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Sri Lanka accounting body aims for greater clarity in reports

ECONOMYNEXT – Sri Lanka’s accounting standards body said it expects corporate financial reports to be more mature and have greater clarity now that international norms have been adopted for the past two years.

Arjuna Herath, president of the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), said its Annual Report Awards Competition aims to promote transparency, accountability and good governance.

This year’s competition on the theme ‘Clarity Redefined’ will encourage organisations and the preparers of the annual reports to produce a clearer, cohesive and customized report to reflect the operations of each individual company.

“Sri Lanka converged with the International Financial Reporting Standards in 2012 and after applying the accounting standards for two financial years, we now expect the annual reports to start displaying maturity in communicating to the market the company specific disclosures,” Herath said.

He told a news conference he hopes to see a much larger participation at this year’s 51st Annual Report Awards competition as it was considered as an important stepping stone for corporates to enhance their standing in the corporate world.

Shareholders and investors have welcomed the greater degree of disclosure in recent annual reports but have criticised some for being too long, with 2-300 pages and having too much information which makes them difficult to digest.

Entries are now open for CA Sri Lanka’s Annual Report Awards 2015 and will close on 10th September.

The competition is open to any organisation ranging from conglomerates to small businesses and non-governmental organizations that produces an annual report.

Chairman of the Annual Report Awards Committee 2015 Tishan Subasinghe said the judging panel will continue to update checklists regularly to keep pace with the changes to the accounting standards.

They will also place increased emphasis on disclosures pertaining to related party transactions.  (Colombo/August 12 2015)
 

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