Financial Report Preparation in Bangladesh

A financial report is the product that most outside parties actually see. The NBR assesses company tax on it, banks set credit limits from it, BIDA, Bangladesh Bank and AD banks review it for foreign-owned entities, and buyers and investors value the business on it. A report that is technically weak or inconsistent with tax and VAT filings creates problems for all of them.

This page is for companies that need annual financial statements prepared for audit, businesses applying for loans or tenders, and owners who want useful monthly management reports. It explains what a complete report contains, which standards apply, and the most common weaknesses we see in Bangladeshi financial statements. For the auditor's opinion itself, see our audit report page.

What a complete financial report contains

• Statement of financial position (balance sheet) at year end, with comparative figures
• Statement of profit or loss and other comprehensive income
• Statement of changes in equity showing share capital, retained earnings and reserves
• Statement of cash flows, classifying operating, investing and financing flows
• Notes: accounting policies, judgements, breakdowns of major balances, related-party transactions, contingencies and events after the reporting date
• Directors' report, as required under the Companies Act 1994 for presentation at the AGM

Standards and legal framework

Bangladesh has adopted International Financial Reporting Standards, which were earlier issued locally as BFRS and BAS. The Financial Reporting Council, established under the Financial Reporting Act 2015, oversees financial reporting and auditing standards for public interest entities and other entities within its scope. The Companies Act 1994 requires directors to keep proper books and lay a balance sheet and profit and loss account before the AGM.

Sector rules add requirements. Banks, insurers, NGOs and listed companies follow additional formats and disclosures from their regulators. Smaller private companies typically apply IFRS on a proportionate basis, but should not ignore key standards such as revenue recognition, leases, employee benefits and income taxes.

Who uses the financial report, and what they look for

• NBR: taxable income, allowable expenses, tax depreciation and consistency with VAT and withholding returns
• Banks: profitability, cash flow, leverage, and whether turnover matches bank statement credits
• Tender committees: turnover and net worth thresholds, supported by a DVS-verified audit report
• Foreign parents and investors: compliance with group policies, related-party balances and dividend capacity
• RJSC and shareholders: statutory compliance and approval at the AGM

Common weaknesses in Bangladeshi financial statements

• Turnover in the accounts that differs from VAT returns with no reconciliation
• No deferred tax or incorrect current tax calculation
• Director and related-party balances shown without disclosure or terms
• Gratuity or other employee benefit obligations not provided for
• Leases treated as simple rent expense where IFRS 16 requires recognition on the balance sheet
• Boilerplate notes copied from another company that do not reflect the actual business

Monthly management reports

Statutory financial statements look backwards once a year. Management reports should guide decisions every month. A useful pack is short: profit and loss against budget, a cash position and forecast, receivables and payables ageing, and a few key performance indicators relevant to the business. When monthly reports use the same chart of accounts as the year-end statements, year-end preparation becomes much faster.

How the process works

1. Collect trial balanceWe obtain the final trial balance, prior-year statements and key supporting schedules.
2. Review and adjustWe review balances against IFRS requirements and propose adjustments for tax, leases, employee benefits and other items.
3. Draft statementsWe prepare the primary statements and comparative figures in the required format.
4. Write notesWe draft accounting policies and notes that reflect your actual business and transactions.
5. Reconcile with filingsWe reconcile reported figures with VAT returns, withholding records and the tax computation.
6. Finalise for auditWe deliver the draft to the auditor and update it for agreed adjustments.

Typical timeline: Preparing annual financial statements for a small or medium company usually takes one to three weeks after the trial balance is final, depending on complexity and the quality of supporting schedules.

How Tax & VAT Associates helps

• IFRS-based annual financial statements with full notes
• Directors' report drafting for the AGM
• Reconciliation of reported figures with VAT and tax filings
• Tax computation and deferred tax schedules
• Monthly management reporting packs
• Financial statements formatted for bank or tender applications

Frequently asked questions

Related services

Last reviewed: 6 October 2026. Bangladesh tax and regulatory rules change with each Finance Act, SRO and authority circular. This page is general guidance; confirm current requirements for your case before filing.