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and that have terms to maturity b) Deferred Taxation Surplus funds are transferred from
approximating to the terms of Since the Institute is not carrying restricted funds to unrestricted funds in
the related liability. The present on a trade or business capital terms of the relevant donor agreements
value of the defined benefit allowances have not been claimed or with the subsequent approval of the
obligations depends on a number against the liable income and donor.
of factors that are determined on there are no tax losses to be set
an actuarial basis using a number off against any future taxable Contributions and donations received from
of assumptions about discount income. Deferred tax has not the general public are recognised in the
rate, future salary increments and been provided in the financial statement of comprehensive income at
mortality rates. Due to the long- statements. the time of receipt, where there are no
term nature of these plans, such terms of references.
estimates are subject to significant 2.2.5 Translation of Foreign Currency
uncertainty. All assumptions are Transactions Designated Funds
reviewed at each reporting date. Transactions in currencies other than Unrestricted funds designated by the
Accordingly, the employee benefit Sri Lankan Rupees are converted into Council to a specific purpose are identified
liability is based on the actuarial Sri Lankan Rupees at rates which as designated funds. The Institute
valuation as of 31 December 2022. approximate the actual rates at the has accounted the following funds as
The Institute’s accounting policy transaction date. At the reporting date, designated funds and the purpose of such
for gratuity is to recognise actuarial monetary assets (including securities) and funds are elaborated as follows,
gains and losses in the period liabilities denominated in foreign currency
in which they occur in full in the are converted into Sri Lankan Rupees at
statement of other comprehensive the rate of exchange at that date. Non -
income.
monetary assets and liabilities in foreign
currencies that are stated at historical cost
(b) Defined Contribution Plans- are translated at the foreign exchange rate
Employees’ Provident Fund and at the date of the transaction. Realized
Employees’ Trust Fund
and unrealized exchange differences
are reported in the statement of
Employees are eligible for comprehensive income.
Employees’ Provident Fund
Contributions and Employees’ 2.3 Accounting for the Receipt and
Trust Fund Contributions in line Utilization of Funds, Grants and
with respective statutes and Reserves
regulations. These are recognized
as an expense in the statement The Institute received various grants for
of comprehensive income as specific development activities. Funds,
incurred. The Institute contributes grants and reserves have been classified
15% and 3% of gross emoluments as unrestricted funds, restricted funds and
of the employees to Employees’ endowment funds.
Provident Fund and Employees’
Trust Fund respectively. 2.3.1 Unrestricted Funds
Unrestricted funds are those that are
2.2.4 Taxation available for use by the Institute at the
a) Income Tax discretion of the Council and funds that
are designated for a specific purpose by
The provision for current taxation the Council in furtherance of the general
has been computed in accordance objectives of the Institute. Allocations
with the Inland Revenue Act made by the Council for the credit of
No 24 of 2017 and as amended the designated funds are charged to the
subsequently by Inland Revenue statement of comprehensive income.
(Amendment) Act No. 45 of 2022.

CA SRI LANKA | Integrated Annual Report 2022 91