Dhaka Chamber of Commerce & Industry (DCCI) president Taskeen Ahmed on Saturday said that the adoption of International Financial Reporting Standard for SMEs would improve financial transparency, strengthen access to finance and enhance global competitiveness.

Speaking at a focus group discussion, he emphasizsed the vital role of small and medium enterprises (SMEs) in Bangladesh’s economy, contributing over 25 per cent to the GDP.

DCCI president also said that IFRS could boost tax revenue by improving compliance, while acknowledging challenges like limited financial capacity and compliance costs, urging investment in training and regulatory alignment for successful implementation.

Mohammad Abu Yusuf, Chairman (Acting) of the Financial Reporting Council, said that IFRS was very important for SMEs to comply with international standards, but its implementation remained challenging for SMEs due to a lack of knowledge, skilled workforce, simplified procedures, and awareness.

He opined that there was no alternative to enhancing the capacity of SMEs to encourage their interest in implementing IFRS.

He also said that SMEs needed to focus more on IFRS implementation to increase tax compliance, gain access to capital from the capital market, and sign international trade agreements.

Md Amir Uddin, Executive Director of Bangladesh Bank, mentioned that the implementation of IFRS should be focused on improving the image of local SME entrepreneurs in the global arena, but stressed that training was necessary to improve their skills.

He also noted that SMEs should be fully aware of the benefits of implementing IFRS.

Nawshad Mustafa, Director of the SME & Special Programmes Department of Bangladesh Bank, highlighted the lack of trained and skilled accounting professionals in the country, especially for SMEs.

He explained that an enabling environment was necessary to implement IFRS practically.

He also stated that IFRS had been implemented in 80 countries around the world and that it was required for Bangladesh to adopt it, but this should be done without disrupting the business activities of the SME sector.

Nawshad reiterated the need for a friendly environment to facilitate its implementation.

Mohammad Jahangir Hossain, General Manager of the SME Foundation, said that the SME Foundation had provided accounting software to a few SME entrepreneurs, but its implementation was limited in many cases due to a lack of skills and interest.

He proposed the development of sector-based customised accounting software for the SME sector to make it more accessible.

He further emphasised the importance of providing facilitation and training to ensure the successful implementation of IFRS.

DCCI’s Joint Convener, Md Shafiqul Alam, FCA, called for uniformity in the definition of SMEs across different policies and regulations of various institutions.

DCCI’s senior vice-president, Razeev H Chowdhury and vice-president Md Salem Sulaiman, were also present during the meeting.