Companies complying with SLAASMB regulations:
Lanka’s financial reporting standards high
Harshini PERERA
Sri Lanka stands high in financial reporting, compared with the other
countries in the region.
Sri Lanka is one of the 32 countries in the International Forum of
Independent Audit Regulators and Sri Lanka Accounting and Auditing
Standards Monitoring Board (SLAASMB) is the Regulator situated in the
South Asian region. Hence, the quality of financial reporting stands
high in the region Sri Lanka Accounting and Auditing Standards
Monitoring Board Director General, Ajith S. Ratnayake to Daily News
Business, said.
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SLAASMB DG
Ajith Ratnayake |
Small and Medium Enterprises of Sri Lanka have to comply with the Sri
Lanka Accounting Standards for Smaller Enterprises (SLASSE) whereas
companies listed in Colombo Stock Exchange and Specified Business
Enterprises comply with Sri Lanka Accounting and Auditing Standards.
Hence, each company in Sri Lanka is monitored by rules when considering
the need of valuable information to the public on their financial
reports, he said.
At present, the SME sector in Sri Lanka has shown an interest in
financial reporting. A proper financial and auditing report assesses the
threats and improvements it can adopt and financial and auditing reports
improve the financial systems in the enterprises.
Ratnayake said the International Accounting Standards Board (IASB)
published an International financial Reporting Standards code (IFRS)
that was revised by the Sri Lanka Accounting Standards Committee.
The standards will be recommended for adoption through a council of
the Institute of Chartered Accountants of Sri Lanka (ICASL). The
adoptions will be published and inducted to the legal system by Gazette.
He said companies should adopt the corporate governance concept to
avoid giving misleading information to the public. Two ways the
companies should comply with it are the performance and compliances. The
performance of the company ensures whether it had functioned properly
and under compliance it ensures whether the company complies with the
law of the country.
Commenting on the Sri Lanka Accounting Standards for Smaller
Enterprises (SLASSE) for SMEs, he said this was adopted since 2003 and
there will be new development in the standards in coming months.
Sri Lanka has been adopting the 2007 version of the International
Financial Reporting Standards (IFRS), whereas Sri Lanka should adopt the
latest standards. The SLASSE is in the process of adopting the latest
standards of Financial and Auditing reports.
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