The adoption of International Financial Reporting Standards (IFRS) for Small and Medium Enterprises (SMEs) is set to bolster financial transparency, ease access to financing, and enhance global competitiveness, said Taskeen Ahmed, President of the Dhaka Chamber of Commerce and Industry (DCCI). Speaking at a focus group discussion titled “Implementation of IFRS for SMEs,” held at the DCCI on March 22, 2025, Ahmed highlighted the crucial role of SMEs, which contribute over 25% to Bangladesh’s GDP.
Ahmed stated that implementing IFRS would not only streamline tax revenue collection by reducing tax evasion but also encourage more businesses to comply with tax regulations. However, he acknowledged the barriers SMEs face, including limited financial capacity, a shortage of skilled manpower, and compliance costs, underscoring the need for investment in training and regulatory alignment, reads a press release.
Dr. Mohammad Abu Yusuf, Acting Chairman of the Financial Reporting Council, stressed that while IFRS compliance is essential for aligning with international standards, its implementation remains challenging for SMEs due to knowledge gaps, lack of skilled workforce, and limited awareness. He emphasized the importance of enhancing SMEs’ capacities to foster compliance and boost access to capital markets and international trade agreements.
Md. Amir Uddin, Executive Director of Bangladesh Bank, called for focused training programs to improve SMEs’ skills and awareness regarding IFRS benefits, suggesting that such measures would elevate the global image of Bangladeshi SME entrepreneurs.
Nawshad Mustafa, Director of the SME & Special Programmes Department of Bangladesh Bank, pointed out the lack of trained accounting professionals in the SME sector. He emphasized creating an enabling environment for IFRS implementation, ensuring it does not disrupt business operations.
Sector-Specific Solutions
Mohammad Jahangir Hossain, General Manager of the SME Foundation, proposed sector-based customized accounting software to simplify IFRS compliance for SMEs. He also called for greater facilitation and training to support the implementation process.
Capacity Building and Incentives
Presenting the keynote paper, Sk. Md. Tarikul Islam, FCA, Partner at Hoda Vasi Chowdhury & Co., identified capacity building, training for accountants and auditors, and transition costs as significant hurdles. He urged regulatory bodies, professional organizations, and financial institutions to support a smooth transition to IFRS. He further recommended tax incentives for SME startups, lower VAT rates, and simplified tax processes to encourage compliance.
DCCI Convener Lutful Hadee, FCA, noted the shortage of trained accounting professionals, stating that although the country has about 2,200 chartered accountants and 40,000 part-qualified professionals, the growing demand still requires more skilled personnel.
The discussion also saw participation from DCCI’s Senior Vice President Razeev H Chowdhury and Vice President Md. Salem Sulaiman. DCCI’s Joint Convener, Md. Shafiqul Alam, FCA, called for uniformity in SME definitions across various policies and regulations to streamline the implementation process.
The event concluded with a call for collaborative efforts among regulatory bodies, financial institutions, and professional organizations to ensure the successful implementation of IFRS for SMEs in Bangladesh.
