These threshold limits are too low or strict and will extremely be difficult to maintain by organizations, most of which will be SMEs
President of Dhaka Chamber of Commerce & Industry (DCCI) Shams Mahmud on Tuesday requested Hamid Ullah Bhuiyan, chairman, Financial Reporting Council (FRC) Bangladesh, to increase threshold limits of financial reporting for small and medium enterprises (SMEs.)
He also congratulated the newly-appointed FRC chairman while paying a courtesy call at the latter's office, while highlighting various activities of DCCI particularly in the area of SME sector, said a press release.
As per Financial Reporting Act 2015, all entities with an annual sales or revenue of Tk5 crore and fulfills any of two conditions of either having employment of 50 people or having total property value of Tk3 crore or having a total liability of Tk1 crore, will be treated as the Public Interest Entities (PIEs).
As per this act, the FRC will review and monitor the preparation, auditing and reporting of all Financial Statements of those PIEs.
These threshold limits are too low or strict and will extremely be difficult to maintain by organizations, most of which will be SMEs, practically and financially, according to the DCCI.
In general, the SMEs are with very low capital base, non-structured and non-technology oriented organizations, they opine, adding that the SMEs cannot afford to maintain professional accounting personnel to prepare and maintain the financial reporting as per IFRS and IAS standards.
Shams Mahmud later requested the FRC chairman to increase these threshold limits to a greater extent so that the SMEs do not fall under non-compliance because of various issues that are difficult to be maintained by the SMEs.
Moreover, he sought all out cooperation from the FRC to facilitate the country’s SME sector to be more competitive in the world market.
Md Hamid Ullah Bhuiyan assured that he would look into the issues seriously and would try to accommodate the requests as much as possible.