Bangladesh: BRPD Circular No. 14: Amendments to the Forms of the First Schedule of the Bank Companies Act, 1991

This circular issued by the Banking Regulation and Policy Department (BPRD), amends the form of financial statements and directives for preparation with a view to bringing in more disclosure in the financial statements of bank companies.

It states that the financial statements that are prepared as per the amended forms and instructions will help the users of the statements get an adequate and transparent picture of the concerned bank company.It provides prototypes of:

• The balance sheet form - in this the bank company has to present information about its property and assets, liabilities and capital, off-balance sheet items such as contingent liabilities and other commitments;
• The profit and loss account form - this contains information about the bank company's net interest income, operating income and expenses and net profit after taxation;
• The cash flow statement, statement of changes in equity and liquidity statement.

The circular goes on to provide instructions for the preparation of financial statements, which are divided into:

• Instructions on notes to balance sheet items such as cash, balance with other banks and financial institutions, investments, loans and advances, bills, fixed assets, borrowings, etc.
• General instructions such as the application of these instructions to all bank companies, clarity in disclosures, etc.