Financial Disclosure Practices of Private Commercial Banks in Bangladesh: A Compliance Study

Abstract

The study is based on analysis of compliance of prevailing accounting standards for the Private Commercial Banks in Bangladesh. This paper empirically analyzed the performance of disclosure in compliance with IFRS 7. 6 listed private banking companies taken as sample. To fulfil its objective, the annual reports and documents of all the sample banks are examined and obtained data from surveys. Since all of them are required to comply with the standard of IFRS 7 to disclose relevant financial information to uphold the stakeholders’ interest, the extent of deviation from the standards in terms of disclosure practice is also examined. The study found that average compliance of the standards is 72.77% by the banks. The highest rate of compliance found from individual compliance status of those companies is 80% with a negative deviation from average. However, the practices of disclosure in reporting are considerably good. Therefore, it is recommended that the regulatory authority and central bank of Bangladesh should mandate the compliance of IFRS 7 for disclosure in financial reporting.