, they said.
All the drafts of the law, made in different government agencies, recognised ICMAB as a member of FRC; and it was approved by the cabinet also; but recently, the same quarter was engaged to convince the government to exclude ICMAB from FRC and bring some changes in the FRA clandestinely.
In reply to a query, ICMAB officials said they had already communicated with the government over the issue and are waiting to get its response.