SFR - Relief for SMEs

The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) in its capacity as the sole accounting standards setting authority in the country has introduced a simplified financial reporting (SFR) standard for the benefit of the Small and Medium-Sized entities in the country. Small and Medium-Sized entities (SMEs) plays a critical role in a country's economy be it job creation, entrepreneurship or income generation.

The reporting framework so far has been a general set of Accounting Standards to be used by all organizations. In the year 2011 CA Sri Lanka published the Sri Lanka Accounting Standards for Small and Medium-Sized Entities (SLFRS for SMEs) with effect from January 1, 2012.

The SLFRS for SMEs is a self-contained Standard, incorporating accounting principles that are based on full SLFRSs but that have been simplified to suit the entities within its scope (known as SMEs).