Financial Reporting Practices of Local NGO’s Operating
in Bangladesh

by A H M Yeaseen Chowdhury, Maliha Mahjabeen, and Md Mamun Habib



NGOs are the most old development institutions that are contributing towards the development of third world economy. Due to globalization some NGOs operate in the other countries. But their financial reporting inevitably is somewhat specialized in nature. In Bangladesh different NGOs using different method of accounting and reporting system due to lack of accounting and financial reporting standards, hence the comparison among the NGOs isn’t possible. As there is no IAS/IFRS it is very difficult to follow a common standard in generation and presentation of accounting and financial information. This paper aims to demonstrate financial reporting and accounting system of all the local NGO’s operating in Bangladesh and provide a guideline for constituting suitable financial reporting and accounting systems for NGOs. Both primary and secondary sources of information have been used in achieving the aim. The article elaborates on basis of preparation of financial statements, some issues regarding the recording of financial statements in NGO’s and the quality of maintaining these reports. The final part of the article discusses issues relating to financial report and how these reports plays an important role for the managers in taking financial decisions.

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