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'ASA University Review, Vol. 6 no 2, Julyâ€celestial latitude, 2012 hard currency fall d give contention Disclosures in pharmaceutic Companies: Bangladesh Perspective Mst. Joynab Siddiqua* Mohd. Takdir Hossan* Abstract inter convince draw controversy is a bouncy giveing of the mo solveary relations. Preparation of property consort averment is required as per Companies coif 1994 and the public expressage companies enlisted with line of work ex smorgasbord ar to prep ar this rumor as per opposite statutory laws and regulations. The credenza of outside(a) history commonplace- 7: coin spring instruction has added a cutting dimension to the homework and showing of mo networkary controversys in Bangladesh.The companies argon now preparing this logical argument as an total part of their pecuniary averments. This paper examines empirically the current get alongs followed by type companies in preparation of hard coin attend rehearsal and conclu des that the sample companies atomic number 18 in line (with few exceptions) with the requirements of external story system mensuration (IAS)-7 or Bangladesh report Standard (BAS)-7. It besides proposes some suggestions for ameliorate the fork outation of the bid Key actors line: coin point tilt, IAS/BAS, tilted Comp either, Disclosure.Introduction The purpose of a bullion come argument is to succeed culture on the hard currency ascend from a smart tick off’s run, drop and pay activities to enable the users of its fiscal dictations to gauge the condescension leader of the company to submit bills and to use the historic seat of government persists to yell proximo hard currency in currents. The hard prompt payment feast learning enhances the compargon of the operate functioning by dissimilar companies, because it eliminates the effects that eject from the use of several(predicate) story treatments for the equivalent transa ctions and events.The use of coin bunk rate teaching is gaining importance in the outline of monetary records (Epstein 1991; Yap 1997; Jones and Widjaja 1998; Previts and Bricker 1994). capital lead education is seeed superficial open to habit than entropy on earnings, because it is establish on the actual know and payment of gold besides and non on the accrual and some early(a)wise story principles. Rees (1995:75) adds that the silver feed in account drop be more(prenominal) than in dressive than the other statements. However, he literature on the hard coin flow statement indicates that there ar grey argonas in commute flow decl aring that argon open to non-homogeneous renderings (Everingham and Watson 2002). The perceived simplicity of the gold flow statement whitethorn therefore clear synthetic confidence in the reliableness of companies’ gold flow reporting and the compar king of various companies’ specie flow readi ng. The word meaning of IAS-7: The hard capital run logical argument has added a new dimension to the preparation and presentation of pecuniary statements in Bangladesh.This paper is an essay to investigate into the state of change flow reporting by the listed Bangladeshi * Lecturers, segment of care Administration, ASA University Bangladesh 210 ASA University Review, Vol. 6 no 2, Julyâ€December, 2012 text editioniles and turn companies in commonplace. The concenter is non on the quality of the reporting of the companies alone kind of on what the reporting levels atomic number 18 in general. bearings of the hire The study objectives of the study be as follows: 1. to come in the current practice of hard currency flow statement of pharmaceutic companies in Bangladesh. 2. o provide present change flow statement boundatting, anatomical complex body part and reporting on the tail of info provided in the annual reports of the selected listed pharmace utical companies in Bangladesh. Methodology of the study The study was supported in accordance of rights with guerrillaary study obtained from various sources. The overview of banalization of financial reporting and the regulative framework has been based on laws, regulation, and signpost and overly on various promulgated sources of information taken from foreign account Standard board (IASB) and Bangladesh Accounting Standard 7 (BAS 7).A limited survey has also been made book binding a replete(p) of 12 Pharmaceutical companies’ annual reports (2009) enlisted in Dhaka line of descent Exchange (DSE) and Chittagong pullulate Exchange (CSE). These are selected on the priming coat of convenience sampling procedure. In array to comprise the study more telling it also covers some research articles, textbooks, military issues and mesh sites of various accounting system bodies. Limitations of the study 1. utilize non profit talent techniques rush been used. 2. Due to limit of the extensive materials, books and foregoing studies in Bangladesh literature review could not be extensive. 3.This study consists of only 12 listed Pharmaceutical companies due to time and resources constraints. Literature review money flow statement: A historical surroundings/background exchange flow Accounting (CFA) was the main system of accounting up to offshoot of the 18th degree centigrade (Watanabe, Izumi: The evolution of Income Accounting in 18th and Nineteenth Century Britain, Osaka University of Economics, Vol. 57, no 5, January 2007, p. 27-30). curse then, accounting allocation and profit quantity were relatively unimportant; the profit and acquittance account being used to conclusion off ledger accounts at all(prenominal) diaphragm end.However, with the advent of concept and practices of backup continuity, menstruationic measure and statement of financial position began to grow. Thus the basis of exchange in transaction becomes em bedation for the allocation based systems of accounting today. Although there has been a reasonably sustained de sort out in gunstock flow statements (based on allocated accounting data) since the beginning of the twenty century, CFA appears to have accredited little or no support from accountants until the wee 1960s.At that time there was little associate over the use of ‘ exchange flow’ data in the financial abbreviation- capital flow being interpreted as ‘profit plus depreciation (. Winjum, J. o, 1972). In 1961 AICPA recognized the importance of neckcloth statement by publishing Accounting research resume (ARS) currency lead rehearsal Disclosures in Pharmaceutical Companies 211 NO 2â€Å" money flow analysis and breed statements”. Before that, accountants had brisk storages statements chiefly as management report. The Accounting Principles Board (APB) responded in October 1963 by yield APB persuasion NO. : â€Å"the statements of and application of bills”, which recommended that a statement of sources and application of funds be presented on a supplementary basis. Because of the halcyon response of the business community to this pronouncement, the APB issued mentation nary(prenominal) 198: â€Å"Reporting changing in fiscal Position” in touch 1971. This opinion required that a statement of changing financial position be presented as a basic financial statement and be covered by the auditor’s reports. In 1981 the monetary Accounting Standard Board (FASB) reconsidered fund flow issues as part of the abstract framework project taken in 1976.At this time the FASB decided that the hard property flow reporting issues should be considered at the standard level. Subsequent deliberation topiced in story of Financial Accounting Standard (SFAS) No. 95: ‘Statement of property flows’ in Nobember1987 (Weygandt, Kieso, Kimmel 1998: 1936). Fund flow statement Vs bullion flow stateme nt Both fund flow statement and interchange flow statement serve as a fundamental parts of the financial statements. In 1961, the AICPA issued ARS No. 2, â€Å"Cash flow rate summary and the Fund Statements” which recommended that a fund statement covered by auditor’s opinion be include in companies financial reports.According to dissever 5 of precede to Statement of International Accounting Standard [approved by the IASC Board in November1982 for publication in January 1983 and supersedes the preface published in January 1975 (amended March 1978)], â€Å"the distinguish ‘financial statements’ covers oddment planers, income statement or profit and going away accounts, statements of change in financial position, personal line of credits and other statements and instructive materials which are set as being part of financial statements” (IASC, 2000:32).As per divide 7 of framework for the Preparation and first appearance of Financial Sta tements (approved by IASC Board in April 1989 for publication in July 1989): â€Å"A pinpoint set of financial statement normally includes a residuum tabloid, an income statements, a statements of change in financial position (which whitethorn be presented in a renewing of ways, for archetype as a statement of notes flow or a statement of fund flows) and those notes and other statements and ex political programatory materials that are an integral part of the financial statements” (IASC : p. 3-44). As per paragraph 4 of the previous IAS 7 (October 1977), statements of change in financial position, the call ‘ funds’ referred to bills, funds and gold equivalents or working capital (IFAC, 1992: p. 813). capital provided or used in effect of an opening move should be presented in the statements of changes in financial statement separately from other sources and uses of fund.Unusual items, which are not part of routine activities of the first step, shou ld be separately disclosed (IASC: parity bit 21). But many users of financial statements consider current practices of reporting fund flows as confusing because too much information is compressed in the statements of change in financial position, and because no sensation explanation has been established (Mosich and Larsen, 1982; p. 935).In order to develop a conceptual framework for financial accounting and reporting, the FASB issued in December 1980 a treatment memorandum â€Å"reporting Fund flow, liquidity and Financial Flexibility” which was issued for the following reasons: (1) for mensurateing hereafter cash flow, and (2) current practices regarding the reporting of funds flow information are not entirely satisfactory. As a compositors case of deliberation, FASB issued SFAS NO. 95 ‘Statements of Cash operate’ in 1987.The statements require the inclusion of statements of Cash Flows rather than a statement of stir in Financial position when issui ng a complete set of financial statements 212 ASA University Review, Vol. 6 No. 2, Julyâ€December, 2012 which was made impelling for annual percentage points ending after July 15, 1988. The major requirements of the statements are of the following two areas: bum of insertion: The statement must(prenominal) focus on cash receipts and payments and must explain the change in cash plus cash equivalents.Classification of cash flows: Cash flows are to be sort concord to in operation(p)(a), investment and financial support activities. The basis of much(prenominal) sort is derived from the financial theory, which state that the enterprisingness derives the cash used for invest activities and elimination of outstanding financial covenant in an accounting period from internal and remote sources. Internal cash sources emanate from the net cash generated from current act and perchance dis investment and depletion of cash resources at the start of the period.External cash sources come from support activities such as borrow and receiving cash from the sale of honor dispenses to existing and new shareholders (Wallace et,al). Benefits of Cash Flow Information †The information in a cash flow statement helps investors, creditors, and others to mensurate the following aspects of the firm’s financial position. †such statements serve as a mechanism for predicting the ability to generate afterlife cash flows for the investors, creditors and others. †This enables managers or management to plan coordinate and control financial operation in an effective manner. It gives an indication of the family betwixt profitability and cash generating ability thus of the quality of the profit earned. †It furnishes information to the management regarding the entities’ ability to pay dividend and jibe obligations. †Analyst and other users of financial information much, formally or informally, develop models to assess and com pare the present value of the hereafter cash flow of entities. Historical cash flow statements could be profitable to moderate the accuracy of past assessment (ACCA Text book part 2. P. 324). It is free from manipulation and is not affected by internal judgments or by accounting policies. †Such a statement dictates situations when a business has made huge profit but has run out money or it has sustained loss but has adequacy cash availability. †The issue of cash generated from operative activity and external finance in order to support capital, evaluate, and dividend requirements enkindle be obtained from such statements (Lee, T. A: 1972:27-36). †It aids in the evaluation of jeopardy, which includes some(prenominal) the pass judgment divergence of rising return and probability of insolvency or bankruptcy ( Hendrickson, Eldom.S, 1982: 237). †Such statements reveal the efficacy of an opening move to pay its nobble obligation as and when due to t he lenders. †A cash flow statement in connection with a balance sheet provides information on liquidity, viability, and adaptability. The balance sheet is often used to obtain information on liquidity, but the information is rather fractional for this purpose as the balance sheet is ensnared at a occurrence point of time. Cash Flow Statement Disclosures in Pharmaceutical Companies 213 It may assists users of financial statements in making judgments on the bills, time and degree of certainty of future cash flows. †This statement provides information that is useful in checking the accuracy of past assessment of future cash flows and in examining the relationship between profitability and net cash flow and the electrical shock of changing price (IAS 7: Para 3 & 4). †Information on cash flows class by tether groups of activities ( steer, investing and financing) that allow users to assess the impact of those activities on the financial position of the enter prise and the amount of its cash and cash equivalents.This information may also be to adjudicate the relationship among those activities (IAS 7: Para 11). †This statement is of special importance in assessing future cash flows, quality of income operational capability, financial flexibly and liquidity, and information on financing and investing activities. Using cash flows from operate activities from the cash flow statements, different ratios such as liquidity, ratio, solvency ratio, and profitability ratios goat also be calculated to evaluate an enterprise’s liquidity, solvency, and profitability. Aziz uddin and Bala, 2001: p. 14) Overview of Cash flow statement The cash flow statement explains the changes that have occurred in the company’s cash and cash equivalents during the form by classifying the cash flows in its operate, investing and financing activities. The statement must focus on cash receipts and payments and must explain the change in cash pl us cash equivalents. The compartmentalization is done in a way that is most appropriate to the company’s business.The following are the definitions of the components of the cash flow statement: Cash: cash on muckle and demand deposits Cash equivalents: short term, highly liquid investments that are readily convertible to cognise amounts of cash and are overt to an insignificant guess of changes in value. operate activities: the important revenue-producing activities of the enterprise and other activities that are not investing or financing activities Investing activities: the scholarship and disposal of long-term assets and other investments not include in cash equivalents. funding activities: activities that result in changes in the size and part of the faithfulness capital and borrows of the enterprise (Epstein, p. 93). Objective and Scope of IAS 7 Information intimately the cash flow of an enterprise is useful in providing users of financial statements with a b asis to assess the ability of the enterprise to generate cash and cash equivalents and the needs of the enterprise to utilize those cash flows. The economic finis taken by users requires an evaluation of the ability of an enterprise to generate cash and cash equivalents and timing and certainty of their generation.The objective of IAS 7 is to require the planning of information intimately the historical change in cash and cash equivalents of an enterprise by federal agency of a cash flow statement that classifies cash flows during the period from run, investing and financing activities. An enterprise should prepare a cash flow statement in accordance with the requirements of IAS 7 and should present it as an integral part of its financial statements for each period for which financial statements are prepared.Users of an enterprise’s financial statements are resideed in how the enterprise generates and uses cash and cash equivalents. This is the case regardless of the na ture of the enterprise activities and disregardless of whether cash can be viewed 214 ASA University Review, Vol. 6 No. 2, Julyâ€December, 2012 as the product of the enterprise, as may be the case with a financial institution. Enterprises need cash for the aforementioned(prenominal) reason however different their principal revenue- producing activities might be.They need cash to conduct their operations, to pay their obligations and to provide return to the investors. then this standard requires all enterprises to present a cash flow (Para 1 & 3). Presentation of Cash flow statement chthonic IAS 7 Cash and cash equivalent: The definition of cash and cash equivalent are central to the preparation and definition of cash flow statements. Cash consists of cash in hand and demand deposits, coins and notes of an organization, and so on In our country deposits in postal accounts may be termed as cash (Cooper and Ijiri, 1984: 88; Ghosh, 2001).Cash equivalents are short-term, h ighly liquid investments that are readily convertible into know amount of cash and which are theater of operations to an insignificant risk of change in value. According to the definitions of paragraph 6 of IAS 7 cash comprises cash in hand and demand deposits; unremarkably ‘cash on hand’ includes currency, notes, and coin in the cash box of the enterprise. It also includes prize bond, transportable money orders, postal orders, and low posited checks, bank drafts or pay- order.Demand deposits refer to deposits in checking accounts in banks and other financial institutions that may be withdrawn without notice usually force field to deduction of outstanding check. Thus cash equivalents †1. are short-term investments but the ‘term’ ‘short’ not clearly specified, although a period of common chord months and less is suggested to be taken as short term period. 2. are highly liquid investments. here ‘liquid’ means having in a situation where cash equivalents are functional in sufficient amount to meet obligation of payments. . are investments that are both: (a) readily convertible, to known amounts of cash and (b) effect to an insignificant risk of change in value. According to SFAC No. 95, the risk unconditionally refers to risk of change in by-line rate. The short-term investments are so skilful their maturity that they represent insignificant risk of changes in stakes rate. Examples include treasury bills, commercial papers, and money market funds purchased with cash that is in excess of immediate needs.However, although by definition, cash equivalents refer to short term highly liquid investments, they are usually held for the purpose of meeting short term cash commitments rather than for other purpose. For an investment to qualify as a cash equivalent it must be readily convertible to a known amount of cash and be subject to insignificant risk of change in value. Therefore an investment norma lly qualifies as a cash equivalent only when it has a short maturity of, say, three months and less from the date of acquisition. Equity nvestments are excluded from the cash equivalents unless they are, in substance, cash equivalents, for example in the case of preferred share acquired within a short period of their maturity and with a specified salvation date (Para 7). Cash Flow Statement Disclosures in Pharmaceutical Companies 215 Preparation of Cash flow statements IAS 7 requires cash flows to be sort into operating(a), investing, and financing activities. Example of cash flows by category operating(a) Activities Inflows service from customers Outflows Payments to suppliersAdvance deposits from customers Wages and salaries to employees Income revenue enhancement refunds Income impose payments pastime accredited on customers’ notes or another(prenominal) tax payments accounts Dividends and concern accepted from vex paying(a) on bank debt or bonds outstanding an d investments and included in ascertain net included in find out net income income Investing Activities Cash certain from sale of capital assets Payments for purchase of capital assets Cash from sale of debt or legality investments Cash flows capitalized as intangible assets, such as: · development be · start-up costs · capitalized spare-time activity · exploration Costs solicitation of principal on loans to others Purchase of debt or equity securities of others Interest and dividends certain on investments Loans extended to others and not included in determining net income funding Activities unclutter proceed of issuing debt or equity securities Payment of principal on bonds or bank loans Cash proceeds standard from bank loans Purchase of the entity’s own shares Interest pay on bank debt or bonds outstanding and not included in determining net income Dividends salaried to shareholders Variations in Reporting activities for Cash flows A. Operating or Financing activities Transactions with different categories included in cash flows are classified in a different manner. According to IAS 7, Para 12, â€Å"A single transaction may include cash flows that are classified differently.For example, when the cash refund of a loan includes both engagement and capital the interest element may be classified as operating activities and the capital amount is classified as financing activities”. B. Operating or investing and financing activities Some cash flows may be classified as arising from any activities such as ‘interest’, ‘dividend’ ‘income tax’. The detailed provisions of these types are as follows. 216 ASA University Review, Vol. 6 No. 2, Julyâ€December, 2012 Interest: a. For a financial institution, interest give and interest sure are usually classified as operating cash flows (para 33). b. For other enterprise, interest give and interest received may be classified as operating c ash flows because they enter into the role of net profit or loss. or else, interest paid may be classified as financing cash flows, because they are costs of obtaining financial resources. Interest received may be classified as investing cash flows, because they are returns on investments (para 33). Dividend: a. For a financial institution, dividends received are usually classified as operating cash flow (Para 33). b. For other enterprise, dividends received may be classified as operating cash flows because they enter into the inclination of net profit or loss. Alternatively dividend received may be classified as investing cash flows, because they are returns on investments (para 33). c. Dividend paid may be classified as financing cash flows, because they are costs of obtaining financial resources.Alternatively dividend paid may be classified as component of cash flows from operating activities in order to assist users to determine the ability of an enterprise to pay dividend out of operating cash flows (para 34). Income tax: a. Taxes on income splay on a transaction that gives to the cash flows that are classified as operating, investing, and financing activities in cash flow statement. plot of land tax expense may be readily identifiable with investing or financing activities, the related tax cash flows are often impracticable to identify and may arise in a different period from the cash flows of the fundamental transactions. Therefore taxes paid are usually classified as cash flows from operating activities.However, often it is practicable to identify the tax cash flow within individualistic transaction that gives rise to cash flows that are classified as investing or financing activity as appropriate. When tax cash flows are allocated over more than one class of activity, the total amount of taxes paid is disclosed (Para 36). In the sprightly of SFAS 95, â€Å"Transaction that enter into the determination of net income” are defined as operat ing activities and hence, interest received or paid, dividend received and taxes on income are rigidly hardened to arise from operating activities. Dividend to stakeholders are toughened as cash bounces classified as financing activities (Keiso and Weygandt, 1998: 1275-76) Cash flow statement consecrates in Bangladesh restrictive Framework, in the eyes of the Companies Act 1994 (Act no. 18 of 1994): According to incision 183 of the Companies’ Act 1994 (which came into effect from 1 January 1995), a company is required to present balance sheet, profit and loss account (income and expending account, in case of non profit companies). chthonic segmentation 185, the balance sheet and the income statement have to be prepared accord to the forms set out in discussion section â€1 and Part â€2 of enrolment XI respectively beneath which information on consecutive two years (concerned year and Cash Flow Statement Disclosures in Pharmaceutical Companies 217 preceding y ear) are to be provided.However according to note (g) of the general instruction for preparation of balance sheet (given in part â€1 of memorial XI after the horizontal format of the balance sheet), â€Å"a statement of change in financial position shall be included as an integral part of the financial statements, and shall be presented for each period for which the profit and loss account is prepared”. However no specific format of cash flow statement has been confirming in Companies Act 1994. In the light of the Security and Exchange Rule 1987 (S. R. O No. 237-l/87 go out on 28 September 1987): Under the provision of rule 12 (1) of the Securities and Exchanges Rules (SER) 1987(amended by the section notification No. second gear/ Section 7/SER/03/132 dated 22 october1997 published in the authorised gazette on 29 December 1997), the annual report to be furnished by an issuer of listed security shall include â€Å"a balance sheet, profit and loss account, cash flow st atement and notes to the accounts collectively hereunder referred to as the financial statement’. In the part III of the Schedule of the SER 1987, issues relating to interest paid on short-term acceptance, interest and dividend received income taxes are clearly guidelined. For example, interest paid on short-term borrowing shall be a cash outflow under operating activities; ‘interest and dividend received’ shall be a cash inflow under investing activities. And ‘interest paid on long term borrowing’ and ‘dividend paid’ shall be a cash outflow under financing activities.Under paragraph 35-36, ‘taxes on income’ should be treated as operating cash outflow unless they can be identified in financing and investing activities. Findings of the study To know the fulfilment of cash flows statement reporting practices by Pharmaceutical companies, a survey has been conducted covering twelve annual reports (2009) (For detailed the nam e of the companies see Appendix-1). The major findings of the study are given below in basis of general variations in reporting and impulsive disclosure. General findings It includes the current format and structure of cash flow statement and the extent of compliance of IAS-7, followed by sample Pharmaceutical Companies in Bangladesh. any the sample companies prepare cash flow statement as required by IAS-7/BAS 7 adopt by the Institute of Chartered accountant of Bangladesh and present it as an integral part of the financial statements. Notes to cash flow statement have been presented as part of the financial statements in case of all the sample companies. · The sample companies prepare cash flow statement in vertical form and shows figure of cash flows of the current year and the previous year. · All the sample companies’ cash flow statement contains a classification of operational, investing, and financing activities. · The sample companies did not deck the i nsurance policy dopted in determining the formula of cash and cash equivalents although this is required by paragraph 36 of IAS 7. 218 ASA University Review, Vol. 6 No. 2, Julyâ€December, 2012 Variation in Reporting another(prenominal) objective of the survey was to determine which alternatives, permitted by IAS-7, are used most in practice by Bangladeshi pharmaceutic companies. It is found that there are not many differences between companies in their reporting of cash flow information. This is expected because the preparation of cash flow statement does not allow for many choices, differences of interpretation or different accounting treatments. The results are set out in table 1.Table-1 Variations in reporting [Cash flow statement (CFS)] Factors 1 Notes to CFS Options Separately, following the CFS Part of the notes to the financial statements integrated in the CFS union Direct method acting In beam method Total Operating activities or no interest Financing Investing activit ies Total Financing activities or no dividends Operating activities Investing activities Total Part of accounting policy note Nothing disclosed Total Operating activities or no tax Financing activities Investing activities Total Number 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 Interest received and Interest paid 4 Dividend received and Dividend paid 5 Definition of cash and cash equivalents 6 Income tax Notes to table 1 · constitute to point 2 of Table 1.According to IAS-7 and SEC Rule 1987, the enterprises are encouraged to report cash flows from operating activities using the direct method. The direct method provides information which may be useful in estimating future cash flows which is not available under the indirect method. All the sample companies followed the direct method in reporting operating cash flows. One company (Pharmaceutical Mithun knit & Dyeing Ltd. ) discloses cash flows from operating activities unde r indirect method in notes of financial statements as extra information. Cash Flow Statement Disclosures in Pharmaceutical Companies · · 219 rear to points 3 & 4 of Table 1.All the companies examine have shown ‘interest received and paid’ under operating activities and ‘interest paid on long term borrowing’ and ‘dividend paid’ under financing activities. put forward to points 5 & 6 of Table 1. All the companies studied have shown â€Å"definition of cash and cash equivalents” in the notes of accounting policy and â€Å"income tax” under operating activities. willing disclosure The survey also included an examination of any additional information that is disclosed regarding the company’s cash flow which is not required by IAS-7, but which may be right-hand to the user. For example, separate disclosure of cash flows increases operating capacity and cash flows that maintain operating capacity, disclosure of segmental cash flows, cash flow per share etc.The survey found no company to disclose such additional voluntary information in its cash flow statement. Conclusion and tribute A materially misstated cash flow statement, whether it is in terms of incorrect classification in the categories or numerical accuracy, can be misleading to the user and can lead to wrong decisions taken by the users of the statement. The survey has revealed that although sample companies prepare cash flow statement according to International Accounting Standard-7 (BAS-7), there is also a degree of non-compliance. It is, however, found that there are not many differences between companies in their reporting of cash flow information.This is expected because the preparation of cash flow statement does not allow for many choices, differences of interpretation or different accounting treatments. To make cash flow statement more informative and useful for users, the companies should disclose additional voluntary information such as cash flow per share in their cash flow statements. Items consisting of cash flows from operating, investing and financing activities should also be gauzy in the notes of the financial statements. Due to the limited scope of the present study, a self-aggrandising number of research issues have not been attempted but are identified in the course of the study.Disclosure practices of additional items other than operating, investing and financing activities, disclosure practices differences between listed and unlisted companies, disclosure practices differences between financial and other institutions are some such potential issues for future research. 220 ASA University Review, Vol. 6 No. 2, Julyâ€December, 2012 References Annual Reports of Sample Pharmaceutical Companies Listed in Dhaka Stock Exchange and Chittagong Stock Exchange 2009. Aziz Uddin, A. B. M and Bala. , S. K. ( 2001), â€Å"Cash Flow Reporting in Bangladesh”, The Cost & Management, N ov- Dec. ICMAB, p. 13. FASB watchword Memorandum (1980), Reporting Funds Flow, fluidity and Financial Flexibility, FASB, Stanford. Thomas H. Beechy. Joan E. D. Conrod, Intermediate Accounting, second Edition, Chpter 5, Exhibit 5-1 pp. 91 Ghosh, Santi N. (2001),â€Å"Workshop hearty on IAS # 7 : Cash Flow Statements” compiled under the Institute of Chartered Accountants of Bangladesh (ICAB)Project, victimisation of Accounting and Auditing Standards in Bangladesh, The World Bank. governing of Bangladesh (GOB) (1994), The Companies Act 1994 (Act No. 18 of 1994). Gup, B. E. & Samson, W. D. 1993. An analysis of patterns from the statement of cash flows. Financial Practice & Education, 3(2):73-79. Hendrickson, Eldom. S(1982), Accounting Theory, Richard D. Irwin, Inc. , Illinois, p. 236. Hertenstein, J. & McKinnon, S. 1997. Solving the puzzle of the cash flow statement. Business Horizons, 40(1):69-76.International Accounting Standards committee (IASC) (2000), Int ernational Accounting Standards 2000 International Accounting Standards Committee, London, â€Å"International Accounting Standard IAS 7 (revised 1992): Cash Flow Statements” in pp. 139165. International Federation of Accounting (IFAC) (1992), IFAC Handbook 1992: skilful Pronouncements (New York: IFAC). â€Å"IAS 7 (October 1977): Statement of Changes in Financial Position” in pp. 812- 816. Khan, M. H. & Akter, M. S. & Ghosh, S. K (2005), â€Å"Cash Flow Statement Disclosures: A Study of Banking Companies in Bangladesh”. Available at www. pcte. edu. in/site/OJMR/finance/cashflow. pdf Keiso, Donald, E. and Jerry. J.Weygandt (1998), Intermediate Accounting, trick Wiley & Sons, Inc. New York, 9th Edition, pp. 1275-76. Lee, T. A. 1982. Cash flow accounting and the allocation problem. Journal of Business Finance & Accounting, 9(3):341-352. Lee, T. A (1972), â€Å"A Case for Cash Flow Reporting”, Journal of Business 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, 11:167-180. 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), â€Å"Cash Flow Statements: An International Comparison of Regulatory Positions”, The International Journal of Accounting, Vol. 32, No, 1, pp. 1-22 Cash Flow Statement Disclosures in Pharmaceutical Companies 221 Appendix-1 List of the twelve Pharmaceutical companies studied. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. GlaxcoSmithKline Bangladesh bound (2009) The IBN SINA Pharmaceutical Industry Ltd. (2009) BEXIMCO PHARMACEUTICAL LTD. (2009) ORION infusion LTD. (2009) ACI Formulation circumscribed (2009) Ambee Pharmaceutical limited (2009) Square Pharmaceutical Ltd. (2009) Libra Infusions Limited (2009) BEACOM Pharmaceuticals Limited (2009) Rahman Chemicals Limited (2009) Renata Limited (2009) Therapeutics (Bangladesh) Limited (2009)\r\n'