The Dhaka Chamber of Commerce and Industry (DCCI) has stated that the adoption of International Financial Reporting Standards (IFRS) for small and medium enterprises (SMEs) would provide a structured framework to strengthen access to finance and investment.
During a discussion on “Implementation of IFRS for SMEs”, DCCI president Taskeen Ahmed, stated that IFRS will enhance financial transparency and reduce the risks of financial misreporting.
He emphasised the positive impact of IFRS on tax revenue collection by improving compliance and minimising tax evasion.
He, however, noted that challenges such as limited financial capacity, skilled manpower shortages, and compliance costs create barriers to adopting IFRS for SMEs.
Ahmed called for investment in training and regulatory alignment to overcome these obstacles.
Financial Reporting Council chairman (acting) Mohammad Abu Yusuf said: “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: “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.”
Bangladesh Bank SME & Special Programmes Department director Nawshad Mustafa pointed out the lack of trained accounting professionals in the country, particularly for SMEs.
SME Foundation Mohammad general manager Jahangir Hossain shared that the foundation provided accounting software to some SME entrepreneurs.
Hossain proposed sector-based customised accounting software for the SME sector and emphasised the need for facilitation and training for the further implementation of IFRS.
Hoda Vasi Chowdhury & Co. Chartered Accountants partner Tarikul Islam presented the keynote paper.
He outlined challenges such as capacity building and initial transition costs for IFRS implementation.
Islam highlighted the role of regulatory bodies, professional organisations, and financial institutions in facilitating a smooth transition and underscored the benefits of IFRS for SMEs, including simplified reporting and cost-effective compliance.
He also called for measures to support the SME sector, such as easy access to finance, lower tax and VAT rates, and tax incentives for green businesses and SME startups.
DCCI joint convenor Shafiqul Alamat urged for uniformity in the definition of SME across different policies and regulations.
