This report is an analysis of implication of BAS and BFRS in preparing financial statements of Dhaka Bank Limited. Here, the theoretical knowledge of BAS and BFRS and their application is analysed.
Cape Unit 2 Module 3 Aluminium Extraction Cram SheetDenison Dwarkah
Everything you need to know for CAPE Unit 2 Module 3 on the chemistry of aluminium extraction. It will allow you to answer any past paper question on this topic. The physical properties of aluminium were left out since you can easily find those yourself.
Information of mass media and its role in Caribbean development. This is geared at assisting students who are sitting the Cape Caribbean Studies examination.
Cape Unit 2 Module 3 Aluminium Extraction Cram SheetDenison Dwarkah
Everything you need to know for CAPE Unit 2 Module 3 on the chemistry of aluminium extraction. It will allow you to answer any past paper question on this topic. The physical properties of aluminium were left out since you can easily find those yourself.
Information of mass media and its role in Caribbean development. This is geared at assisting students who are sitting the Cape Caribbean Studies examination.
Eutrophication & the Process of EutrophicationPantho Sarker
Eutrophication is the ultimate consequence of bacterial decomposition of the green lives and further scarcity of oxygen and suffocation as well. In this presentation we have tried to show the its' process, types, consequences, impact on nature and human life and how can we control it.
Eutrophication & the Process of EutrophicationPantho Sarker
Eutrophication is the ultimate consequence of bacterial decomposition of the green lives and further scarcity of oxygen and suffocation as well. In this presentation we have tried to show the its' process, types, consequences, impact on nature and human life and how can we control it.
The presentation is an effort towards better understanding of the IAS-37, through the use of proper headings, bullets, key points and graphics where needed.
Women's healthy orthopaedic shoes are a great way to style an outfit without compromising on at the fashion stakes. Womens healthy orthopaedic shoes have come a long way to keep up with fashion trends. The womens Tobago in Nubuck has been flying out the door and is a great women’s orthopaedic sandal for weekends and shopping trips.
This report makes available descriptive material and commentary, including definitions,
statistics, overviews of countries and initiatives and market trends. These are not
comprehensively summarised in this summary except in so far as they are relevant to the key
findings, which are set out below.
EBA supported individuals have actively participated in the recent European Commission Expert
Group on e-Invoicing (The Expert Group), which produced its final report in November 2009.
The executive summary of this report is included as an annex in this document. EBA is very
supportive of the recommendations in the Expert Group report and many of the key findings
below are consistent with the Expert Group report and with the findings developed in the EBAInnopay
‗E-invoicing 2008‘ report.
We offer Oxford Brookes ACCA RAP Thesis writing and Mentoring services, Oxford approved mentors, 100% plagiarism free guaranteed work. Book your orders now at ghostwritingmania@yahoo.com
Application of the Strategic Management Theories in Uber BangladeshPantho Sarker
Uber Bangladesh is a subsidiary of Uber Technologies Inc., which is a privately held company founded in 2009 by Travis Kalanick and Grarret Camp in San Francisco, Calfornia. Uber started its operation in Bangaladesh from November 22,2016. They provide low cost to luxury and 24 hours service throughout the weeks. Uber has introduced Uber Premium, Uber X and Uber Moto and planning to introduce Uber pool. The major competitors of Uber are Pathao, Chalo, Garivara, Amarbike, TaxiWal etc.
Through the introduction of technology-based ride sharing service, Uber has shifted the value creation frontier of car rental industry of Bangladesh. It has created a new way or platform to proving service. They introduced new way of providing service. On the other hand, Uber is one of the most suitable example of blue ocean strategy. They have eliminated the uncertainty in getting taxies and reduced time to wait for taxies, the unsure fare and waiting time for taxies. Moreover, they have created a platform of connecting the passengers and drivers and introduced scope of maximum utilization of personal cars in Dhaka city. They have raised the chances of getting taxies and quality of services and high level of safety while riding. In the current position the most suitable business level strategy of Uber is to go for broad level differentiation, as the market has already captured most of the early adopters. Therefore, Uber is making themselves ready to overcome the upcoming chasm. They have to follow share building strategy and have to be ready take growth strategy in future.
Uber’s penetration in the Asia pacific has been one of the game changing strategies that has played huge role in its success. For expansion in global market, specially in Asia pacific Uber focuses on localization. It customized its services and strategies according to the area it is operating in and segments markets into cities and takes special strategies for each city. Uber entered Bangladesh as a fully owned subsidiary of Uber USA, and has formed partnerships with Grameen phone and Robi as digital partners. Uber chose Bangladesh mainly because of opportunities due to increasing income level, low competition and cheap man-power.
Application of the Strategic Management Theories in Uber BangladeshPantho Sarker
Uber Bangladesh is a subsidiary of Uber Technologies Inc., which is a privately held company founded in 2009 by Travis Kalanick and Grarret Camp in San Francisco, Calfornia. Uber started its operation in Bangaladesh from November 22,2016. They provide low cost to luxury and 24 hours service throughout the weeks. Uber has introduced Uber Premium, Uber X and Uber Moto and planning to introduce Uber pool. The major competitors of Uber are Pathao, Chalo, Garivara, Amarbike, TaxiWal etc.
Through the introduction of technology-based ride sharing service, Uber has shifted the value creation frontier of car rental industry of Bangladesh. It has created a new way or platform to proving service. They introduced new way of providing service. On the other hand, Uber is one of the most suitable example of blue ocean strategy. They have eliminated the uncertainty in getting taxies and reduced time to wait for taxies, the unsure fare and waiting time for taxies. Moreover, they have created a platform of connecting the passengers and drivers and introduced scope of maximum utilization of personal cars in Dhaka city. They have raised the chances of getting taxies and quality of services and high level of safety while riding. In the current position the most suitable business level strategy of Uber is to go for broad level differentiation, as the market has already captured most of the early adopters. Therefore, Uber is making themselves ready to overcome the upcoming chasm. They have to follow share building strategy and have to be ready take growth strategy in future.
Uber’s penetration in the Asia pacific has been one of the game changing strategies that has played huge role in its success. For expansion in global market, specially in Asia pacific Uber focuses on localization. It customized its services and strategies according to the area it is operating in and segments markets into cities and takes special strategies for each city. Uber entered Bangladesh as a fully owned subsidiary of Uber USA, and has formed partnerships with Grameen phone and Robi as digital partners. Uber chose Bangladesh mainly because of opportunities due to increasing income level, low competition and cheap man-power.
Construction of efficient portfolio depends on the selection of right asset classes and right securities that will leads to optimum portfolio performance. In this report, the correlations between the average return of different sectors of Dhaka Stock Exchange have been calculated to choose the sectors with minimal correlation of return. Four major sectors with negative correlation among them has been selected and sixteen growth stocks from these sectors has been identified to construct this portfolio. Using the portfolio optimization technique, the weight of these stocks has been determined under the situation of objective functions and constraints.
In case of maximizing portfolio theta while short sales are not allowed, the optimum results suggests to invest 65.20% in BATBC, 20.89% in WATACHEM, 11.35% in JMISMDL, and rest 2.57% in GEMINISEA. The theta of this portfolio in this case is 21.41%. The weights vector has been calculated while short sells are allowed and objective function is to maximize the theta of this portfolio. Moreover, the weights vectors has been determined for different objective functions such as minimizing portfolio risk and different set of constraints.
Construction of efficient portfolio depends on the selection of right asset classes and right securities that will leads to optimum portfolio performance. In this report, the correlations between the average return of different sectors of Dhaka Stock Exchange have been calculated to choose the sectors with minimal correlation of return. Four major sectors with negative correlation among them has been selected and sixteen growth stocks from these sectors has been identified to construct this portfolio. Using the portfolio optimization technique, the weight of these stocks has been determined under the situation of objective functions and constraints.
In case of maximizing portfolio theta while short sales are not allowed, the optimum results suggests to invest 65.20% in BATBC, 20.89% in WATACHEM, 11.35% in JMISMDL, and rest 2.57% in GEMINISEA. The theta of this portfolio in this case is 21.41%. The weights vector has been calculated while short sells are allowed and objective function is to maximize the theta of this portfolio. Moreover, the weights vectors has been determined for different objective functions such as minimizing portfolio risk and different set of constraints.
Corporate finance practices of beximco pharmaceuticals limited Pantho Sarker
In this presentation, we have discussed on the financial performance of the Beximco Pharmaceuticals Limited. Firstly, the corporate goal of this firm has been stated. Secondly, the market value and book value of the firm has been showed with calculation. Relative valuation gives us a picture of what the value of Beximco pharmaceuticals should be relative to its peers. Using the P/E and EV/EBITDA we found out Beximco pharmaceuticals to be undervalued.
The capital structure of the company is not at the optimum level. Both peer analysis and quantitative analysis has been used to analyze and identify an optimal capital structure to maximize the value of the firm
Beximco follows a Stable dividend policy as it pays stable dividends regardless of earnings and free cash flows and the managers of the firms are making the best use of the retained earnings as it is generating better ROE and ROC.
Analysis of Financial Condition and Dividend Pattern of Beximco Pharmaceutica...Pantho Sarker
In this report, we discussed about the financial performance of the Beximco Pharmaceuticals Limited. Firstly, the corporate goal of this firm has been stated. Secondly, the market value and book value of the firm has been showed with calculation. Relative valuation gives us a picture of what the value of Beximco pharmaceuticals should be relative to its peers. Using the P/E and EV/EBITDA we found out Beximco pharmaceuticals to be undervalued.
The capital structure of the company is not at the optimum level. Both peer analysis and quantitative analysis has been used to analyze and identify an optimal capital structure to maximize the value of the firm
Beximco follows a Stable dividend policy as it pays stable dividends regardless of earnings and free cash flows and the managers of the firms are making the best use of the retained earnings as it is generating better ROE and ROC.
“A case analysis on Philips Singapore: Creating Value through Human Resource ...Pantho Sarker
Human resource management is the management of human resources. It is a function in organizations designed to maximize employee performance in service of an employer's strategic objectives. HR is primarily concerned with the management of people within organizations, focusing on policies and on systems. In this report, we have solved the case that is related to human resource management. To solve this case, at first we analyze the background of company and case. After analyzing company and case, we have find out the problems of Philips Electronics Private Limited. We also have provided alternative solutions to solve the problems of Philips Electronics Private limited in this report. Finally we have presented some recommendations to Philips Electronics Private Limited to solve its HR problems and draw a valid conclusion.
A case analysis On “Philips Singapore: Creating Value through Human Resource ...Pantho Sarker
Human resource management is the management of human resources. It is a function in organizations designed to maximize employee performance in service of an employer's strategic objectives. HR is primarily concerned with the management of people within organizations, focusing on policies and on systems. In this report, we have solved the case that is related to human resource management. To solve this case, at first we analyze the background of company and case. After analyzing company and case, we have find out the problems of Philips Electronics Private Limited. We also have provided alternative solutions to solve the problems of Philips Electronics Private limited in this report. Finally, we have presented some recommendations to Philips Electronics Private Limited to solve its HR problems and draw a valid conclusion.
In this task the assigned company is Monno Ceramics Industries Limited. According to this task, the data of the values of ‘Total Assets’ of Monno Ceramics Industries Limited for the time period 2000 to 2013 has been collected and shown in the below table. Here, the used currency is TK. All the figures of asset have been expressed in billion. The data have been collected form the annual reports of Monno Ceramics Industries Limited.
The case study on Pricing Strategy of Cath Kidston.Pantho Sarker
Cath Kidston is a well known company in UK in the field of homeware and fashion products. We were assigned to perform different analysis using the data of Cath Kidston. So, In this report we presented different analysis based on Cath Kidston’s data.
Through this report the following thing are going to be to be covered:
Chapter 01 discusses on the introductory part of the study.
To give an overview of “Cath Kidston” through Chapter 02).
In Chapter 03, we conducted the analysis of the economy. In this chapter we included economic recession and economic boom and then we apply economic analysis in respect of Cath Kidston.
In Chapter 04, we run industry analysis by applying Porter's Five Forces Model and PESTLE analysis. In this chapter first we discuss about the theoretical framework of the mentioned two tools and then we apply these tools to analyse the industry related to Cath Kidston.
In Chapter 05, the analysis of the company was performed using SWOT analysis and business cycle as well as using variability analysis.
In Chapter 06, the problem of the case was introduced.
In Chapter 07, a solution was given based on the problem statement presented in the chapter six. In addition, we solved the questions which were provided in the case.
In chapter 08, the required recommendations are provided with due context.
At last to overview the whole study conclusion will work to that purpose.
This report aims at introducing Cath Kidston assessing its different sides. It is hoped that readers will get a better overview on Cath Kidston through this report.
The case study on Pricing Strategy of Cath KidstonPantho Sarker
Cath Kidston is a well-known company in UK in the field of homeware and fashion products. We were assigned to perform different analysis using the data of Cath Kidston. So, In this report, we presented different analysis based on Cath Kidston’s data.
Through this report the following thing are going to be to be covered:
Chapter 01 discusses on the introductory part of the study.
To give an overview of “Cath Kidston” through Chapter 02).
In Chapter 03, we conducted the analysis of the economy. In this chapter we included economic recession and economic boom and then we apply economic analysis in respect of Cath Kidston.
In Chapter 04, we run industry analysis by applying Porter's Five Forces Model and PESTLE analysis. In this chapter first we discuss about the theoretical framework of the mentioned two tools and then we apply these tools to analyse the industry related to Cath Kidston.
In Chapter 05, the analysis of the company was performed using SWOT analysis and business cycle as well as using variability analysis.
In Chapter 06, the problem of the case was introduced.
In Chapter 07, a solution was given based on the problem statement presented in the chapter six. In addition, we solved the questions which were provided in the case.
In chapter 08, the required recommendations are provided with due context.
At last to overview the whole study conclusion will work to that purpose.
This report aims at introducing Cath Kidston assessing its different sides. It is hoped that readers will get a better overview on Cath Kidston through this presentation.
Comparative Statistical Analysis between PRAN Foods Limited and Akij Foods an...Pantho Sarker
One of the most important things that we observe and apply in our day to day activities is statistics which itself is both science and art as well. When doing a study on “Comparative Statistical Analysis on PRAN Foods Limited and Akij Foods and Beverage Limited on Customer Satisfaction in the University Area”, we have used many of statistical techniques like mean, median, mode, 1st quartile, 3rd quartile, standard deviation, mean deviation, coefficient of variation Pearson’s coefficient of skewness, software coefficient of skewness, coefficient of correlation, coefficient of determination, and regression analysis. The main objective of this study is to find out whether PRAN Foods Limited or Akij Foods and Beverage Limited has a better performance in customer satisfaction in the Dhaka University Area. All these statistical techniques have been used to measure the independent variable X shown as sales and the dependent variable Y shown as profits in this report to find necessary interrelations between them.
Comparative Statistical Analysis between PRAN Foods Limited and Akij Foods an...Pantho Sarker
One of the most important things that we observe and apply in our day to day activities is statistics which itself is both science and art as well. When doing a study on “Comparative Statistical Analysis on PRAN Foods Limited and Akij Foods and Beverage Limited on Customer Satisfaction in the University Area”, we have used many of statistical techniques like mean, median, mode, 1st quartile, 3rd quartile, standard deviation, mean deviation, coefficient of variation Pearson’s coefficient of skewness, software coefficient of skewness, coefficient of correlation, coefficient of determination, and regression analysis. The main objective of this study is to find out whether PRAN Foods Limited or Akij Foods and Beverage Limited has a better performance in customer satisfaction in the Dhaka University Area. All these statistical techniques have been used to measure the independent variable X shown as sales and the dependent variable Y shown as profits in this report to find necessary interrelations between them.
Task 1:
Collect values of “Total Asset” of assigned company 1 for time period 2000-2013. Suppose that company has adopted new Capital Budgeting policy from 2007. At the 0.05 significance level, can you conclude the Total Asset of assigned company is higher after adopting new management policy?
Task 2:
In this task, for group 20, the assigned company 1 is Monno Ceramics Industries Limited. The second assigned company is Jamuna Oil Company Limited and the third company which has chosen by the members of group 20 is Agricultural Manufacturing Company Limited (PRAN).
According to this task, the information of the ‘Inventory’ figure from the balance sheet of these companies from 2009 to 2013 have been collected and summarized in the below graph. This information of inventory figures have been collected from the annual report of these companies.
Financial Statement Analysis and Valuation of Berger Paints Bangladesh LimitedPantho Sarker
Disclaimer: This report has been prepared for academic purpose only.The writer of this report is not responsible for taking any decision based on the recommendation of this report.
Accounting Fraud: A study on Enron Scandal Pantho Sarker
This report shows the summarized description of Enron Scandal and its impact on overall impact on US economy. This report is divided into basic two part. First part is showing the mechanism of this fraud. The second part shows its impact on the economy and stock market.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
2024.06.01 Introducing a competency framework for languag learning materials ...
Implication of BAS and BFRS in the Finanacial Statements of Dhaka Bank Limited
1. Page 1 of 90
Table of Contents
Chapter 01...................................................................................3
Introduction ................................................................................3
1.1 Origin of the Report:.....................................................................................................................4
1.2 Purpose of the Study:....................................................................................................................5
1.3 Objectives of the Report: ..............................................................................................................6
1.4 Methodology:................................................................................................................................7
1.5 Limitations of the Report:.............................................................................................................8
Chapter 02...................................................................................9
Company profile ........................................................................9
2.1 Vision:..........................................................................................................................................10
2.2 Mission:.......................................................................................................................................10
2.3 Corporate Values: .......................................................................................................................11
2.4 Strategic Objectives: ...................................................................................................................12
2.5 Ethical Principles:........................................................................................................................12
2.6 Customer Charter:.......................................................................................................................12
2.7 Shareholder’s information:.........................................................................................................13
2.8 Annual balance sheet overview:.................................................................................................14
Chapter 03.................................................................................18
Financial Statements Analysis .................................................18
Income Statement: ...........................................................................................................................19
Cash Flow Statement: .......................................................................................................................22
Balance Sheet:...................................................................................................................................24
Chapter 04.................................................................................28
BAS and BFRS Application: Analysis.....................................28
4.1 BAS 1(Presentation of Financial Statement)...............................................................................29
4.1.1 BAS 1- Theoretical Overview:...............................................................................................29
4.1.2 : DBL’s Compliance with BAS 1.............................................................................................33
4.2 BAS 2(Inventories).......................................................................................................................34
4.2.1 BAS 2- Theoretical Overview:...............................................................................................34
4.2.2 DBL’s Compliance with BAS 2...............................................................................................35
2. Page 2 of 90
4.3 BAS 7(Cash Flow Statement).......................................................................................................36
4.3.1 BAS 7- Theoretical Overview: ..............................................................................................36
4.3.2 DBL’s Compliance with BAS 7...............................................................................................40
4.4 BAS 10(Events after Balance Sheet Date)...................................................................................44
4.4.1 BAS 10- Theoretical Overview..............................................................................................44
4.4.2 DBL’s Compliance with BAS 10............................................................................................45
4.5 BAS 16(Properties, Plant and Equipment) ..................................................................................45
4.5.1 BAS 16- Theoretical Overview..............................................................................................45
4.5.2 DBL’s Compliance with BAS 10 ............................................................................................49
4.6 BAS 17(Lease)..............................................................................................................................51
4.6.1 BAS 17- Theoretical Overview..............................................................................................51
4.6.2 DBL’s Compliance with BAS 17 ............................................................................................53
4.7 BAS 18(Revenue).........................................................................................................................54
4.7.1 BAS 18- Theoretical Overview..............................................................................................54
4.7.2 : DBL’s Compliance with BAS 18...........................................................................................57
4.8 BAS 27(Consolidated and Separated Financial Statement) ........................................................57
4.8.1 BAS 27- Theoretical Overview..............................................................................................57
4.8.2 : DBL’s Compliance with BAS 27...........................................................................................65
4.9 BAS 28(Investment in associates) ...............................................................................................75
4.9.1 BAS 28- Theoretical Overview:.............................................................................................75
4.9.2 DBL’s Compliance with BAS 28............................................................................................77
4.10 BAS 37(Provisions, Contingent Liabilities and Contingent Asset).............................................77
4.10.1 BAS 37- Theoretical Overview:...........................................................................................77
4.10.2 DBL’s Compliance with BAS 37..........................................................................................79
4.11 The Analytical Discussion on DBL’s Financial Statement with Reference to BFRS ...................80
Chapter 05.................................................................................83
Brief Summary of BAS and BFRS Application......................83
Chapter 06.................................................................................86
Recommendation ......................................................................86
Conclusion:................................................................................89
Bibliography: ............................................................................90
4. Page 4 of 90
1.1 Origin of the Report:
This report has been prepared as a study on “Financial Analysis of the Financial Statements of Dhaka
Bank Limited for the Year of 2014 on According with BAS and BFRS.” as a part of the fulfillment of
course requirement. The report was prepared under the supervision of, Mohammad Salahuddin
Chowdhury, Assistant professor of Dept. of Finance, University of Dhaka. We are very much thankful
to him for assigning us with such type of practical work that has enhanced our knowledge and
experience.
5. Page 5 of 90
1.2 Purpose of the Study:
The purpose of the report is to apply our theoretical knowledge on the annual financial statement
analysis of Dhaka bank Ltd. Here we will analyze how the company prepare their financial, which
international standards they follow, whether there is any discrepancy or not, if so then which extent it
is. In the thorough analysis we will mainly focus on the difference between their criteria of preparing
financial statements and requirements of BAS and BFRS. This study will provide lots of calculations
to make the topic and all its goals implement clearly to the readers.
6. Page 6 of 90
1.3 Objectives of the Report:
The main objective of the study is to present the core accounting standards that all the existing
companies in Bangladesh must follow BAS and BFRS covers various monetary issues such as
conceptual and regulatory framework, cash flow statements, Intangible assets, Group accounts;
consolidated financial statements and so on.Again some other objectives will be fulfilled through this
study which is given below:
1. To explain the nature of financial reporting.
2. To explain and demonstrate the differences between Bank‟s criteria and accounting standards
requirements.
3. To explain the purpose and principles underlying in various section of BAS and appropriate
BFRSs.
4. To help the readers understand by given real calculations with relevant formats.
5. To gather knowledge on such an issues that is essential to conform by all the entities.
7. Page 7 of 90
1.4 Methodology:
For smooth and accurate study everyone needs to follow some rules & regulations. The study
concerned information was collected from two sources:
Primary Sources:
Information was collected from primary sources in these ways:
1. By self-observation of some sites related to Financial reporting standards.
2. By talking face to face with some experienced people in this field.
3. By Scrutinizing the procedures and standards required by BAS and BFRS.
Secondary Sources:
Data were collected from secondary sources by the following ways:
1. Different trustworthy and reliable websites worked as our prime secondary sources of data.
2. The annual financial reports that we have collected from DSE also helped as secondary data to us.
Data analysis and interpretation:
Especially data have been analyzed based on the accounting standards provided by BAS and BFRS.
Again some statistical and chart graphs have been used for easy and better representation of data.
8. Page 8 of 90
1.5 Limitations of the Report:
On the way of our study, we have faced some challenges that have been termed as the limitations of
this study. These are followings:
Budgeted time limitation:
It was one of the main constraints that hindered to cover all aspects of the study.
Validity and Reliability:
Validity and reliability of the obtained information depends on the responses from the respondents.
Data Insufficiency:
Especially there was a little lack of information about financial reporting in the aspect of Bangladesh
in any of the journals or reports or websites available.
Inappropriateness and Scarcity of Evidence:
Actually, Inappropriateness and Scarcity of evidence lacked our practicalrepresentation of analysis.
In spite of many limitations, we have become successful in preparing the report with sufficient
adornment of flawlessness.
10. Page 10 of 90
2.1 Vision:
The vision is anything that is considered to be the long term plan implemented by any individual or
any corporate figure. We have come to the knowledge of the corporate vision of Dhaka Bank Limited
that is shown below:
In Dhaka Bank, they draw their inspiration from the distant stars. Their vision is to assure a standard
that makes every banking transaction a pleasurable experience. Their endeavour is to offer us supreme
service through accuracy, reliability, timely delivery, cutting edge technology and tailored solution for
business needs, global reach in trade and commerce and high on customer‟s investments.
Their people, products and processes are aligned to meet the demand of their discerning customers.
Their goal is to achieve a distinct foresight. Their prime objective is to deliver a quality that
demonstrates a true reflection of their vision – Excellence in Banking.
2.2 Mission:
The mission is anything that should be achieved from the point where at present in future. So, the
company mission is nothing but the goal that it wants to achieve in the long run.
11. Page 11 of 90
The mission of Dhaka Bank Limited is given below:
To be the premier financial Institution in the country providing high quality products and
services backed by latest technology and a team of highly motivated personnel to deliver
Excellence in Banking.
2.3 Corporate Values:
Corporate image is the source of value of intangibles considerably. So, creating value and obtaining
value in return is also important for any corporate body.
Dhaka Bank Limited wants to implement the following corporate values in its banking life:
Customer Focus
Integrity Quality
12. Page 12 of 90
Teamwork
Respect for the Individual
Responsible Citizenship
2.4 Strategic Objectives:
Their objectives are:
To conduct transparent and high quality business operation based on market
mechanism within the legal and social framework spelt in our mission and reflected
in their vision.
To provide them continually efficient, innovative and high quality products with
excellent delivery system.
To generate profit with qualitative business as a sustainable ever-growing
organization and enhance fair returns to their shareholders.
To promote employees wellbeing through attractive compensation package,
promoting staff through training, development and career planning.
To fulfil their responsibility to the government through paying entire range of taxes
and duties and abiding by the other rules.
To be cautious about environment and climate change.
2.5 Ethical Principles:
They operate their business based on some ethical Principles. These are:
Complying with countries laws and regulations.
Rejecting bribery and corruption.
Avoiding compromised gifts and entertainment.
Speaking up if they suspect any actual, planned or potential behaviour that may
breach any laws and regulations.
Complying with Anti Monetary Laundering guidelines and other prudent regulations
provided by our regulators.
Resolving Customer complaints quickly and fairly.
Maintaining confidentiality and fidelity of customer.
Treating colleagues with fairness and respect; work with highly motivated team spirit
and fellowship bondage.
2.6 Customer Charter:
They seek to build long-term, sustainable beneficial relationships with all their customers based on the
service – commitments and their underlying values of mutual respect, the pursuit of excellence and
integrity in all their dealings.
Their primary concern is to understand and satisfy customers‟ needs and expectations. They promise
to understand these needs which are both mutually beneficial and respect the values and principles in
all their actions.
They promise deal quickly, courteously and accurately with all correspondence between them.
13. Page 13 of 90
They believe in openness, integrity, transparency and accountability and provide high standard of
services to their valid customers. They create customer value, loyalty and equity, which create
customer delight over a lifetime patronage.
2.7 Shareholder’s information:
Dhaka bank has a strong shareholding position in the market compared to other competitors. The
volumes of shares are very healthy and productive that is owned by different types of shareholders. It
shows shareholdings are diversified as well.
Fig 2.1 : Shareholding position of Dhaka Bank Ltd 2014
Fig 2.2 : Shareholding position of Dhaka Bank Ltd of 2013
45%
32%
20%
3%
Shareholders' Position
Sponsor General Public Financial Institutions Other Investments
45%
35%
17%
3%
Shareholding position 2013
sponsors General public Financial Institution Other Investors
14. Page 14 of 90
2.8 Annual balance sheet overview:
In the following there is given a graphical overview of Dhaka Bank‟s annual balance sheet of 2014
and 2013:
2.8.1 Asset mix: Total asset is formed through combination of different assets. Here we can see the
different segments such as loan and advances, investments, fixed assets and other forms asset mix. An
outlook of asset mix of 2014 and 2013 is given below:
Fig 2.3: Asset mix Dhaka Bank Ltd of 2014
Fig 2.4: Asset mix of Dhaka Bank Ltd of 2013
2.8.2 Asset funding mix: Assets are purchased from an accumulated source of funds. The asset
funding of Dhaka Bank also comes from diversified sources. Here we see asset funding mix of Dhaka
bank comprises of Deposits, Shareholder‟s Equity and other liabilities.
65%
12%
3%
20%
Asset mix 2014
Loan and advances
Investments
Fixed assets
Other assets
70%
13%
2%
15%
Asset mix 2013
Loan and Advances
Investments
Fixed Assets
Other Assets
15. Page 15 of 90
Here are the two chart of asset funding mix of Dhaka Bank Ltd for the year 2014 and 2013:
Fig 2.5 : Asset funding mix of Dhaka Bank Ltd of 2014
Fig 2.6 : Asset funding mix of Dhaka Bank Ltd of 2013
2.8.3 Deposit mix: Deposit accounts are one of the essential sources of an organization‟s liquidity.
Dhaka Bank Ltd also has a mix of deposit schemes comprising of current deposit, Savings deposit,
fixed deposit and others.
The following graph shows different types of deposits for the year of 2014 and 2013:
79%
8%
13%
Asset funding mix 2014
Deposits
Shareholder's Equity
Other liabilities
80%
8%
12%
Asset funding mix 2013
Deposits
Shareholder's Equity
Other liabilities
16. Page 16 of 90
Fig 2.7: Deposit mix of Dhaka Bank Ltd of 2014
Fig 2.8: Deposit mix of Dhaka Bank Ltd of 2013
2.8.4 Revenue: An increase in economic benefit in the form of monetary inflows which results in
increase in equity. Interest is one of the important sources of revenue for an entity.
In the following chart revenue generated from interest and other sources of Dhaka Bank Ltd for the
year of 2014 and 2013 is given below:
6%
9%
60%
25%
Deposit mix 2014
Current Deposit
Savings Deposit
Fixed Deposit
Other Deposit
9%
8%
68%
15%
Deposit mix 2013
Current Deposit
Savings Deposit
Fixed Deposit
Other Deposit
17. Page 17 of 90
Fig 2.9 : Revenue of Dhaka Bank Ltd 2014
Fig 2.10: Revenue of Dhaka Bank Ltd 2013
Dhaka Bank Limited has furnished its view in this way that can give us a clear overview of the
company understanding of its operation, investment, asset, finance, lease, PPE, liabilities and equities.
Whether, the management and internal bodies are strong enough to support the financial performance
is somewhat estimatable by the company overview shown above.
41%
59%
Revenue- Bank 2014
Net interest income
Non Interest income
52%
48%
Revenue- Bank 2013
Net Interest Income
Non Interest Income
18. Page 18 of 90
Chapter 03
Financial Statements Analysis
19. Page 19 of 90
Income Statement:
An Income statement is statement that measures a company's financial performance over a specific
accounting period. Financial performance is assessed by giving a summary of how the business incurs
its revenues and expenses through both operating and non-operating activities. It also shows the net
profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year. It is
also known as the "profit and loss statement" and statement of revenue and expense."
Dhaka Bank Limited
Profit and Loss Account
For the year ended 31 December 2014
Particular 2014
(TAKA)
2013
(TAKA)
Operating Income
Interest Income/profit on investments 13,705,387,970 15,131,141,289
Interest paid/paid on Deposits & Borrowings (10,879,027,249) (11,822,881,725)
Net interest Income 2,826,360,721 3,308,259,564
Investment Income 2,542,824,552 1,616,937,538
Commission, exchange and brokerage 1,127,036,781 1,093,341,022
Other operating income 360,878,331 376,977,712
4,030,739,664 3,087,256,272
Total operating income (a) 6,857,100,385 6,395,515,836
Operating expenses
Salary and Allowances 1,627,967,019 1,482,926,276
Rent, taxes, insurance, electricity, etc 406,184,756 354,748,442
Legal expenses 18,081,062 13,241,364
Postage, stamps, telecommunication, etc 42,600,696 43,219,136
Stationary, printing, advertisements, etc 198,019,076 134,486,079
Chief executive‟s salary and fees 7,268,600 12,340,000
Director‟s fees 3,600,271 2,956,763
Auditor‟s fees 805,000 690,000
20. Page 20 of 90
Depreciation and repair‟s of Bank‟s assets 268,105,367 225,290,552
Other expenses 476,392,510 432,027,470
Total operating expense (b) 3,049,024,357 2,701,926,082
Profit before provision (c=(a-b)) 3,808,076,028 3,693,589,754
Provision against loan and advances 543,128,511 57,050,512
Provision for diminution in value of
investments
13,499,886 584,582,559
Other provision 30,608,990 7,938,263
Total provision(d) 587,237,387 649,571,334
Profit before taxation (c-d) 3,220,838,641 3,044,018,420
Provision for taxation 1,191,845,133 1,117,341,489
Current tax 1,176,134,507 1,096,530,432
Deferred tax 15,710,626 20,811,057
Net profit after taxation 2,028,993,508 1,926,676,931
Profit available for distribution:
Retained surplus from previous year 1,191,170,022 413,443,614
Add: Retained earnings of current year 2,028,993,508 1,926,676,931
3,220,163,530 2,340,120,545
Appropriations:
Statutory reserve 644,167,728 608,803,684
General reserve 20,394,675 126,703,225
Dividends 1,191,170,013 413,443,614
21. Page 21 of 90
Retained earnings 1,364,431,114 1,191,170,022
3,220,163,530 2,340,120,545
Earnings per Share (EPS) 3.57 3.39
Explanation: Perspective of Dhaka Bank Limited:
The income statement measures the financial performance of the Dhaka Bank Limited over the period
of 2014 & 2013. We observed the total operating income, Net Profit after Taxation and Earning per
Share of Dhaka Bank Limited from the year from 2013 t0 2014 assessing the annual report of that
certain company. We have found some fluctuation in the total operating income and Net profit after
taxation & Earning per Share. The fluctuations are described hereby:
Figure 3.1: Income Statement Summary Comparison
In the year 2014, we get that total operating income is 6,857 million taka and Net profit after taxation
is 2,029 million taka. For 2013, we got that total operating income was 6,396 million taka and Net
profit after taxation was 1,927 million taka. In 2014 the total operating income is increased by 7.20%
from the previous year, the Net profit after taxation is increased by 5.29% from the previous year.
Figure 3.2: Earning Per Share Comparison
Total operating
Income
Net Profit after
Taxation
6,857
2,029
6,396
1,927
2014
2013
Income Statement
2014 2013
3.57%
3.39%
Earning Per Share
Earning Per Share
22. Page 22 of 90
In the year 2014, we get the earning per share is 3.57% and in the year 2013, earning per share was
3.39%. In 2014, Earning per Share is increased
Cash Flow Statement:
A cash flow statement, also known as statement of cash flows, is a financial statement that shows how
changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the
analysis down to operating, investing and financing activities. Essentially, the cash flow statement is
concerned with the flow of cash in and out of the business. The statement captures both the current
operating results and the accompanying changes in the balance sheet.
Dhaka Bank Limited
Cash Flow Statement
For the year ended 31 December 2014
Particular 2014
(TAKA)
2013
(TAKA)
Cash flow from operating activities
Interest/profit receipts 13,488,419,129 15,236,099,562
Interest/profit payments (10,876,711,749) (11,786,093,808)
Dividend receipts 80,295,480 44,734,627
Fee and commission receipts 826,966,780 825,951,074
Payments to employees (1,627,967,019) (1,482,926,276
Payments to suppliers (259,505,834) (205,025,405)
Income taxes paid (1,391,744,053) (849,771,031)
Receipts from other operating activities 417,683,333 434,936,600
Payments for other operating activities (952,253,574) (847,924,047)
(i)Operating profit before changes in current
assets and liabilities
(294,817,507) 1,369,981,296
Changes in operating assets and liabilities
Purchases/Sale of trading securities (2,601,304,570 45,190,773
Loans and advances to customer (3,535,635,805) (9,455,598,896)
Other assets (957,403,335) (2,537,375,685)
Deposit from other banks 862,371,005 207,052,494
23. Page 23 of 90
Deposit from customers 8,010,022,917 8,346,961,629
Other liabilities account of customers (36,798,429) 106,274,404
Other liabilities (628,859,973) 1,374,866,882
(ii) Cash flow from/(used in) operating assets and
liabilities
1,112,391,810 (1,912,628,399)
Net cash flow from/ (used in) operating activities
(a)= (i+ii)
817,574,303 (542,647,103)
Proceeds from sale of securities 2,416,603,730 1,547,941,866
Sale/ (purchase) of securities 1,407,746,691 (119,124,347)
Purchase of property, Plant & equipment (1,616,074,495) (789,131,614)
Sale of property, Plant & equipment 29,481 1,414,700
Purchase or sale of Subsidiary (249,999,940) -
Net cash Flow from investing activities (b) 1,958,305,467 641,100,605
Cash flow from financing activities
Borrowing from other banks 5,764,767,188 (2,046,960,017)
Dividends paid (920,449,563) -
Purchase/sale of subsidiary 60 -
Cash flow from/(used in) financing activities (c) 4,844,317,685 (2,046,960,017)
Net increase/ (Decrease) in cash and cash
equivalents (a+b+c)
7,620,197,395 (1,948,506,515)
Add: Effects of exchange rate changes on cash &
cash equivalents
243,235,518 222,830,286
Add: cash and cash equivalents at beginnings of
the year
14,709,137,160 16,434,813,389
Cash & Cash equivalents at end of the year (*) 22,572,570,073 14,709,137,160
(*) Cash and Cash equivalents
Cash in hand 1,395,090,440 1,608,867,780
24. Page 24 of 90
Balance with Bangladesh bank & Sonali bank 14,505,763,632 10,291,760,145
Balance with other Banks & Financial
Institutions
6,219,697,351 2,464,187,135
Money at call & Short Notice 448,300,000 338,900,000
Prize Bond 3,718,650 5,422,100
Total 22,572,570,073 14,709,137,160
Explanation: Perspective of Dhaka Bank Limited:
The cash flow statement of Dhaka Bank Limited shows the movements in cash and cash equivalents
over the period of 2014 & 2013. We observed the cash and cash equivalents at end of year of Dhaka
Bank Limited from the year from 2013 t0 2014 assessing the annual report of that certain company.
We have found some fluctuation in the cash and cash equivalents at end of year 2013 & 2014. The
fluctuations are described hereby:
Fig 3.3: Comparison of Cash and Cash Equivalents
In the year ended of 2014, we get cash and cash equivalent is 22,373 million and in the year ended of
2013, cash and cash equivalent is 14,709. In the year ended of 2014, cash and equivalent is increased
by 53.46%.
Balance Sheet:
The accounting balance sheet is one of the major financial statements used by accountants and
business owners. The balance sheet is also referred to as the statement of financial position. The
balance sheet presents a company's financial position at the end of a specified date. Some describe the
balance sheet as a "snapshot" of the company's financial position at a point (a moment or an instant)
in time. Because the balance sheet informs the reader of a company's financial position as of one
moment in time, it allows someone like a creditor to see what a company owns as well as what
it owes to other parties as of the date indicated in the heading. This is valuable information to the
banker who wants to determine whether or not a company qualifies for additional credit or loans.
Others who would be interested in the balance sheet include current investors, potential investors,
2013 2014
22,573
14,709
Cash & Cash equivalents
(at the end of year)
Cash & Cash equivalents (at the
end of year)
25. Page 25 of 90
company management, suppliers, some customers, competitors, government agencies, and labor
unions.
Dhaka Bank Limited
Balance Sheet
As at 31 December 2014
Particular 31.12.2014
(TAKA)
31.12.2013
(TAKA)
Property and Assets
Cash 15,900,854,072 11,900,627,925
Cash in Hand(including foreign currencies ) 1,395,090,440 1,609,002,280
Balance with Bangladesh Bank & its agent
banks (including foreign currencies)
14,505,763,632 10,291,760,145
Balance with Other Banks & Financial
Institutions
6,685,901,914 2,692,952,439
In Bangladesh 2,542,023,266 1,927,287,468
Outside Bangladesh 4,143,878,648 765,664,971
Money at Call & Short Notice 448,300,000 338,900,000
Investments 19,698,855,161 18,756,939,948
Government 18,358,963,884 16,009,301,980
others 1,339,891,277 2,747,637,968
Loans, advances, and lease/investments 103,131,519,274 99,595,883,469
Loans, cash credits, overdrafts,
etc/investments
100,903,755,848 97,382,030,272
Bills purchased and discounted 2,227,763,426 2,213,853,197
Fixed assets including premises, furniture
and fixtures
3,957,799,257 2,518,488,968
Other Assets 9,367,352,413 8,810,436,943
Non-Banking Assets 23,166,033 23,166,033
Total Assets 158,747,543,561 144,408,630,421
Liabilities and Capital
Liabilities
Borrowings from Other Banks, Financial
Institutions and Agents
9,414,685,059 3,649,917,871
Deposits and other accounts 124,853,559,335 115,981,165,413
Current accounts and other accounts 14,362,088,804 10,171,783,633
Bills payable 2,175,092,005 991,276,689
Savings and Bank deposits 11,463,880,702 8,870,151,906
Term deposits 96,852,497,824 95,947,953,185
Non convertible Subordinate Bond 2,000,000,000 2,000,000,000
26. Page 26 of 90
Other Liabilities 9,733,785,542 10,890,638,241
Total liabilities 146,002,029,936 132,521,721,525
Capital & Shareholders‟ Equity
Equity attributable to equity holders of the
parent company
12,745,513,625 11,886,908,896
Paid-up capital 5,685,129,640 5,414,409,190
Statutory reserve 4,825,543,616 4,181,375,888
Other reserve 870,409,255 1,099,953,796
Retained earnings 1,364,431,114 1,191,170,022
Total Equity 12,745,513,625 11,886,908,896
Total Liabilities & Shareholders' Equity 158,747,543,561 144,408,630,421
OFF Balance Sheet Items
CONTINGENT LIABILITIES:
Acceptance and Endorsements 13,756,065,906 12,304,828,570
Letter of Credits 13,042,203,273 11,023,698,214
Letter of Guarantee 13,085,748,553 13,891,546,477
Bills for Collection 5,783,061,204 5,717,930,781
Other Contingent Liabilities 3,008,744,945 2,530,870,689
Total: 48,675,823,881 45,468,874,731
Explanation: Perspective of Dhaka Bank Limited:
The Balance Sheet of the Dhaka Bank Limited presents the actual financial position at the end of 31
December 2014 and 31 December 2013. We observed total assets and total liability & Shareholders‟
equity of Dhaka Bank Limited from the year of 2013 to 2014 on assessing the annual report of that
certain company. We have found some fluctuation in the total asset and total liability & Shareholders‟
equity. The fluctuations are described hereby:
Figure 3.4: Balance Sheet Comparison
Total Assets
(million)
Total Liabilities
(million)
Total Share
holders' Equity
(million)
158,748
146,002
12,746
144,409 132,522
11,887
2014
2013
Balance Sheet
27. Page 27 of 90
In the year 2014, we get that total asset is 158,748 million taka and total liability is 144,409 million
taka and total shareholders‟ was 12,746 million taka. For 2013, we got that total asset was 144,409
million taka and liability was 132,522 million taka and Shareholders‟ equity was 11,887 million taka.
In 2014 the total asset is increased by 9.93% from the previous year, the total liability is increased by
10.17% from the previous year and total share holders‟ equity is also increased by 7.22% from the
previous year.
28. Page 28 of 90
Chapter 04
BAS and BFRS Application: Analysis
29. Page 29 of 90
Part A- BAS Application Analysis
4.1.1 BAS 1- Theoretical Overview:
4.1.1.1 What information financial statements provide?
Financial statements provide information about-
Financial Position.
Financial Statements.
Cash flows.
Figure 4.1: Information of Financial Statements
4.1.1.2 Objective
BAS 1(presentation of financial statements) prescribes the basis for the presentation for financial
statements, so as to ensure comparability with:
The entity‟s own financial statement of previous periods; and
The Financial statement of other companies.
BAS 1 must be applied to all general purpose financial statements prepared in accordance with BFRS.
BAS 1 is concerned with overall considerations about the minimum content of a set of financial
statements.
Whilst the terminology used was designed for profit-oriented businesses, it can be used with
modifications, for non-for-profit activities.
4.1.1.3 Purpose of Financial statements
The objective of general purpose financial statements is to provide information about-
Financial position
Financial
Statements
Provide
Information
about
Fiancial
Position
Cash
Flows
Financial
Performan
ce
4.1 BAS 1(Presentation of Financial Statement)
30. Page 30 of 90
Financial performance and cash flow
Management stewardship.
In order to achieve this, information is provided about the following aspects of the entity‟s results:
Assets
Liabilities
Equity
Income and expenses
Other changes in equity
Cash flows.
4.1.1.4 Components of financial Statements
The components of the financial statements are sketched in the bellow graph in accordance with BAS
1.
BAS 1 requires that they should be clearly identified and distinguished from other information
presented.
4.1.1.5 Overall Considerations
Considerations that should be complied with in the specific applications of the financial statements of
the general principles include-
Fair presentation.
Going concern.
Accrual Basis.
Materiality.
Fair presentation:
Fair representation requires the faithful representation of the effects of transactions, other events and
conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and
expenses out in the framework. BAS 1 expands on this principle as follows:
Compliance with BFRS should be disclosed.
components of
Financial Statements
Balance sheet
Assets, Liabilities
and equity
Income statement
Income and expense
Statement of Changes
in equity
All changes in equity
other than those with
equity holders
Cash flow statement
Cash onflows and
outflows
Notes
Significant accounting
policies and other
explanatory notes
31. Page 31 of 90
Financial statements can only be described as complying with BFRS if they comply with
all the BFRS requirements.
Use of inappropriate accounting policies cannot be rectified either by disclosure or
explanatory material.
Going concern:
It is an underlying assumption in the accounting framework. It means that an entity is normally
viewed as continuing in operation for the foreseeable future. BAS 1 makes the following points-
It must look at least 12 months into the future from balance sheet date to see if the entity is a
going concern.
Uncertainties about the entity‟s ability to continue should be disclosed.
If this assumption is not followed then the Basis on which financial statements have been
prepared and reasons should be explained.
Accrual Basis of Accounting:
It is also an underlying assumption in the framework. According to it items are recognized as assets,
liabilities, equity, income and expenses when they satisfy the recognition criteria for those elements in
the framework. To comply with the recognition requirements they should be-
Recognized when they occur.
Recorded in the financial statements of the period to which they relate.
Profits and revenue must be matched against the expenditure incurred in earning it.
Consistency of preparation:
To maintain consistency, the presentation and classification of items in the financial statements should
stay the same from one period to next. Provided-
Significant change in nature and operations.
Review of financial statements which indicate more appropriate presentation.
Change in presentation requirements by BFRS.
Materiality and aggregation:
Amounts which are immaterial can be aggregated with amounts of a similar nature or function and
need not to be presented separately.
Materiality: Omissions or misstatement of items are material if they could individually or
collectively influence the economic decisions of users taken on the basis of the financial statements.
Materiality depends on the size and nature of the omission or misstatement judged in the surrounding
circumstances. The size or nature of the item, or a combination of both could be the determining
factor. Here-
An error too trivial to influence financial decision is immaterial.
Determination of an items materiality is Subjective exercise.
The assessment of an item as material or immaterial may affect its Treatment in financial
Statements.
32. Page 32 of 90
4.1.1.6 Structure and content
In addition to giving substantial guidance on the form and content of financial statements BAS 1 also
covers a number of general points-
Profit and loss must be calculated after taking account of all income and expenses in the
period.
Recommended formats should be followed.
Readers of financial statements should be able to distinguish between financial statements and
other information.
Financial statements should be presented at least annually.
Financial statements should be produced within six months of the balance sheet date.
4.1.1.7 Balance sheet
The following guidelines are given in BAS 1 about the presentation of balance sheet.
BAS 1 provides guidance on the layout of the balance sheet.
BAS 1 specifies that certain items must be shown on the face of the balance sheet.
Other information is required on the face of the balance sheet or in the notes.
Both assets and liabilities must be separately classified as current and non-current.
4.1.1.8 Income Statement
The following guidelines are given in BAS 1 about the presentation of income statement.
BAS 1 suggests two formats for the income statement
BAS 1 specifies that certain items must be shown on the face of the income statement
Other information is required on the face of the income statement or in the notes
Income statement formats:
BAS 1 suggests two possible formats for the income statement, the different between them being the
classification of expenses:
By function, or
By nature
These two formats are given visualized bellow to show the example of format of income statement
that is created by companies complied BAS 1
XYZ Ltd. – Income Statement for the year ended [date]
Illustrating the classification of expenses by function
Continuing operations CUm
Revenue X
Cost of sales (X)
Gross profit X
Other operating income X
Distribution costs (X)
Administrative expenses (X)
Profit/loss from operation X
33. Page 33 of 90
Finance cost (X)
Investment income X
Share of profit/(losses) of associates X/(X)
Profit/(loss) before tax X
Income tax expense (X)
Profit/(loss) for the period from continuing operations X/(X)
Discontinuous operations
Profit/(loss) for the period from discontinued operations X/(X)
Profit or loss for the period X/(X)
Attributable to:
Equity holders of XYZ Ltd. X/(X)
Minority interest X/(X)
X/(X)
XYZ Ltd. – Income Statement for the year ended [date]
Illustrating the classification of expenses by nature
Continuing operations CUm
Revenue X
Other operating income X
Changes in inventories of finished goods and work in progress (X)
Work performance by the enterprise and capitalized X
Raw materials and consumables used (X)
Employee benefits expenses (X)
Depreciation and amortization expense (X)
Impairment of PPE (X)
Other expenses (X)
Profit /(loss) from operation X
Finance cost (X)
Investment income X
Share of profit/(losses) of associates X/(X)
Profit/(loss) before tax X
Income tax expense (X)
Profit/(loss) for the period from continuing operations X/(X)
Discontinuous operations
Profit/(loss) for the period from discontinued operations X/(X)
Profit or loss for the period X/(X)
Attributable to:
Equity holders of XYZ Ltd. X/(X)
Minority interest X/(X)
X/(X)
4.1.2 : DBL’s Compliance with BAS 1
BAS 1 related with the presentation of financial statements. The Dhaka Bank Limited‟s financial
statements complied with the BAS 1. The proper reasoning behind this compliance is given bellow:
34. Page 34 of 90
DBL‟s purpose of creating financial statements matches with that of BAS 1 (show financial
posit financial performance and cash flow management stewardship)
According to BAS 1, DBL also prepare balance sheet to show financial position, income
statement to show financial performance, changes in equity statement to show all changes in
equity, cash flow statement to cash inflows and outflows and notes to show significant
accounting policies and explanationary notes.
To show a fair presentation DBL follows accrual basis of accounting and follow going
concern basis.
Dhaka bank limited maintain consistency in accounting as they are using accrual basis of
accounting and going concern basis from the beginning of their inception.
Their financial statements are comparable with relevant previous years as shown in the
annual report of 2014 where every element of financial statements is compared with previous
year 2013.
DBL‟s balance sheet has matched sample of BAS 1 and It‟s elements also matched with it.
DBL‟s income statement and cash flow statement are also presented as per BAS 1.
Income statement the DBL has followed the format of income statement where the expenses
are classified by their functions not by nature.
The presentation of equity statement and Cash flow statement of Dhaka Bank Limited also
matched with the given format of BAS 1.
4.2.1 BAS 2- Theoretical Overview:
BAS 2 discusses about the treatment of inventories. The objective of BAS 2 is to prescribe the
accounting treatment for inventories. In particular, it provides guidance on the determination of cost
and its subsequent recognition as an expense, including any write-down to net realisable value.
4.2.1.1 Definition:
According to BAS 2, inventories are the assets which are held for sale in the ordinary course of
business or in the process of production for such sale or in the form of materials or supplies to be
consumed in the production process or in the rendering of services. So, inventories can include goods
purchased and held for resale or finished goods or goods work in progress or raw materials awaiting
use etc.
4.2.1.2 Measurement:
According to BAS 2, in measuring inventories we should select the lower of cost and net realisable
value.
Here, the components of costs are presented in the following diagram:
4.2 BAS 2(Inventories)
35. Page 35 of 90
Fig 4.2: Components of Costs of Inventories
On the contrary, in the way of measuring inventories net realisable value indicates the estimated
selling price in the ordinary course of business less the estimated costs of completion and the
estimated costs necessary to make the sales.
4.2.1.3 Inventories: Perspective of Banking Industry
Financial services are the main area of the banking industry where inventory is not readily apparent.
In this subset, the accounts and monetary instruments are the inventory. While an account does not
exist until the client funds it, it is instantly created and transferred at the time of transaction. Another
area to consider is lending. When a client borrows money, those funds are the inventory. The money
is often drawn from the bank's capital from investment activities and transferred to the borrower when
he executes the proper documentation.
4.2.2 DBL’s Compliance with BAS 2
The provisions furnished in the BAS 2 regarding inventories can be applied in all cases except the
following:
Work in progress under construction contracts;
Financial instruments;
Biological assets;
So, in this case Dhaka Bank Limited is fully unable to apply BAS 2. So, in case of inventories the
bank did not follow the provisions of BAS 2.
After analysing the related financial statements of Dhaka Bank Limited, we consider loans and
advances as the inventories of this company. The rationale behind this is that Dhaka Bank Limited
falls under the category of servicing industries.
Cost
Purchase
Purchase Price
Duties and Taxes
Costs Directly
Attributable to
acquisition
Less Trade
Discount
Conversion
Directly Related to
the Units of
Production
Fixed and Variable
Production
Overheads
Other Costs
Abnormal
Amounts of
Production Costs
Storage Costs
Administrative
Overheads
Selling Costs
36. Page 36 of 90
According to the annual report of Dhaka Bank Limited for the year 2014, we found total amount of
loans and advances is 103,131million Taka. In 2013, the total amount of loans and advances is
99,596million Taka. In fact, in 2014, total amount of loans and advances was increased by 4%.
4.3.1 BAS 7- Theoretical Overview:
4.3.1.1 Objective of BAS 7
The objective of BAS 7 Cash flow statement is to provide historical information about changes in
cash and cash equivalent, classifying cash flows between operating, investing, and financing
activities. This will provide information to users of financial statements about the entity’s ability to
generate cash and cash equivalents, as indicating the cash needs of the entity.
Cash: Cash comprises cash on hand and demand deposit.
Cash equivalent: Short-term, highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of change in value.
4.3.1.2 Scope of BAS 7
A cash flow statement should be presented as an integral part of an entity’s financial
statements.
All types of entities are required by the standard to produce a cash flow statement.
4.3.1.3 Presentation of Cash flow Statement
BAS 7 requires cash flow statements to report cash flows during the period classified by:
I. Operating activities
II. Investing activities
III. Financing activities
Figure 4.3: Types of Cash Flows
Cash flows
Financing
Activities
Operating
Activities
Investing
Activities
4.3 BAS 7(Cash Flow Statement)
37. Page 37 of 90
i) Operating Activities:
Cash flows from operating activities are primarily derived from the principal revenue producing
activities of the entity. Most of the components of cash flows from operating activities will be those
items which determine the net profit or loss of the entity. The standard gives the following as
example of cash flows from operating activities.
Cash receipts from the sale of goods and the rendering of services.
Cash receipts from royalties, fees, commissions and other revenue.
Cash payments to suppliers for goods and services.
Cash payments to and on behalf of employees.
Cash flows from interest paid and income taxes paid are also dealt with here.
It is the key part of the cash flow statement because it shows whether, and to what extent,
companies can generate cash from their operations as other inflows may be non-recurring.
Cash generated from operations:
BAS 7 allows two possible layouts for cash generated from operations
The indirect method
The direct method
Figure 4.4 : Layouts for Cash Generated from Operations
The direct method is preferred by BAS 7 but not required. In practical terms the indirect method is
likely to be easier and less time consuming to prepare and is more likely to be examined.
Indirect Method:
Using the indirect method, cash generated from operations is calculated by performing
reconciliation between:
Profit before tax as reported in the income statement, and
Cash generated from operations.
This reconciliation is produced as follows:
Reconciliation of profit/loss before tax to cash generated from operations for the year ended 31
December 20X7
38. Page 38 of 90
Profit / (loss) before tax
Finance Cost
Investment income
Depreciation charge
Amortization charge
Loss/ (profit) on disposal of non-current assets
(Increase)/decrease in inventories
(Increase)/decrease in trade and other receivables
(Increase)/decrease in prepayments
Increase/(decrease) in trade and other payables
Increase/(decrease) in in accruals
Increase/(decrease) in provisions
CU
X
X
(X)
X
X
X/(X)
X/(X)
X/(X)
X/(X)
X/(X)
X/(X)
X/(X)
Cash generated from operations X
Direct Method:
Using direct method cash generated from operations would be analysed as follows and shows as a
note to the cash flow statement:
Gross operating cash flows for the year ended 31 December 20X7
Cash receipts from customers
Cash paid to suppliers and employees
CU
X
(X)
Cash generated from operations X
ii) Investing Activities:
The cash flows classified under this heading show the extent of new investment in assets which will
generate further income and cash flows. The standard gives the following examples of cash flows
arising from investing activities.
Cash payment to acquire property , plant and equipment, intangibles and other non-current
assets, including those relating to capitalised development costs and self-constructed
property, plant and equipment
Cash receipts from sales of property, plant and equipment, intangibles and other non-
current assets
Cash payment to acquire equity or debt of other entities.
Interest received
Dividend received
iii) Financing Activities:
This section of cash flow statement shows the share of cash which the entity’s capital providers have
claimed during the period. This is an indicator of likely future interest and dividend payments. The
standard gives the following examples cash flows which might arise under this heading.
39. Page 39 of 90
Cash proceeds from issuing shares
Cash payments to owners to acquire or redeem the entity’s shares
Cash proceeds from issuing debentures, loans, notes, bonds, mortgages and other short and
long-term borrowings
Repayments of capital of amounts borrowed under finance leases
Dividend paid
Example of Cash Flow Statement:
A proforma according to standard is given bellow:
Cash flows from operating activities
Cash generated from operations
Interest paid
Income taxes paid
CU’000
2730
(270)
(900)
CU’000
Net cash from operating activities
Cash flows from investing activities
Purchase of property, plant, and equipment
Proceeds from sale of property, plant, and equipment
Interest received
Dividend received
(900)
20
200
200
1,560
Net used in investing activities
Cash flows from financing activities
Proceeds from issue of share capital
Proceeds from issue of long-term borrowings
Dividend paid
250
250
(1,290)
(480)
Net cash used in financing activities (790)
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
290
120
Cash and cash equivalents at the end of the period 410
40. Page 40 of 90
4.3.1.4 Disclosures:
BAS 7 requires certain additional disclosures to accompany the cash flow statement.
Components of cash and cash equivalent: the following disclosures are required:
The components of cash and cash equivalents.
A reconciliation showing the amounts in the cash flow statement reconcile with the
equivalent items reported in the balance sheet.
The accounting policy used in deciding the item included tin cash and cash equivalents (BAS
1)
Other disclosures:
All entities should disclose, together with a commentary by management, any other information
likely to be of importance, for example:
Restriction on the use of or access to any part of cash equivalents.
The amount of undrawn borrowing facilities which are available.
Cash flows which increased operating capacity compared to cash flows which merely
maintained operating capacity.
Significant non-cash transactions:
Many investing and financing activities do not have direct impact on current cash flows although
they do affect the capital and asset structure of an entity. Significant ‘non-cash transactions’ should
be disclosed.
Examples include:
The acquisition of assets either by assuming directly related liabilities or by means of a
finance lease
The acquisition of an entity by means of an issue of equity shares
4.3.2 DBL’s Compliance with BAS 7
Dhaka Bank Limited has been complied with the BAS 7. The following consolidated statement of cash
flows and separate cash flow statement are the mark of this compliance. Besides the mentionable
points of DBL’s cash flow statement is discussed below :
Separate Cash Flow Statement:
Dhaka Bank Limited
Cash Flow Statement
For the year ended 31 December 2014
Particular 2014
(TAKA)
2013
(TAKA)
Cash flow from operating activities
41. Page 41 of 90
Interest/profit receipts 13,488,419,129 15,236,099,562
Interest/profit payments (10,876,711,749) (11,786,093,808)
Dividend receipts 80,295,480 44,734,627
Fee and commission receipts 826,966,780 825,951,074
Payments to employees (1,627,967,019) (1,482,926,276
Payments to suppliers (259,505,834) (205,025,405)
Income taxes paid (1,391,744,053) (849,771,031)
Receipts from other operating activities 417,683,333 434,936,600
Payments for other operating activities (952,253,574) (847,924,047)
(i)Operating profit before changes in current
assets and liabilities
(294,817,507) 1,369,981,296
Changes in operating assets and liabilities
Purchases/Sale of trading securities (2,601,304,570 45,190,773
Loans and advances to customer (3,535,635,805) (9,455,598,896)
Other assets (957,403,335) (2,537,375,685)
Deposit from other banks 862,371,005 207,052,494
Deposit from customers 8,010,022,917 8,346,961,629
Other liabilities account of customers (36,798,429) 106,274,404
Other liabilities (628,859,973) 1,374,866,882
(ii) Cash flow from/(used in) operating assets
and liabilities
1,112,391,810 (1,912,628,399)
Net cash flow from/ (used in) operating
activities (a)= (i+ii)
817,574,303 (542,647,103)
Proceeds from sale of securities 2,416,603,730 1,547,941,866
Sale/ (purchase) of securities 1,407,746,691 (119,124,347)
Purchase of property, Plant & equipment (1,616,074,495) (789,131,614)
Sale of property, Plant & equipment 29,481 1,414,700
Purchase or sale of Subsidiary (249,999,940) -
Net cash Flow from investing activities (b) 1,958,305,467 641,100,605
Cash flow from financing activities
Borrowing from other banks 5,764,767,188 (2,046,960,017)
Dividends paid (920,449,563) -
Purchase/sale of subsidiary 60 -
Cash flow from/(used in) financing activities
(c)
4,844,317,685 (2,046,960,017)
Net increase/ (Decrease) in cash and cash
equivalents (a+b+c)
7,620,197,395 (1,948,506,515)
Add: Effects of exchange rate changes on
cash & cash equivalents
243,235,518 222,830,286
Add: cash and cash equivalents at beginnings
of the year
14,709,137,160 16,434,813,389
Cash & Cash equivalents at end of the year (*) 22,572,570,073 14,709,137,160
(*) Cash and Cash equivalents
Cash in hand 1,395,090,440 1,608,867,780
Balance with Bangladesh bank &Sonali bank 14,505,763,632 10,291,760,145
42. Page 42 of 90
Balance with other Banks & Financial
Institutions
6,219,697,351 2,464,187,135
Money at call & Short Notice 448,300,000 338,900,000
Prize Bond 3,718,650 5,422,100
Total 22,572,570,073 14,709,137,160
Consolidated Cash Flow Statement:
Dhaka Bank Limited and its Subsidiary
Consolidated Cash Flow Statement
For the year ended 31 December 2014
Particular 2014
(TAKA)
2013
(TAKA)
Cash flow from operating activities
Interest/profit receipts 13,750,834,735 15,284,179,850
Interest/profit payments (11,114,332,831) (11,786,093,808)
Dividend receipts 80,295,480 44,734,627
Fee and commission receipts 930,579,591 941,723,974
Payments to employees (1,627,967,019) (1,482,926,276)
Payments to suppliers (259,505,834) (205,025,405)
Income taxes paid (1,391,744,053) (849,771,031)
Receipts from other operating activities 690,233,887 (159,715,914)
Payments for other operating activities (1,014,613,426) (908,130,399)
(i)Operating profit before changes in
current assets and liabilities
43,780,529 878,975,618
Changes in operating assets and liabilities
Purchases/Sale of trading securities (2,601,304,570) 45,190,773
Loans and advances to customer (3,254,621,253) (9,581,607,960)
Other assets (975,269,050) (2,197,407,042)
Deposit from other banks 862,371,005 207,052,493
Deposit from customers 8,010,022,917 8,346,961,629
Other liabilities account of customers (36,798,429) 106,274,404
Other liabilities (764,253,845) 1,789,093,022
(ii) Cash flow from/(used in) operating
assets and liabilities
1,240,146,775 (1,284,442,681)
Net cash flow from/ (used in) operating
activities (a)= (i+ii)
1,283,927,304 (405,467,063)
Proceeds from sale of securities 1,938,405,838 1,547,941,866
Sale/ (purchase) of securities 1,407,746,691 (119,124,347)
Purchase of property, Plant & equipment (1,616,815,345) (789,991,302)
Sale of property, Plant & equipment 29,481 1,414,700
Net cash Flow from investing activities (b) 1,729,366,665 640,240,917
Borrowing from other banks 5,764,767,188 (2,046,960,017)
Dividends paid (920,449,563) -
43. Page 43 of 90
Purchase/sale of subsidiary 60 -
Cash flow from/(used in) financing
activities (c)
4,844,317,685 (2,046,960,017)
Net increase/ (Decrease) in cash and cash
equivalents (a+b+c)
7,857,611,654 (1,812,186,163)
Add: Effects of exchange rate changes on
cash & cash equivalents
243,235,518 222,830,286
Add: cash and cash equivalents at
beginnings of the year
14,938,036,964 16,527,392,841
Cash & Cash equivalents at end of the
year (*)
23,038,884,136 14,938,036,964
(*) Cash and Cash equivalents
Cash in hand 1,395,199,940 1,609,002,280
Balance with Bangladesh bank &Sonali
bank
14,505,763,632 10,291,760,145
Balance with other Banks & Financial
Institutions
6,685,901,914 2,692,952,439
Money at call & Short Notice 448,300 ,000 338,900,000
Prize Bond 3,718,650 5,422,100
Total 23,038,884,136 14,938,036,964
4.3.2.1 Analysis on the compliance of Separate Cash Flow Statement
The analysis on the compliance of BAS 7 by the DBL’s separate cash flow statement is point out
bellow:
The company has used the proforma of BAS 7 for showing Cash flow Statement.
Dhaka Bank Limited has used the direct method to calculate cash generated from operation
which is explained in note 41 and 42 as follows:
Receipt from other operating activities
Receipts from other operating activities
Exchange earnings
Other operating income
2014
TK.
56,834483
360,848,850
2013
TK.
44,559,662
390,376,938
Total 417,683,333 434,936,600
Payment for other operating activities
Payment for other operating activities
Rent, Taxes, Insurance, Lighting etc.
Chief executive’s salary & allowances
Director’s fees & Meeting expenses
Repair of bank’s assets
2014
TK.
406,184,756
7,268,600
3,600,271
91,341,161
2013
TK.
354,748,442
12,340,000
2,956,763
69,169,506
44. Page 44 of 90
Other expenses 476,392,510 439,456,997
Dhaka Bank Foundation
984,787,298
(32,533,724)
878,671,708
(30,747,661)
Total 952,253,574 847,924,047
4.3.2.2 Analysis on the compliance of Consolidated Cash Flow Statement
The analysis on the compliance of BAS 7 by the DBL’s consolidated cash flow statement is point out
bellow:
The company has used the proforma of BAS 7 for showing Cash flow Statement.
Dhaka Bank Limited has used the direct method to calculate cash generated from operation
which is explained in note 41(a) and 42(a) as follows:
Receipt from other operating activities
Consolidated Receipts from other operating activities
Dhaka Bank Limited
Dhaka Bank Securities Limited
Dhaka Bank Investment Limited
2014
TK.
952,253,574
62,358,127
1,725
2013
TK.
847,924,047
60,206,352
-
Total 1,014,613,426 908,130,399
Payment for other operating activities
Consolidated Payment for other operating activities
Dhaka Bank Limited
Dhaka Bank Securities Limited
Dhaka Bank Investment Limited
2014
TK.
417,683,333
259,899,462
2,651,092
2013
TK.
434,936,600
(594,652,514)
-
Total 690,233,887 (159,715,914)
4.4.1 BAS 10- Theoretical Overview
4.4.1.1 Purpose of BAS 10:
Financial statements are prepared to the balance sheet date. The preparation of financial statements
will normally continue for a period after this date. During this time lag, events may occur which
provide additional information that is relevant to the preparation of the financial statements. The
objective of BAS 10 events after the Balance Sheet date is to prescribe when financial statements
should be adjusted for these events and any disclosures that may be required.
4.4 BAS 10(Events after Balance Sheet Date)
45. Page 45 of 90
4.4.1.2 Events after balance sheet date:
These are those events, favourable and unfavourable, that occur between the balance sheet date and
the date when the financial statements are authorized for issue.
These are two different classes of events after the balance sheet date:
Adjusting events; and
Non-adjusting events
Adjusting events:
Those that provide evidence of conditions that existed at the balance sheet date.
Examples include:
Bankruptcy of a customer, requiring adjustment to the amount receivable
Proceeds or other evidence concerning the net realizable value of inventories
Non-adjusting events:
These are the indicative of conditions that arose after the balance sheet date.
Examples include:
Plans to discontinue operations announced after the year end
Major purchase of assets.
Dividends:
Dividends should be treated as follows:
They cannot be shown as a liability as there is no obligation at the balance sheet date.
The amount of dividends payable must be disclosed in the notes to the financial statements.
4.4.2 DBL’s Compliance with BAS 10
No material events had occurred after Balance Sheet date, which could affect the values reported in
the financial statements.
4.5.1 BAS 16- Theoretical Overview
4.5.1.1Brief Introduction to Property, Plant and Equipment (PPE):
Property, plant and equipment are tangible resources that are used in the operations of the
business and are not intended for sale to customers. They are also called property, plant and
equipment or fixed assets (see Weygandt, Kieso & Kimmel: 421). The major characteristics of
property, plant and equipment are:
(i) They are acquired for use in operations and not for resale ;
(ii) They are long-term in nature and usually subject to depreciation; and
4.5 BAS 16(Properties, Plant and Equipment)
46. Page 46 of 90
(iii) They possess physical substance (see Kieso, Weygandt & Warfield; 470).
International Accounting Standards (IAS) 16 on property, plant and equipment (revised 1998)
deals with the accounting treatment of property, plant and equipment. IAS 16 (revised 1998) sets
out overall consideration for the presentation of property, plant and equipment in the Financial
Statements. The recognition, measurement and disclosure related to the property, plant and
equipment are dealt with by IAS 16. This paper is an attempt to draw a brief outline of IAS 16, which
is mandatory in Bangladesh for Listed Public Limited Companies (PLCs) and also to try to show the
empirical extent of financial reporting by listed PLCs in Bangladesh in compliance with IAS 16.The
focus is not on the quality of the reporting of the companies but rather on what the reporting levels
are in general.
4.5.1.2 Objective and Scope of BAS 16:
The objective of BAS 16 is to prescribe the accounting treatment of property, plant and equipment
so that the users of the Financial Statements can discern information about an entity’s investment in
its property, plant and equipment and the changes in such investment. The principal issues in
accounting of property, plant and equipment are the recognition of the assets, the determination of
their carrying amounts and the depreciation charges and impairment losses to be recognized in
relation to them (para-1). Applicability of BAS 16 (revised 1998) can be enumerated as follows:
BAS 16 does not apply to:
o Property, plant and equipment classified as held for sale and which is discontinued
for operations (para-3),
o Biological assets related to agricultural activity (para-3),
o The recognition and measurement of exploration and evaluation assets (para-3), and
o Mineral rights and mineral reserve such as oil, natural gas and similar non-
regenerative resources (para-3).
BAS 16 applies to property, plant and equipment used to develop or maintain the assets
related to biological assets of agricultural activity and also related to mineral rights and
mineral reserves.
BAS 16 is applicable for other accounting treatment including depreciation of leased
property, plant and equipment which is recognized by BAS 17 (para-4).
BAS 16 applies to an entity that is being constructed or developed for future use as
investment property but does not yet satisfies the definition of investment property in BAS
40 (para-5).
An entity using the cost model for investment property in accordance with BAS 40 shall use
the cost model in accordance with BAS 16.
4.5.1.3 Recognition of Property, Plant and Equipment:
If the following two criteria satisfy, the property, plant and equipment will be recognized:
It is probable that future economic benefit will flow to the entity.
The item‟s cost can be measured reliably.
47. Page 47 of 90
Subsequent Costs:
1. Repairs and maintenance expenditure should be recognized in profit or loss as incurred
2. Replacement parts should be capitalized provided the original cost of the items they.
4.5.1.4 Measurement at Recognition:
An item of PPE qualifying for recognition is initially measured at cost.
Cost: This is the amount of cash or cash equivalents paid or the fair value of other consideration
given to acquire an asset.
Fair Value: This is the amount for which an asset could be exchanged between knowledgeable,
willing parties in an arm‟s length transactions.
4.5.1.5 Elements of PPE:
PPE should be measured at cost at acquisition.
Here, or,
Purchase price.
Directly attributable costs
Estimate of dismantling and site restoration costs.
Measurement after Recognition
IAS 16 permits two accounting models:
• Cost Model: The asset is carried at cost less accumulated depreciation and impairment loss.
• Revaluation Model: The asset is carried at a revalued amount, being its fair value at the date of
revaluation less subsequent depreciation and impairment, provided that fair value can be measured
reliably.
Accounting for Revaluation:
Increase in Value:
The basic rule is that increases in value on a revaluation are credited directly to equity. The effect of
this is that they:
They don‟t appear in the income statement.
They don‟t appear in the c=statement of changes in equity.
Cost
Cash
Fair value if PPE are exchanged
48. Page 48 of 90
The exception is that where such an increase reverses an earlier revaluation decrease on the same
asset that was recognized in profit or loss, then the surplus should be recognized in profit or loss, but
only to the extent of the previous decrease, In practice, the surplus is treated so that the overall effect
is the same as if the original downward revaluation recognized in profit or loss had not been occurred.
Accounting for Increases in Value:
Asset Value (balance sheet) ----------- Dr.
Accumulated Depreciation ------------ Dr.
Revaluation Reserve -----------Cr.
Decrease in Value:
The basic rule is that decreases in value on a revaluation are recognized as an expense and charged to
the income statement.
The exception is where such a decrease reverses an earlier revaluation increase on the same asset that
was recognized directly in equity and is held in the revaluation reserve, then the deficit should be
recognized directly in equity but only to the extent of the previous increase.
Accounting for Decrease in Value:
Depreciation of Revalued Asset:
Where an asset has been revalued, the depreciation charge is based on the revalued amount less
residual amount, from the date of revaluation. The asset‟s residual value should also be re-estimated
on revaluation.
Residual value: residual value is the estimated amount that an entity would currently obtain from
disposal of the asset, after deducting the estimated costs of disposal if the asset were already of the
age in the condition expected at the end of its useful life.
Entry to Record Transfer:
Revaluation Reserve ------------ Dr.
Income Statement -------------- Dr.
Asset Value (balance sheet)----------- Cr.
Revaluation Reserve --------------- Dr.
Retained Earnings --------- -------Cr.
49. Page 49 of 90
Depreciation:
This is the systematic allocation of the depreciable amount of an asset over its useful life.
Depreciation Method:
Straight Line Method: Equal distribution of the asset over time.
Diminishing or Reducing Basis: Charging more depreciation in the early years of an asset‟s
life than in the later years.
Sum of the Units: Here, the charge is calculated by reference to the output each year as a
proportion of the total expected output over the asset‟s useful life.
4.5.2 DBL’s Compliance with BAS 10
Property, plant & equipment are recognized if it is probable that future economic benefits
associated with the assets will flow to the Bank and the cost of the assets can be reliably measured.
I) All fixed assets are stated at cost less accumulated depreciation as per BAS-16. The cost of
acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the
asset to its working condition for its intended use inclusive of inward freight, duties and non-
refundable taxes.
II) The Bank recognizes in the carrying amount of an item of property, plant and equipment the cost
of replacing part of such an item when that cost is incurred if it is probable that the future economic
benefits embodied with the item will flow to the company and the cost of the item can be measured
reliably. Expenditure incurred after the assets have been put into operation, such as repairs and
maintenance, is normally charged off as revenue expenditure in the period in which it is incurred.
iii) Depreciation is charged on straight-line method at the following rates on cost of assets from the
month of their purchase as per revised policy with effect from the year 2012.
IV) Name of the Assets Rate of Depreciation
Land Nil
Building 2.50% p.a.
Furniture & Fixtures 10.00% p.a.
Office Appliances & Equipment 20.00% p.a.
Computer and Software 20.00% p.a.
Vehicles 20.00% p.a.
Asset Revaluation Reserve:
Dhaka Bank Limited re-valued the entire class of Land during the year 2011 by an independent
valuation firm according to Paragraph 36 of BAS-16 as per approval of the Board of Directors of the
Bank. As per BRPD Circular No.10 dated 24 November, 2002, the amount of asset revaluation
50. Page 50 of 90
reserve after revaluation of bank’s asset will be eligible up to 50% for the treatment of the
supplementary capital (Tier-II). [For detail please see Note-18.2].
Other Assets:
Other assets include all balance sheet accounts not covered specifically in other areas of the
supervisory activity and such accounts may be quite insignificant in the overall financial condition of
the Bank.
Receivables:
Receivables are recognized when there is a contractual right to receive cash or another financial
asset from another entity.
Non-Banking Assets:
Non-banking assets are acquired on account of the failure of a debtor to repay the loan in time after
receiving the decree from the Court regarding the right & title of mortgaged property during the
year 2010. The value of the properties has been incorporated in the books of accounts on the basis
of third party valuation report.
Impairment of Assets:
The policy for all assets or cash-generating units for the purpose of assessing such assets for
impairment is as follows:
The Bank assesses at the end of each reporting period or more frequently if events or changes in
circumstances indicate that the carrying value of an asset may be impaired, whether there is any
indication that an asset may be impaired. If any such indication exists, or when an annual
impairment testing for an asset is required, the bank makes an estimate of the assets recoverable
amount. When the carrying amount of an asset or cash-generating unit exceeds its recoverable
amount, the asset or cash-generating unit is considered impaired and is written down to its
recoverable amount by debiting to profit and loss account. Fixed assets are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may be
impaired.
So, on the basis of the financial statement that we have got from the annual report of Dhaka bank
Limited for the year of 2014, says that the following issues comply if we sum up again the whole pros
and cons of the part of property, plant and equipment:
Figure 4.5 : Compliance of PPE with DBL’s Financial Statements
Property, Plant and Equipment Complied
51. Page 51 of 90
4.6.1 BAS 17- Theoretical Overview
4.6.1.1 Lease:
An agreement where the lessor conveys to the lessee for a payment or a series of payments for the
right to use an asset for an agreed period of time.
In a leasing transaction, there is a contract between the lessor and the lessee for the hire of an asset.
The lessor is owner and supplier of the asset.
The lessee is user of the asset.
Substance over form:
It is a principle of accounting that the commercial substance of a transaction should be reflected in
financial statements rather than legal form. This is a consequence of BFRS framework requirement to
represent transaction faithfully.
There are many types of leasing agreements. By entering into certain sorts of lease, a company is, in
effect, gaining the use of a non-current asset whilst incurring a long-term liability. Where the
commercial substance of the transaction is the purchase of a non-current asset, this should be reflected
in the accounting treatment despite the legal form of the rental agreement.
4.6.1.2 Types of Lease:
BAS 17 recognizes two types of lease:
Financial leases, in which the risks and rewards of ownership are transferred from the lessor
to the lessee, and
Operating leases: all other leases.
Inception is when the provisions are agreed: commencement is when the lessee can use the leased
asset.
4.6.1.3 Classification of Lease:
Financial lease: A lease that transfers substantially all the risks and rewards incidental to ownership
of an asset. Title may or may not eventually be transferred.
Operating lease: A lease other than a finance lease.
Identifying Finance Leases:
BAS 17 also provides examples of situations that would normally lead to a lease being classified as a
finance lease:
At the end of the lease term the ownership of the asset will be transferred to the lessee.
At the end of the lease term lessee has the option to purchase the asset at a reasonable certain
price.
Lease term covers the major part of the economic life of the asset.
4.6 BAS 17(Lease)
52. Page 52 of 90
At the inception of the lease the present value of the minimum lease payments amounts to at
least substantially all of the fair value of the leased asset.
The leased assets are of special nature that only the lessee can use them without major
modifications.
Minimum lease payments:
Payments over the lease term that the lessee is or can be required to make, excluding contingent rent,
costs for services and taxes to be paid by and reimbursed to the lessor.
Fair Value:
The amount for which an asset could be exchanged, or a liability settled, between knowledgeable,
willing parties in an arm‟s length transaction.
4.6.1.4 Accounting for finance leases:
Setting up balance sheet accounts:
According to BAS 17, when an asset changes hands under a finance lease, the accounting treatment
should be:
Asset account ----------------- Dr.
Payables: Finance lease liabilities ------------- Cr.
Depreciating the asset:
Depreciation expense ------------------ Dr.
Accumulated depreciation ---------------- Cr.
Making the payment:
Payables: Finance lease liabilities -------------- Dr.
Cash -------------------------------- Cr.
Finance charge:
Income statement: Finance cost --------------- Dr.
Payables: Finance lease liabilities ------------- Cr.
Instalment in advance:
Interest accrues over time and is included in the payment at the end of each period of borrowing,
where instalments are paid in advance.
53. Page 53 of 90
The first instalment repays capital only as no time has yet elapsed for interest to accrue.
At the end of the accounting period the year-end liability will include capital and interest that
has accrued to date but which has not been paid.
Instalment in arrear:
Interest accrues over time and is included in the payment at the beginning of each period of borrowing
where instalment is paid in arrears.
4.6.1.5 Operating leases:
Accounting for operating leases:
Operating lease does not really pose an accounting problem at the legal situation are the same, i.e. The
lessee does not own the leased asset either legally or in substance. The lessee is simply renting the
asset and the rental expense is charged to the income statement.
4.6.2 DBL’s Compliance with BAS 17
Leasing:
Leases are classified as Finance Lease whenever the terms of the lease transfer substantially all the
risks and rewards of ownership to the lessee. All other leases are classified as Operating Leases.
A) The Bank as Lessor:
Amounts due from leases under finance lease are recorded in the assets side of the Balance Sheet at
the amount of the bank‟s net investment in the leases. Finance lease rental income is allocated to
accounting periods so as to reflect a constant periodic rate of return on the bank‟s net investment
outstanding in respect of the leases. No depreciation has been charged for such lease in the account.
B) The Bank as Lessee:
Assets held under finance leases are recognized as assets of Bank at fair value at the date of
acquisition or if lower, at the present value of the minimum lease payments. The corresponding
liability to the lessor is included in the Balance sheet as a Finance Lessee obligation. Lease payments
are apportioned between finance charges and reduction of the lease obligation so as to achieve a
constant rate of interest on the remaining balance of the liability. Finance charges are charged directly
against income. Assets held under Finance Leases are depreciated over their expected useful lives on
the same basis as owned assets.
Figure 4.6 : Compliance of DBL‟s Financial Statements with BAS 17
Lease Complied
54. Page 54 of 90
4.7.1 BAS 18- Theoretical Overview
4.7.1.1 Objective and scope of BAS 18
BAS 18 prescribes the accounting treatment of revenue recognition in common types of transaction.
It states that in general terms revenue should be recognized:
When it is probable that future economic benefits will flow to the entity and
These benefits can be measured reliably.
BAS 18 applies to:
Sale of goods (manufactured items and items purchased for resale).
The rendering of services (which typically involves the performance by the entity of a
contractually agreed task over an agreed period of time)
The use by others of entity assets yielding interest, royalties and dividends
The standard specifically excludes various types of revenue arising from leases, insurance contracts,
changes in value of financial instruments or other current assets, natural increases in agricultural
assets and mineral ore extraction.
4.7.1.2 Revenue
Revenue income is defined in BFRS Framework as 'increases in economic benefits in the form of
inflows or enhancements of assets or decreases of liabilities that result in increases in equity.' Revenue
is simply income arising in the ordinary course of an entity's activities and it may be called different
names such as:
Sales
Turnover
Interest
Dividends
Royalties
Figure 4.7 : Types of Revenue
Revenue
Sales
Turnover
InterestDividents
Royalties
4.7 BAS 18(Revenue)
55. Page 55 of 90
Revenue According to BAS 18 as follows:
The gross inflow of economic benefits during the period arising in the course of the ordinary activities
of an entity when those flows result in increases in equity, other than increases relating to
contributions from equity participants.
4.7.1.3 Measurement of Revenue:
When a transaction takes place, the amount of revenue is usually decided by the agreement of the
buyer and the seller. The revenue, however, should be measured at the fair value of the consideration
received or receivable.
4.7.1.3. 1 Sales of goods:
Revenue should only be recognized when all of the following conditions are satisfied.
The entity has transferred the significant risks and rewards of ownership of the goods to the
buyer.
The seller no longer has management involvement or effective control over the goods.
The amount of revenue can be measured reliably.
It is probable that the economic benefits associated with the transaction will flow to the entity.
The costs incurred in respect of the transaction can be measured reliably.
4.7.1.3.2 Rendering of services
When the outcome of a transaction involving the rendering of services can be estimated reliably, the
associated revenue should be recognized by reference to the stage of completion of the transaction at
the balance sheet date.
The outcome of a transaction can be estimated reliably when all of the following conditions are
satisfied:
The amount of revenue can be measured reliably
It is probable that the economic benefits associated with the transaction will flow to the entity
The stage of completion of the transaction at the balance sheet date can be measured reliably
The costs incurred for the transaction and the costs to complete the transaction can be
measured reliably
The recognition criteria above are similar to those for the sale of goods. One of the key differences is
the need to be able to determine the stage of completion of the transaction. This is of particular
relevance when the completion of a contract for services straddles more than one accounting period.
The following methods of assessing the stage of completion are referred to in BAS 18:
Surveys of work performed
56. Page 56 of 90
Services performed to date as a percentage of total services to be performed
The proportion that costs incurred to date bear to the estimated total costs of the transaction.
Progress payments and advances received from customers often do not reflect the services performed.
As a result it is normally inappropriate to recognize revenue based on payments received.
If the overall outcome of a services transaction cannot be estimated reliably, then revenue is only
recognized to the extent of those costs incurred that are recoverable from the client.
4.7.1.3.3 Investment income
When others use the enterprise's assets yielding interest, royalties and dividends, the revenue should
be recognized when:
a) It is probable that the economic benefits associated with the transaction will flow to the
enterprise and
b) The amount of the revenue can be measured reliably.
The revenue is recognized on the following bases:
Interest is recognized on a time proportion basis that takes into account the effective yield on
the asset.
Royalties are recognized on an accrual basis in accordance with the substance of the relevant
agreement.
Dividends are recognized when the shareholder's right to receive payment is established. This
is usually when the dividends are declared.
4.7.1.4 Disclosure of BAS 18
The following items should be disclosed:
The accounting policies adopted for the recognition of revenue, including the methods used to
determine the stage of completion of transactions involving the rendering of services
The amount of each significant category of revenue recognized during the period including
revenue arising from:
The sale of goods
The rendering of services
Interest
Royalties
Dividends
The amount of revenue arising from exchanges of goods or services included in each
significant category of revenue.
Any contingent gains or losses, such as those relating to warranty costs, claims or penalties should be
treated according to BAS 37 Provisions, Contingent Liabilities and Contingent Assets.
57. Page 57 of 90
4.7.2 : DBL’s Compliance with BAS 18
Dhaka Bank Limited has been complied with the BAS 18. BAS 18 related with the recognition of
revenue. The proper reasoning behind this compliance is given bellow:
a) Interest Income/Profit Received: According to BAS 18 the interest/profit receivable on
unclassified loans and advances/investments is recognized quarterly on accrual basis.
Interest/profit on classified advances is accounted for on a cash receipt basis. Interest on
Credit Card outstanding is calculated on daily product but charged on monthly basis. Interest
charged on Credit Card up to 28 December 2014. Monthly bill of Credit Card issued on 28th
day of each month.
b) Investment Income: According to BAS 18 Interest income on investments is recognized on
accrual basis.
c) Fees and Commission Income: Fees and commission income arises on services provided by
the Bank and recognized on a cash receipt basis. Commission charged to customers on letter
of credit and letter of guarantee are credited to income at the time effecting the transactions.
d) Dividend Income: According to BAS 18 dividend income from shares is recognized at the
time when it is realized.
e) Interest /Profit paid and other expenses: The interest/profit paid on deposits, borrowings
and other expenses are recognized on accrual basis.
4.8.1 BAS 27- Theoretical Overview
BAS 27 is to be applied in the preparation of the consolidated financial statements (CFS) of the group.
It is also to be applied in accounting for subsidiaries in the parent company's individual financial
statements. This can be seen in the definitions below:
4.8.1 .1 Definitions:
A group: A parent and all its subsidiaries.
Consolidated financial statements: The financial statements of a group presented as those of a single
economic entity.
Minority interest: That portion of the profit or loss and net assets of a subsidiary attributable to the
equity interests that are not owned, directly or indirectly through subsidiaries, by the parent.
Parent: An entity that has one or more subsidiaries.
Subsidiary: An entity, including an unincorporated entity such as a partnership, which is controlled
by another entity (known as the parent).
4.8 BAS 27(Consolidated and Separated Financial Statement)
)
58. Page 58 of 90
4.8.1.2 Control
The factors identified by BAS 27 which would indicate that one entity controls another are very
similar to those identified by BFRS 3. However, BAS 27 also requires an assessment of whether any
potential voting rights that are currently exercisable or convertible contribute to control. Potential
voting rights are considered not currently exercisable or convertible when they cannot be exercised or
converted until:
A future date or
The occurrence of a future event.
For example, an entity may own share warrants or debt or equity instruments that are convertible into
ordinary shares that if exercised or converted would give the entity additional voting power. In
making this assessment the entity should examine all the facts and circumstances that affect the
potential voting rights (e.g. terms of exercise, contractual arrangements). However, the intention of
management and the financial ability to exercise or convert should not have an effect on the
assessment.
4.8.1.3 Presentation of Consolidated Financial Statement (CFS):
With one exception, a parent must present CFS.
A parent need not prepare CFS if:
Either it is a wholly-owned subsidiary or the owners of the minority interest have all been
informed of the proposal that CFS are not prepared and none have and
Its securities are neither publicly traded nor in the process of being issued to the public; and
CFSs are prepared by the immediate or ultimate parent company.
4.8.1.4 Scope of Consolidated Financial Statement
The CFS must include the parent and all the companies under its actual control.
Exclusion from the CFS is not permitted on the grounds that a subsidiary's business is
dissimilar from those of the other companies in the group.
There is only one circumstance in which an entity falling within the definition of a subsidiary
is not consolidated in the normal way. This is when a new subsidiary is acquired but the 'held
for sale' criteria of BFRS 5 are met.
4.8.1.5 Consolidation procedures
BAS 27 makes specific reference to those consolidation procedures necessary to present the group as
a single economic entity. The steps of consolidation procedure are:
Eliminating the carrying amount of the parent's investment against its share of the
equity in its subsidiaries, with goodwill being the resultant figure.
Eliminating intra-group balances, transactions, profits and losses in full.
Calculating the minority interest and presenting it as a separate figure:
In the balance sheet, within total equity but separately from the parent
shareholders' equity
In the income statement.
59. Page 59 of 90
There are additional requirements that:
Where the parent and subsidiary have different reporting dates, that difference must be not
more than three months (remember that, because it has control, the parent can dictate a
reporting date to the subsidiary) and adjustments must be made for major transactions
between the two dates. An example of such an adjustment would be if the subsidiary with
cash appearing in its balance sheet at the earlier date lent it to the parent so that the same cash
was in the parent's
Uniform accounting policies must be applied to all companies in preparing the CFS. If they
are not adopted in the subsidiaries' own financial statements, then adjustments must be made
as part of the consolidation. It might be the case that certain group companies take advantage
of the alternative accounting treatments allowed in some areas by BFRSs, but these must be
made uniform on consolidation.
4.8.1.6 Parent's separate financial statements:
The investment in a subsidiary is carried at cost in the parent's balance sheet; cost being the fair value
of the consideration given as computed under BFRS 3.
The knock-on effect is that the only income included in the parent's income statement are the
distributions received of profits earned after the date of acquisition; distributions out of earlier
profits are accounted for as return of the investment made and are deducted from cost.
4.8.1.7 Disclosures in Consolidated Financial Statements:
Disclosure must be made of:
The nature of the relationship between parent and subsidiary when the parent does not own,
directly or indirectly, more than half of the voting power in the subsidiary
Reasons why a parent does not have control over an investee, even though it holds more than
half of the voting power in it
A subsidiary's reporting date if different from that of the parent, together with the reason for
using a different date
The nature of any restrictions on a subsidiary's ability to transfer funds to the parent
4.8.1.8 The effect of consolidation
Group accounts consolidate the results and net assets of group members to present the group to the
parent‟s shareholders as a single economic entity. This reflects the economic substance and contrasts
with the legal form, where each company is a separate legal person.
Group-single entity
Figure 4.8: Group Structure
Parent
Controls (>50%)
Subsidiary
60. Page 60 of 90
The effect of consolidation can be illustrated by comparing buying an unincorporated business from
its existing proprietor with buying a controlling interest in a company from its existing shareholders.
4.8.1.9 Format of Consolidation Financial Statements:
According to BAS 27, Format of consolidation Financial Statements is given below:
Consolidated Balance Sheet
AS at 31 march 20X6
Particular CU CU
Assets
Non-current asset
Property, plant and equipment
Intangibles asset
Investments to others
Current assets
Inventories
Trade and Other receivable
Investments
Cash & Cash equivalents
Total assets
Equity and Liabilities
Capital and Reserve
Ordinary share capital
Share premium account
Revaluation reserve
Retain earnings
Non-controlling Interest
Total Equity
Non-current Liabilities
Borrowing
Finance lease liabilities
Current Liabilities
Trade and other receivable
Taxation
Provision
Borrowings
Finance lease liabilities
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
61. Page 61 of 90
Total equity and liabilities
XXX
XXX
XXX
XXX
Consolidated Income Statement
For the year ended 1 March 20x6
Particular CU
Revenue
Cost of sale
Gross profit
Other operating income
Distribution cost
Administrative expenses
Profit/loss from operation
Finance cost
Investment income
Profit/loss before tax
Tax
Profit before taxation
Profit attributable to:
Share holders‟ of equity holder
Minority interest
XXX
(XXX)
XXX
XXX
(XXX)
(XXX)
XXX/(XXX)
(XXX)
XXX
XXX/(XXX)
(XXX)
XXX
XXX
XXX
XXX
Consolidated changes in equity
For the year ended 1 March 20x6
Particular Paid up
Capital
Non-
controllin
g
Interest
Statutor
y
Reserve
General
Reserve
Asset revaluation
reserve
Investment revaluation
reserve
Retained
earnings
Total
Balance as at 1
January 2013
X X X X X X X X
Restated balances
Surplus/deficit on
account of
revaluation of
property
Surplus/deficit on
account of
revaluation of
investments
Currency transaction
difference
X
-
-
X
-
-
-
X
-
-
-
X
-
-
-
X
-
-
-
X
-
X
-
X
-
-
X
-
X
-
62. Page 62 of 90
Net gains and loss
not recognized in the
income statement
Share capital of
subsidiary company
Adjustment with
retained earnings
Net profit for the
year
Transfer to reserve
Dividend:
Stock Dividend
Cash Dividend
Stock dividend paid
by subsidiary
company
Change in reserve
Non-controlling
interest
-
-
-
X
-
-
-
-
-
-
-
-
-
X
-
-
-
-
-
X
-
-
-
-
(X)
X
-
-
-
-
-
-
-
X
-
-
-
-
-
-
-
-
X
(X)
-
(X)
(X)
-
-
X
-
-
-
Balance as at 31
December 2013
X X X X X X X X
4.8.1.10 Format of Separated Financial Statements:
According to BAS 27, Format of separated Financial Statements is given below:
Balance Sheet
As at 31 march 20X6
Particular CU CU
63. Page 63 of 90
Assets
Non-current asset
Property, plant and equipment
Intangibles asset
Investments to others
Current assets
Inventories
Trade and Other receivable
Investments
Cash & Cash equivalents
Total assets
Equity and Liabilities
Capital and Reserve
Ordinary share capital
Share premium account
Revaluation reserve
Retain earnings
Total Equity
Non-current Liabilities
Borrowing
Finance lease liabilities
Current Liabilities
Trade and other receivable
Taxation
Provision
Borrowings
Finance lease liabilities
Total equity and liabilities
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
64. Page 64 of 90
Income Statement
For the year ended 1 March 20x6
Particular CU
Revenue
Cost of sale
Gross profit
Other operating income
Distribution cost
Administrative expenses
Profit/loss from operation
Finance cost
Investment income
Profit/loss before tax
Tax
Profit before taxation
XXX
(XXX)
XXX
XXX
(XXX)
(XXX)
XXX/(XXX)
(XXX)
XXX
XXX/(XXX)
(XXX)
XXX
Change in equity statement
For the year ended 1 March 20x6
Particular Paid up
Capital
Statutory
Reserve
General
Reserve
Asset
Revaluation
Reserve
Investment
Revaluation
Reserve
Retained
Earnings
Total
Balance as at 1 January 2013 changes in
accounting policy
X X X X X X X
Restated balance
Surplus/deficit on account of revaluation
of property
Surplus/deficit on account of revaluation
of investments
Currency transaction difference
X
-
-
-
X
-
-
-
X
-
-
-
X
-
-
-
X
-
X
-
X
-
-
-
X
-
X
-
Net gains and loss not recognized in the
income statement
Net profit for the year
Transfer to reserve Dividend:
Stock Dividend
Cash Dividend
Change in reserve
-
-
X
-
-
-
-
-
-
X
-
-
(X)
-
X
-
-
-
-
-
X
-
-
-
-
-
X
(X)
-
(X)
-
X
-
-
-
Balance as at 31 December 2013 X X X X X X X
65. Page 65 of 90
4.8.2 : DBL’s Compliance with BAS 27
Dhaka Bank Limited has been complied with the BAS 27. The following consolidated and separated
financial statements are compliance with 27. Besides the mentionable points of DBL‟s Financial
statements are discussed below:
Consolidated financial statements of Dhaka Bank Limited:
Dhaka Bank Limited and its Subsidiary
Consolidated Balance Sheet
As at 31 December 2014
Particular Notes 31.12.2014
(TAKA)
31.12.2013
(TAKA)
Property and Assets
Cash 3(a) 15,900,963,572 11,900,762,425
Cash in Hand(including foreign currencies ) 3.1(a) 1,395,199,940 1,609,002,280
Balance with Bangladesh Bank & its agent
banks (including foreign currencies)
3.2(a) 14,505,763,632 10,291,760,145
Balance with Other Banks & Financial
Institutions
4(a) 6,685,901,914 2,692,952,439
In Bangladesh 4.1(a) 2,542,023,266 1,927,287,468
Outside Bangladesh 4.2(a) 4,143,878,648 765,664,971
Money at Call & Short Notice 5(a) 448,300,000 338,900,000
Investments 6(a) 21,660,965,339 20,240,852,234
Government 6.1(a) 18,358,963,884 16,009,301,980
others 6.2(a) 3,302,001,455 4,231,550,254
Loans, advances, and lease/investments 7(a) 103,604,211,956 100,199,590,703
Loans, cash credits, overdrafts,
etc/investments
7.1(a) 101,376,448,530 97,985,737,506
Bills purchased and discounted 8(a) 2,227,763,426 2,213,853,197
Fixed assets including premises, furniture
and fixtures
9(a) 3,972,617,496 2,538,497,507
Other Assets 10(a) 7,479,196,391 7,077,369,984
Non-Banking Assets 11(a) 23,166,033 23,166,033
Total Assets 159,775,322,700 145,012,091,325
Liabilities and Capital
Liabilities
Borrowings from Other Banks, Financial
Institutions and Agents
12(a) 9,414,685,059 3,649,917,871
Deposits and other accounts 13 124,853,559,335 115,981,165,413