Page 63 - 2596-CA SR Lanka- Annual Report 2022

Standard Setting

Stakeholder Value Creation Scorecard Strategic Imperative A dedicated website (www.slaasc.lk)
Standard Setting lends further visibility to all
Members communications released by the two
Supporting Financial
Corporates committees, including access to digital
Regulators Management of Entities copies of the respective gazettes. The
Globally Aligned
website is regularly updated with the
technical pronouncements and latest
As Sri Lanka’s leading professional y SLFRS for Small and Medium Sized developments on the related Accounting
accounting body, CA Sri Lanka remains Enterprises (SMEs) - Applicable for and Auditing Standards.
the sole authority in the country for the entities which do not have public
adoption of accounting and auditing accountability and publish general Meanwhile, the Institute’s Technical
standards. The development and purpose financial statements for Division plays a critical role in maintaining
implementation of Sri Lanka Accounting external users. The list of SBEs that a uniform and high standard in the
are stated in Section 1.1 of the said
and Sri Lanka Auditing Standards comes SLFRS has been scoped out from the preparation and presentation of the
under the purview of the Institute’s application. SLFRS for SMEs issued financial statements of business
Accounting Standards Committee and in 2015 are effective from 1st January enterprises. CA Sri Lanka’s Technical
Auditing Standards Committee. Both 2016. Division has been the beneficiary of
committees operate under the provisions an annual grant of Rs 4 Mn. by the Sri
of the Sri Lanka Accounting and Auditing y SLFRS for Smaller Entities - Provides Lanka Accounting and Auditing Standards
Standards Act No 15 of 1995 (the Act). a further simplified financial reporting Monitoring Board (SLAASMB) to support
The Act provides the establishment of standard which could be cost the CA Sri Lanka’s efforts to implement
an Accounting Standards Committee for effectively used by smaller entities. robust and modern practices in the
the purpose of assisting the Council of The requirements stated in SLFRS accounting profession from the inception.
CA Sri Lanka in the promulgation of these for Smaller Entities recognise the The annual total cost incurred by CA Sri
size, level of complexity, availability
standards. Lanka in these areas was more than Rs
of resources and their effect on cost 12 Mn.
effectiveness in the preparation and
All standards developed by the two presentation of financial statements of
committees are approved by the CA smaller entities.
Sri Lanka Governing Council and then
formally gazetted in all three languages. In adopting the Sri Lanka Auditing
Standards, the Auditing Standards
Currently there are frameworks of 3 Committee is guided by the Standards
Accounting Standards applicable to issued by the International Auditing and
entities operating in Sri Lanka; Assurance Standards Board (IAASB) of the
International Federation of Accountants
y Sri Lanka Accountings Standards (IFAC).
(LKASs/SLFRSs) – Mandatory for
Specified Business Enterprises (SBEs)
as per the Act (except the SBEs as
prescribed by Extraordinary Gazette
No. 1074/7 dated 7th April 1999) which
are permitted to follow SLFRS for
SMEs as well.

CA SRI LANKA | Integrated Annual Report 2022 61