Transparency, accountability and sound management add to market confidence
View(s):Transparency, accountability and sound management contribute to building market confidence and they are very important requirements for a country’s sustainability and long term success, an accounting expert said.
“Today, as more and more countries strive towards achieving this important goal, The Institute of Chartered Accountants of Sri Lanka (CA) understood how important transparency and accountability was 48 long years ago when it embarked on the visionary initiative in these two aspects in financial reporting among big and small organizations in Sri Lanka. Since its launch in 1964, the Annual Report Awards competition has steadily grown over the years to be one of the country’s most celebrated corporate events, setting a new benchmark in financial reporting for the corporate sector in the country,” Sujeewa Rajapakse, President CA said addressing an eminent gathering at CA’s 48th Annual Report Awards on Wednesday.
After being dragged down by a quarter century long war, post-war Sri Lanka is today at crossroads, ready to bounce back amidst a promising era of both infrastructure and economic development, he said, noting that as in the case of any developing or even developed nation, Sri Lanka continues to face numerous challenges in various forms, which can also prevent the country’s economic revival if we fall prey to such challenges.
“In an era of fast phased development, the role of the private sector is very significant and it is indeed very gratifying to see the lead role taken by Sri Lankan businesses to spearhead the development drive of our once-war torn nation,” he said. But he also noted that spearheading the nation’s development is not the only responsibility falling on the shoulders of the private sector, striving towards transparency and accountability at all levels is equally important, which will also set precedence and which could be emulated by the rest.
“And it is the responsibility of both ruling administrations and businesses to oblige to these expectations, therefore the annual report awards competition I believe is an important catalyst in ensuring these expectations are met with at a corporate level,” he said, stressing that the world continues to be grappled with various crises after crisis, some of which bears direct impact on Sri Lanka, especially in its context as a developing country.
Global markets and sophisticated financial techniques generate large opportunities as well as big risks, both of them intimately linked, he said, adding that the environment imposes constraints on the international financial institutions, which have to ajust very quickly to changing circumstances and to address a much wider variety of concerns than in the past. All of which ultimately have a direct or indirect impact to a local company.
“This year we received the highest number of applications in comparison to previous years, which is an encouraging sign in terms of the country’s capital market development. The higher number of applications also means more organisations are committed to ensure the highest level of transparency and accountability in their organisations,” Mr. Rajapakse said.
John Keells Holdings PLC won the Cyril Gardiner Memorial Trophy (Gold) in the Overall Excellence in Financial Reporting category for 2012.
The annual reports were evaluated against established criteria and did not include the actual financial position or the actual financial or non-financial performance of an organisation. The winners were selected based on their ability to effectively communicate their organisation’s objectives, highlights, performance, personnel and management to an intended audience.
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