FRC broadens the definition of public interest entities.
JUNE 30, 2020
The Financial Reporting Council (FRC), a newly constituted regulatory organization, issued a notification on 11 Match 2020 (Gazette, June 29, 2020). By issuing this notification, the FRC expanded the definition of a ‘Public Interest Entity’ beyond what was originally established in the Financial Reporting Act 2015. Section 2(8)(Ka) authorizes the FRC Act to make such a finding.
According to the notification, a firm with an annual income of Tk 5 crore will be classified as a public interest entity.
In addition, corporations with assets of Tk 3 crore or more, or liabilities of Tk 1 crore excluding shareholders’ equity, will be considered public interest entities.
Public interest entities must follow the FRC’s norms and regulations, as well as the Financial Reporting Act (FRA) of 2015.
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