The Financial Reporting Council (FRC), the newly established regulatory body has issued a notification on 11 Match 2020 (Gazette Published on June 29, 2020). By this notification, FRC extended the range of companies that will be considered as ‘Public Interest Entity’ in addition to what was initially defined in the Financial Reporting Act 2015. Section 2(8)(Ka) allows the FRC Act to make such determination.
As per the notification, if a firm earns annual revenue of Tk 5 crore, it will be treated as a public interest entity.
In addition to that, companies having assets of Tk 3 crore or more, or liabilities of Tk 1 crore apart from the shareholders’ equity, will also be a public interest entity.
Public Interest Entities are required to abide by the rules and regulations of FRC and the Financial Reporting Act (FRA) 2015.
Download: Notification on Definition of the public interest entity.