SL a role model for the accounting profession, says CA Chief Arjuna Herath
The foremost and basic criteria for investment (in any country including Sri Lanka), is the existence of a universally acceptable accounting framework and this is fundamental for the investors to make a reliable assessment of investment opportunities and to monitor performance of their investments.
“Today this requirement is well entrenched in our country providing a much required ingredient to be successful in attracting investments in to your company and to the country at large. This is also fundamental, to other providers of capital, suppliers, and customers to assess the reliability of the company to safeguard their interest,” President of CA Sri Lanka, Arjuna Herath said, addressing the golden jubilee of Annual Report Awards organised by the Institute of Chartered Accountants of Sri Lanka at the Nelum Pokuna Theatre on Tuesday.
Companies that use the same standards to prepare their financial statements can be weighed against each other more correctly and it’s especially important when comparing companies located in different countries, as they might otherwise be using different rules and methodologies to prepare their statements.
This increase in comparability has helped investors better determine where their investments should be, according to Mr. Herath. He said the leadership of the Confederation of Asia Pacific Accountants and also the South Asia Federation of Accountants is with Sri Lanka, and ‘we’ have very influential representation in the International Federation of Accountants, the global apex body of accountants.
“We are today completely aligned with International Financial Reporting Standards and International Auditing Standards (IFRS). We’re today a role model for the Accounting Profession in the world. As a result, we give leadership and influence policy making for accounting profession at a regional and global level. Today the investors will not have quarries on the accounting framework in the country and your company could be benchmarked against any company in the world in terms what you report.” John Keells Holdings PLC won the coveted ‘Cyril Gardiner Memorial Trophy’ Gold Award for Overall Excellence in Annual Financial Reporting. A total of 130 organisations including leading blue chip companies, conglomerates to small time community groups competed for the coveted awards this year which promotes transparency, accountability and corporate governance.
Mr. Herath also added that CA is closely working with the government to transform the public sector to match the private sector in terms accounting reforms, transparency, accountability, good governance, and performance. The public sector has embraced 10 Public Sector Accounting Standards issued by the Institute.
Central Bank Governor Ajith Nivard Cabraal and heading the judging panel at this event said that Sri Lanka has now developed into a situation where the annual reporting system in many corporates has developed to global standards, with excellence in reporting and practices, good governance and integrated reporting.
He also said that many companies toil hard to present annual reports each year. Reporting standards have reached international standards, where the country has shown good results due to good governance that helps to promote and attract foreign investors into the country.
| 10 chairpersons of SL companies get ‘ distinguished awards’ The following 10 chairpersons were recognised with ‘the Distinguished Director PLC’ award this year by CA Sri Lanka. - Tilak De Zoysa, Chairman Carson Cumberbatch PLC, - Husein Esufally Chairman - Hemas Holdings PLC - Steven Enderby, CEO , Hemas Holdings PLC - Dr. Ranee Jayamaha, Chairperson – HNB - Harry Jayawardena, Chairman -Aitken Spence - Anthony A Page, Chairman - C T Holdings PLC - Louis Rajkumar Page, Chairman – Cargills (Ceylon) PLC -Mohan Pandithage, Chairman – Hayleys PLC - Dhammika Perera, Chairman – Sampath Bank, - Susantha Ratnayake, Chairman – John Keells Holdings PLC - Hari Selvanathan, Chairman - Bukit Darah PLC |