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Focus Group Discussion on “Implementation of IFRS for SMEs” held
SMEs are the lifeline of Bangladesh’s economy contributing over 25% to the GDP. The adoption of “International Financial Reporting Standard” (IFRS) for SMEs provides a structured framework that enhances financial transparency. IFRS will also strengthen access to finance and investment, boost global competitiveness and reduce the risks of financial misreporting. These were told by Taskeen Ahmed, President of Dhaka Chamber of Commerce & Industry (DCCI) at a focus group discussion on “Implementation of IFRS for SMEs” held at DCCI on 22 March, 2025.
He also said that IFRS will significantly impact tax revenue collection by improving compliance, minimizing tax evasion and bringing more businesses into tax net. He also termed that limited financial capacity, shortages of skilled manpower and compliance cost creates barrier in adopting IFRS for SMEs, he added. He however stressed on the need for investment in training and regulatory alignment.
Dr. Mohammad Abu Yusuf, Chairman (Acting), Financial Reporting Council, said that IFRS is very important for SMEs to comply with the international standards, but its implementation is still challenging for our SMEs due to lack of knowledge, skilled workforce, easy procedures and awareness. He opined that there is no alternative to enhancing the capacity of SMEs to make them interested in implementing IFRS. SMEs need to be more focused on IFRS implementation to increase tax compliance, access to capital from the capital market, and signing international trade agreements.
Md. Amir Uddin, Executive Director, Bangladesh Bank, said that the implementation of IFRS should be focused on improving the image of local SME entrepreneurs in the global arena, but it is necessary to provide training to improve their skills. They should be well aware of the benefits of implementing IFRS as well.
Nawshad Mustafa, Director, SME & Special Programmes Department of Bangladesh Bank, said that we have lack of trained and skilled accounting professionals in the country especially for SMEs. To implement IFRS in a practical manner, an enabling environment is necessary for this. He also said that IFRS is implemented in 80 countries in the world and it is also required for us to implement but that should be without affecting the business activities of our SME sector. He again stressed for a friendly environment for its implementation.
Mohammad Jahangir Hossain, General Manager, SME Foundation, said that from SME Foundation accounting software were provided to few SME entrepreneurs, but it was not implemented in many cases due to lack of skills and interest. He then proposed for sector based customized accounting software for SME sector to make it easy. Later he emphasized on providing facilitation and training for further implementation of IFRS.
Sk. Md. Tarikul Islam, FCA Partner, Hoda Vasi Chowdhury & Co. Chartered Accountants, presented the keynote paper. He said that capacity building, training for accountants & auditors and initial transition costs are some of the challenges for implementation of IFRS. Regulatory bodies, professional organizations, and financial institutions can play a vital role in facilitating a smooth transition, he added. He also highlighted key benefits of IFRS for SMEs such as simplified reporting, cost-effective compliance, enhanced credibility and facilitating growth. He however urged for easy access to finance, lower tax and vat rate, reduced tax rate for green business, tax incentive for SME startups and simplification of tax paying process for the SME sector.
Speaking at the open discussion, DCCI Convener Lutful Hadee, FCA, said that there are about 2200 chartered accountants in the country, out of them about 600 are in practice. Moreover, about 40 thousand part-qualified accounting professionals are also in the market after completing various pertinent courses. But still we need more trained accounting professional in the country to cope up with the growing demand.
DCCI’s Joint Convenor, Md. Shafiqul Alam, FCA, urged for the uniformity in the definition of SME in different policies and regulations of different institutions.
DCCI’s Senior Vice President Razeev H Chowdhury and Vice President Md. Salem Sulaiman were also present during the meeting.
Published on: 2025-03-22