the institute of chartered accountants of bangladesh...

AUDITORS’ REPORT to the members of The Institute of Chartered Accountants of Bangladesh

For the year ended 30 June 2012

We have audited the accompanying financial statements of the Institute of Chartered Accountants of Bangladesh, which comprise the statement of financial position as at 30 June 2012, the statement of comprehensive income, statement of cash flows and notes to the financial statements for the year then ended. The Council’s Responsibility for the Financial Statements The Council is responsible for the preparation and fair presentation of these financial statements in accordance with Bangladesh Financial Reporting Standards (BFRSs) and internal control system as council determines necessary to enable the preparation of financial statements that are free from material misstatement arising from any error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing (BSAs). Those standards require that we comply with ethical requirements and plan and perform to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedure to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting estimates made by council, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly in all material respects of the financial position of the Institute as of 30 June 2012, and its financial performance and its cash flows for the year then ended in accordance with Bangladesh Financial Reporting Standards (BFRS s) We also report that:

a. we have obtained all the information and explainations to the best of our knowledge and belief were necessary for the purposes of our audit and made due verifications thereof;

b. in our opinion, proper books of accounts as required by law have been kept by the Institute so far as it appeared from our examination of these books; and

c. the statement of financial position and statement of comprehensive income dealt with by the report are in agreement with the books of accounts.

Abdul Wahab FCA Auditor Dated: 08 December 2012 Place: Dhaka-1215

Enamul Kabir FCA Auditor Dated: 08 December 2012 Place: Dhaka-1215

Notes 30 June 2012 30 June 2011

Taka Taka

Non-current Assets 100,851,604 79,981,382

Property, Plant & Equipments 3 70,498,073 52,349,301

Intangible Assets 4 188,872 165,362

Investments - Fixed Deposit with Banks 5 4,451,729 4,103,789

Advances and Deposits (Non-current portion) 6 25,712,930 23,362,930

Current Assets 188,710,781 135,568,313

Inventories 7 4,293,644 6,516,155

Receivables 8 7,586,023 4,755,257

Advances, Deposits and Prepayments 9 3,192,917 1,710,628

Investments - Fixed Deposit with Banks 5 170,830,929 119,580,101

(Current portion)

Cash and Cash Equivalents 10 2,807,268 3,006,172

Total Assets 289,562,385 215,549,695

Capital and Liabilities

Capital Fund 235,614,395 172,073,791

Land and Building Fund 11 116,042,998 86,011,822

General Fund 12 119,571,397 86,061,969

Long-term Liabilities 27,600,368 28,257,235

Employees' Gratuity Fund 13 19,858,801 21,144,940

Members' Welfare Fund 14 3,403,906 3,136,956

General Scholarship Fund 15 2,596,930 2,370,816

President Scholarship Fund 16 1,554,386 1,369,178

Relief Fund 186,345 235,345

Current Liabilities 26,347,622 15,218,669

Payable and Accruals 17 21,809,279 11,026,589

Advance Fees and Rent 18 2,799,873 4,180,080

Employees' Gratuity Fund (Current portion) 13 1,726,470 -

Security Deposits 12,000 12,000

Total Capital and Liabilities 289,562,385 215,549,695

The annexed notes 1 to 35 form an integral part of these financial statements.

N I Chowdhury FCA Md. Shahjahan Majumder FCA Md. Syful Islam FCA

Secretary Vice President President

Abdul Wahab FCA Enamul Kabir FCA

Auditor Auditor

Dhaka, 08 December 2012

The Institute of Chartered Accountants of Bangladesh

Statement of Financial Position

Assets

As at 30 June 2012As at 30 June 2012

As per our report of same date

Notes July'11-June'12 July'10-June'11

Taka Taka

Incomes

19 19,241,950 13,999,500

20 116,723,214 76,517,633

21 12,000,000 11,000,000

22 4,389,000 2,647,034

23 5,695,750 5,155,469

CAPA International Conference 2,904,674 -

Convocation 1,858,475 -

18,619,113 16,113,908

24 16,149,655 10,087,220

197,581,831 135,520,764

Expenditures

34,481,024 26,336,051

25 41,831,468 24,640,257

26 8,360,950 7,157,220

27 5,066,855 3,828,781

3,689,132 2,865,529

28 2,028,889 2,071,059

3,427,454 1,625,657

1,833,085 1,354,673

29 1,666,699 1,287,285

688,695 542,096

30 299,500 382,000

1,089,056 538,291

2,166,801 2,637,120

31 5,977,779 3,200,381

CAPA International Conference 32 5,761,454 -

Convocation 33 3,025,129 -

34 6,700,360 4,054,556

3 5,860,221 4,474,284

4 117,852 110,580

134,072,403 87,105,820

63,509,428 48,414,944

transferred to Land and Building Fund 30,000,000 25,000,000

transferred to General Fund 33,509,428 23,414,944

197,581,831 135,520,764

The annexed notes 1 to 35 form an integral part of these financial statements.




Auditor Auditor

Dhaka, 08 December 2012

Rental Income

Government Grant Income

Other Income

Seminars and Conferences

Rent, Rates and Taxes

Grant and Scholarship to BCACP

Electricity and Water

International Conference

Salaries and Allowances

Education, Training and Examinations

Subscription to Professional Bodies

Office Expenses


Statement of Comprehensive Income

for the year ended 30 June 2012

Repairs and Maintenance

Journal and News Bulletin

Membership Fees

Education, Training and Examination

Contribution for BPA Awards


Excess of Income Over Expenditure:

Provision for Gratuity

BPA Awards, Annual Dinner, Picnic and etc.

Legal and Professional fees

International Conference

Depreciation

Traveling and Conveyance

Amortization

July'11-June'12 July'10-June'11

Taka Taka

A) Cash Flows From Operating Activities

Receipts:

Membership Fees 17,591,060 11,487,801

Rental Income 18,470,388 16,649,168

Education, Training and Examination 115,756,272 78,040,633

Contribution for Best Published Accounts Awards 4,389,000 2,647,034

International Conference 5,695,750 5,155,469

19th Convocation 1,858,475 -

ICAB-CAPA International Conference 2,404,674 -

Firm Inspection fee received 1,060,000 620,000

Interest income received 13,948,141 8,621,215

Other Receipts 9,035,098 3,161,425

190,208,858 126,382,745

Payments:

Seminars and Conferences 4,454,778 4,110,533

Salaries and Allowances 24,272,024 16,278,992

Education, Training and Examination Expenses 35,253,246 23,024,902

Electricity and Water (net received from tenents) 2,649,971 2,321,437

BPA Awards, Annual Dinner, Picnic and etc. 5,977,779 3,230,263

International Conference 6,434,680 4,054,556

Convocation 3,025,129 -

ICAB-CAPA International Conference 5,238,204 -

Other Administrative and Operational Expenses 25,366,948 24,926,248

112,672,759 77,946,931

Net cash generated from operating activities 77,536,099 48,435,814

B) Cash Flows From Investing Activities

Fixed deposit with banks (51,598,768) (50,291,090)

Advance against campus rent (3,000,000) -

Addition to Non-Current Assets (24,237,014) (2,176,651)

Net cash used in investing activities (78,835,782) (52,467,741)


Statement of Cash Flows



Statement of Cash Flows


C) Cash Flows From Financing Activities

Government Grant 12,000,000 11,000,000

Less: adjusted with:

Salary expenditures 11,264,000 10,500,000

Electricity and Water 736,000 500,000

- -

Land and Building Fund 31,176 26,171

Scholarship Fund 226,114 (35,737)

President Scholarship Fund 185,208 102,628

Members Welfare Fund 266,950 398,479

Employees Gratuity Fund 440,331 2,671,379

(49,000) -

Net Cash Provided by Financing Activities 1,100,779 3,162,920

D) Net Increase/(Decrease) (A+B+C) (198,904) (869,007)

E) Beginning Cash and Cash Equivalents 3,006,172 3,875,179

F) Ending Cash and Cash Equivalents (D+E) 2,807,268 3,006,172




Auditor Auditor

Dhaka, 08 December 2012Dhaka, 08 December 2012

Relief fund


The Institute of Chartered Accountants of Bangladesh Notes to the Financial Statements

For the year ended 30 June 2012

1. Corporate History The Institute of Chartered Accountants of Bangladesh (ICAB), established under the Bangladesh Chartered Accountants Order 1973 (P.O.No.2 of 1973), is the sole apex body responsible for regulating the profession of Chartered Accountancy in Bangladesh. The Institute’s headquarter is located at Dhaka with regional offices in Dhaka, Chittagong and overseas chapters in London & Toronto.

ICAB is a permanent member of several international and regional accounting bodies including IFAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants).

1.1. Objectives and Nature of Activities

The objectives of the Institute are to conduct the professional examinations, award membership of the Institute to qualified Chartered Accountants, issue practicing certificates to the members, maintain the status and standard of professional qualifications and regulate the members of the Institute within the purview of the Bangladesh Chartered Accountants Order 1973 and the Bangladesh Chartered Accountants Bye-laws 2004.

2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements

are set out below. These policies have been consistently applied to all the years

presented, unless otherwise stated. The specific Accounting Policies selected and applied

by the Institute’s Council for significant transactions and events that have a material

effect within the framework of BAS 1 Presentation of Financial Statements, in

preparation and presentation of financial statements. Compared to the previous year,

there were no significant changes in the accounting and valuation principles affecting

the financial position and performance of the Institute.

2.1 Basis of Preparation of the Financial Statements

i) Accounting Standards

The financial statements have been prepared in accordance with ICAB’s accounting

policies following Bangladesh Accounting Standards (BAS) and Bangladesh Financial

Reporting Standards (BFRS), Generally Accepted Accounting Principles (GAAP) and other

applicable law and regulation.

ii) Accounting Convention

The financial statements are prepared under the historical cost convention. The Institute

classified the expense using the function of expense method as per BAS 1.

iii) Compliances

The financial statements have been prepared and the disclosures of information made in

accordance with Bangladesh Accounting Standards (BAS) and Bangladesh Financial

Reporting Standards (BFRS)

iv) Critical Accounting Estimates, Assumptions and Judgments

The preparation of the financial statements is in conformity with BFRS requires the use

of certain critical accounting estimates. It also requires council to exercise its judgment

in the process of applying the Institute’s accounting policies.

v) Application of Standards

The following BASs are applicable for the financial statements for the year under review:

BAS 1 Presentation of Financial Statements

BAS 2 Inventories

BAS 7 Statement of Cash Flows

BAS 8 Accounting policies, Changes in Accounting Estimates and Errors

BAS 10 Events after the Reporting Period

BAS 16 Properties, Plant and Equipment

BAS 18 Revenue

BAS 19 Employee Benefits

BAS 20 Accounting for Governments Grants and Disclosure of Government Assistance

BAS 21 The Effects of Changes in Foreign Exchange Rates

BAS 26 Accounting and Reporting by Retirement Benefit Plans

BAS 32 Financial Instruments: Presentation

BAS 36 Impairment of Assets

BAS 37 Provisions, Contingent Liabilities and Contingent Assets

BAS 38 Intangible Assets

BAS 39 Financial Instruments: Recognition and Measurement

(f) Statement of Cash Flows

Paragraph 102 of BAS 1 Presentation of Financial Statements, requires that a Statement

of Cash Flows is to be prepared as it provides information about cash flows of the

Institute which is useful in providing users of financial statements with a basis to assess

the ability of the enterprise to generate cash and cash equivalents and the needs of the

Institute to utilize those cash flows. Statement of Cash Flows has been prepared under

the direct method for the period, classified by operating, investing and financing

activities as prescribed in paragraph 10 and 18 (a) of BAS 7 Statement of Cash Flows.

2.2 Functional and Presentation Currency

These financial statements are presented in Taka, which is the Institute’s functional

currency.

2.3 Foreign Currency Translation

Foreign currency transactions are recorded at the applicable rates of exchange ruling at

the transaction date in accordance with BAS 21 The Effects of Changes in Foreign

Exchange Rates. Foreign currency transactions are translated at the exchange rate

ruling on the date of transaction. Foreign currency monetary assets and liabilities at the

reporting date are translated at the rates prevailing on that date. Exchange differences

at the reporting date are charged/credited to the statement of comprehensive income.

2.4 Reporting Period

These financial statements cover one year starting from 01 July 2011 to 30 June 2012.

2.5 Comparative Information

As guided in paragraph 36 and 38 of BAS 1 Presentation of Financial Statements,

comparative information in respect of the previous year have been presented in all

numerical information in the financial statements and the narrative and descriptive

information where it is relevant for understanding of the current year’s financial

statements.

2.6 Non-Current Assets

Tangible fixed assets are accounted for according to BAS 16 Property, Plant and

Equipment, at historical cost less cumulative depreciation. Historical cost includes

expenditure that is directly attributable to the acquisition of the items. Non-current

Assets also includes investments which are not considered current in nature and

advances and deposits which are not adjustable or realizable within next twelve months.

Subsequent costs are included in the asset’s carrying amount or recognized as a

separate asset, as appropriate, only when it is probable that future economic benefits

associated with the item will flow to the institute and the cost of the item can be

measured reliably. All other repairs and maintenance are charged to the statement of

comprehensive income during the financial period in which they are incurred.

Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost. In respect of addition of fixed assets, depreciation is charged on additions irrespective of date when the related assets are put into use and no depreciation is charged for the year of disposal.

The rates of depreciation applied are as follows:

Particulars Rate

Land Nil

Building 2%

Furniture and fixture 10%

Books and periodicals 20%

Educational equipment 15%

Electrical equipment 15%

Computers 20%

Office equipment 15%

Air conditioners 15%

Vehicle 20%

The Institute earns some rental income from part of its building premises which are not

being used presently by the Institute. But these premises may anytime be used by the

Institute for its operational, training or administrative purposes and due to that reason

the entire building is included under building instead of showing the rented portion as

investment property.

2.7 Intangible Assets

Intangible assets are carried at cost less any accumulated amortization and impairment

losses, if any, under BAS 38 Intangible Assets. The cost of intangible asset is amortized

over their estimated useful lives, using the straightline method. Amortization is charged

from the month the assets are available for use at the rate stated under Annexure A.

2.8 Inventories

Inventories are valued at the lower of cost and net realizable value under BAS 2

Inventories. The costs of inventories are measured on First In First Out (FIFO) basis.

The amount of any write-down of inventories to net realizable value and all losses of

inventories are recognized as an expense in the period the write-down or loss occurs.

2.9 Financial Instruments

Financial Instruments are recognized in the balance sheet when ICAB becomes a party

to the contractual provisions of the instruments under BAS 39 Financial Instruments:

Recognition and Measurement.

i) Receivables

Receivable are carried at original invoice amount based on a review of all outstanding

amounts at the year-end.

ii) Payables

Liabilities are recorded at the amount payable for settlement in respect of goods and

services received by the Institute.

2.10 Impairment of Assets

At each balance sheet date, ICAB reviews the carrying amounts of its assets except

building to determine whether there is any indication of impairment under BAS 36

Impairment of Assets, If any such indication exists, impairment is measured by

comparing the carrying values of the assets with their recoverable amounts. Recoverable

amount is the higher of net selling price and value in use.

An impairment loss is recognized as an expense in the statement of income and

expenditure immediately. Impairment losses recognized previous year should be revised

in the statement of income and expenditure in case of impairment gain.

2.11 Cash and cash equivalents

It includes cash in hand, bank deposits for use by the Institute without any restriction,

and there was insignificant risk of changes in value of these current assets.

2.12 Financial Risk Management

ICAB Secretariat directly controls day-to-day policies and operations. Council members

are regularly updated on any significant issues relating to financial risk management.

The major financial risks to which ICAB is exposed are summarized below.

i) Currency Risk

The whole of ICAB’s transactions are carried out in BDT except few transactions as

regards overseas seminar, conference and subscription to professional bodies. There are

no other transactions taking place in foreign currencies. Therefore, ICAB is not exposed

to any significant currency risk.

ii) Credit Risk

Working capital and long-term funds are held in interest bearing (FDR) bank account

and ICAB’s management covers risk management issues. In respect of receivables, ICAB

is not exposed to any significant credit risk. The majority of the counterparts are

members and tenants. The management of ICAB continuously monitors defaults of

counterparts and incorporate this information into credit risk policies.

iii) Liquidity and Interest Rate Risk

ICAB policy is to maintain strong statement of financial position with cash and cash

equivalent and therefore it does not have significant exposure to liquidity risk. Liquidity

need is monitored on a day-to day basis for short-term needs. Excess funds are invested

in appropriate interest making deposits.

2.13 Employee benefits

Short-term employee benefits

Short-term employee benefits are employee benefits (other than termination benefits)

that are due to be settled within twelve months after the end of the period in which the

employees render the related service.

Festival Bonus

ICAB recognizes the cost of festival bonus payment when it has a present legal or

constructive obligation to make such payments as a result of past events and a reliable

estimate of the obligation can be made under BAS 19 Employees Benefit. Festival bonus

is a present obligation of ICAB as it has no realistic alternative but to make the payment.

Defined Contribution Plan

Provident Fund

ICAB maintains recognized contributory provident fund for its permanent employees

except for the employees employed on contractual basis. Provident fund is administered

by a Board of Trustees and is funded by contribution from both employers and

employees equally @ 10% of the basic salary. ICAB recognizes the contribution payable

to provident fund when an employee has rendered service to ICAB during a period

under BAS 19 Employees Benefit.

Defined Benefit Plan

Gratuity Fund

The ICAB also maintains a gratuity scheme for its permanent employees except for the

employees employed on contractual basis. Employees are entitled to receive gratuity

benefit after completion of their minimum five years service equivalent to 2 months last

basic pay for each completed year in respect of the employees eligible for this benefit.

2.14 Government Grant

Government Grant Income is recognized when conditions on which they depend have

been met as per BAS 20 Accounting for Government Grants and Disclosure of

Government Assistance. Government Grants are for the funding of ICAB’s employees

salaries & allowances and utility expenditures. Government grant income is recognized

to equate to expenditures incurred on the related heads allowed by the concerned

Ministry.

Government Grants received are initially recorded as liabilities in Advance Government

Grant. Grant utilized for allowed expenditures are transferred to grant income.

2.15 Provisions

Provisions are recognized when the Institute has a present legal or constructive

obligation because of past events under BAS 37 Provisions, Contingent Liabilities and

Contingent Assets. It is probable that an outflow of resources embodying economic

benefits will be repaid to settle the obligation, and a reliable estimate of the amount of

the obligation can be made.

Provisions for employee benefits and similar other liabilities are determined in

accordance with BAS 19 Employee Benefits.

2.16 Revenue Recognition

Revenue is the gross inflow of economic benefits during the period arising in the course

of the ordinary activities of an entity when those inflows result in increases in equity,

other than increases relating to contributions from equity participants. Revenue shall be

measured at the fair value of the consideration received or receivable. Revenues are

recognized following the conditions of BAS 18 Revenue Recognition. Major item-wise

recognition policies are briefly described as under:

i) Membership Fees

Income from fees and subscriptions is recognized in the accounting period to which the services covered by those relate. Fees and subscription received in advance are included in advance received.

ii) Bank Interests

Interest Income on bank accounts including Interest on Fixed Deposits is recognized on

accrual basis. ICAB maintains Provision for interest income on FDR on monthly basis

using the effective interest from 10% to 12%.

iii) Rental Incomes

Rental Income is recognized on accrual basis. In case of advance rent, it is adjusted with the monthly rent received from tenant.

iv) Other Incomes

Other Income is recognized when ICAB’s right to receive such income has been

reasonably determined.

2.17 Dhaka and Chittagong Regional Committees

All expenses of these Committees have been incorporated in the Financial Statements

based on actual payment.

2.18 Events after the Reporting Period

Events after the reporting period have been accounted for under BAS-10 Events after

the Reporting Period. that provide additional information about the organization’s

position at the balance sheet date is reflected in the financial statements. Events after

the balance sheet date that are not adjusting events are disclosed.

2.19 General

i. Where necessary, comparative figures and accounts titles in the financial statements have been rearranged to conform to the current year’s presentation.

ii. The figures appearing in the financial statements have been rounded off to the

nearest Taka.

30 June

2012

30 June

2011Taka Taka

3.00 Property, Plant & Equipments

Cost 126,037,190 106,633,722

Less: Depreciation 55,539,117 54,284,421

Written-down Value 70,498,073 52,349,301

Following assets have been fully depreciated:

Furniture & Fixture 4,958,730 2,609,714

Books & Periodicals 3,024,234 3,024,234

Electrical Equipment 4,987,590 5,172,998

Educational Equipment - 1,798,079

Computers 1,525,366 1,579,909

Office Equipment 1,234,282 975,817

Air-Conditioner 6,313,148 6,206,588

Vehicle 1,227,345 -

Intangible Assets 105,000 -

23,375,695 21,367,339

4.00 Intangible Assets

Cost 694,262 552,900

Less: Amortization 505,390 387,538

Written-down Value 188,872 165,362

5.00 Fixed Deposit with Banks

Deposit Amounts 171,175,996 120,350,072

Interest Receivable 4,106,662 3,333,818

175,282,658 123,683,890

Details of sources for FDR:

General Fund 145,974,908 95,909,236

Employees' Gratuity Fund 20,207,379 18,360,643

Members' Welfare Fund Note (5.01) 4,451,729 4,103,789

General Scholarship Fund 3,100,696 3,339,804

President Scholarship Fund 1,205,726 1,659,373

Chittagong Land Project 342,220 311,045

175,282,658 123,683,890

Maturity grouping of FDR with Banks:

Within 03 months 119,035,411 67,550,279

Within 03 to 06 months 17,065,177 24,816,264

Within 06 to 12 months 34,730,341 27,213,558

More than 12 months 4,451,729 4,103,789

175,282,658 123,683,890

Members' Welfare Fund Note (5.01)

5.01 Under this fund balance will be Taka 34,03,906 as expenditures against this fund was

incurred from ICAB's General account, excess of Taka 10,47,823 will be refunded to ICAB

General account when FDR encashed at its maturity.

Details of Property, Plant & Equipments are stated in Annexure-"A"

Details of Intangible Assets are stated in Annexure-"B"

30 June

2012

30 June

2011Taka Taka

Bank-wise breakup of FDR with Banks:

Dhaka Bank Limited, Karwan Bazar Branch 32,500,185 21,823,134

Southeast Bank Limited, Karwan Bazar Branch 136,444,757 100,727,210

Southeast Bank Limited, Dhanmondi Branch 5,024,743 -

Social Islami Bank Limited, Agrabad Branch 1,312,973 1,133,546

175,282,658 123,683,890

Reconcilation of various Funds are stated in Annexure-"C"

6.00 Advances and Deposits (Non-current portion)

Advance Against Land (Note 6.01) 22,000,000 22,000,000

Advance rent for Academic Campus 2,350,000 -

Security Deposits With 1,362,930 1,362,930

BHBFC and T&T 460,930 460,930

RAJUK (for Land) 900,000 900,000

Dhaka Bank Locker 2,000 2,000 25,712,930 23,362,930

6.01

7.00 Inventories

Study Materials 1,992,275 5,143,100

BAS, BSA and Practice Management Guide 989,750 395,615

Sundry Stationery 807,229 536,800

Question Books 504,390 440,640

4,293,644 6,516,155

8.00 Receivables

Annual Fees from Members:

In Practice (Note 8.01) 561,300 424,500

Not in Practice (Note 8.02) 4,361,868 2,297,378

4,923,168 2,721,878

Rental Dues

Transcom Electronics Ltd. 888,703 734,977

Enem Express Ltd. 9,880 9,880

Omnitrans International Ltd. 498,564 720,494

Media Star Ltd. 249,566 139,659

Dutch Bangla Bank Ltd. 79,591 24,163

IGS BRAC University 436,551 384,957

2,162,855 2,014,130

CAPA International Conference 500,000 -

Others(Training PDB) - 19,249

7,586,023 4,755,257

Advance against land represents advance payments for purchase of land measuring of 30.02

decimal located at 263 Kawran Bazar (west tejtuti bazar) Dhaka vide Baina Nama no.3078 &

3084 dated 16 & 17 May 2010 respectively. Later the Council decided in its meeting held on

22 September 2012 not to acquire the land due to subsequent legal complication, and to take

necessary steps to realize the advance.

30 June

2012

30 June

2011

Taka Taka

8.01 Aging of Receivable from Practicing Members

Current year 455,500 358,000

More than 01 year to 02 year 82,800 46,500


More than 03 year 11,500 -

561,300 424,500

8.02 Aging of Receivable from Non-Practicing Members

Current year 2,899,742 1,646,678



More than 03 year 304,388 175,288

4,361,868 2,297,378

9.00 Advances, Deposits and Prepayments (Current portion)

Advances to Employees 2,530,437 1,202,068

Against Salary 347,500 137,000

Against Expenses 432,937 1,065,068

Against Car Loan 1,750,000 -

Advance rent for Academic Campus 600,000 390,000

Security Deposits With 62,480 118,560

Dhaka University 31,180 -

City Filling Station 31,300 60,960

BCACP Office Rent - 57,600

3,192,917 1,710,628

10.00 Cash and Cash Equivalents

Cash in Hand 56,078 57,837

Cash with Bank 2,751,190 2,948,335

Current Accounts 2,447,972 2,267,692

Savings Accounts (Note 10.01) 303,218 680,643

2,807,268 3,006,172

10.01 Savings Accounts

DBL Ctg. Land Project 18,391 20,000

AB Bank Employee Gratuity Fund 102,610 406,636

Social Islamic Investment Bank Ltd. Chittagong. 182,217 254,007

303,218 680,643

11.00 Land and Building Fund

Opening Balance 86,011,822 60,985,651

Add: During the year 30,000,000 25,000,000

Interest on FDR Ctg. Land Project 31,176 26,171

Closing Balance 116,042,998 86,011,822

Land and Building Fund was created for the permanent establishment of Dhaka Campus and

Chittagong Regional Office. Certain portion of the excess of income over expenditure are

tranferred to this fund along with some contributions from the Council Memebrs and

Corporate Bodies.

30 June

2012

30 June

2011Taka Taka

12.00 General Fund

Opening Balance 86,061,969 62,647,025

Add: During the year 33,509,428 23,414,944

Closing Balance 119,571,397 86,061,969

13.00 Employees' Gratuity Fund

Opening Balance 21,144,940 18,507,820

Add: Provision for Current year (13.01) 2,166,801 2,637,120

23,311,741 21,144,940

Less: Payments to Retired employees (Note 13.01) (1,726,470) -

Closing Balance 21,585,271 21,144,940

Status of this fund is as under:

Current liabilities 1,726,470 -

Non-current liabilities 19,858,801 21,144,940

21,585,271 21,144,940

13.01 Provision was made for the purpose of meet-up the gratuity liability as on 30.6.2012

13.01 Employees' Gratuity Fund Disbursements

Mr.Abu Bakkar (Ex. Accounts Officer) 836,000 -

Mr.Afzal Hossain (Ex. Senior Deputy Secretary - Exam) 553,000 -

Mr.Abdul Mannan (Ex. Messenger boy) 337,470 -

1,726,470 -

14.00 Members' Welfare Fund

Opening Balance 3,136,956 2,738,477

Add: Members' Contributions 604,750 542,500

Interest for the year 278,448 312,035

4,020,154 3,593,012

Less: Disbursements during the year (Note 14.01) (616,248) (456,056)

Closing Balance 3,403,906 3,136,956

14.01 Members' Welfare Fund Disbursements

Financial Assistance to Members 48,000 48,000

Gifts 282,000 107,740

Refreshment 104,768 97,550

Printing 146,050 146,050

Crests 26,900 37,500

Others 8,530 19,216

616,248 456,056

15.00 General Scholarship Fund


Add: Contribution from:

AKM Mizanur Rahman Scholarships 24,000 24,000

S F Ahmed Foundation Scholarships 120,000 120,000

ABM Azizuddin Scholarship 42,000 -


2,758,930 2,817,816

30 June

2012

30 June

2011Taka Taka

Less: Disbursements during the year (Note # 15.01)

Moshiur Rahman Memorial - (90,000)

ACNABIN Scholarships (36,000) (153,000)

AKM Mizanur Rahman Scholarships (24,000) (24,000)

S F Ahmed Foundation Scholarships (60,000) (180,000)

ABM Azizuddin Scholarship (42,000) -

Total disbursements (162,000) (447,000)


This fund consists of the balance of the following funds:

ACNABIN Scholarship 946,318 905,218

AKM Mizanur Rahman Scholarship 24,000 24,000

ICAB Scholarship 718,863 661,388

Mashiur Rahman Memorial Scholarship 832,718 766,141

RRH Scholarship 12,041 11,079

SF Ahmed Foundation Scholarship 60,000 -

Sena Kallayan Sangstha Scholarship 2,990 2,990

2,596,930 2,370,816

15.01 General scholarship Fund Disbursement

Moshiur Rahman Memorial

Ms.Kashfee Mahmud (J U Ahmed & Co.) - 30,000

SM Mudrahir Rahman (M Ahmed & Co.) - 30,000

Abdul Kashem (ACNABIN) - 30,000

ACNABINMr.Md. Mahmudur Rahman (ACNABIN) 9,000 27,000

Ms. Avra Adhikary (Rahman Rahman Huq) 9,000 18,000

Ms.Farhana Sultana (ACNABIN) 9,000 24,000

Ms.Kazi Rahala Jahan Noor (ACNABIN) - 24,000

Ms.Tasnova Shahjabin (Hoda Vasi Chowdhury & Co.) - 24,000

Ms.Farhana Amin Tonny (ACNABIN) - 18,000

Mr.Md. Mahbubur Rahman (Rahman Rahman Huq) 9,000 18,000

AKM Mizanur Rahman Scholarships

Mr.Mohammad Sirajus Salekin (M J Abedin & Co.) 24,000 24,000

S F Ahmed Foundation Scholarships

Mr.Lingkon Mondal (Rahman Rahman Huq) - 60,000

Md.Saiful Islam (ACNABIN) - 60,000

Ms.Nagma Andalib (Rahman Rahman Huq) 60,000 60,000

ABM Azizuddin Scholarship

Md.Shafiqul Islam (ACNABIN) 42,000 -

162,000 447,000

16.00 President Scholarship Fund


Add: Contribution from:

President-ICAB (Note 16.01) 191,440 -


Less: Disbursements during the year (Note 16.02) (120,000) -


16.01 During the year Mr.Syful Islam FCA, President has donated Taka 1,91,440 to this fund.

30 June

2012

30 June

2011Taka Taka

16.02 President Scholarship Fund DisbursementMr.Md. Mahmubur Rahman (ACNABIN) 60,000 -

Mr.Md. Shahadat Hossain (ACNABIN) 30,000 -

Mr. Md. Iqbal Hossain (A Qasem & Co.) 30,000 -

120,000 -

17.00 Payable and Accruals

Remuneration of Resource Personnel 6,422,046 2,933,850

Salaries and Allowances 2,062,410 1,180,440

Printing Expenses 2,829,662 1,765,335

Advertisement Expenses 416,320 138,607

Repair and Maintenance 1,192,302 162,100

Utility Bills 784,280 481,119

Travelling 648,713 228,076

Office Rent and Others 105,482 4,512

Articled student association 388,800 -

Tax/VAT 1,108,320 816,587

Dhaka Regional Committee 1,470,000 738,000

Audit fee 149,500 138,000

Firm Inspection fee 120,000 110,000

Holding tax 449,802 224,901

Legal fee 148,000 71,500

Video documentary 523,250 -

Office equipment 679,300 218,000

IFRS Workshp 513,204 -

Examination hall rent 177,754 110,290

SAFA Subscription 369,600 169,400

Sundry Creditors and Accruals 1,250,534 1,535,872

21,809,279 11,026,589

18.00 Advance fees and rent


In Practice 626,400 495,400

Not in Practice 1,288,673 869,273

Students' Association Fees 384,800 387,200

IFRS Workshop - 1,340,000

Tenants 500,000 1,088,207

2,799,873 4,180,080


Taka Taka

19.00 Membership Fees


In Practice 8,165,000 6,717,400

Not in Practice 7,731,950 5,259,600

Admission and Other Fees 3,345,000 2,022,500

19,241,950 13,999,500

20.00 Education, Training and Examination

Deed of Articles and Syllabus 31,620 45,080

Study Manuals 6,206,585 6,302,370

Suggested Answers 2,518,315 2,007,815

BAS, BSA and Practice Management Guide etc. 147,880 218,660

Enrolment Fees 30,029,500 20,786,100

Student Registration Fees 14,848,800 9,685,600

Examination Fees 55,783,186 35,702,400

Training fees 337,229 665,258

Workshop 1,800,000 -

Library Card fees (Note 20.01) 4,982,509 -

Special Coaching fees - 1,000,000

Others 37,590 104,350

116,723,214 76,517,633

20.01 Library Card fees

During the year, for the firsttime ICAB has introduced library card requirement for all CA

students. This amount represents the the fee for issuing library cards from students.

21.00 Government Grant Income

Opening Balance - -

Add: received during the year (Note 21.01) 12,000,000 11,000,000

12,000,000 11,000,000

- -

Grant Income for incurring expenses:

11,264,000 10,500,000

Electricity and Water 736,000 500,000

12,000,000 11,000,000

21.01 Government Grant Received During the Year

2011-2012 2010-2011

21.09.2011 26.08.2010 3,000,000 2,750,000

22.11.2011 01.11.2010 3,000,000 2,750,000

26.02.2012 02.02.2011 3,000,000 2,750,000

30.05.2012 19.05.2011 3,000,000 2,750,000

12,000,000 11,000,000

Less: closing balance

Salary

Encashment Dates


Taka Taka

22.00 Contribution for BPA Awards

National Awards Advertisement 1,161,000 898,457

National Awards Sponsorship 2,668,500 1,473,577

National Awards Members Contribution 352,000 275,000

SAFA BPA Awards Members Contribution 207,500 -

4,389,000 2,647,034

23.00 International Conference

Advertisement 261,500 1,582,073

Members' Contribution 1,091,750 445,500

Sponsors' Contribution 3,510,000 3,127,896

International Conference, Chittagong 832,500 - 5,695,750 5,155,469

24.00 Other IncomeAuditorium Rent 190,000 165,000

Advertisement Income through Journal 222,200 141,900

Bank Interest 13,948,141 8,621,215

Firm Inspection Fees 1,060,000 620,000

Gain on Sale of Old Assets 83,541 121,752

Other Receipts (Note 24.01) 645,773 417,353

16,149,655 10,087,220

24.01 Other Receipts

Other receipts includes Taka 94,000 receipt from Mr. Syful Islam, President as donation

for purchase a 40" LCD TV.

25.00 Education, Training and Examination Examination Related Expenses 13,929,201 10,227,914

Remuneration to Resource Personnel 11,614,725 6,845,317

Printing Charges 4,717,350 2,763,384

Training Expenses 2,454,266 445,814

CPE Seminar Expenses 1,088,162 1,770,811

Rent for Coaching Class 1,716,750 1,680,000

Special Coaching Class 891,702 631,182

Advertisement 102,366 104,680

Workshops (Note 25.01) 2,479,574 -

Case Study workshop (Note 25.02) 1,969,400 -

IFRS Workshop (Note 25.03) 854,732 -

Miscellaneous Expenses 13,240 171,155

41,831,468 24,640,257

25.01 Workshops

During the year three workshops have been conducted in Dhaka and Chittagong. Workshop

on "Integreted Reporting" held in Dhaka on 26 November 2011, cost amounting of Taka 2,55,974,

Workshop on "Regional Standard Setting" held in Dhaka on 28 November 2012 cost amounting of

Taka 9,98,883 and workshop on "Professional Accountants, Role for Sustainable Development"

held in Chittagong on 30 November 2012 cost amounting of Taka 12,24,718.


Taka Taka

25.02 Case Study workshop

A 3-day Case Study was held at ICAB Dhaka on 15-17 January 2012 for tutors, Writers/Examiners and

Assessors of Case Study, Mr.Samuel Geroge Binks FCA, a senior Case Study Expert of ICAEW

conducted the workshop. This amount represent the air fare, staying cost and remuneration of

Mr. Binks.

25.03 IFRS Workshop

A 3 month long IFRS workshop was held in Dhaka during July-September 2011. ICAB members as

well as members from various stakeholders including Banks, insurance etc. participated in that

workshop.

26.00 Office ExpensesDrinking Water 289,930 187,555

Printing Stationery 2,699,857 1,895,809

Fuel and Power 682,790 544,416

Telephone, Internet and Fax 604,282 506,712

AGM and Other Meetings 1,174,657 1,064,628

Postage and Courier 431,536 595,853

Advertisement - General 139,475 864,679

Newspaper and Periodicals 120,807 128,212

Bank Charges 37,919 77,241

Entertainment 977,618 643,195

Insurance Premium 251,453 142,275

Firm Inspection Fees 440,000 262,000

Award Giving Ceremony of Employees' children 135,038 -

Employee Training 106,724 -

Miscellaneous Expenses 268,864 244,645

8,360,950 7,157,220

27.00 Seminars and Conferences

Overseas Participation (SAFA, CAPA and IFAC) 4,891,842 3,635,281

SAFA Meetings and Others 175,013 193,500 5,066,855 3,828,781

28.00 Rent, Rates and Taxes

City Corporation Tax 576,565 578,762

CRC- Office Rent and Utility 1,452,324 1,492,297

2,028,889 2,071,059

29.00 Grant and Scholarship to BCACP

General Grant 420,000 290,400

Scholarships 840,000 580,800

Office Rent and Others 406,699 416,085

1,666,699 1,287,285

30.00 Legal and Professional fees

Audit fees 149,500 141,000

Legal Fees 150,000 241,000

299,500 382,000


Taka Taka

31.00 BPA Awards, Annual Dinner, Picnic, etc.

National Awards 2,562,267 2,277,510

SAFA BPA Awards 2,433,762 -

Picnic & Other Cultural Programme 981,750 922,871

5,977,779 3,200,381

32.00 CAPA International Conference

Fooding and Hall rent 2,965,611 -

Advertisement 872,448 -

Conference Materials 237,500 -

Documentary 523,250 -

Printing 536,015 -

Stage decoration, Banner, Etc. 310,000 -

Others 316,630 -

5,761,454 -

CAPA International Conference was held for the firstime in Bangladesh in the year 2011-12

so, there is no preceeding years figure

33.00 Convocation

Fooding and Hall rent 869,380 -

Advertisement 841,028 -

Convocation Materials 233,250 -

Dressing 121,420 -

Printing 563,551 -

Stage decoration, Banner, Etc. 329,120 -

Others 67,380 -

3,025,129 -

No convocation was in the last year.

34.00 International Conference

Fooding and Hall rent 3,734,604 2,419,312

Advertisement 1,204,960 425,920

Conference Materials 378,040 523,384

Cultural and Laser Show 180,000 30,000

Printing 273,700 472,133

Stage decoration, Banner, Etc. 539,338 80,000

Others 389,718 103,807

6,700,360 4,054,556

35.00 Financial Risk Management

35.01 Liquidity Risk

a. Cash and cash equivalent on the basis of their term

b. Advance, Deposits and Prepayments on the basis of their term of maturity

c. Receivable and Inventories on the basis of their maturity period and past trend


The Liquidity Statement has been prepared in accordance with remaining maturity grouping

Taka Taka

d. Investments are on the basis of their residual maturity term

e. Non-current Assets are on the basis of their useful lives

f. Advance fees and Rent on the basis of their trend and contract

g. Various Fund on the basis of their behavioral past trend and adjustment

Liquidity position has stated in Annexure-"D"

35.02 Credit Risk

Annual Membership fees 4,923,168 2,721,878 Rental dues 2,162,855 2,014,130 Advances to employees 2,530,437 1,202,068 Other advances 24,950,000 22,390,000 Security deposits 1,425,410 1,481,490

Others debtors 500,000 19,249

Total 36,491,870 29,828,815

Domestic debtors 36,491,870 29,828,815

Foreign debtors - -

Total 36,491,870 29,828,815

The ageing of debtors

Not past due 10,990,090 4,880,502

Past due up to 1 year 1,027,838 345,912

Past due 1-2 year 722,764 916,494

More than 2 year 23,751,178 23,685,907

Total 36,491,870 29,828,815

35.03 Market Risk

The Institute does not exposed any interest risk or exchange risk.

quality credit rating.

Bank balances including fixed deposit with banks are held only reputable banks with high

The Maximum exposure to credit risk at the reporting date is as follows:

Analyses of Receivable and advances from


Property, Plant and Equipment Schedule

As on 30 June'12

Taka Taka Taka Taka Taka Taka Taka Taka Taka

Land 981,489 981,489 - - - - - 981,489

Building:

CA Bhaban 35,525,749 10,032,367 - 45,558,116 2% 14,071,433 - 911,163 14,982,596 30,575,520

T K Bhaban (12th Floor) 27,205,222 - 27,205,222 2% 4,691,730 - 544,104 5,235,834 21,969,388

Furniture & Fixture 8,627,954 5,069,038 2,406,582 11,290,410 10% 6,334,560 2,319,947 633,168 4,647,781 6,642,629

Books & Periodicals 4,652,599 335,692 4,988,291 20% 4,187,163 392,811 4,579,974 408,317

Educational Equipment 1,798,080 1,798,080 - 15% 1,798,079 1,798,079 - - -

Electrical Equipment 11,452,198 1,412,025 72,240 12,791,983 15% 9,732,248 72,235 1,175,359 10,835,372 1,956,611

Computers 4,473,479 2,442,430 83,333 6,832,576 20% 3,020,489 83,331 1,061,442 3,998,600 2,833,976

Vehicle 1,227,840 - 1,227,840 20% 1,227,740 99 1,227,839 1

Office Equipment 2,562,144 431,800 331,949 2,661,995 15% 1,358,420 331,933 214,157 1,240,644 1,421,351

Air-Conditioner 8,126,968 4,372,300 - 12,499,268 15% 7,862,559 - 927,918 8,790,477 3,708,791

30 June 2012 106,633,722 24,095,652 4,692,184 126,037,190 - 54,284,421 4,605,525 5,860,221 55,539,117 70,498,073

01 July 2011 105,609,545 2,176,651 1,152,474 106,633,722 50,962,413 1,152,276 4,474,284 54,284,421 52,349,301

At 1 July 2011

Addition

During The

Period

Disposals/

Adjustments

At 30 June

2012Rate

Annexure-'A'

C O S T D E P R E C I A T I O N

At 1 July

2011

Disposals/

Adjustments

Charged

During The

period

At 30 June

2012

Description

Written

Down Value

at 30 June

2012


Annexure-'B'

Intangible Assets Schedule

As on 30 June'12

Taka Taka Taka Taka Taka Taka Taka Taka Taka

Computer Software 552,900 141,362 - 694,262 20% 387,538 - 117,852 505,390 188,872

30 June 2012 552,900 141,362 694,262 387,538 117,852 505,390 188,872

01 July 2011 552,900 - - 552,900 20% 276,958 - 110,580 387,538 165,362

Description

C O S T Accumulated Amortization Net Book Value

at 30 June

2012

At 1 July

2011

Addition

During The

period

Disposals/

Adjustments

At 30 June

2012Rate

At 1 July

2011

Disposals/

Adjustments

Charged

During the

Period

At 30 June

2012

General Employees

Gratuity

Members

Welfare

General

Scholarship

President

Scholarship

Chittagong

Land

Total

Balace on 30.6.2012 145,974,908 20,207,379 4,451,729 3,100,696 1,205,726 342,220 175,282,658

Addition/(Deduction) to

General Fund 1,377,892 (1,047,823) (503,766) 157,220 (5,249) (21,726)

Employees Gratuity Fund (1,377,892) (1,377,892)

Members Welfare Fund 1,047,823 1,047,823

General Scholarship Fund 503,766 503,766

President Scholarship Fund (157,220) (157,220)

Chittagong Land Project 5,249 5,249

Liability on 30.6.2012 145,996,634 21,585,271 3,403,906 2,596,930 1,362,946 336,971 175,282,658


Annexure-'C'

Reconcilation of Fund Balance

As on 30 June'12

Description

Funds

Amount in Taka

0-1 1-3 3-12 1-5 Above 5 Total

ASSETS Month Month Month Year Year

Cash and Cash Equivalents 2,807,268 - - - - 2,807,268

Advances, Deposits and Prepayments 112,480 880,437 2,200,000 25,712,930 - 28,905,847

Receivables 590,502 1,581,004 5,414,517 - - 7,586,023

Inventories 357,804 715,607 3,220,233 - - 4,293,644

Investments 39,678,470 79,356,941 51,795,518 4,451,729 - 175,282,658

Non-current Assets - - - 55,097,632 15,589,313 70,686,945

Total Assets 43,546,524 82,533,989 62,630,268 85,262,291 15,589,313 289,562,385

LIABILITIES

Advance Fees and Rent - 384,800 2,415,073 - - 2,799,873

Payable and Accruals 1,817,440 3,634,880 16,356,959 - - 21,809,279

President Scholarship Fund - 600,000 954,386 1,554,386

General Scholarship Fund - 600,000 1,996,930 2,596,930

Members' Welfare Fund - 3,081,240 322,666 3,403,906

Employees' Gratuity Fund 1,726,470 6,905,880 12,952,921 21,585,271

Land and Building Fund - - - 116,042,998 - 116,042,998

Other liabilities - - 198,345 - - 198,345

Total Liabilities 1,817,440 4,019,680 20,696,847 127,230,118 16,226,903 169,990,988

Amount of net liquidity differences 41,729,084 78,514,309 41,933,421 (41,967,827) (637,590) 119,571,397

Net result of the Liquidity Statement represent the General Fund of the Institute


Annexure-'D'

Liquidity Statement

As on 30 June 2012

(Assets & Liabilities Maturity Analysis)

the institute of chartered accountants of bangladesh...

Documents