Green University of Bangladesh (GUB)

AssignmentOn

Accounting Theory – (ACT – 412)

Topic: Definition and Role of AICPA, AAA, FASB, BSEC, ICAB and ICMAB.

Semester: Summer – 2014 (1402)

Prepared for:

Shahreen Sonia

Lecturer, Accounting Theory

Department of Business Administration (DBA)

Green University of Bangladesh (GUB)

Dhaka, Bangladesh.

Prepared by:

Md. Moazzem Hossain

ID. 110106034

Date: 22nd July 2014 Signature

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Table of ContentsSl.

No.

Name of Topic Page

No.

i. Letter of Transmittal 3

ii. American Institute Of Certified Public Accountants - 'AICPA' 4

iii. Role of American Institute Of Certified Public Accountants - 'AICPA' 4 & 5

iv. American Accounting Association - 'AAA' 6

v. Role of American Accounting Association - 'AAA' 6 & 7

vi. Financial Accounting Standards Board - 'FASB' 8

vii. Role of Financial Accounting Standards Board - 'FASB' 8

viii. Bangladesh Securities and Exchange Commission - 'BSEC' 9

ix. Role of Bangladesh Securities and Exchange Commission - 'BSEC' 9

x. Institute of Chartered Accountants of Bangladesh - 'ICAB' 10

xi. Role of Institute of Chartered Accountants of Bangladesh - 'ICAB' 10

xii. Institute of Cost and Management Accountants of Bangladesh - 'ICMAB' 11

xiii. Role of Institute of Cost and Management Accountants of Bangladesh - 'ICMAB' 11

xiv. Bibliography 12

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Letter of Transmittal

July 22, 2014Shahreen Sonia

Lecturer, Accounting TheoryDepartment of Business Administration (DBA)Green University of Bangladesh (GUB)

Subject: Submission of an assignment.

Dear Madam

I gladly present to you the assignment titled “Definition and Role of AICPA, AAA, FASB, BSEC, ICAB and ICMAB.” I have made the assignment as you give me to do by help of your lecture sheet, the book as you suggested us for the course titled “Accounting Theory” and internet.

I believe the knowledge and experience I gathered during the assignment will be extremely helpful in my future academic life and professional life. I will be grateful to you if you accept the assignment.

Your support in this regard will be highly appreciated.Thanking you.

___________________Md. Moazzem HossainID. 110106034

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1) American Institute Of Certified Public Accountants - 'AICPA'

The non-profit professional organization of certified public accountants in the United

States. The American Institute of Certified Public Accountants was founded in 1887,

under the name American Association of Public Accountants, in order to ensure that

accountancy gained respect as a profession and that it was practiced by ethical, competent

professionals. The AICPA exists to provide more than 370,000 members with the

resources, information and leadership to provide CPA services in the highest professional

manner.

Role of American Institute Of Certified Public Accountants - 'AICPA'

The AICPA sets standards and rules that all members and other practicing CPAs must follow. This authority extends to the following areas:

1. Auditing Standards2. Compilation and Review Standards3. Other Attestation Standards4. Consulting Standards5. Code of Professional Conduct

1. Auditing Standards:

The Auditing Standards Board (ASB) is responsible for issuing pronouncements on auditing matters for all entities other than publicly traded companies.

The pronouncements are known as Statements on Auditing Standards (SASs)

2. Compilation and Review Standards:

The Accounting and Review Services Committee is responsible for issuing pronouncements of the CPAs responsibilities when the CPA is associated with financial statements of non-public companies that are not audited.

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The Statements on Standards for Accounting and Review Services (SSARS) provide guidance for providing compilation (no assurance on financials) and review services (limited assurance on financials).

3. Other Attestation Services:

Forms of attestation are often performed for other than historical financial statements.

Examples of other attestation services involve prospective financial information in forecasts and projections.

4. Consulting Standards:

The Management Consulting Services Executive Committee is responsible for issuing pronouncements on consulting services.

Consulting differs from attestation in that the CPA does not report on another party’s assertion. Rather, the CPA develops findings, conclusions, and recommendations.

5. Code of Professional Conduct:

The AICPA Committee on Professional Ethics sets rules of conduct that CPAs are required to meet.

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2) American Accounting Association - 'AAA'

An organization that supports worldwide excellence in accounting education, research

and practice. The American Accounting Association is the primary professional

association for accounting academics in the United States. Formed in 1916 under the

name American Association of University Instructors in Accounting, it assumed its

current name in 1936. It is a voluntary organization comprised of individuals interested in

accounting education and research.

Roles and Responsibilities of American Accounting Association - 'AAA'

A. Enhancement of Learning:

Association members serve society by contributing to the development of its future leaders. Members accept the responsibilities implied by their position as teachers and mentors, including helping students and staff to develop thosespecific skills that will enable them to become contributing members of the profession and society, and helping them develop a foundation for life-long learning. Members also recognize that they contribute to the development of students in more indirect ways such as:

Developing in students an appreciation for the importance of ethics and professionalism as well as technical expertise.

Creating a fair and honest classroom environment. Insisting on excellence while simultaneously treating all individuals with

dignity. Conducting academic, business, and professional affairs with integrity.

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B. Pursuit and Advancement of Knowledge:

Association members serve their broader constituency through scholarship including: the discovery, application, and integration of ideas that enhance our understanding of accounting, business, human interaction with accounting measurements or business activities, and society. Members fulfill their scholarship obligations in ways that match their professional abilities, backgrounds, interests and their institutions' specific mission. Some aspects of that obligation include:

Establishing and maintaining a scholarship agenda that is directed to important societal and professional needs and stretches the member's knowledge.

Maintaining and strengthening scholarly competence, consistent with the requirements of each member's own research agenda.

Accepting criticism of one's own work and providing objective and constructive criticism to colleagues.

Publishing one's scholarship in ways that make the results available both to scholars and to a larger community.

Encouraging and promoting a variety of scholarship approaches that result in quality work and contribute to the enhancement of scholarship and the public good.

C. Service Activities:

Association members accept a responsibility to perform service to society, their institutions, their academic discipline, the profession, the business community, and the social community. The form of that service will vary depending on members' unique skills, passions, and background. Service is generally enhanced when Association members:

Seek out opportunities for service consistent with their institution’s mission,

the Association’s mission, and with a recognition that members have a unique role to play within our society as independent, objective evaluators of accounting activities.

Complete the service obligations with a commitment to excellence. Avoid conflicts of interest between the member's academic efforts, business

interests, and service activities.

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3) Financial Accounting Standards Board - 'FASB'

A seven-member independent board consisting of accounting professionals who establish

and communicate standards of financial accounting and reporting in the United States.

FASB standards, known as generally accepted accounting principles (GAAP), govern the

preparation of corporate financial reports and are recognized as authoritative by the

Securities and Exchange Commission.

Roles and Operating Procedures of Financial Accounting Standards Board - 'FASB'

i. The FASB identifies a financial reporting issue based on requests or recommenda-

tions from stakeholders.

ii. The FASB chairman decides whether to add a project to the technical agenda (a) after

consulting with the FASB members and others as appropriate and (b) subject to

oversight by the Financial Accounting Foundation’s Board of Trustees.

iii. At one or more public meetings, the FASB deliberates the various reporting issues

identified and analyzed by its staff.

iv. The FASB issues an Exposure Draft to solicit inputs from various stakeholders. (In

some projects, the FASB may issue a Discussion Paper in order to obtain input in the

early stages of a project.) The Exposure Draft presents the proposed standards, the

proposed effective date and method of transition, background information, and an

explanation of the basis for the FASB conclusions.

v. The FASB holds a public roundtable meeting on the Exposure Draft, if necessary.

vi. The FASB staff analyzes comment letters, public roundtable discussion, and any

other information obtained through the due process activities. The FASB re-

deliberates the proposed provisions, considering the input received, at one or more

public meetings.

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vii. The FASB issues an Accounting Standards Update, describing amendments to the

Accounting Standards Codification (ASC).

4) Bangladesh Securities and Exchange Commission - 'BSEC'

The Bangladesh Securities and Exchange Commission (BSEC) was established on 8th June, 1993 as the regulator of the country’s capital market through enactment of the Securities and Exchange Commission Act 1993.  Through an amendment of the Securities and Exchange Commission Act, 1993, on December 10, 2012, its name has been changed as Bangladesh Securities and Exchange Commission from previous Securities and Exchange Commission.  The Commission consists of a Chairman and four Commissioners who are appointed for fulltime by the government for a period of four years and their appointment can be renewed only for further one term, but the condition is that age cannot exceed 65 in position during the tenure. The Chairman acts as the Chief Executive Officer (CEO) of the Commission. The Commission has overall responsibility to formulate securities legislation and to administer as well.  The Commission is a statutory body and attached to the Ministry of Finance.

Roles and Functions of Bangladesh Securities and Exchange Commission - ' BSEC '

Regulating the business of the Stock Exchanges or any other securities market.

Registering and regulating the business of stock-brokers, sub-brokers, share

transfer agents, merchant bankers and managers of   issues, trustee of trust deeds,

registrar of an issue, underwriters, portfolio managers, investment advisers and

other intermediaries in the securities market.

Registering, monitoring and regulating of collective investment scheme including

all forms of mutual funds.

Monitoring and regulating all authorized self regulatory organizations in the

securities market.

Prohibiting fraudulent and unfair trade practices relating to securities trading in

any securities market.

Promoting investors’ education and providing training for intermediaries of the

securities market.

Regulating the substantial acquisition of shares and take-over of companies.

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Undertaking investigation and inspection, inquiries and audit of any issuer or dealer of securities, the Stock Exchanges and   intermediaries and any self regulatory organization in the securities market.

5) Institute of Chartered Accountants of Bangladesh - 'ICAB'

The Institute of Chartered Accountants of Bangladesh (ICAB) is the National

Professional Accounting Body of Bangladesh established under the Bangladesh

Chartered Accountants Order 1973 (Presidential Order No. 2 of 1973).

Roles and Objectives of Institute of Chartered Accountants of Bangladesh - ' ICAB '

Regulate the Accountancy Profession and matters connected therewith in the country.

Ensure sound professional ethics and code of conduct by its members.

Provide specialized training and professional expertise in Accounting, Auditing,

Taxation, Corporate Laws, Management Consultancy, Information Technology and

related subjects.

Impart Continuing Professional Education (CPE) to its members.

Foster acceptance and observance of International Accounting Standards (IAS) and

International Standards on Auditing (ISA) and adopt the same as Bangladesh Accounting

Standards (BAS) and Bangladesh Standards on Auditing (BSA) respectively.

Keep abreast of latest developments in Accounting techniques, Audit methodology,

Information technology, Management consultancy and related fields.

Liaise with international and regional organizations to influence the development of

efficient capital markets and international trade in services.

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6) Institute of Cost and Management Accountants of Bangladesh - 'ICMAB'

The Institute of Cost and Management Accountants of Bangladesh (ICMAB) is a leading professional body in Bangladesh that offers professional qualification in Cost and Management Accountancy, with a focus on accounting for business. ICMAB program has been designed to meet the evolving needs of business-today and tomorrow. We look forward to helping you to achieve excellence as a professional.The Institute of Cost and Management Accountants of Bangladesh is the only national institute of the country imparting training and education in the field of cost and management accounting. The Institute is a statutory organization constituted by the government under the Cost and Management Accountants Ordinance, 1977 (Ordinance No. LIII of 1977) and regulated under the Cost and Management Accountants Regulations, 1980 (as amended up to date).

Roles and Objectivesof Institute of Cost and Management Accountants of Bangladesh - ' ICMAB '

Regulate and develop the Cost and Management Accounting (CMA) profession in

Bangladesh;

Provide and confer the highest professional degree in Cost and Management Accounting;

Impart education and training to the members, corporate managers and intending students of

CMA for enhancing their capability in the fields of Cost and Management Accounting;

Develop knowledge, skills and competence of the CMAs needed to support economic

development of the country and, thus, to prepare capable manpower needed for various

national and international development activities according to the requirements of the

millennium;

Help development, adoption and implementation of    International Financial Reporting

Standards (IFRS) in Bangladesh;

Formulate, adopt and implement Cost Accounting and Auditing Standards (CAAS) in

Bangladesh and international;

Implement statutory Cost Audit as provided in the Companies Act, 1994 ; and

Conduct research in the field of Cost and Management Accounting in order to promote and

develop the profession to meet the requirement of the time.

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Bibliography:

http://www.investopedia.com/terms/a/american-institute-of-certified-public-accountants.asp

http://www.investopedia.com/terms/a/american-accounting-association-aaa.asp http://www.investopedia.com/terms/f/fasb.asp http://www.sec.gov.bd/ http://www.icab.org.bd/index.php?

option=com_content&view=article&id=48&Itemid=126 http://www.icmab.org.bd/index.php?

option=com_content&task=blogcategory&id=19&Itemid=158 http://www.icmab.org.bd/index.php?

option=com_content&task=view&id=381&Itemid=235 http://aaahq.org/about/SOR.pdf http://www.jsu.edu/ccba/fea/faculty/zanzig/477/477_2.ppt http://www.sec.gov.bd/ http://www.willamette.com/insights_journal/12/winter_2012_2.pdf http://www.icab.org.bd/index.php?

option=com_content&view=article&id=136&Itemid=131 http://www.icmab.org.bd/index.php?

option=com_content&task=view&id=381&Itemid=235

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