World Bank2012-03-192012-03-192009-05-26https://hdl.handle.net/10986/3095Bhutan has registered rapid economic growth in the recent past. But the private sector's contribution to this growth has not been significant. Recognizing that the private sector can play an important role as an engine of growth, the Royal Government of Bhutan (RGoB) mapped out strategies to encourage the private sector to participate in the Kingdom's growth. An important strategy outlined under Bhutan's Tenth Five-Year-Plan (10FYP) is to enhance employment opportunities by encouraging private sector development, which will broaden the employment base. This strategy is also in line with another major 10FYP objective of vitalizing industry, in which the private sector is envisaged to play a major role. Bhutan's financial sector has hitherto been very small and underdeveloped, owing to the lack of adequate development in the private sector and the small size of the economy. The RGoB assessed that the lack of a clear institutional framework is one the major factors responsible for the slow growth and weak performance of industries in Bhutan, notably in the manufacturing and trade sectors. It is against this backdrop that the World Bank at the invitation of the RGoB has undertaken an assessment of accounting and auditing practices in the Kingdom of Bhutan with respect to the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the International Standards on Auditing (ISA) issued by the International Federation of Accountants (IFAC). This assessment is positioned within the broader context of the country's institutional framework and capacity needed to ensure compliance with international standards and to improve the quality of financial reporting in the country. These recommendations are aimed at achieving corporate financial reporting practices of international standards and to help create a world-class working environment for professional accountants and auditors in Bhutan.CC BY 3.0 IGOACCOUNTACCOUNTABILITYACCOUNTANCYACCOUNTANTACCOUNTANTSACCOUNTINGAUDITING STANDARDSACCOUNTING FRAMEWORKACCOUNTING POLICIESACCOUNTING PRINCIPLESACCOUNTING RECORDSACCOUNTING REFORMACCOUNTING RULESACCOUNTING STANDARDACCOUNTING TREATMENTACCOUNTSADBARREARSASSET BASEASSOCIATED COMPANIESAUDIT COMMITTEEAUDIT COMMITTEESAUDIT REPORTSAUDITED ACCOUNTSAUDITED FINANCIAL STATEMENTSAUDITINGAUDITING PROCEDURESAUDITING PROFESSIONAUDITING STANDARDSAUDITORSAUDITSBALANCE SHEETBANK CREDITBANKING SECTORBANKSBIDBIDSBUDGETINGBUSINESS ADMINISTRATIONBUSINESS ETHICSCAPITAL EXPENDITURESCAPITAL MARKETSCASH FLOWCASH FLOWSCENTRAL DEPOSITORYCERTIFIED PUBLIC ACCOUNTANTSCOMPETITIVE BIDDINGCORPORATE BONDSCORPORATE GOVERNANCECORPORATE LAWSCREDIBILITYCREDIT RATINGCREDIT RATING AGENCIESCREDIT SALESCREDITORCREDITOR RIGHTSCREDITORSCURRENCYCUSTOMER SERVICEDEBTDEBT SECURITIESDEBTORSDEFAULTSDEPOSITORSDEPOSITSDEPRECIATIONDERIVATIVESDEVELOPMENT BANKDEVELOPMENT FINANCEDISCLOSURE REQUIREMENTSDOMESTIC MARKETDUE DILIGENCEEARNINGS PER SHAREECONOMIC DEVELOPMENTECONOMIC STABILITYEMPLOYMENTENFORCEMENT MECHANISMSENTREPRENEURSHIPEQUIPMENTEXCHANGE COMMISSIONEXPENDITUREEXPENDITURESEXTRAORDINARY ITEMSFINANCIAL CRISESFINANCIAL HEALTHFINANCIAL INFORMATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MANAGEMENTFINANCIAL MARKETFINANCIAL PERFORMANCEFINANCIAL REPORTINGFINANCIAL REPORTING STANDARDSFINANCIAL REPORTSFINANCIAL SECTOR DEVELOPMENTFINANCIAL SERVICESFINANCIAL STATEMENTFINANCIAL STATEMENTSFINANCIAL YEARSFIXED ASSETSFOREIGN CAPITALFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTSGAAPGLOBAL ECONOMYGLOBAL FINANCIAL STABILITYGOVERNMENT SUBSIDYGROSS DOMESTIC PRODUCTGROSS OPERATING INCOMEHOLDINGHUMAN RESOURCEINCOME TAXINSIDER TRADINGINSURANCEINSURANCE COMPANIESINSURANCE COMPANYINSURANCE CORPORATIONINTANGIBLESINTEREST BURDENINTEREST INCOMEINTEREST PAYMENTINTERNAL AUDITINTERNAL CONTROLSINTERNATIONAL ACCOUNTING STANDARDSINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL STANDARDSINVENTORIESINVENTORYINVESTINGINVESTMENT CLIMATEIRREGULAR EXPENDITUREISSUANCELABOR MARKETLEGAL FRAMEWORKLEGAL PROVISIONLEGISLATIONLIABILITYLIENLIQUIDITYLOANLOAN AMOUNTSMANDATESMARKET CAPITALIZATIONMARKET CONDITIONSMARKET PRICESMARKETINGMICRO ENTERPRISESMONETARY AUTHORITYMONETARY FUNDMORTGAGEMORTGAGE DEEDNATIONAL BANKNET REALIZABLE VALUENON-PERFORMING LOANSOPERATING INCOMEORDERLY TRADINGOUTSTANDING ADVANCESOUTSTANDING AMOUNTSPENSIONPORTFOLIOPROCUREMENTPROFITABILITYPRUDENTIAL REGULATIONSPUBLIC OFFERINGSQUALITY ASSURANCEQUALITY CONTROLREGULATORY CONSTRAINTSREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREPAYMENTREPORTINGRESERVESRETAINED EARNINGSRETURNSSALESSECONDARY MARKETSECURITIESSECURITIES EXCHANGESECURITIES MARKETSETTLEMENTSHAREHOLDERSSOLVENCYSTATUTORY AUDITORSSTATUTORY REQUIREMENTSSTOCK EXCHANGESTOCKSSUBSIDIARIESSUBSIDIARYTAXTAX RATETAXATIONTECHNICAL ASSISTANCETERM DEPOSITSTRADE SECTORSTRANSPARENCYTURNOVERVALUATIONWARRANTSWorld Bank10.1596/3095