Page 88 - 2596-CA SR Lanka- Annual Report 2022

NOTES TO THE FINANCIAL STATEMENTS

1. General Information country, other events, and conditions (a) power over the investee
1.1 Legal and Domicile Form in determining the going concern.
Accordingly, the Council has assessed (b) exposure, or rights, to variable
The Institute of Chartered Accountants of
Sri Lanka (the Institute) is a statutory body its ability to continue as a going concern returns from its involvement with
incorporated by Institute of Chartered and is satisfied that it has adequate the investee; and
Accountants Act No. 23 of 1959 (The Act), resources to continue for the foreseeable (c) the ability to use its power over
and domiciled in Sri Lanka, situated at future. Further, the Council is not aware
30A, Malalasekara Mawatha, Colombo 07. of any material uncertainties that may the investee to affect the amount
cast significant doubt upon the Institute’s of the investor’s returns.
1.2 Principal Activities and Nature of ability to continue as a going concern.
Operations Therefore, the Financial Statements of the Accordingly, Management has determined
Institute continued to be prepared on a that the Institute does not have exposure,
• To promote in general the theory going concern basis. or rights to variable returns from its
and practice of accountancy and involvement with AAT or APFASL. Hence
in particular auditing, financial 1.4 Financial Period there is no requirement for consolidation.
management and taxation.
The financial period of the Institute
• To enroll, educate and train members represents a twelve-month period from 1.6 Basis of Preparation of Financial
who are desirous of learning or 1st January 2022 to 31st December 2022. Statements
improving their skills and knowledge 1.6.1 Statement of Compliance
in disciplines such as auditing, 1.5 Accounting for Association of The financial statements of the Institute
financial management and taxation. Public Finance Accountants of Sri have been prepared in accordance with
Lanka (APFASL)
• Act as the sole authority for Sri Lanka Accounting Standards issued by
promulgating accounting and APFASL has been set up jointly with The Institute of Chartered Accountants of
auditing standards in Sri Lanka. the Institute of Public Finance and Sri Lanka.
Development Accountancy (IPFDA) and
• To organize, finance and maintain The Institute of Chartered Accountants These financial statements comprise the
schemes for the granting of of Sri Lanka (CA Sri Lanka) in 2012, to statement of financial position, statement
diplomas, certificates and other enhance the capacity of public sector of comprehensive income, statement of
awards to members of the Institute financial management professionals. Both changes in funds and reserves, statement
and other professional bodies and CA Sri Lanka and IPFDA have equally of cash flows and notes to the financial
to other persons who fulfil the contributed Rs. 10mn as initial investment statements.
prescribed conditions. for this project. In terms of paragraph 5.9

• Adoption and implementation of of the Articles of Constitution of APFASL, The principal accounting policies applied in
code of ethics and best practices. on the occasion of dissolution, the fund the preparation of the financial statements
will either be spent for collective welfare are set out below. These policies have
• Conducting of technical awareness purpose or be granted towards any good been consistently applied to all periods
campaigns in the form of cause as the general membership feels presented in the financial statements
seminars, workshops and events best. unless otherwise stated.
to ensure continuous professional
development of the members. The assets and liabilities of Association of 1.6.2 Basis of Measurement
• Regulation and supervision of Public Finance Accountants of Sri Lanka The financial statements have been
student education and training. (APFASL) which had been amalgamated prepared on accrual basis and under
with the Institute financials up to year the historical cost basis, except where
• Activities on matters of public 2015 have been de- recognised from the
interest. financial statements of the Institute from appropriate disclosures are made with
regard to fair value under relevant notes.
1.3 Going Concern the year 2016 due to the amendment
of certain clauses and provisions of 1.6.3 Comparative Information
The Council of the Institute has made an
assessment of its ability to continue as a the Constitution of APFASL in order to Comparative information including
going concern and is satisfied that it has operate as a more autonomous entity. quantitative, narrative and descriptive
the resources to continue its operations information is disclosed in respect of the
in the foreseeable future. Furthermore, When determining that there is no previous period for all amounts reported
the council is not aware of any material requirement for consolidation, the in the financial statements, in order to
uncertainties that may cast a significant consideration has been drawn to all enhance the understanding of the financial
doubt upon the ability of the Institute factors and circumstances in SLFRS 10 statements of the current period and to
to continue as a going concern. The - “Consolidated Financial Statements” improve comparability.
Council has considered the consequences (Paragraph 7) as follows;
of current economic crisis of the Where necessary, comparative figures
have been rearranged to conform to the
current year’s presentation.

86 CA SRI LANKA | Integrated Annual Report 2022