Accounting Theory Term Paper

University of Dhaka

Faculty of Business Department of Accounting & Information Systems

Course: Accounting Theory (4204)

Term paper on: International Accounting Standards (IAS)

Submitted to:

Amirus Salat

Assistant professor

Department of Accounting and Information systems

University of Dhaka

Submitted by:

Group Spartacus

Name of members | ID |

Kanak Chandra Das | 14007 |

Tahmid Ahmed Sohel | 14070 |

Durjay Bairagi | 14072 |

Noor Mohammad Mojahidul Islam Johny | 14076 |

Shariful Islam | 14090 |

Date of submission: 30 November 2011

1.0. Introduction:

International Accounting Standards are the standards that must be followed by every company to prepare and present its financial statement. If the company does not follow IAS & IFRS, their financial statement is said not to be fairly presented. The user of financial statement information does not take decision from that financial statement information. Auditor of the company does not give any opinion if it does not follow the international accounting standards. So international accounting standards are very important for every company that prepares and present financial statement.

2.0. Description of IAS:

We select three IAS & an IFRS that are (1) IAS-1, (2) IAS-24,(3) IAS-7 (4) IFRS 8 to see whether the bank follow these or not

1. IAS-1: Presentation of financial statements.

2. IAS-24: Related party disclosure.

3. IAS-7: Cash flow statement

4. IFRS 8: Disclosure of Financial Statements

3.0. Presentation and compliance of IAS in Selected companies

3.1. Mercantile Bank Limited (MBL)

Mercantile Bank Limited (“ the Bank”) was incorporated in Bangladesh as a public limited by shares under the companies act 1994 as on May 20, 1999 and subsequently obtained banking operation license from Bangladesh...