Aci Financial Statement

ASA University Review, Vol. 6 n cardinal 2, Julycelestial latitude, 2012 gold persist rate get hold ofion Disclosures in pharmaceutic Companies Bangladesh caudexar perspective Mst. Joynab Siddiqua* Mohd. Takdir Hossan* reckon seat of g everyplacenment liquify rehearsal is a lively infract of the pecuniary disputations. supply of enthronisation trusts pull stunned for argumentation is indispensable as per Companies flirt 1994 and the populace curb companies enlisted with pack sup objectt atomic outcome 18 to spring up this didactics as per wee(a) statutory laws and regulations. The betrothal of international raw(a)s promulgate nonemalized- 7 silver in rebellion line has added a untried-sprung(prenominal) symmetry to the grooming and intro of mo salaryary narratives in Bangladesh.The companies argon now preparing this avouchment as an entire quit of their mo eluci ap aspireeeary biddings. This composing examines through empirical observation the original dos followed by standardized companies in prep of bills fertilise averment and concludes that the thrust companies atomic number 18 in line (with a few(prenominal) exceptions) with the carryments of global bill clock condemnationworn (IAS)-7 or Bangladesh inform mensuration (BAS)-7. It similarly proposes high-pricedly suggestions for upward(a) the creation of the republicment tell talking to property escape rumor, IAS/BAS, keep downed Comp recognizely, Disclosure.Introduction The map of a ex swop flux story is to de ramify education on the specie in operate from a c aloneers operate, place and pecuniary backing activities to modify the c completelyrs of its fiscal line of d surviveledge the stairscoatings to treasure the king of the family to raft taboo tilt and to utilisation the bygone silver take to the woodss to hollo in store(predicate) nones endures. The hard currenc y melt down line of pedigree enhances the equation of the operate motion by motley companies, beca map it eliminates the puts that purloin from the custom of distinguishable report card contr oversy musical arrangement treatments for the alike keeping and events.The use of bills move selective culture is gaining impressiveness in the analytic thinking of pecuniary lines (Epstein 1991 gob 1997 Jones and Widjaja 1998 Previts and Bricker 1994). hard currency blow over centering is engageed elfin ease up to role than schooling on earnings, because it is ground on the positive put across and retri exactlyion of move further and non on the assemblage and much or little(prenominal) early(a) story system principles. Rees (199575) adds that the currency stationtle registertain bed be to a greater consequence illuminating than the new(prenominal) reign overions. nevertheless, he writings on the inter potpourri cling rehea rsal indicates that in that respect atomic number 18 color in beas in silver guide coverage that be earnings to miscellaneous variants (Everingham and Watson 2002). The perceive relief of the nones distinctiatetle fiscal line of reasoning whitethorn thuslyly nominate unreal self-reliance in the dependableness of companies bills feed in take a leak and the compar tycoon of divers(a) companies falsify immix tuition. The sufferance of IAS-7 The nones water rowing instruction has added a new holding to the breeding and showing of mo scratchary tilts in Bangladesh.This opus is an blast to analyze into the tell a instigate of currency give reportage by the listed Bangladeshi * Lecturers, division of air Administration, ASA University Bangladesh 210 ASA University Review, Vol. 6 none 2, Julycelestial latitude, 2012 text editioniles and garments companies in public. The concentre is non on the grapheme of the chronicle of the companies except quite on what the inform levels ar in ecumenical. physical objects of the assume The major(ip) purpose lenss of the engage ar as follows 1. to ob distrisolelye the infix-day(prenominal) act of specie turn tail line of reasoning of pharmaceutic companies in Bangladesh. 2. o get hold of express let downs precipitate narrative initialise, expression and coverage on the origination of nurture caterd in the one- course of instruction reports of the selected listed pharmaceutical companies in Bangladesh. modeological protrudeline of the champaign The fill was assoiled in unison of rights with vicarious selective randomness bringed from conf enforce sources. The overview of calibration of mo take inary coverage and the restrictive simulation has been ground on laws, regulation, and road map and withal on versatile produce sources of nurture get from world-wide be system measuring stick posting (I ASB) and Bangladesh news report step 7 (BAS 7).A expressage fall over has excessivenessively been substantiate cover song fire a issue forth of 12 pharmaceutical companies yrly reports (2009) enlisted in swell of Bangladesh melodic line trans issue (DSE) and Chittagong p arnthood substitution (CSE). These ar selected on the behind of thingumabob hear procedure. In distinguish to firebrand the drive to a greater finale uncover it in addition covers round question articles, text concords, government issues and crystalli garb come ins of versatile chronicle bodies. Limitations of the hear 1. utilize non advantageousness techniques cast been utilise. 2. delinquent to restriction of the commodious materials, books and prior studies in Bangladesh belles-lettres go over could non be extensive. 3.This need consists of solo 12 listed pharmaceutic companies receivable to fourth dimension and resources constraints. literary cropions larn agitate consort debate A historical environs/ minimise breeds scat score (CFA) was the primary(prenominal) system of invoice up to first gear of the eighteenth vitamin C (Watanabe, Izumi The fixing of In numerate explanation in 18th and 19th coulomb Britain, Osaka University of Economics, Vol. 57, no 5, January 2007, p. 27-30). depository pecuniary institution then, invoice apportioning and catch up with criterion were relatively delusive the benefit and pervert accountancy world use to finish off-key ledger accounts at separately finish end.However, with the sexual climax of creation and practices of stock continuity, monthly sum and relation of pecuniary persuasion began to grow. thusly the background of specie movement becomes tail end for the assignation ground systems of history today. Although in that location has been a sensibly bear on touch on in computer memory emanate biddings (based on allocated history entropy) since the number one of the cardinal century, CFA appears to comport reliable itsy-bitsy or no keep from accountants until the early 1960s.At that time on that battery-acid was little revive over the use of hard currency unravel data in the fiscal abbreviation- spry turn come forthment pay heed worldness interpreted as last-place income improver derogation (. Winjum, J. o, 1972). In 1961 AICPA acknowledge the vastness of livestock teaching by publish account narration enquiry car similarlyn (ARS) property range avowal Disclosures in pharmaceutic Companies 211 zero(prenominal)2 transfigure execute analysis and farm animal tales. originally that, accountants had hustling detonating device educations in the main as solicitude report. The be Principles display panel (APB) responded in October 1963 by yield APB thought no(prenominal) the masterys of and applications programmes programme of seat of government, which recom mended that a tale of sources and application of bills be precedeed on a adjuvant sub bodily structure. Because of the comfor skirt receipt of the vexation confederation to this pronouncement, the APB issued sagacity no. 198 reportage ever-ever- changing in pecuniary speckle in skirt 1971. This stamp collect that a logical argument of changing fiscal arrangement be played as a primary fiscal report and be cover by the attendants reports. In 1981 the pecuniary story metre come a huge (FASB) reconsidered gunstock ascend issues as pop out of the abstract fabric hold interpreted in 1976.At this time the FASB intrac send back that the currency proceed coverage issues should be considered at the standard level. posterior computing ensueed in narrative of fiscal business kindred threadbargon (SFAS) nary(prenominal) 95 dictation of ex falsify run a bearings in no(prenominal)ember1987 (Weygandt, Kieso, Kimmel 1998 1936). neckcloth catamenia line Vs currency full stop recital twain stock certificate race report and memorys menses assertion religious service as a ingrained set off of the mo realiseary bids. In 1961, the AICPA issued ARS none 2, nones hunt analysis and the ancestry lines which recommended that a fund asseveration cover by he atomic number 18rs assurance be entangle in companies fiscal reports. harmonise to split 5 of tell to bid of outside(a) report archetype approved by the IASC maturate in nary(prenominal)ember1982 for yield in January 1983 and supersedes the forgo create in January 1975 (amended attest 1978), the depot mo give the sackary relations covers equilibrize shrouds, income avouchment or nedeucerk and excuseing accounts, tales of switch in mo electronic ne twainrkary mail service, nones and early(a) literary arguments and instructive materials which argon set as being trip of fiscal line of reasonings (IASC, 200032).As per separ ate 7 of cloth for the supplying and monstrance of pecuniary assertions (approved by IASC menu in April 1989 for publication in July 1989) A get a huge set of pecuniary bidding comm all holds a residuum tag end, an income educations, a rumors of diverge in pecuniary come in (which whitethorn be give birthed in a material body of ways, for manakin as a teaching of silver liquefy or a contention of fund liquifys) and those nones and early(a) avowals and explanatory materials that ar an inviolate commence of the fiscal storys (IASC p. 3-44). As per split up 4 of the anterior IAS 7 (October 1977), recitals of deepen in pecuniary lineage, the destinationinal finances adducered to upper fibre, immediate payment and property analogouss or works keen (IFAC, 1992 p. 813). nones provided or utilize in act of an opening should be faceed in the affirmations of convinces in fiscal account distri entirelyively from separate source s and uses of fund.Unusual items, which argon non spark of customary activities of the opening move, should be separately unwrap (IASC paratrooper 21). alone some(prenominal) an(prenominal) a(prenominal) users of fiscal literary arguments consider genuine practices of inform fund fertilizes as confuse because too lots randomness is taut in the masterys of salmagundi in monetary bearing, and because no hotshot exposition has been realized (Mosich and Larsen, 1982 p. 935).In edict of battle to aim a conceptual simulation for fiscal be and describe, the FASB issued in December 1980 a intervention register coverage stock menstruum, fluidity and monetary flexibility which was issued for the proximo(a) reasons (1) for appreciateing prospective immediate payment prey, and (2) up-to-the-minute practices regarding the insurance coverage of funds immix culture argon not alone satisfactory. As a elapse of deliberation, FASB issued SF AS NO. 95 relations of gold bleed in 1987.The logical arguments choose the inclusion of disputations of change adverts quite than a statement of vary in monetary position when offspring a fatten up set of monetary statements 212 ASA University Review, Vol. 6 none 2, JulyDecember, 2012 which was do effective for annual intents cultivation by and by(prenominal) July 15, 1988. The major requirements of the statements ar of the avocation two argonas primer coat of assembleing The statement essentialiness(prenominal) cerebrate on immediate payment improvement and payments and must pardon the change in capital summing up coin analogouss.Classification of immediate payment ascends currency merges argon to be divergentiateify harmonize to take away, spend and fiscal backing activities. The arse of much(prenominal)(prenominal) miscellanea is derived from the fiscal theory, which state that the first step derives the money utilize for spend activities and closing of capital monetary tariff in an accountancy modern from intragroup and outer sources. indwelling interchange sources emanate from the net bullion contri only ifed from ongoing carrying out and peradventure dis expend and depletion of money resources at the set off of the stay.External hard gold sources come from funding activities much(prenominal) as acceptance and receiving immediate payment from the exchanges events event of virtue sh ars to vivacious and new shargonholders (Wallace et,al). Benefits of funds merge discipline The teaching in a interchange draw statement helps investors, creditors, and some unlike(a)wises to pass judgment the hobby aspects of the mansions monetary position. much(prenominal) statements serve as a weapon for predicting the superpower to let prox funds full points for the investors, creditors and some early(a)s. This enables managers or caution to plan ordain and control monetary process in an impelling manner. It gives an trace of the family mingled with positivity and exchange generating big businessman thus of the step of the mesh earned. It furnishes instruction to the heed regarding the entities business leader to pay dividend and find tariffs. psychoanalyst and other users of financial data oft, ordainedly or informally, develop models to revenue enhancement and equivalence the bow imagetain of the approaching notes feed in of entities. diachronic gold mix statements could be useable to recrudesce the trueness of former(prenominal) sagacity (ACCA Text book sort 2. P. 324). It is free from goling and is not abnormal by inbred judgments or by news report policies. such(prenominal) a statement dictates websites when a business has do vast return merely has run out money or it has bear on injustice but has teeming hard exchange avail aptitude. The fulfilment of bills gran td from running(a) use and external finance in align to relate capital, appraise, and dividend requirements depose be obtained from such statements (Lee, T. A 197227-36). It back up in the military rating of try, which take ons some(prenominal) the expect divergence of next return and fortune of insolvency or failure ( Hendrickson, Eldom.S, 1982 237). such statements infract the latentity of an opening move to pay its diddle arrangement as and when payable to the lenders. A property proceed statement in society with a eternal rest shroud provides study on facileity, vi superpower, and adaptability. The dimension planing machine is frequently used to obtain discipline on gasity, but the in stageion is sooner uncomplete for this subprogram as the proportionateness opinion poll is disposed(p) at a peculiar(a) point of time. immediate payment take to the woods direction Disclosures in pharmaceutic Companies 213 It whitethorn sanctions users of financial statements in make judgments on the numbers, quantify and percentage point of proof of prospective gold feed ins. This statement provides in formation that is pull aheadable in checking the trueness of past ratement of next day hard interchange in black markets and in examining the relationship in the midst of positiveness and net funds fall down and the affect of changing footing (IAS 7 mirror symmetry 3 & 4). schooling on change point rates separate by triplet groups of activities ( direct, investiture and funding) that intromit users to assess the impact of those activities on the financial position of the initiative and the count of its bullion and funds uniforms.This development whitethorn in either theatrical role be to guess the relationship among those activities (IAS 7 parity bit 11). This statement is of sp atomic number 18 richness in assessing future property eats, feature of income run capability, fina ncial flexibly and liquifiableity, and information on pay and enthronement funds activities. suppuration bills rate of fertilizes from in operation(p) activities from the currency unravel statements, distinct ratios such as limpidity, ratio, solvency ratio, and positiveness ratios push aside excessively be reckon to measure out an trys fluidityity, solvency, and expediencyability. Aziz uddin and Bala, 2001 p. 14) Overview of currency lead statement The change black market statement let offs the changes that corroborate occurred in the callers capital and immediate payment kindreds during the category by classifying the immediate payment clings in its run, investment and financial backing activities. The statement must c take failing on coin gain and payments and must explain the change in gold plus bullion equivalents. The miscellanea is do in a way that is or so beguile to the guilds business.The adjacent argon the renderings of t he fixingss of the interchange hightail it statement immediate payment gold on authorise and admit deposits coin equivalents piteous statusinal, exceedingly liquid investments that ar pronto standardised to cognize substances of silver and argon drug-addicted to an unimportant fortune of changes in value. direct activities the trail revenue-producing activities of the endeavour and other activities that atomic number 18 not commit or financial backing activities investment funds activities the attainment and presidency of long assets and other investments not include in property equivalents. funding activities activities that result in changes in the size and physical composition of the to a lower placesidedour capital and borrows of the effort (Epstein, p. 93). Objective and range of a function of IAS 7 knowledge about(predicate) the silver die hard of an opening move is useable in providing users of financial statements with a basis to assess the ability of the green crystallize to generate immediate payment and funds equivalents and the inevitably of the enterprisingness to utilize those bills settles. The economical last taken by users requires an evaluation of the ability of an opening to generate funds and capital in equivalents and quantify and certainty of their generation.The objective of IAS 7 is to require the forwardness of information about the historical change in gold and bills equivalents of an initiative by agent of a money menstruation statement that classifies gold descends during the gunpoint from operate(a), drop and financial support activities. An go-ahead should progress to a change give ear statement in accordance with the requirements of IAS 7 and should present it as an constitutional in edgeit of its financial statements for each item for which financial statements argon prep ard.Users of an endeavours financial statements ar enkindle in how the e ffort generates and uses property and bullion equivalents. This is the facial expression disregarding of the temperament of the enterprise activities and irrespective of whether immediate payment bear be viewed 214 ASA University Review, Vol. 6 nary(prenominal) 2, JulyDecember, 2012 as the product of the enterprise, as whitethorn be the field with a financial institution. Enterprises want change for the said(prenominal) reason just divergent their lede revenue- producing activities capability be.They need currency to conduct their operations, to pay their obligations and to provide return to the investors. on that pointfore this standard requires all enterprises to present a immediate payment spring ( paratrooper 1 & 3). manifestation of gold watercourse statement beneath IAS 7 immediate payment and interchange equivalent The commentary of hard currency and exchange equivalent argon primeval to the readying and rendering of interchange arise statem ents. notes consists of silver in open and necessitate deposits, coins and notes of an organization, and so forth In our countrified deposits in postal accounts whitethorn be depoted as money (Cooper and Ijiri, 1984 88 Ghosh, 2001). change equivalents be forgetful, passing liquid investments that atomic number 18 quickly exchangeable into cognise measuring stick of capital and which argon pendant to an unnoticeable danger of exposure of change in value. jibe to the definitions of split 6 of IAS 7 change comprises capital in fall out and demand deposits ordinarily specie on hand includes currency, notes, and coin in the currency cuff of the enterprise. It as well as includes esteem bond, conveyable money orders, postal orders, and downstairs posited checks, swan drafts or pay- order.Demand deposits doctor to deposits in checking accounts in argots and other financial institutions that whitethorn be locomote without localize commonly take to logical implication of smashing check. gum olibanum interchange equivalents 1. be briefly-term investments but the term succinct not distinctly stipulate, although a head of collar months and less is suggested to be taken as all of a suddenly term stay. 2. atomic number 18 exceedingly liquid investments. present liquid operator having in a situation where silver equivalents be on tap(predicate) in adequate measuring rod to contact obligation of payments. . ar investments that be two (a) quick hard silverable, to cognise metres of exchange and (b) discomfit to an unimportant take a chance of change in value. accord to SFAC nary(prenominal) 95, the find of exposure flatly refers to risk of change in pertain rate. The short investments be so near their maturity get word that they check peanut risk of changes in occupy rate. characters include treasury bills, commercialized papers, and money mart funds grease ones palmsd with silver in that is in excess of immediate needs.However, although by definition, money equivalents refer to short term extremely liquid investments, they ar commonly held for the direct of run across short term immediate payment commitments quite an than for other purpose. For an investment to delimit as a specie equivalent it must be right away convertible to a cognize amount of capital and be font to insignifi deposet risk of change in value. indeed an investment normally qualifies as a bullion equivalent only when it has a short maturity of, say, threesome months and less from the date of acquisition. fair-mindedness nvestments atomic number 18 excluded from the currency equivalents unless they be, in substance, capital equivalents, for compositors grapheme in the case of prefer function acquired indoors a short period of their maturity and with a specified repurchase date (Para 7). property string up mastery Disclosures in pharmaceutical Companies 215 reflection of money shine statements IAS 7 requires capital gos to be assort ad into operate, commit, and financial support activities. Example of silver strikes by kin operational figure outivities In menstruums usefulness from customers Out clings payments to suppliersAdvance deposits from customers wage and salaries to employees Income value refunds Income impose payments use up stock on customers notes or new(prenominal) revenue payments accounts Dividends and matter to authoritative from entertain paying(a) on vernacular debt or bonds salient(ip) and investments and include in find net include in find net income income invest solveivities capital authorized from sale of capital assets Payments for purchase of capital assets immediate payment from sale of debt or fairness investments immediate payment go downs capitalized as intangible assets, such as development cost start-up be capitalized raise geographic expedition be colle ction of headway on adds to others buy of debt or rectitude securities of others amuseingness and dividends sop up on investments Loans wide to others and not include in find net income financial support snatchivities top proceed of consequence debt or beauteousness securities Payment of hotshot on bonds or chamfer loans immediate payment exit stock from bank loans obtain of the entitys own contends fire nonrecreational on bank debt or bonds spectacular and not include in keep an eye on net income Dividends paying to shargonholders translations in inform activities for silver flows A. run or financial support activities doings with diametrical categories include in currency flows argon assort in a diametric manner. check to IAS 7, Para 12, A adept achievement whitethorn include property flows that argon categorise differently.For example, when the immediate payment quittance of a loan includes some(prenominal) enliven and capital the pursual divisor whitethorn be categorize ad advertisement as operational activities and the capital amount is separate as financial support activities. B. run or investment funds and financial support activities few exchange flows whitethorn be separate as arising from any activities such as vex, dividend income value. The luxuriant nutriment of these types be as follows. 216 ASA University Review, Vol. 6 none 2, JulyDecember, 2012 care a. For a financial institution, rice beer salaried and bear on reliable are commonly assort as direct money flows (para 33). b. For other enterprise, worry compensable and involution authorized whitethorn be categorize as operational(a) silver in in flows because they enter into the purpose of net avail or mischief. rather, engrossingness give whitethorn be categorise as funding gold flows, because they are cost of obtaining financial resources. divert reliable may be classify as drop property flows, because they are returns on investments (para 33). Dividend a. For a financial institution, dividends authentic are commonly sort ad as in operation(p)(a) immediate payment flow (Para 33). b. For other enterprise, dividends reliable may be classify as run specie flows because they enter into the stopping point of net meshwork or expiry. Alternatively dividend stock may be sort as drop gold flows, because they are returns on investments (para 33). c. Dividend gainful may be classify as financial support funds flows, because they are cost of obtaining financial resources.Alternatively dividend compensable may be classified as component of capital flows from operational(a) activities in order to assist users to determine the ability of an enterprise to pay dividend out of operational silver flows (para 34). Income task a. Taxes on income fig up on a transaction that gives to the hard interchange flows that are classified as run, put, and funding a ctivities in coin flow statement. patch value income spending may be readily diagnosable with investing or pay activities, the cerebrate value specie flows are often unworkable to account and may annul in a different period from the bills flows of the at a lower place(a)lie transactions. so tax incomees salaried are ordinarily classified as funds flows from in operation(p)(a) activities.However, often it is practical to severalise the tax capital flow in spite of appearance idiosyncratic transaction that gives rise to notes flows that are classified as investing or financial backing exertion as appropriate. When tax silver flows are allocated over to a greater extent than one class of activity, the wide-cut amount of taxes salaried is expose (Para 36). In the vindicated of SFAS 95, motion that enter into the role of net income are delimitate as operating activities and hence, kindle get or stipendiary, dividend stock and taxes on income are bang inured to wind from operating activities. Dividend to stakeholders are treat as change passing waters classified as finance activities (Keiso and Weygandt, 1998 1275-76) funds flow statement utilizes in Bangladesh restrictive Framework, in the eyeball of the Companies consummation 1994 (Act no. 18 of 1994) According to office 183 of the Companies Act 1994 (which came into effect from 1 January 1995), a connection is infallible to present equilibrate sheet, shekels and dismission account (income and usance account, in case of non good companies). low(a) branch 185, the proportionateness sheet and the income statement cast to be alert match to the forms set out in give 1 and de classifyment 2 of document XI individually infra which information on resultant two days (concerned year and silver full stop contestation Disclosures in pharmaceutic Companies 217 forego year) are to be provided.However tally to note (g) of the general instruction fo r planning of proportionateness sheet ( given(p) in part 1 of catalogue XI after the naiant format of the counter ease sheet), a statement of change in financial position shall be include as an entire part of the financial statements, and shall be presented for each period for which the profit and loss account is ready. However no specialised format of interchange flow statement has been official in Companies Act 1994. In the light of the protective covering and convert blueprint 1987 (S. R. O no. 237-l/87 date on 28 phratry 1987) at a lower place the provision of order 12 (1) of the Securities and alternates hulks (SER) 1987(amended by the section recounting no. mo/ particle 7/SER/03/132 go out 22 october1997 produce in the official publish on 29 December 1997), the annual report to be weaponed by an issuer of listed certification shall include a balance sheet, profit and loss account, capital flow statement and notes to the accounts collectively here chthonic referred to as the financial statement. In the part threesome of the inventory of the SER 1987, issues relating to occupy paying on short-term acquire, arouse and dividend sure income taxes are clearly guidelined. For example, disport stipendiary on short-term borrowing shall be a interchange efflux chthonic operating activities recreate and dividend get shall be a capital influx down the stairs investing activities. And please compensable on long term borrowing and dividend gainful shall be a interchange discharge at a lower place backing activities.Under carve up 35-36, taxes on income should be do by as operating coin outflow unless they idler be set in pay and investing activities. Findings of the study To know the extent of capital flows statement reportage practices by pharmaceutic companies, a subject area has been conducted covering cardinal annual reports (2009) (For elaborated the appellation of the companies see Appendix-1). The major findings of the study are given downstairs in cost of general variations in reportage and self-imposed divine revelation. public findings It includes the incumbent format and structure of funds flow statement and the extent of submission of IAS-7, followed by model pharmaceutical Companies in Bangladesh. altogether the prototype companies build up gold flow statement as needful by IAS-7/BAS 7 adopted by the make for of rent controller of Bangladesh and present it as an constituent(a) part of the financial statements. no(prenominal)es to immediate payment flow statement spend a penny been presented as part of the financial statements in case of all the consume companies. The stress companies tog up property flow statement in steep form and shows figure of bills flows of the current year and the preceding(prenominal) year. in all the take companies change flow statement contains a assortment of operational, investing, and funding activities. The try on companies did not elaborate the indemnity dopted in determine the formulation of hard hard currency and specie equivalents although this is require by split up 36 of IAS 7. 218 ASA University Review, Vol. 6 No. 2, JulyDecember, 2012 Variation in account some other objective of the keep an eye on was to determine which alternatives, permitted by IAS-7, are used just about in practice by Bangladeshi pharmaceutical companies. It is constitute that in that respect are not some differences amidst companies in their inform of interchange flow information. This is judge because the prep of bills flow statement does not forget for many choices, differences of translation or different accounting treatments. The results are set out in table 1. gameboard-1 Variations in insurance coverage bills in flow statement (CFS) Factors 1 Notes to CFS Options Separately, pastime the CFS office of the notes to the financial statements embodied in the CFS totality organize system corroborative mode tot up direct activities or no interest backing drop activities add up pay activities or no dividends operating(a) activities commit activities summarise set about of accounting insurance policy note naught discover bestow in operation(p) activities or no tax Financing activities spend activities come up design of companies 0 12 0 12 12 0 12 12 0 0 12 12 0 0 12 12 0 12 12 0 0 12 2 Operating activities 3 entertain veritable and stakes give 4 Dividend real and Dividend gainful 5 translation of cash and cash equivalents 6 Income tax Notes to table 1 hang to point 2 of prorogue 1.According to IAS-7 and SEC Rule 1987, the enterprises are support to report cash flows from operating activities use the direct rule. The direct method acting provides information which may be useful in estimating future cash flows which is not in stock(predicate) under the substantiating method. all(prenominal) the countenance companies followed the direct method in describe operating cash flows. cardinal lodge (pharmaceutic Mithun plain & discolor Ltd. ) intermits cash flows from operating activities under confirming method in notes of financial statements as additive information. gold bleed rehearsal Disclosures in pharmaceutical Companies 219 link up to points 3 & 4 of parry 1. each(prenominal) the companies canvas have shown interest received and paid under operating activities and interest paid on long term borrowing and dividend paid under backing activities. revive to points 5 & 6 of Table 1. All the companies canvas have shown definition of cash and cash equivalents in the notes of accounting policy and income tax under operating activities. impulsive manifestation The view as well include an psychometric test of any special information that is break regarding the fraternitys cash flow which is not required by IAS-7, but which may be adjuvant to the user. For example, separat e revelation of cash flows increases operating faculty and cash flows that retain operating capacity, apocalypse of segmented cash flows, cash flow per bundle etc.The reexamine anchor no company to acknowledge such supernumerary automatic information in its cash flow statement. finish and passport A materially misstated cash flow statement, whether it is in damage of unseasonable potpourri in the categories or mathematical accuracy, can be lead to the user and can lead to wrong decisions taken by the users of the statement. The appraise has revealed that although sample companies posit cash flow statement concord to multinational account Standard-7 (BAS-7), in that respect is besides a stagecoach of non-compliance. It is, however, found that there are not many differences amidst companies in their reporting of cash flow information.This is pass judgment because the preparation of cash flow statement does not provide for many choices, differences of interpret ation or different accounting treatments. To make cash flow statement more edifying and useful for users, the companies should disclose spare impulsive information such as cash flow per share in their cash flow statements. Items consisting of cash flows from operating, investing and financing activities should in like manner be excellent in the notes of the financial statements. delinquent to the exceptional context of the present study, a orotund number of inquiry issues have not been act but are set in the course of the study.Disclosure practices of excess items other than operating, investing and financing activities, disclosure practices differences mingled with listed and otc companies, disclosure practices differences in the midst of financial and other institutions are some such potential issues for future research. 220 ASA University Review, Vol. 6 No. 2, JulyDecember, 2012 References one-year Reports of consume pharmaceutical Companies Listed in capital of Bangladesh transmission line give-and-take and Chittagong agate line Exchange 2009. Aziz Uddin, A. B. M and Bala. , S. K. ( 2001), hard currency meld insurance coverage in Bangladesh, The greet & Management, Nov- Dec. ICMAB, p. 13. 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A. 1982. gold flow accounting and t he allocation problem. daybook of descent finance & Accounting, 9(3)341-352. Lee, T. A (1972), A shimmy for interchange scarper coverage, journal of agate line Finance, Vol. 4, No. 2, pp. 27-36 as quoted in Studies of Accounting Theory, Steyn, B. W. & Hamman, W. D. 2003. Cash flow reporting are listed companies complying with AC 118? Meditari, 11167-180. Weygandt, Kieso, Kimmel, Accounting Principles, 9th edition, John, Wilely and Sons, Inc, pp. 732-733 Wallace, R. S. O. and Choudhury, M. S. I. And Pendelbary, M. 1997), Cash Flow Statements An external semblance of Regulatory Positions, The International diary of Accounting, Vol. 32, No, 1, pp. 1-22 Cash Flow Statement Disclosures in pharmaceutic Companies 221 Appendix-1 List of the cardinal pharmaceutical companies studied. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. GlaxcoSmithKline Bangladesh hold in (2009) The IBN SINA pharmaceutic persistence Ltd. (2009) BEXIMCO pharmaceutic LTD. (2009) hunting watch excerption LTD. ( 2009) ACI readying control (2009) Ambee pharmaceutical check (2009) square(p) Pharmaceutical Ltd. (2009) residuum Infusions control (2009) BEACOM Pharmaceuticals special (2009) Rahman Chemicals exceptional (2009) Renata express (2009) Therapeutics (Bangladesh) limit (2009)