Page 98 - 2596-CA SR Lanka- Annual Report 2022

NOTES TO THE FINANCIAL STATEMENTS

(c) Finance Expense The following amendments to the Sri
Finance expense is recognised on accrual Lanka Accounting Standards effective for
basis when it is paid or creates liabilities. annual periods beginning on or after 1
January 2023 are not expected to have a
2.5 Statement of Cash Flows material effect on the financial statements
of the Institute:
The statement of cash flows has been
prepared by using the 'Indirect Method'
of preparing of cash flows in accordance • Classification of Liabilities as Current
with Sri Lanka Accounting Standard- LKAS or Non-current – Amendments to
7 on 'Statement of Cash Flows'. Cash IAS 1
and cash equivalents as referred to in the • Disclosure Initiative: Accounting
Statement of Cash Flows are comprised Policies - Amendments to IAS 1 and
of those items as explained in Note 10. IFRS Practice Statement 2

2.6 Capital Commitments and • Definition of Accounting Estimates
Contingencies (Amendments to IAS 8)
Contingencies are possible assets or • Amendment to IAS 12 – Deferred
obligation that arise from past events tax related to assets and liabilities
and would be confirmed only on the arising from a single transaction.
occurrence or non-occurrence of uncertain
future events, which are beyond the
Institute’s control.

Capital commitments and contingent
liabilities of the Institute are disclosed
in the respective notes to the financial
statements.
2.7 Events After the Reporting Period
The materiality of events occurring after
the reporting period has been considered
and appropriate adjustments, wherever
necessary, have been made in the
financial statements.

2.8 Amendments to Accounting
Standards issued but not yet
effective
The Institute has applied the following
standards and amendments for the first
time for its annual reporting periods
commencing 1 January 2022:

• Amendment to IAS 16, Property,
Plant and Equipment

• Amendments to IFRS 3, Reference
to the Conceptual Framework
• Amendments to IAS 37, Onerous
Contracts – Cost of Fulfilling a
Contract
• Annual Improvements to IFRS
Standards 2018–2020

96 CA SRI LANKA | Integrated Annual Report 2022