Page 90 - CA Sri Lanka Integrated Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS

1. GENERAL INFORMATION the council is not aware of any material (a) power over the investee.
1.1 Legal and Domicile Form uncertainties that may cast significant
doubt upon the ability of the Institute to (b) exposure, or rights, to variable
The Institute of Chartered Accountants
continue as a going concern. The Council returns from its involvement with the
of Sri Lanka (the Institute) is a statutory
has considered the consequences of investee; and
body incorporated by Institute of Chartered
the economic crisis of the country, other
Accountants Act No. 23 of 1959 (The Act),
events, and conditions in determining the (c) the ability to use its power over the
and domiciled in Sri Lanka, situated at 30A,
going concern. Accordingly, the Council has investee to affect the amount of the
Malalasekara Mawatha, Colombo 07.
assessed its ability to continue as a going investor’s returns.
concern and is satisfied that it has adequate
1.2 Principal Activities and Nature
of Operations resources to continue for the foreseeable Accordingly, Management has determined
future. Therefore, the Financial Statements that the Institute does not have exposure, or
h To promote in general the theory of the Institute continued to be prepared on rights to variable returns from its involvement
and practice of accountancy and a going concern basis. with APFASL. Hence there is no requirement
in particular auditing, financial for consolidation.
management and taxation. 1.4 Financial Period
1.6 Basis of Preparation of
The financial period of the Institute
h To enroll, educate and train members Financial Statements
who are desirous of learning or represents a twelve-month period from 1st 1.6.1 Statement of Compliance
improving their skills and knowledge January 2023 to 31st December 2023.
in disciplines such as auditing, 1.5 Accounting for Association of The financial statements of the Institute have
financial management and taxation. been prepared in accordance with Sri Lanka
Public Finance Accountants of Accounting Standards issued by The Institute
Sri Lanka (APFASL)
h Act as the sole authority for of Chartered Accountants of Sri Lanka.
promulgating accounting and APFASL has been set up jointly with the
auditing standards in Sri Lanka. Institute of Public Finance and Development These financial statements comprise the
Accountancy (IPFDA) and The Institute of statement of financial position, statement
h To organize, finance and maintain Chartered Accountants of Sri Lanka (CA of comprehensive income, statement of
schemes for the granting of Sri Lanka) in 2012, to enhance the capacity changes in funds and reserves, statement
diplomas, certificates and other of public sector financial management of cash flows and notes to the financial
awards to members of the Institute professionals. Both CA Sri Lanka and IPFDA statements.
and other professional bodies and have equally contributed Rs. 10 Mn as initial
to other persons who fulfil the investment for this project. In terms of The principal accounting policies applied in
prescribed conditions. paragraph 5.9 of the Articles of Constitution the preparation of the financial statements
of APFASL, on the occasion of dissolution, are set out below. These policies have been
h Adoption and implementation of the fund will either be spent for collective consistently applied to all periods presented
code of ethics and best practices. welfare purposes or be granted towards any in the financial statements unless otherwise
good cause as the general membership feels stated.
h Conducting technical awareness best.
campaigns in the form of seminars, Presentation of statement of comprehensive
workshops, and events to The assets and liabilities of Association of income has been changed from function of
ensure continuous professional Public Finance Accountants of Sri Lanka expenses method to nature of expenses
development of the members. (APFASL) which had been amalgamated method for better presentation from the year
with the Institute financials up to year 2015 ended 31.12.2023.
h Regulation and supervision of have been de- recognised from the financial
student education and training. statements of the Institute from the year 1.6.2 Basis of Measurement
2016 due to the amendment of certain
The financial statements have been prepared
h Activities on matters of public clauses and provisions of the Constitution on the accrual basis and on the historical
interest. of APFASL in order to operate as a more cost basis, except where appropriate
autonomous entity.
1.3 Going Concern disclosures are made with regard to fair
value under relevant notes.
The Council of the Institute has made an When determining that there is no
assessment of its ability to continue as a requirement for consolidation, the 1.6.3 Comparative Information
going concern and is satisfied that it has consideration has been drawn to all
the resources to continue its operations factors and circumstances in SLFRS 10 Comparative information including
in the foreseeable future. Furthermore, - “Consolidated Financial Statements” quantitative, narrative and descriptive
(Paragraph 7) as follows: information is disclosed in respect of the

88 CA Sri Lanka Integrated Annual Report 2023