South Asian Federation of Accountants (SAFA) 

South Asian Federation of Accountants (SAFA), an IFAC Network Partner, comprises eleven professional accountancy bodies from the South-Asian Region, namely: India, Pakistan, Bangladesh, Sri Lanka, Nepal, Maldives, and Afghanistan. Bhutan, where no accountancy body exists, is an observer. SAFA has undertaken the leadership role in providing a new direction to the accountancy profession within the region and SAFA has over 475,000 members affiliated with its member bodies. The Institute of Chartered Accountants of India (ICAI) hosts SAFA’s Permanent Secretariat at New Delhi. More information on SAFA can be found by visiting the SAFA website.

Cost and Management Accounting 

This topic-focused series partners IFAC with the four Cost and Management Accounting-related IFAC members from the South Asia region—Institute of Cost Accountants of India (ICMAI), Institute of Cost and Management Accountants of Bangladesh (ICMAB), Institute of Cost and Management Accountants of Pakistan (ICMAP), and the Institute of Certified Management Accountants Sri Lanka (CMA Sri Lanka)—to produce a series of monthly articles to highlight the importance and impact of these PAOs not only in their jurisdictions but the region they serve. The South Asia region is expanding fast in terms of economic growth and the respective professional bodies have existed for decades to serve the needs of their constituents and growth.

Starting July 2024 until October 2024, each of the professional accounting organizations (PAOs) will prepare an article sharing best practices of their experiences.

The third article is produced by ICMAB Bangladesh.

The Institute of Cost and Management Accountants of Bangladesh (ICMAB) serves as the national body dedicated to advancing the Cost and Management Accounting profession in the country. Operating under the Ministry of Commerce, Government of the People's Republic of Bangladesh (GoB), the ICMAB boasts a legacy that predates the nation's independence. It was reconstituted under the Cost and Management Accountants Ordinance of 1977, which was subsequently replaced by the Cost and Management Accountants Act of 2018. ICMAB’s official web link is www.icmab.gov.bd.

ICMAB operates under the administrative oversight of the Ministry of Commerce, GoB. Established by an Act of Parliament (CMA Act 2018) and governed by the CMA Probidhanmala 2019 (as updated up to date), the Institute features a robust two-tier governance system consisting of the Council and the Administration. The Council, responsible for policy formulation, is composed of twenty-one members—16 elected by the general membership for three-year terms and five nominated by the GoB from various ministries. The Administration implements these policies, ensuring effective management and operation of the Institute.

Recognized as a Professional Accounting Organization and its members as Professional Accountants under the Financial Reporting Act 2015, ICMAB holds a prestigious position in the accounting community. It is a founding member of the International Federation of Accountants (IFAC) and an active participant in regional bodies such as the South Asian Federation of Accountants (SAFA) and the Confederation of Asian and Pacific Accountants (CAPA). As one of the two professional accounting institutes in Bangladesh, the ICMAB plays a commendable role in fostering national growth and prosperity, demonstrating its commitment to professional excellence and global integration.

MEMBERSHIP PROFILES

The Institute offers both associate and fellow memberships, standing as a beacon of professional excellence. With over 1,800 qualified members holding key positions in trade, commerce, industry, and government organizations, both locally and internationally, the ICMAB demonstrates its significant impact on the economic growth and development of Bangladesh. Additionally, the Institute boasts over 20,000 registered students, making it one of the largest professional accounting institutions in Bangladesh. Furthermore, approximately three hundred registered practicing firms continuously contribute to the nation's development by offering a wide range of accounting and consulting services, underscoring the vital role Cost and Management Accountants (CMAs) play in driving economic growth and organizational success.

PROFESSIONAL HORIZONS

The ICMAB is dedicated to expanding its professional horizons to better serve society and support the Government of Bangladesh in achieving its key development goals such as Vision 2030, Vision 2041, and the Delta Plan. The role of CMAs has evolved beyond traditional cost and management accounting to encompass various critical functions. Today, CMAs can serve as auditors, valuers, authorized representatives, advisors, and more. These expanded roles are possible through regulatory enactments embedded in various acts, guidelines, pronouncements, rules, and circulars. Key regulatory supports for CMAs are found in the Companies Act, the Securities and Exchange Commission Act, the Listing Rules, the Code of Corporate Governance, and the Income Tax Act, among others. These efforts collectively contribute to the growth and flourishing of the accountancy profession.

DEVELOPMENT TRIANGLE

From its inception, the ICMAB has adopted a multi-stakeholder approach to ensure inclusive development, addressing the needs of four major stakeholders: members, students, executives, and society. The Institute develops both hard and soft infrastructure, enabling each stakeholder to fulfill their roles effectively and satisfactorily. Some of these development initiatives include:

  • Shaping Professionals through ICMAB Competency Framework
    • The Institute has developed a comprehensive competency framework designed to meet the
      A triangle chart with four sections: members, students, and excutives in the outside sections, and society in the middle
      evolving skillset demands in both Initial Professional Development (IPD) and Continuing Professional Development (CPD). This framework covers curriculum design, classroom delivery, assessments, practical experience requirements, and training, ensuring a steady supply of highly skilled professionals to the market. Prepared following International Education Standards (IES), the framework integrates the specific needs of the local market, ensuring relevance and effectiveness in producing competent professionals.
  • Policy Guidelines to Promote Good Governance and Professional Excellence
    • The ICMAB has established a range of policy guidelines, including social media policies, fund management policies, insurance management policies, and scholarship fund policies, to ensure good governance and effective management of its activities. These guidelines not only streamline the Institute's operations but also promote transparency and accountability. To support its members, the Institute has also developed comprehensive texts such as cost accounting standards, cost accounting report rules, and cost audit standards. These policies and guidelines empower CMAs to uphold the highest professional standards, thereby driving organizational efficiency, fostering economic growth, and contributing significantly to Bangladesh's prosperity.
  • Enhancing CMAs’ Contributions through Strategic Alliances
    • To ensure the continuous contribution of CMAs to Bangladesh's prosperity, the ICMAB has forged strategic alliances with various esteemed bodies. The Institute collaborates with reputed public and private universities, offering course waivers through the Credit for Prior Learning (CPL) policy and providing scholarships for students with proven academic excellence. Regular nationwide awareness programs are conducted at different universities to engage students and highlight the prospects of the CMA qualification. Additionally, the Institute hosts 'open day' events where university students spend a day learning about the CMA program and its career benefits. The innovative 'ambassador program' connects current students with the Institute through designated ambassadors, fostering a strong link between academia and the profession. Furthermore, the ICMAB has mutual arrangements with various corporate bodies, providing extensive facilities and opportunities to its members, executives, and students, thus enhancing their professional growth, and contributing to the nation's economic development.
  • Community Outreach Initiatives in Fostering Engagement and Excellence
    • The ICMAB actively engages society through a variety of programs that highlight the Institute's developmental initiatives. Annually, it hosts the Best Corporate Award Program to recognize and celebrate the achievements of top-performing corporate bodies across multiple categories. Additionally, the Institute organizes Educators Day, inviting faculty members from universities and graduate colleges to foster deeper connections and collaboration. By hosting international conferences, the ICMAB attracts local and global researchers and academics, facilitating the exchange of ideas and the development of policy suggestions and guidelines. These initiatives underscore the Institute's commitment to excellence and its role in driving progress within the professional and academic communities.
  • Empowering CMAs for Bangladesh's Prosperity
    • The ICMAB ensures its members remain highly sought-after by organizing a wide range of CPD programs throughout the year. These programs, available in physical, virtual, and hybrid formats, include workshops, training sessions, and site visits that address skill gaps and keep members abreast of the latest industry developments. By equipping CMAs with innovative knowledge and skills, the Institute enables them to provide invaluable insights and services that enhance organizational efficiency, support strategic decision-making, and foster sustainable economic progress in Bangladesh.

WAY FORWARD

As Bangladesh advances towards economic growth and aims to become a developed nation by 2041, CMAs will play a pivotal role in this journey. Recognizing the country's rapid development and the need for skilled professionals, the ICMAB has crafted a strategic plan to position itself as a key development partner. Currently, the number of professional accountants in Bangladesh is insufficient to meet the growing demands. To address this, the ICMAB has established strong links with various universities and colleges to attract talented students who will lead the profession into the future. Concurrently, the Institute implements comprehensive knowledge-building programs to keep its members updated with the latest developments in accounting and finance, ensuring their continued relevance and effectiveness. The ICMAB also maintains active engagement with market stakeholders, including regulators, employers, and pressure groups, through various programs. This ongoing dialogue ensures that the Institute remains attuned to market needs and can adapt its strategies accordingly. By fostering a continuous process of negotiation and adaptation, the ICMAB not only supports its members but also contributes significantly to the broader economic development of Bangladesh. Through these initiatives, CMAs are well-equipped to drive organizational efficiency, support strategic decision-making, and, play a crucial role in the nation's path to prosperity.

Other Articles in this Series

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Dr. Mohammad Zakaria Masud

Director, Academic Affairs Division, Institute of Cost and Management Accountants of Bangladesh (ICMAB)

Dr. Mohammad Zakaria Masud is a professor and director of the Academic Affairs Division of the Institute of Cost and Management Accountants of Bangladesh (ICMAB). Before joining ICMAB, he worked as the Chairman of the Green Business School at the Green University of Bangladesh. Dr. Masud worked in the education industry in different capacities and at various institutes, e.g., American International University – Bangladesh, East West University, Dhaka City College, Bangladesh University of Engineering and Technology, and Southeast University. He also worked as a visiting faculty (Palme Scholar) at the University of Gavle, Sweden. He was a casual academic staff and course coordinator at the La Trobe University and the Federation University, Australia. He has obtained his BBA and MBA degrees in AIS from the Department of Accounting and Information Systems at the University of Dhaka. He received his Ph.D. from La Trobe University, Melbourne, Australia. He is a fellow member of the ICMAB. He has several publications in reputed local and international journals and editorial books. He has attended various national and international seminars, symposiums, colloquiums, and workshops. 

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Dr. Nikhil Chandra Shil

Professor, East West University (EWU)

Dr. Nikhil Chandra Shil is a professor at East West University (EWU). Before joining EWU, he has worked at American International University - Bangladesh and Daffodil International University. He also worked as a guest lecturer at the Bangladesh University of Engineering and Technology and the Institute of Cost and Management Accountants of Bangladesh (ICMAB). He has obtained his BBA and MBA degree with a concentration in accounting and information systems from the Department of Accounting and Information Systems at the University of Dhaka. He has done his Ph.D. from the same department. He is a fellow member of ICMAB, associate member of Chartered Institute of Management Accountants (CIMA), UK, a Chartered Global Management Accountant (CGMA), and a professional member of Chartered Institute of Public Finance and Accountancy (CIPFA), UK. He has several publications in local and international journals and editorial books. He has attended various national and international seminars, symposiums, and workshops.