US and Bangladesh Accounting Methods

US and Bangladesh Accounting Methods

The basic difference between IFRS and traditional accounting system of Bangladesh is that under the traditional method of accounting, financial statements are prepared complying with historical cost convention but under the IFRS, financial statements are prepared by applying various methods of measurement such as historical cost, current cost, amortised cost, net realisable value, present value, fair value etc. More or less, in all the areas of recognition, measurement, presentation and disclosure, differences remain between IFRS and traditional accounting system of Bangladesh. For example, according to traditional accounting system, recognition of deferred tax asset ...