REGULATORY COMPLIANCE OF IFRS # 7: A STUDY ON THE FOREIGN COMMERCIAL BANKS OF BANGLADESH

Abstract

This paper is aimed to scrutinize the existing reporting standard for the Foreign Commercial Banks in Bangladesh and find out the extent of compliance by them. Banking industry’s nature of operation is totally different from others. Recognizing this aspect some specific IFRSs (International Financial Reporting Standards) have been prescribed for them. One of which is IFRS # 7 (Financial Instruments: Disclosures) which was formulated by IASB in 2004 and obliged to comply from on after 1st January, 2007 n the Annual Reporting. Institute of Chartered Accountants of Bangladesh (ICAB) prescribed to comply with IFRS # 7 from on or after 1st January, 2010 in Bangladesh. Hence compliance of IFRS 7 is of immense importance here. Scrutinization has been operated on 9 Foreign Commercial Banks. As per requirement, all the Foreign Commercial Banks are required to comply with the standard to uphold the stakeholders’ interest inspite of possessing the large portion ownership by the Foreigners. And the result of the study shows that all of the Foreign Commercial Banks compliance almost 68.18% of the IFRS # 7 requirements. Finally this study recommend on the degree of compliance for the Foreign Commercial Banks financial reporting.