Updated Azad Term Paper Final BBA

Term paper on
Disclosure Practices of Fair Value Measurement

(IFRS-13): A Study on the Listed Banking
Companies of Bangladesh
Prepared For:
Nusrat Jahan
Assistant Professor
Discipline of Accounting
Faculty of Business Studies
Premier University, Chittagong
PreparedBy:
MD. Abu Saleh Azad
ID:1503210108571
Department of Accounting ( BBA)
Batch: 32th
Date of Submission: …………………………
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Disclosure Practices of Fair Value Measurement
(IFRS-13): A Study on the Listed Banking
Companies of Bangladesh
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Letter of transmittal
Date:
NusratJahan
Assistant Professor
Discipline of Accounting
Faculty of Business Studies
Subject: Submission of Term paper
Dear Madam,
This is my great pleasure to submit the Term paper of my three months long Term
paper program in The title of the report is “Disclosure Practices of Fair Value
Measurement (IFRS-13): A Study on the Listed Banking Companies of
Bangladesh.” This report has been prepared to fulfill the requirement of my Term
paper program.
I have put my best effort to make this report successful one. It has been joyful and
enlightening experience for me while prepare this report. However this has been
obviously a great source of learning for me to conduct similar types of studies in
the future.
I would like to express my sincere gratitude to you for your kind guidance and
suggestions in preparing the report. It would my immense pleasure if you find this
report useful and informative to have an apparent perspective on the issue. I shall
remain deeply grateful if you kindly take some plan to go through the report and
evaluate my performance.
My effort will be reworded it adds value to the research literature.
Sincerely Yours,
MD. Abu Saleh Azad

ID: 1503210108571
Department of Accounting (BBA)
Batch: 32nd
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Acknowledgement
To prepare this Term paper considerable thinking and information input from
various sources were involved. But at the beginning I would like to convey my
sincere appreciation to the almighty Allah for giving me the strength and the
ability to finish the task within the planned time. Then I like to express my sincere
gratitude to everyone who contributed towards preparing and making this study
successfully. Major contribution was received from the officer of the as from the
Risk Assessment.
First of all I would like to express my sincere and immense gratitude to my Term
paper supervisor NusratJahanAssistant ProfessorDiscipline of
AccountingFaculty of Business StudiesPremier University, ChittagongI am
deeply indebted to her whole hearted subversion to me during the Term paper
Preparing period. Her valuable suggestion and guideline helped me a lot to
prepare the report in a well-organized manner.
I am also grateful to the other officials and my friends who helped me while
preparing the study by giving their suggestion, assistance and supply of
information, which were valuable to me. Their helping hand supported me to
complete my report successfully. Finally, I want to keep my thanks to my parents
who gave special attention to me from the very beginning and during the
preparation of report and the Term paper program.
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Executive summary
The study aims to examine the extent to which banking and insurance companies with Fair Value
Measurement, to explore the relationship between the size of the firm and the level of compliance by
the listed banking and insurance companies and the relationship between the profitability of the
companies and the level of compliance. Thirty companies listed with DSE and five companies have
been taken as sample for the study. The study also found that there is a negative significant
relationship between level of compliance to IFRS-13 and the size of the firm and a negative
significant relationship between the profitability of the firm (ROA) and the level of compliance to
BFRS-13. The study also recommended that all regulatory authorities of Bangladesh should give
emphasis on the compliance status of the applicable rules and regulations by the company and the role
of auditor in case of auditing financial statements should also be supervised.
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TABLE OF CONTENT
Letter of transmittal.....................................................................................................................................3
Acknowledgement.......................................................................................................................................4
Executive summary.....................................................................................................................................5
CHAPTER-1...............................................................................................................................................3
INTRODUCTORY ASPECTS....................................................................................................................3
Introduction...........................................................................................................................................32
Objectives of thestudy:..........................................................................................................................33
Methodology of the study:.....................................................................................................................34
Sources of the Data:...............................................................................................................................34
Primary sources...................................................................................................................................34
Research Design:.................................................................................................................................34
Data Collection:...................................................................................................................................35
CHAPTER-2.............................................................................................................................................36
THEORITICAL ASPECTS.......................................................................................................................36
LiteratureReview...................................................................................................................................37
CHAPTER-3.............................................................................................................................................40
Disclosure Checklist..................................................................................................................................40
Disclosure Checklist..........................................................................................................................41
I. Results andDiscussion.....................................................................................................................42
Table 2 - The fair value disclosure requirements for recurring, non-recurring and disclosure
only items.............................................................................................................................................42
I. STUDIES ON FAIR VALUEHIERARCHY.............................................................................43
Table 3 - Degree of relevance by fair value hierarchy level..............................................................45
Table 5 - Studies of fair value measurement techniques...................................................................51
CHAPTER-4 RECOMMENDATION AND CONCLUTION..............................................................54
Recommendation...................................................................................................................................55
CONCLUSION.....................................................................................................................................56
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CHAPTER-1
INTRODUCTORY ASPECTS
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Introduction
IFRS 7 has been amended several times over the years with the clear intention to improve the
disclosure requirements about financial instruments. The latest two amendments relate to transfers of
financial assets (applicable for financial years beginning on or after 1 July 2011) and offsetting
financial assets and financial liabilities (applicable for financial years beginning on or after 1 January
2013). Furthermore, some disclosure requirements previously included in IFRS 7 have been
transferred to IFRS 13. However, there are some new requirements as well as clarifications on
previously existing requirements, included in IFRS 13.
As part of the disclosure requirements for fair value measurements, an entity shall classify
fair value measurements using a "fair value hierarchy" that categorizes the inputs to valuation
techniques used to measure fair value. The fair value hierarchy has three different levels and
gives the highest priority to quoted (unadjusted) prices in active markets and the lowest
priority to unobservable inputs (IFRS 13 para 72):
 Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets
and liabilities the entity can access at the measurement date (IFRS 13 paras 76 to
80).
 Level 2: inputs are inputs other than quoted prices included within Level 1 that are
observable for the asset and liability, either directly or indirectly (IFRS 13 paras 81
to 85).
 Level 3: inputs are unobservable inputs for the asset or liability (IFRS 13 paras 86
to 90).
The fair value hierarchy aims to increase the coherence and comparability of fair value
measurements and related disclosures by maximizing the use of relevant observable data and
minimizing the use of non- observable data.
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In this context, IFRS 13 defines a mandatory set of quantitative and qualitative fair value
disclosures. Qualitative information describes risk management objectives, policies and
processes. Quantitative disclosures,
in turn, provide information about the degree to which the company is exposed to risk, based
on the information provided by its management bodies.
In this perspective, the aim is to assess the extent to which banks operating in Portugal have
complied with the disclosures required under IFRS 13, and what are the trends in the
classification of financial instruments.
Objectives of thestudy:
(1) To examine the extent to which the Bangladeshi banking companies listed with DSE
comply with Fair Value measurement:IFRS-13.
(2) To explore the relationship between the size of the firm and the level of compliance by
the listed banking companies.
(3) To explore the relationship between the profitability of the companies and the level
ofcompliance.
(4) To get preliminary idea aboutcompanies.
(5) To collect knowledge on banking companies operations in practicalfield.
(6) To calculate the financial ratios and identify the areas of concern
(7) To understand the implications in analyzing and interpreting the financial ratios.
Methodology of thestudy:
Three banks and 2 insurance company have been taken as a sample for the study.
The name of the banks and insurance company is
1. Union Bank,
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2. ICB Shahajalal Islami Bank
3. Shahajalal Islami Bank
4. Prime Life Insurance Company Ltd.
5. Rupali Life insurance
Sources of the Data:

Source of Data of this Study
Secondary Sources
 Standard
 journal
 Articles
 Books
 Periodic and electronic sources
Limitation of theStudy
Although I was tried on the level best to make this report based on facts and
complete information available, there are some limitation that are inevitable.
Those are following:
 Sufficient records and publications as well as up to date information

are not readily available.
 Many more information could not accumulate for the resources
ofmaintaining confidently
 During my Term paper period I do not have that much time to visit other
branches to collect more data and take interview to the officers and
executives of the Industry causethey are very much busy with their day to
dayactivities.
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 Time duration of my Term paper period is not sufficient enough to
prepare my report the best one but where I tried my best to make it an
effectivereport.
 AnotherlimitationofthisreportisthattheIndustry’spolicyofnottodisclosesom
edataand information for obvious reason, which could be much
moreuseful.
CHAPTER-2
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COMPANY OVERVIEW
Company Profile:
Union Bank Ltd is one of the main fourth era banks in the local, was shaped
on first April, 2013 with the intend to give worldwide chances to their
customers. It began operation as Shariah based bank in the private segment on
20 May, 2013 by opening Gulshan Branch. It has an approved capital of Tk.
15,000 million, paid up capital of Tk. 4280 million and profit into 428 million
offers of Tk. 10 each. It renders a wide range of business keeping money
benefit inside the Bank Companies Act, 1991 and 2013 under Islamic Shariah.
The bank is overseen by the individuals Board of Directors.
Islamic managing an account is currently spread over the whole world, in both
Muslim and non- Muslim nations, as a suitable element and budgetary
delegate, the second 50% of the twentieth century saw a noteworthy moving
of intuition in formulating keeping money arrangement and system on the
premise of the "Shariah".
The bank gives fantastic client benefits however the incorporation of the most
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recent saving money innovation and furthermore Shariah based items. Bank
was prevailing to open 72 new branches at different monetarily vital areas and
furthermore some country zone. While 22 branches are in Dhaka City and 50
branches are in different regions. As per their Vision and Mission, they are
making a decent attempt to give range of administrations whether the
customersaresingular,littlebusinessvisionariesormodern
firms.Toguaranteequick,exactand viable client administrations and web based
saving money offices they have officially made concurrence with the Vendor
of Ababil. Not just by innovation, their bank has likewise plan to give physical
managing an account office to every one of their clients and bring the
unbanked
rusticindividualsundertheumbrellaofkeepingmoneybenefit.Intheageof21stcentu
ryweasa whole realize that all Commercial Bank is presently giving abroad
offices. Union bank has just
gottheSWIFTcodeandtheirtalentedandeffectiveauthoritiesarefruitfultoexchang
ecash
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from outside. UBL representatives are focused on the most astounding morals
and a set of principles (unionbank, 2017). Their workers share a typical
security and a solid conviction that the fundamental standards of corporate
administration, decency, straightforwardness, responsibility and duty are
applicable in all that they do.
Islamicbanking:
An Islamic bank is based on the Islamic faith and must stay within the limits
of Islamic Law or the Shariahin all of its actions and deeds. The original
meaning of the Arabic word Shariah was ‘thewaytothesourceoflife’
anditisnowusedtorefertolegalsysteminkeepingwiththecode
ofbehaviorcalledforbytheHollyQur’an(Koran).Fourrulesgoverninvestmentbeh
aviour:
2 the absence of interest-based (riba)transactions;

3 the avoidance of economic activities involving speculation(ghirar);
4 the introduction of an Islamic tax,zakat;
5 thediscouragementoftheproductionofgoodsand
serviceswhichcontradictthevalue pattern ofIslamic(haram).
As a Shariah based bank, Union Bank Limited strictly follow these four rules.
Vision of Union BankLtd.

To become socially committed world class financial institution.
Mission of Union BankLtd.

 Emancipatetheirpoorpeoplefromabjectpovertybyempoweringthemwi
thsmooth bankingservice.
 BetheleadingproviderofIslamicShariahcompliantbankingservicesinBa
ngladesh.
 Providefast,accurateandsatisfactorycustomerservicebymaintainingcor
porateand business ethics and transparency at alllevels.
 Ensuretechnologybasedprofessionalbankingenvironmentwithstrongc
apitalbase. Thrust on investment facilitating bankingproduct.
Corevalues:
For Customers:
TobecomemostcaringBank-
byprovidingthemostcaringandefficientserviceinevery area ofbusiness.
Foremployees:
By encouraging the employee they try to bring out the best performance from the
employee.
For their shareholders
By ensuring fair return on their investment through generating stable profit.
For their community
By assuming role as a social responsible corporate entity in a tangible
manner through close adherence to national policies.
Special Features of Union BankLtd.

As an Islamic bank, Union bank are unique in every positive aspect. They
provide a bunch of state-of-art banking services within the wide bracket of
Shariah. They are unique with their product strict with their principle and
uncompromising with their honesty. Some of their special features that make
us notable in Islamic banking sector are as follows:
AllactivitiesofUBLareconductedunderanprofit/lossbasedsystem
accordingto Islamic Shariah.
The head office and the other branches have been provided with the
State-of-the-art computer hardware as well as software to carry on
day-to-day accounting and routine work efficiently and quickly from
the beginning of the banking. Bangladeshi software has been
introduced in this feature to promote thelocal developers.
Union Bank Ltd. has implemented successfully Automated Teller Machine
(ATM)
/DBBIT card transaction from 2013. Through Automated Teller
Machine (ATM) /Debit card, customer can avail the facilities like
withdrawal money, balance inquiry and purchase goods from Point of
sale (POS) using ATM Booth and POS.
BankbelievesinprovidingdedicatedservicestotheclientsimbuedwithIsla
micspiritof brother hood, peace andfraternity.
ItsinvestmentpoliciesunderdifferentmodesarefullyShariahcompliantan
dinvestment monitored by the board18of ShariahCouncil.
The bank is committed towards establishing welfare-oriented banking system to
meet the
needs of low income and underprivileged class of people.
18
The Bank upholds the Islamic values of establishment of a justified
economic system through social emancipation and equitable
distribution of wealth.
Objectives of Union BankLtd.:

1. Provide secured banking services to the unbanked individuals all through
thenation.
2. Buildagentboothseverywherethroughoutthecountryandmake
moneyrelated administration businesspeople.
3. Setting up District/Upazila Level back office all through thecountry.
4. Tomanageanaccountwithpresentdayworldwideadministrationt
heymixtheir operationalconventional.
5. Throughelevatedrequirementandqualitymanaginganaccounttheyen
couragetheir partners.
6. Toleadoutsidetradebusinesslikeuniversalcashsettlementorganizationac
cordinglyon and innational.
7. Families of expatriate Bangladeshis get foreign inwardremittance.
8. Customercanpayutilitybill,passportfeeandsocialsafetynetpaymentser
vicesandso on.
9. Process Agricultural, SME and Retail credit from the agentpoints.
10. To degree credit office to thecustomer.
11. To give standard and speedy administration into thecustomer.
12. To degree custodial administrations for instance,locker.
13. To degree general saving money administrations to thecustomers.
14. Buying and offering of remote monetarystandards.
15. Enable online business benefits through the agentpoints.
16. Introduce school banking in thelocality.
17. Train and develop the prospective SME businesspeople.
19
18. Financingsolarhomesystemandsustainablepowersourcesegmentsas
agreenbanking initiative.
19. Give fasterservice
20. Offer interest fee banking services to thecustomers.
21. Establishing a group of entrepreneurs with Islamicvalues.
22. Strengthening the qualitative foundation of Islamic Bankingsystem.
23. For Islamic Banking they upgrade Technology and HumanResource.
24. Contributing substantially in the global profit of Union Bank Ltd.Limited.
Business plan of Union BankLimited

For General Banking
Mobilize low-cost/no cost deposit of different natures and financing
in the form of less risky investment on priority basis.
Expand country wide branches/booths in urban as
well as rural areas. Provide best services by
attending clients on call.
Be the front runner in establishing the concept of Green Banking
in Bangladesh. Meet up corporate social obligations by
participating/promoting the CSR activities.
For Corporate Services

Focus on foreign currency business through export and remittance by
expatriates as well as service providers.
Operate central online banking system.
Attain strong foundation /financial footing of the bank rather earning
more profit.
Remainvigilanttomanage&minimizealltherisksinherentwiththebanking
investment
Schemes ofUBL
25. Al-Wadiah CurrentAccount
26. Mudaraba SavingAccount
27. Mudaraba Monthly Depositscheme
28. Mudaraba Monthly profitscheme
29. Installment TermDeposit.
MudarabaKotipoti
Scheme Mudaraba
Millionaire
Scheme
MudarabaMohor
Scheme
30. Double Deposit Scheme.

31. Mubaraba PensionScheme
32. Hajj DepositScheme
“Allah has permitted trade and forbidden interest” (verse 275 of sura Al-
baraka). And as such Union Bank Limited operates with the objectives and
commitment to implement the economic and financial principles of Islam in
banking arena blending Islamic values and modern technologies with a view
to achie n ve complete success in this world and hereafter.
To provide quality service
to our customers. To set
high standard of Integrity.
To extend our customers innovation services acquiring state-of-the-art

technology blended with Islamic principles, and bring total satisfaction
to our clients and employees.
To expand Islamic banking through welfare
oriented banking system. Ensure equity and justice
in economic activities.
Extend financial assistance to poorer section

of the people, and Achieve balanced growth
& equitable development
Products andServices
General Banking & Deposit Management:
33. Account opening and KYCprocedures.
34. Issuance ofDD/TT/PO/FDR.
35. Inter Bank Transaction,OBC/IBC.
36. Accountsection.
37. ClearingSection.
38. ITSection.
Credit Department
1. Credit Proposals Processing Procedures.
2. Documentation and Loan DisbursementProcedures.
3. Overview on allreturns.
Foreign Exchange Department

I. CashL/C
1. Opening ofL/C
2. Lodgment of Import Bill.
3. Payment against ImportBill.
4. B/EMatching.
5. IMP Reporting.
II. BTBL/C
1. Export L/CChecking.
2. Opening of BTB L/C (Local/ Foreign/ EDF/EPZ).
3. Lodgment and confirmation of maturitydate.
4. Allowing ofPC.
5. Payment against realization of Export Proceeds/ ForcedLoan.

COMPANY PROFILE OF ICB ISLAMI BANK
The History of ICB

From the initial issuance of a license to operate a bank in Hungary in 1994 (which was disposed in
May 2007), the ICB Banking Group has established or acquired commercial banks in Eastern Europe,
Africa and Asia within the last fourteen years. By now ICB Banking Group is operating banks in
thirteen countries and with the advantage of banking experience of more than a decade in a global
environment.
In 1996, the group began its first African operations in Ghana and today has a presence in 9 African
countries.
The Group subsequently made its foray in Asia in 2003 by acquiring an indirect stake of 11.3% of
Bank International Indonesia, one of the largest banks in Indonesia (which was disposed in January
2008). It also acquired a controlling concern in the mid-size bank Bumiputera in Indonesia in 2004,
thereby expanding its frontiers in the banking industry.
In 2004, the individual ownerships of the ICB Banking Group were corporative under the umbrella of
ICB Financial Group Holdings AG, a Swiss based holding company.
On 17th May 2007, ICB Financial Group Holdings AG was listed on AIM market of the London
Stock Exchange.
The country of incorporation of ICB Islamic Bank is Switzerland.

THESE BANKS INCLUDE:-
1 International Commercial Bank Sh.A, Albania

2 International Commercial Bank (Djibouti) S.A
3 International Commercial Bank (Gambia) Ltd
4 International Commercial Bank Limited, Ghana
5 International Commercial Bank S.A, Republic of Guinea
6 PT Bank Bumiputera Indonesia Tbk, Indonesia
7 ICB-BancoInternacional de Comercio SARL, Mozambique
8 International Commercial Bank Senegal S.A
9 International Commercial Bank (Sierra Leone) Limited
10 International Commercial Bank (Tanzania) Ltd
2.2 BACKGROUND OF THE ICB ISLAMIC BANK LIMITED IN

BANGLADESH
Government states the rule and regulation that should be followed by a private bank. The initiative of
government has paved the way to create new and dynamic financial institutions. One such institution
in our banking sector is “ICB Islamic Bank Limited”. The bank has been incorporated in April, 1987
as a public limited company under the Companies Act, 1913 to undertake & carryout all kinds of
banking, financial & business activities, transactions & operations in strict compliance with the
principles of Islamic law (Shariah) relating to business activities in particular avoiding usury in credit
& sales transactions & any practice which amounts to usury. Certificate for commencement of
business has been issued to the bank on April, 30, 1987.
The Bank has been authorized by the Bangladesh Bank to carry on the banking business in
Bangladesh with effect from May 4, 1987. However; actual banking operations commenced on May
20, 1987 & emerged as 2nd Islamic Bank in the country under the name “Al Baraka Bank Bangladesh
Limited”.
The Oriental Bank Limited had been going through financial crisis for years and the bank gradually
reached the verge of collapse at beginning of 2006. It became a serious issue by following a report of
Daily ProthomAlo which brought the issue to all concern. Following the report of ProthomAlo and
few other dailies, there were serious pressure of withdrawal on the bank which was about to take a
ruinous form. Moreover, unfavorable news regarding the Oriental Bank Limited started influencing
clients of other private banks to withdraw their money. Observing this situation, for salvaging oriental
and other private banks as well, Bangladesh Bank was considering number of options and finally
opted to takeover the responsibility of the Bank. As such, Bangladesh Bank on 19.06.2006 removed
the Managing Director, dissolved the Board of Directors and appoints an Administrator. Bangladesh
Bank undertook the control of the bank on June 19, 2006 as bank was in extreme liquidity crisis due
to many setbacks and irregularities in preceding years. Bangladesh Bank also confiscated shares of the
owners later on. The Bank was listed at Dhaka Stock Exchange limited and Chittagong Stock
Exchange Limited.
On 4th March 2008, The Oriental Bank was took over by ICB Banking group.. ICB Islamic Bank Ltd.
operates in Bangladesh with a total of 32 branches across the country based on Islamic Shariah. Its
authorized Capital is Tk.10.00 billion (USD 0.14 billion approx.) and Paid-up Capital is Tk.7.00
billion (USD 0.1 billion approx.). The present Chairman of our Bank Dr. Hadenan A Jalil was the
former Auditor General of Malaysia. The Chief Executive (Managing Director) Mr. Abdul Latif Bin
Yahaya was the former High Official of the Central Bank of Malaysia. The ICB Banking Group is a
member of London Stock Exchange. Commensurate with the global policy of ICB Banking Group,
ICB Islamic Bank is committed to provide banking services of international standard to its clients in
all areas of banking to cater customer need. ICB dedicated substantial investments to ensure that best
people are employed; the operating systems are technologically superior; proven systems and methods
are implemented consistently with best practices; strong internal controls are entrenched; and
proactive risk management is implemented and respected.
The principal place of business is the registered office at T.K. Bhaban( 4th,14th, 15th, 16th Floor), 13,
Kawran Bazar, Dhaka-1215, Bangladesh. ICB Islamic Bank Ltd. Currently the bank has 32(thirty
two) branches; 12 in Dhaka, 4 in Chittagong, 4 in Sylhet, 3 in Jessore, 1 each in the district of Khulna,
Hobigonj, Barisal, Rajshahi, Feni, Narsingdi, Naogaon, and Narayangonj.
The bank provides all kinds of commercial banking services to customers observing the provisions of
the Bank Companies Act.1991, Bangladesh Bank’s directives & the principles of Islamic Shariah.
2.3 Vision
The vision of the Board and the Management is to lead the Bank to a new height with all rounds of
achievements and to make it a Bank for the new generation, for which all of us will feel proud of.
ICB Islamic Bank Limited visualizes itself as:
• Providing the greatest return to share holders by achieving sound profitable growth.
• Having staffs of the highest caliber.
• Working together to make decisions, managing the change and getting things done
.
2.4 Mission
To establish Islamic Banking by translating the Islamic economic principles into practice, blending
the progressive Islamic Thoughts of Banking & latest financial services technologies with
commitment for 36 highest degree of accountability & transparency with all trust on Allah.
2.5 Objectives of ICB Islamic Bank Limited

The motto of ICB Islamic Bank Limited is-“to explore a new horizon of innovative modern banking
by creating an automated and computerized environment to the people on the basis of Shariah”
The objectives of ICB Islamic Bank are-
• Increase the number of branch.
• Increase the Customer satisfaction,
• To make profit & always be in breakeven point,
• Increase the Paid up Capital,
• Proper monitoring for giving loan,
• Make friendly & nice relationship between the management and the employees.
2.6 Goal
• To develop & consolidate a strong client base and ensure all kinds of modern banking facilities.
Expanding business & service periphery to fulfill the expectations of the shareholders and customers
by following Islamic Shariah.
• To equip & prepare the Bank with modern & up to date progressive Islamic banking system, to
achieve the target of becoming “The number one Bank” of the country in respect of profitability and
service.
2.7 Value of ICB Islamic Bank Limited

The value statement of ICB Islamic Bank Limited is “A Progressive Islamic Bank”.
ICB Islamic Bank Limited holds the following values:
• Focus on the customers to build relationships based on integrity, superior service and mutual
benefits.
• Work as a team to serve the best interests of the group.
• Relentless in pursuing improvement.
• Respect people and make decisions based on report.
• Recognition and rewards based on performance.
• Open and honest communication.
• Responsible, trustworthy and law abiding in every activity.
2.8 Nature of Business

The bank provides all kinds of commercial banking services to the customers observing the provisions
of the Bank Company Act 1991, Bangladesh Bank’s directions & principles of Islamic Shariah.
2.9 The Management Team of ICBIBL

Organogram of Branches of ICBIBL:
2.10 MANAGEMENT HIERARCHY

CHAIRMAN
BOARD OF DIRECTORS
MANAGING DIRECTOR
DEPUTY MANAGING DIRECTOR
SENIOR EXECUTIVE VICE PRESIDENT
EXECUTIVE VICE PRESIDENT
SENIOR VICE PRESIDENT
VICE PRESIDENT
SENIOR ASSISTANT VICE PRESIDENT
ASSISTANT VICE PRESIDENT
EXECUTIVE OFFICER
ASSISTANT EXECUTIVE OFFICER
SENIOR OFFICER
OFFICER
ASSISTANT OFFICER
COMPANY OVERVIEW OF SHAHJALAL ISLAMI BANK

LIMITED
Background of the Organization
ShahjalalIslami Bank followed Islami Sharia. The bank is named of a saint

HazratShahjalal
whodedicatedhislifeforthecauseofpracticingIslamintheeastnorthpartofthissubco
ntinent (wikipedia, 2018). ShahjalalIslami bank was established in 1 st April
2001 as a private commercial bank under companies Act 1994. SJIBL started
its banking operation on the
followingyear10thmaywithitsfirstbranch,obtainingthelicensefromBangladeshBa
nk.The corporate head office of the bank is situated at ‘ShahjalalIslami Bank
Tower’ plot No:4, CWN(C) Gulshan Avenue, Dhaka-1212. Now the bank has
in total 113 branches where 60 branches is in Dhaka zone, 25 in Chittagong
zone, 7 in Sylhet zone, also 7 in Khulna zone, 11 in Rajshahi zone, 3 in Barisal
zone, and has 2 branches for priority banking which is situated in Dhanmondi
and in the corporate branch (ShahjalalIslami Bank Ltd.,2009-2018).
ShahjalalIslamiBankLimitedoffersallkindofbankingfacilitylikeaccountopening,
deposit, investment facility, money transfer facility, foreign trade
transactionsetc.
SJIBLisalwaysreadytomaintainthehighestqualityofservicesbyupgradingbanking
policies in management and by applying higher standard of business ethics with
sharialaw.
Vision:
To be the unique modern Islami Bank in Bangladesh and to make significant
contribution to the national economy and enhance customers' trust & wealth,
quality investment, employees' value and rapid growth in shareholders' equity.
Mission:
 To provide quality services tocustomers.
 To set high standards ofintegrity.
 To make qualityinvestment.
 To ensure sustainable growth inbusiness.
 To ensure maximization of Shareholders'wealth.
 To extend our customers innovative services acquiring state-of-the-art

technology blended with Islamicprinciples.
 To ensure human resource development to meet the challenges of thetime.
Strategy:
 To strive for customer’s best satisfaction & earn theirconfidence.
 To manage & operate the Bank in the most effectivemanner.
 To identify customer’s needs & monitor their perception towards

meeting those requirements.
 To review & updates policies, procedures & practices to enhance the

ability to extend better services to thecustomers.
 To train & develop all employees & provide them adequate resources so
that the customers’ needs are reasonablyaddressed.
 To promote organizational efficiency by communicating company

plans, polices & procedures openly to the employees in a timelyfashion.
 To cultivate a congenial workingenvironment.
 To diversify portfolio both the retail & wholesalemarkets.
Senior Vice President
ORGANOGRAM OF SJIBL:
Organogram of ShahjalalIslami Bank
Chairman
Sharia Council Board of Director Sponsor
Audit committee
Managing Director Executive committee
Deputy Managing Executive Vice President Deputy Managing

Director Director
Senior Vice President Senior Vice President
Vice President
Assistant vice president
Executive Officer
Assistant Executive
Officer
Senior Executive Officer
Trainee Officer
Product and services of ShahjalalIslami Bank:

Basically ShahjalalIslami Bank provide these services- Foreign Trade service,
Investment Service and General Banking service.
In foreign trade SJIBL offer the following products-
 Letter ofcredit
 Bankguarantee
 Bill passes
Ininvestment,ShahjalalIslamicbankinvestonsomethingonbehalfoftheirclienttogi
vethem their desire product or service. Lastly, general banking deals with the
customers directly like opening account, MTDR or FDR, issuing pay order,
clearanceetc.
SJIBL have two types of category in their product, one is deposit another one is
investment products.
The list of deposit products is-

 SJIBL School Banking
 Mudaraba monthlyIncome
 Mudaraba DoubleMoney
 Mudaraba MonthlyDeposit
 MudarabaMillionaire
 Mudaraba HajiDeposit
 Mudaraba Cash WaqfDeposit
And the list of Investment products is-
 Small and Medium EnterpriseInvestment
 Small BusinessInvestment
 HousingInvestment
 Household Durable
 CarInvestment
 Scheme for Doctors
 Scheme for Executives
 Scheme for Marriage
 Scheme for Education
COMPANY OVERVIEW OF Prime Life Insurance company ltd
Prime Life Insurance Company Ltd. was incorporated in July-2000. It was

converted into an Islamic Company in the name of Prime Islami Life Insurance Ltd. in
April-2002. The company’s paid-up capital is Taka 158 million. The Credit Rating
Information and Services Ltd. (CRISL) have graded the Company rating claim
paying ability to A+. It got ISO certification on the 6th October, 2006. The company
has a fifteen-member Shariah Council (Shariah Advisory Board) constituted with
eminent Islamic scholars, Shariah experts and Legal experts for supervising the
affairs/functions of the company in the light of Shariah.
Name of The Company Prime Life Insurance Limited
Authorised Capital Taka 500 Million
Paid Up Capital Taka 305.20 Million
Date of Incorporation 24th July, 2000
Date of Commencement of Business June, 2001
Date of Conversion into Islami Company 22nd April, 2002
Credit Rating Grade 'A+'
Date of ISO Certification 6th October, 2006
Date of Allotement of Public Share 7th January, 2007
Face Value Per Share TK. 10
Date of listing with DSE & CSE 12th February, 2007
Date of Inauguration of Trading Share 14th February, 2007
Company profile of Rupali Life Insurance Company Limited

(RLIC
HISTORY OF THECOMPANY
Rupali Life Insurance Company Limited (RLIC) was established back in 2000.
Now Rupali Life, with its Head Office in Dhaka operates all over the Bangladesh.
Rupali Life Insurance Company Limited offers a system to replace the loss of income
that occurs when someone dies (usually the person who produces the majority of
income in a family situation). It is a contract between you as insured person and RLIC
that is providing the insurance if our clients dies while the contract is in force, the
Rupali Life Insurance Company Limited will pay a specified sum of money free from
income tax "Cash benefits" to the person or persons beneficiaries or nominees. Our
Life Insurance Plans do more than just replaces the loss of income that occurs after
your date. It should provide money to cover the new costs that arise after customers
death funeral expenses, taxes, probate costs, the need for housekeepers, child care, and
so on. And those cash benefits should provide for your families future needs as well,
including education for your children and part of all of your spouse's retirement needs.
In almost all the cases, your beneficiary can use the cash benefits, in the way he or she
thinks it is fit. RLIC's strategy of creating neighborhood ability to asset its activities
has extraordinarily added to its accomplishment in comprehension, meeting and
reacting rapidly to change client needs and economic situations. We are primarily
staffed with local personnel who are constantly studying the needs of individuals and
developing innovative products to the specific requirements of each district of
Bangladesh. This long-standing methodology is the establishment of our initiative,
since we comprehend neighborhood advertise needs and conditions. Nearby
mindfulness epitomizes RLIC's past history and proceeds right up 'til today.(Rupali
Life Insurance Company Limtied,2018)
 COMPANY PROFILE
Name of the Company Rupali Life Insurance Company Limited
Status of the Company A Public Limited Company incorporated in
Bangladesh under the companies Act 1994
of joint stock companies and firms and
registered with Insurance Development and
Regulatory Authority (Formerly
Department of Insurance), Governmentof
thePeoples Republic of Bangladesh.
Nature of the business Life Insurance business
Date of incorporation 28th December 1999
Authorized capital Tk. 1,000 (One Thousand) million
Paid up Capital Tk. 277.39 (Two Hundred Seventy Seven
point Three Nine) million.
Registered office Rupali Life Tower, 50 Kakrail, Dhaka-1000
Re-insurer SCOOR Global Life SE, Singapore
Auditors Ahmad & Akhtar Chartered Accountants,
BCIC Bhaban (3rd Floor) 30-31 Dilkhusha
C/A, Dhaka-1000
Consulting actuary Mohammad Sohrab Uddin, PhD, AIA
Consulting Actuary.
Tax advisor Md. Delwar Hossain, FCA
Legal advisor A.F. Hassan Arif& Associates
Bankers EXIM BANK, BANGLADESH KRISHI
BANK, ISLAMI BANK BANGLADESH,
PRIME BANK, JANATA BANK,
AGRANI BANK, MERCANTILE BANK,
FIRST SECURITY BANK, THE CITY
BANK, SOCIAL ISLAMI BANK,
JAMUNA BANK, UNITED
COMMERCIAL BANK, UTTARA BANK,
MUTUAL TRUST BANK, TRUST BANK,
AL-ARAFAH ISLAMI BANK, SOUTH
EAST BANK, EASTERN BANK,DUTCH
BANGLA BANK.
Membership Bangladesh Insurance Association
Bangladesh Association of Publicly Listed
Companies.
Telephone (00880-2) 8392361-4
Fax 0088-02-8392370
e-mail info@rupalilife.com,
Rupali_life@yahoo.com
Website Rupalilife.com
(Ruapli Life Insurance Company Limited, 2018)
VISION ANDMISSION
Vision
To be the best life insurance company of choice among Life Insurance Companies and
their members for quality life insurance solutions that help to ensure financial security
and peace of mind.
Mission
To be a strategic long-term partner with Rupali Life Insurance Company, providing

quality products, legendary service and uncompromising marketing programs and
distribution support that:
 Meet the needs of Rupali Life Insurance Companymembers.
 Strengthen the brand and enhance the value of Rupali Life Insurance
Company membership.
 Provide a competitive return to our owners and contribute meaningful revenue
to Rupali Life.
 Create a positive environment for motivated associated to grow and contribute
to the success of Rupali Life Insurance Company.(Rupali Life Insurance
Company Limtied, 2018)
OBJECTIVES, VALUES ANDPRINICIPLES.

OBJECTIVES:
Based on two objectives I have prepared this report:
Primary Objective: The main objective of this report is to provide necessary

information about the procedures of Recruitment and selection techniques followed by
the RUPALI LIFE INSURANCE COMPANY LIMITED through the HR Department
and recommendation.
Secondary Objective:
a) To have a clear view about what is actually happening in the field of HRM of
the selected businessorganization.
b) To collect information and about the Recruitment & Selection process of
theorganization.
c) To experience different Recruitment & Selection system those are being
followed by Rupali Life InsuranceLimited.
d) To relate the theoretical knowledge with the real life experience of the
Recruitment & Selection process of Rupali Life InsuranceLtd.
VALUES:
(Rupali Life Insurance Company Limtied, 2018)

Customer First Always:
Give first priority to customer needs. Look to build a good rapport with customers
- internal and external. Differences should be communicated with the customers in
the way of building relationship with them spirit of relationship building. Make
changes based on customers feedback. It helps to first be aware of what customers
think of.
Organization Above Self:
We believe that individual, team and department actions will be driven by
organization goals.
Trust:
We believe that there cannot be teamwork without mutual trust. Trusts is fundamental to
our business and guide all internal and external interactions.
High Standards:
We believe that excellence can be achieved only by setting benchmarks that
challenge our full potential as an organization and as individuals.
Shared Ownership:
We believe that ownership of success or failure in achieving organizational or
team goals is shared by all.
Spirit of Adventure:
Uncertainty is our business and we believe in continuous innovation and creativity
to meet challenges head-on.
Respect for Diversity:
We believe that diversity is our strength and it needs to be nurtured. we understand
that team members have varying family backgrounds, competencies and
constructive ideas.(Rupali Life Insurance Company Limtied,2018)
BRAND LIST OF RUPALI LIFEINSURANCE

Rupali Life Insurance Company Limited provides its client with a variety of different
types of Life Insurance services, which also provide money to cover the cost of death
funeral expenses, taxes, childcare and so on. RLIC has the following product for its
clients.
 Child Protection Endowment

 Endowment Insurance withprofits
Insurance withprofits
 Guaranteed Bonus Endowment  Single Payment Endowment

Insurance Insurance withprofits
 Three Payments Anticipated  Biennial Payment Endowment

Endowment Insurance withprofits Insurance withprofits
 Four Payments Anticipated  Education Protection Endowment

Endowment Insurance withprofits Insurance withprofits
 Progressive Endowment Insurance  Takaful Deposit Pension

withprofits EndowmentInsurance
 Pension Insurance Policy without  Mudaraba Deposit Pension

profits Scheme with profits.
(Rupali Life Insurance Company Limtied, 2018)
ORGANOGRAM OF RUPALI
41 | P a g e
CHAPTER - 3
THEORITICAL ASPECTS
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Literature Review
Landsman, (2007) indicated that fair value is more informative than historical cost. The
objective of IFRS13 is to improve consistency, comparability and reduce complexity in fair
value applications. As a result, IASB developed fair value hierarchy. This hierarchy includes
three levels of inputs: level 1 depends on quoted prices in an active market; level 2 depends
on inputs other than quoted prices used in level 1 that are observable for assets and liabilities;
and level 3 which includes unobservable inputs for the assets and liabilities (Picker et al.,
2012).
(Al-Kababji, 2016) studied the extent of compliance with disclosure requirements for fair
value measurement (IFRS 13) in Palestinian corporations, found out direct relationship
between the size of the firm and the level of compliance with the disclosure requirements for
fair value measurement of the firms, no correlation between the profitability of the firm and
the level of compliance with the disclosure requirements for fair value measurement of the
firms. In addition,
Alkababji (2016) referred that using fair value accounting was one of the most important
reason for the financial crisis in banking sector. So, if the market is suffering from lower level
of efficiency and high level of illiquidity, the fair value would provide a misleading
information, especially if it is based on the input of level 2, and level 3 which requires
investors to discount the fair value due to its reliance on other than observable inputs and the
management's judgment (Goh, Li, Ng, & Yong, 2015, p. 3 cited in Daas&Jammal, 2018).
Latridis (2010) studied listed firms on London stock exchange, that the IFRS implementation
has positive effect on the financial performance (measured by profitability and growth
potential) of firms.
Ali et al. (2009) studied the extent of adoption of International Financial Reporting Standards
(IFRSs) within three major South Asian countries such as India, Pakistan and Bangladesh.
The result shows that the overall level of adoption of IFRSs regarding measurement and
disclosure practices is higher in Pakistan compared with India and Bangladesh.
Hossain et al. (2015) examined the extent of application and disclosure of IASs and IFRSs
43 | P a g e
among the listed companies in Dhaka Stock Exchange (DSE) of Bangladesh using the data
that have been collected randomly from the annual reports of the companies and a survey was
conducted to independent accountants and company management from 2010 to 2013. ―The
study showed that the banking industry has the highest standard deviation which is far more
away from other sectors. Therefore, the highest inconsistency in applying IASs and IFRSs
observed in this sector. It was identified that the reasons behind non-disclosure was mainly
posed due to the desire and awareness of the management of the companies. From the part of
company accountants, three factors are dominants for non-disclosure of accounting standards
properly that are adherence to business risk, chance of losing potential customers and the
standards are irrelevant to the company. From the part of the independent auditors that
reveals that the major influencing factors behind non-disclosure of practices of BASs and
BFRSs are intention of the management of the company to hide important information, lack
of expertise in measuring and reporting value of items by the company, chance of losing the
potential investors, adverse mindset of the entrepreneur to disclose the information,
inadequate expertise of the accountants to measure different elements where fair value of
financial instruments is applicable, awareness of the users of accounting information to get
the information and adherence of business risk.‖ For the developed countries, to ensure
reliability of financial information, fair value accounting is considered as a good measure but
in the developing countries, the question of active market is a major concern. They also
showed that if organizations prepare financial reporting using fair value accounting and
historical value accounting, the benefits of fair value accounting there is derivable
(Enahoro&Jayeoba, 2013). (Jain,2013) concluded that infrastructure to support
understanding, provide oversight, enforcing proper application of the concept, providing
training & awareness programme are some of the essential elements for successful
implementation of Fair Value Accounting.
Ogundana, et al. (2018) showed that there is an association between IFRS 13 increased
disclosure requirement and investing decision. Hence, the adoption of IFRS 13 in the
preparation and presentation of financial statement should be encouraged amongst
companies.
Uyar, et al. (2013) studied Turkish manufacturing companies listed in Borsa Istanbul and
44 | P a g e
found a positive association between voluntary information disclosure level and the variables
such as firm size, auditing
firm size, and proportion of independent directors on the board, corporate ownership, and
corporate governance. But variables namely, profitability, listing age, and board size were
found to be insignificant. However, leverage and ownership diffusion were found to have
negative significant association with the extent of voluntary disclosure.
Sochi (2016) studied to understand and examine the level of mandatory disclosure made by
the listed companies in Bangladesh and found that many corporate annual reports do not meet
the disclosure requirements of the regulatory bodies in Bangladesh. The results also showed
that Companies that are larger in size measured by total capital employed and annual sales
are likely to disclose more information.
Hasan (2015) investigated the extent and level of mandatory and voluntary disclosure
practice of companies in Bangladesh using sample of 54 listed companies in Bangladesh for a
data period of 2010 -2013. This paper analyzed that the mandatory disclosure compliance is
poor among listed companies and on an average 71% of the companies analyzed disclose
above-average number of additional information. The explanatory analyses has shown that
firm size in terms of total asset and status of the company significantly and positively affect
the level and extent of voluntary disclosure in the annual report of Bangladeshi companies.
On the other hand company size in terms of total asset and sales, and company profitability
was also found to have no effect on mandatory disclosure.
45 | P a g e
CHAPTER-3
Disclosure Checklist
Disclosure Checklist
The following disclosure checklist has been prepared according to the requirements of IFRS-13: Fair
Value Measurement
Serial Particulars Paragraph
No.
1. For recurring and non-recurring fair value measurements, the fair value measurement at the end of the 93(a)
46 | P a g e
reporting period, and for non-recurring fair value measurements, the
reasons for the measurement
2. For recurring and non-recurring fair value measurements, the level of the fair value 93(b)
Hierarchy
3. For assets and liabilities held at the end of the reporting period that are measured at fair 93(c), 95
value on a recurring basis
4. For recurring and non-recurring fair value measurements categorized within Level 2 and 93(d)
Level 3 of the fair value hierarchy, a description of the valuation technique(s)
5. For recurring fair value measurements categorized within Level 3 of the fair value
hierarchy:
6. -total gains or losses for the period recognized in profit or loss
7. -total gains or losses for the period recognized in other comprehensive income
93(e)(f) , 95
8. -purchases, sales, issues and settlements
9. -the amounts of any transfers into or out of Level 3 of the fair value hierarchy
10 For recurring and non-recurring fair value measurements categorized within Level 3 of 93(g)
the fair value hierarchy, a description of the valuation processes used by the entity
11 For recurring fair value measurements categorized within Level 3 of the fair value hierarchy, a 93(h-1)
narrative description of the sensitivity of the fair value measurement to
Changes
12 For financial assets and financial liabilities, if changing one or more of the unobservable 93(h-2)
Inputs
13 For recurring and non-recurring fair value measurements, if the highest and best use of a 93(i), 97
non-financial asset differs from its current use
14 An entity shall present the quantitative disclosures required 99

Total points to be disclosed in the financial statements under BFRS-13: Fair Value Measurement 14
(Source: Alkababji, 2016)

I. Results and Discussion
Table 1: Compliance Status by the Sample Companies listed with DSE
Serial No. Bank Name Points gained out of 14 Percentage
points
1 Union Bank, 4 28.57%
2 ICB Islami Bank 5 35.71%
3 ShajalalShahajalalI 4 28.57%
slami Bank
4 Prime Life 4 28.57%
Insurance
47 | P a g e
Company Ltd.
5 Rupali Life 3 21.43%
insurance
Table 4 - Advantages and disadvantages of fair value measurement

Fair value measurement advantages Fair value measurement disadvantages
Despite the criticisms raised about deficiencies The implementation of fair value accounting
associated with fair value accounting, it is fails and the valuation process is unreliable
difficult to identify better alternative methods to when the ratio of output values to fair values
meet the requirements in accounting standards for shareholders is not sustained
regarding the relevance, reliability, (Penman,2007).
comparability and comprehensibility of financial
information (Véron, 2008; Petroni
&Wahlen, 1995; Barth et al., 1995; Eccher,
Ramesh &Thiagarajan, 1996; Nelson, 1996).
48 | P a g e
Several authors recognise the relevance of the The use of fair values and market-based
disclosure of fair values of financial instruments valuations in periods when markets are not
such as securities and derivatives held by liquid, such as during financial crises,
financial institutions (Venkatachalam, 1996; isacauseforconcernofresearchers(Hughes&T
Park, Park & ett,2008;
Ro, 1999). McCreevy, 2008).
Level 3 measurements, based on models, provide The use of fair value measurements reduces
investors with useful information (Kolev, 2008). the quality of earnings information since
changes in fair value are unpredictable
making it more difficult to identify the
recurring part of the gain (Dichev& Tang,
2008).
Fair value measurements provide a forecast of Management decisions in the valuation
future possible models can be used
accounting profits (Evans, Hodder & Hopkins, for private gains (Shalev, Zhang & Zhang,
2014). 2013).
CHAPTER-4
ANALYSIS
49 | P a g e
Checklist of Union BankLimited
S. Description 2019
N
1 Fair value measurement at the end of the period √
(P-180-2-1)
2 The reason for measurement √
(P-183-2.2-1)
3 The level of hierarchy X
4 The amount of transfer,reason for transfer and policy for X

determining timing of transfer of assets and liabilities from one level to
another level
50 | P a g e
5 Reason for transfer and policy for determining timing of transfer X
of assets and liabilities to level 3
6 Beginning and ending of reporting period regarding transfer of √

assets and liabilities
(P-183-2.8-1)
7 Valuation technique & input used for valuation and change & √
reason for change(if any) in valuation technique
(P-185-2.10.2-1)
8 Quantitive information about significant unobserved input
Total gain or loss in P/L A/C,Total gain or loss in comprehensive √

income & purchase ,sales,issues and settlement(if any)
9 (P-181-2.1.2-2)
10 The amount of gain or loss change in unrealized gain or loss
11 Description of valuation process used by entity √
(P-185-2.10.2-1)
12 Change in unobservable input,assets& liabilities X
13 Highest and best use of non-financial assets differ from current X

Use
14 Reconcilation between disclosure of assets and liabilities by fair X
value and financial statement presentation
15 Quantitive information disclosure in tabular format X
51 | P a g e
Checklist of ICBIslami Bank
S. Description 2019
N
(P-154-3.3-5)
2 The reason for measurement X

another level
5 Reason for transfer and policy for determining timing of transfer of X

assets and liabilities to level 3

(P-154-3.6-1)
(P-155-3.7.2-1)

9 (P-150-3.1.1-3)
10 The amount of gain or loss change in unrealized gain or loss X
11 Description of valuation process used by entity X

Use
14 Reconcilation between disclosure of assets and liabilities by fair √
(P-160-3.19-1)
15 Quantitive information disclosure in tabular format √
(P-166-3.24.4-
52 | P a g e
1)
53 | P a g e
Checklist of ShahajalalIslami Bank
S. Description 2019
N
(P-291-1.1-2-4)
(P-295-2.2-1)

another level


(P-296-2.11-1)
(P-297-3.2-1)

9 (P-292-2.1.1-1)
13 Highest and best use of non-financial assets differ from current √

Use
(P-292-2.1.1-4)
value and financial statement presentation (P-294-2.1.9-1)
54 | P a g e
Checklist of Prime Life Insurance company ltd
S. Description 2019
N
(P-21-2.1-2-4)
(P-26-2.3-1)

another level


(P-26-2.6-1)
7 Valuation technique & input used for valuation and change & reason √
for change(if any) in valuation technique
(P-28-3.2.2-1)

9 (P-21-2.1.1-3)
13 Highest and best use of non-financial assets differ from current use √
(P-24-2.1.17-1)
value and financial statement presentation (P-22-2.1.6-1)
55 | P a g e
Checklist of Rupali Life Insurance
S. Description 2019
N
(P-110-2.1-1)
(P-113-2.2-1)

another level

(P-113-2.6-1)
(P-114-3.1.2-1)
8 Quantitive information about significant unobserved input X

9 (P-110-2.1.2-1)

Use

(P-111-2.1.6-1)
56 | P a g e
Valuations (Based on 2019)
S. Particulars Union Bank ICB ShahajalalIslami

N ShahajalalIslami Bank
Bank
1 Size of the company:
a) Total Assets 365,800,089,852 235,654,753,951 753,957,369,851
b) Gross Revenue 23,589,226,210 20,058,987,887 41,558,830,498
c) Total Equity 38,255,357,084 25,859,289,786 46,951,303,753
d) Net Income 4,258,753,951 2,586,587,548 7,356,859,896
2 Profitability:
a) Return on Equity 15.31% 13.34% 12.49%
b) Return on Asset 1.08% 0.78% 5.83%
c) Earning Per 5.32 5.17 4.89

Share
3 Disclosures 6 6 7
4 Listing Year 1993 1984 1985
(27 Years) (36 Years) (35 Years)
5 Audit Firm M.M brothers& J.Y. Mohsin& Co. A. M. Abdur

Co. Rahman& Co.
(A) (A)
(A)
6 Industry Type Bank Bank Bank
7 Qualified Accountants
S. Particulars Prime Life Rupali Life
57 | P a g e
N Insurance company Insurance
ltd
1 Size of the company:
a) Total Assets 381,575,678,880 11,376,493,358
b) Gross Revenue 14,961,916,531 520,987,278
c) Total Equity 28,116,657,718 4,089,834,312
d) Net Income 2,473,208,844 71,719,849
2 Profitability:
a) Return on Equity 9.90% 2.89%
b) Return on Asset 0.75% 0.73%
c) Earning Per 1.35 0.899

Share
3 Disclosures 8 7
4 Listing Year 2000 Not Listed Yet
(20 Years)
5 Audit Firm Rahman& Abedin’s

Company
(A)
(A)
6 Industry Type Insurance Insurance
7 Qualified Accountants
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CHAPTR - 5
RECOMMENDATION AND
CONCLUTION
59 | P a g e
Recommendation
Now some recommendation d\based on findings of the study are given below:
 A separate accounting board can be set up with the representatives from

ICAB and ICMAB with the responsibility to oversee the degree of
compliance with the disclosure requirements.
 BSEC & IFRC should not publish the companies’ financial statement that
is not prepared in full compliance with IFRS-13.
 The role of auditor in case of auditing financial statements should also be
supervised.
 The problems that the companies are facing to fully complied with IFRS-
13 needed to be overlooked by the regulatory bodies.
60 | P a g e
CONCLUSION
The debate between historical cost accounting and fair value accounting gained
popularity after the recent financial crunch. There is so much writing for and
against fair value measurement and relevancy for historical cost accounting.
Application of IASs and IFRSs largely depends on the market conditions and
management interest of the companies. Fair Value supporters argue that to
increase the quality of financial information, application of fair value is
necessary. On the other hand, opponents of fair value accounting argue that fair
value measurement can provide misleading information if the market becomes
inefficient. However, by taking consideration of the objective of Fair Value
Measurement: IFRS-13, The ICAB adopts IFRS-13: Fair Value Measurement as
BFRS-13 on January 1, 2013 in Bangladesh. Bangladesh is a developing
country. Here, banking sectors play an important role for the economy. Financial
statements are the mirror of the companies’ position. Quality of information is
the precondition for effective decision making. In order to ensure the quality of
information, the bank must comply with the reporting rules and regulations. The
study concentrated on the extent to which the Bangladeshi banking companies
listed with DSE comply with Fair Value Measurement: BFRS-13. Findings from
the study revealed that almost all the banks listed with DSE have scored less
than average and sample companies listed with NYSE scored 100%. The study
also found that there is a negative significant relationship between level of
compliance to IFRS-13 and the size of the firm and a negative significant
relationship between the profitability of the firm (ROA) and the level of
compliance to BFRS-13. That means with the increase of the size and
profitability of the firms, level of compliance to IFRS-13 have not increased.
The study recommends that
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[12]. Kaya, C. (2013). Threatening nature of level 3 inputs under the Hierarchy of Fair Value
Accounting. Journal of Accounting & Taxation Studies (JATS), 6(2), 55-64.
[13]. Kothari, S. & Lester, R. (2012). The role of accounting in the financial crisis: lessons for the
future. Accounting Horizons, 26(2), 335-352.
[14]. KPMG (2017). Comment Letter. Post-implementation Review: IFRS 13 Fair Value
Measurement.Retrieved January 7, 2018, from
https://home.kpmg.com/content/dam/kpmg/xx/pdf/2017/09/isg-comment-letter-post-
implementation-review-IFRS13-fair-value- measurement.pdf
[15]. Kunz, B. (2015). The scope of disclosures of fair value measurement methods of financial
instruments in financial statements of bankslistedontheWarsawStockExchange.
ResearchpapersofWroclawUniversityofEconomics,381,158-176.
[16].
62 | P a g e
Correction:
1. Executive summery is totally different from topic. Properly write Executive
summery based on your report.
2. Alignment and space is not properly used. In objectives of the report there is
no space in any sentence.
3. No primary data is used in your report.
4. Research design is irrelevant and probably copied from a thesis about risk
assessment procedure. Try to write yourself.
5. In Data collection you mention depth interview, which is false. Try to write
honestly. Don’t copy from others without knowing the meaning of the sentence.
6. Literature review is not a part of theoretical overview. If you want to include
Literature review, include it in 1st chapter.
7. Chapter 3 is totally irrelevant and fully copied from some articles that are not
related with your term paper in any way.
8. Page set up is not correct
9. Analysis is not sufficient to take decision.
10. You do not mention the relation (if any) between variables and disclosure
which was one of the main objectives of report.
63 | P a g e

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Term paper on

Disclosure Practices of Fair Value Measurement

Date of Submission: …………………………

Subject: Submission of Term paper

My effort will be reworded it adds value to the research literature.

MD. Abu Saleh Azad

of auditor in case of auditing financial statements should also be supervised.

(4) To get preliminary idea aboutcompanies.

(5) To collect knowledge on banking companies operations in practicalfield.

Sources of the Data:

 Sufficient records and publications as well as up to date information

2 the absence of interest-based (riba)transactions;

Vision of Union BankLtd.

Mission of Union BankLtd.

Special Features of Union BankLtd.

Objectives of Union BankLtd.:

10. To degree credit office to thecustomer.

11. To give standard and speedy administration into thecustomer.

12. To degree custodial administrations for instance,locker.

13. To degree general saving money administrations to thecustomers.

14. Buying and offering of remote monetarystandards.

15. Enable online business benefits through the agentpoints.

16. Introduce school banking in thelocality.

17. Train and develop the prospective SME businesspeople.

20. Offer interest fee banking services to thecustomers.

21. Establishing a group of entrepreneurs with Islamicvalues.

22. Strengthening the qualitative foundation of Islamic Bankingsystem.

23. For Islamic Banking they upgrade Technology and HumanResource.

24. Contributing substantially in the global profit of Union Bank Ltd.Limited.

Business plan of Union BankLimited

For Corporate Services

Operate central online banking system.

Attain strong foundation /financial footing of the bank rather earning

30. Double Deposit Scheme.

To provide quality service

to our customers. To set

high standard of Integrity.

To extend our customers innovation services acquiring state-of-the-art

To expand Islamic banking through welfare

oriented banking system. Ensure equity and justice

Extend financial assistance to poorer section

& equitable development

34. Issuance ofDD/TT/PO/FDR.

35. Inter Bank Transaction,OBC/IBC.

2. Documentation and Loan DisbursementProcedures.

Foreign Exchange Department

2. Lodgment of Import Bill.

3. Payment against ImportBill.

2. Opening of BTB L/C (Local/ Foreign/ EDF/EPZ).

3. Lodgment and confirmation of maturitydate.

5. Payment against realization of Export Proceeds/ ForcedLoan.

The History of ICB

The country of incorporation of ICB Islamic Bank is Switzerland.

1 International Commercial Bank Sh.A, Albania

2.2 BACKGROUND OF THE ICB ISLAMIC BANK LIMITED IN

2.5 Objectives of ICB Islamic Bank Limited

2.7 Value of ICB Islamic Bank Limited

2.8 Nature of Business

2.9 The Management Team of ICBIBL

2.10 MANAGEMENT HIERARCHY

COMPANY OVERVIEW OF SHAHJALAL ISLAMI BANK

Background of the Organization