About the FRC
The Financial Reporting Council (FRC), an independent government regulatory body under the Financial Reporting Act (FRA) 2015. It is an organization under the aegis of the Ministry of Finance. The FRC will regulate accounting, reporting, auditing and actuarial professions in Bangladesh.
The Council main objects as defined in the FRA 2015 are:
* to promote the provision of high quality reporting of financial and non-financial information by public interest entities.
* to promote the highest standards among licensed auditors
* to enhance the credibility of financial reporting and
* to improve the quality of accountancy and audit services
The benefits of good Financial Reporting are:
* promoting private sector growth and reducing volatility through
* Strengthening countries’ financial architecture and reducing the risk of financial market crises together with the associated negative economic impact
* Contributing to foreign direct and portfolio investment
* Helping to mobilize domestic savings
* Facilitating the access of smaller-scale corporate borrowers to credit from the formal financial sector by lowering the barrier of high information and borrowing costs
* Allowing investors to evaluate corporate prospects and make informed decisions resulting in lower cost of capital and better allocation of resources and
* Facilitating integration into global financial and capital markets
Financial reporting is also a building block of a market-based monitoring of companies, which allows shareholders and the public at large to assess management performance, thus influencing behaviour. High quality financial reporting may also contribute to improving the assessment and collection of taxes on corporate profits
Operating Arms of the FRC
The operating arms of the FRC would be the Standards Setting Division, Financial Reports Monitoring Division, Audit Practice Review Division and Enforcement Division.