Page 64 - CA Sri Lanka Integrated Annual Report 2023

VALUE CREATION REPORT

STANDARD SETTING

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

Technical Pronouncements made by CA Sri Lanka during 2023
Technical Area Objectives Name of the Pronouncement
Sri Lanka Related To provide guidance for engagements SLRSPS-4752 Engagements to Report on the Compliance
Services Practice to report on the directions issued by the with the Corporate Governance Directive Issued by the
Statement Central Bank of Sri Lanka (CBSL), on Central Bank of Sri Lanka for Finance Companies (Revised)
Corporate Governance

Technical Publications of CA Sri Lanka during 2023
Technical Area Objectives Name of the Pronouncement
Sri Lanka Accounting To be in accordance with the 2023 edition Sri Lanka Accounting Standards Bound Volume 2023
Standards of the International Financial Reporting
Standards (IFRS).
Code of Ethics To align with the International Ethics Code of Ethics for Professional Accountants 2023
Standards Board of Accountants’ 2021
edition of the Code
Code of Best To enhance the corporate governance Code of Best Practices on Corporate Governance 2023
Practices on Corporate practices in Sri Lanka
Governance

62 CA Sri Lanka Integrated Annual Report 2023