Technical Update

Volume 2, August 2012

Sri Lanka Accounting Standards – Where do we stand?

Upcoming changes to International Financial Reporting Standards

Seminars organized by the Technical Division

Latest Publications

During the first two quarters of the year the Technical Division organized the following seminars...
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Following publications were issued by the Technical Division.

Sri Lanka Accounting Standards – Where do we stand?

Sri Lanka Accounting Standards comprise Accounting Standards prefixed both SLFRS and LKAS. SLFRS refers to Sri Lanka Accounting Standards corresponding to IFRS and LKAS are Sri Lanka Accounting Standards corresponding to IAS. Sri Lanka Accounting Standards are commonly referred by the term SLFRSs. In addition, CA Sri Lanka has adopted all IFRIC and SIC pronouncements, issued by IASB.

CA Sri Lanka issued Sri Lanka Accounting Standards 2011 bound volume based on International Financial Reporting Standards (IFRSs) 2009 bound volume with an effective date of 1 January 2012.Subsequently Sri Lanka Accounting Standards – Changes with effect from 01 January 2012 booklet was issued, carrying the changes to the Sri Lanka Accounting Standards 2011 bound volume with references to the paragraphs amended. These changes will be effective from 01 January 2012. This booklet bridges the gap between the IFRS 2009 version and IFRS 2011 version and in other words now we are effectively in compliance with 2011 IFRS version.

In order to provide more clarifications and illustrations to Sri Lanka Accounting Standards, the Accounting Standards Committee decided to issue Application Guidance which is in line with 2011 version of IFRSs. This bound volume of Application Guidance incorporates Guidance on implementing the Accounting Standards, IFRICs and SICs; the interpretations which were respectively developed by the IFRS Interpretations Committee and the former Standing Interpretations Committee (SIC).

In addition to above following Standards were issued by the CA Sri Lanka to be effective for the financial periods beginning on or after 1 January 2013.

• SLFRS 10 – Consolidated Financial Statements
• SLFRS 11 – Joint Arrangements
• SLFRS 12 – Disclosure of Interests in Other Entities
• SLFRS 13 – Fair Value Measurement

Upcoming changes to International Financial Reporting Standards.

International Accounting Standard Board is considering revisions to following Accounting Standards and the consultation documents are currently open for comment.

1. Comprehensive Review of the IFRS for SMEs

The International Accounting Standard board (IASB) has undertaken an initial comprehensive review of the IFRS for SMEs Standard to consider whether there is a need for any amendments to the Standard. As the first step in that initial comprehensive review, IASB has issued a “Request for Information” seeking the views of those who have been applying the IFRS for SMEs, on whether there is a need to make any amendments to the IFRS for SMEs and, if so, what amendments should be made.

The deadline for comment is 30th September 2012.

2. Request for Information – IFRS 8 Operating Segments.

The International Accounting Standards Board (IASB) has begun the public part of its review of IFRS 8 Operating Segments by publishing for comment a Request for Information (RFI) on the effect of implementing the standard. The review seeks feedback on whether the standard is functioning as intended, as well as more practical information on the challenges and costs associated with implementing the standard.


The deadline for comment is 31st October 2012.

We invite our members to respond to the above by directing your comments to the Technical Unit.The Technical Division will compile all comments and forward to IASB for consideration.

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Seminars organized by the Technical Division.

During the first two quarters of the year the Technical Division organized the following seminars.

• Seminar Series on New Sri Lanka Accounting Standards (SLFRSs)

As part of IFRS convergence process five Accounting Standards will become effective on 1 January, 2013/ 2015. An exclusive seminar series was organized by the Technical Division of CA Sri Lanka with the guidance of the Accounting Standards Committee to enlighten theprepares and users of financial statements of the new dimensions.

Standard	Presenter
SLFRS 10 – Consolidated Financial Statements	Mr. Nishan Fernando
SLFRS 12 – Disclosure of Interests in Other Entities	Mr. Nishan Fernando
SLFRS 11 – Joint Arrangements	Ms. Anoji De Silva
SLFRS 13 – Fair Value Measurement	Mr. Reyaz Mihular
SLFRS 09 – Financial Instruments	Mr. Manil Jayesinghe



• Seminar Series on Sri Lanka Accounting Standards (SLFRSs)

A comprehensive seminar series including a full review of the Sri Lanka Accounting Standards applicable from 1 January 2012 was organized by the Financial Reporting Faculty of CA Sri Lanka.

• Seminar Series on SLFRS for SMEs

Seminar series on SLFRS for SMEs was conducted in Colombo, Kandy, Galle and Kurunagala covering the following aspects;

• Introduction of SLFRS for SMEs.
• Benefits of adopting SLFRS for SMEs.
• Entities eligible for SLFRS for SMEs.
• Principles in SLFRS for SMEs.
• SLFRS for SMEs vs full SLFRS.
• Transition from SLAS to SLFRS for SMEs.

Please follow the below link to download the above presentations.

Click here to download Presentations Top

Latest Publications

Following publications were issued by the Technical Division.

Sri Lanka Accounting Standards SLFRS 10,11,12,13

Sri Lanka Accounting Standards – Changes with effect from 01 January 2012

This booklet contains the changes to the Sri Lanka Accounting Standards 2011- Bound Volume with references to the paragraphs amended.

These changes will be effective from 01 January 2012.