Integrated Reporting necessary to expose waste and corruption
With the introduction of Integrated Reporting, the accounting profession in Sri Lanka has got a new dimension to take the profession forward that would benefit the country’s economy.
Prof. Lakshman R. Watawala speaking at the conference.
“This will not only benefit private and public quoted companies but also the government sector as well,” said Prof. Lakshman R. Watawala, President of the Institute of the Certified Management Accountants of Sri Lanka addressing the Global Management Accounting Conference 2018 held at the Cinnamon Lakeside Hotel Colombo this week. The event was held under the theme “Integrated Reporting- Future of Corporate Reporting” with over 15 eminent foreign speakers from various countries participating at the conference.
Prof. Wattawala said Integrated Reporting is the future of the corporate sector reporting that brings all reporting together and puts down the responsibility on the boards of management, boards of governance and the Cabinet of Ministers to show the value created with utilised money. This would apply not only to financial sectors but to non-financial sectors, as to how it has benefited society, the environment and human resources. The private sector is doing these things in a big way but ‘we’ need the government sector to also do it, he said.
He added that when it comes to government finances everybody thinks it is another man’s finances and spends it feely, carelessly and waste it until it does not see any value creation.
Referring to cyber-crimes, he said the banking sector is more vulnerable today due to ATMs being used. As cost and management accountants, preventing wastage and increasing productivity was necessary at a time when Free Trade Agreements are signed.
Today everybody is talking about the FTA with Singapore but many do not see benefits ‘we’ gain from such agreements such as from the service sectors, he said.
President of the International Federation of Accountants (IFAC) Ms. Rachael Grimes said the IFAC has been on an Integrated Reporting journey from the very beginning, helping to establish an Integrated Reporting Council in 2010. The adoption of Integrated Reporting continues to accelerate and has been adopted in 64 countries including in every G7 economy. Integrated Reporting is moving into Japan where it will be adopted. It is a coherent reporting system on corporate bodies that will be adopted in the future. Prof. Ho Yew Kee, Associate Provost of the Singapore Institute of Technology also addressed the gathering.
A panel discussion on connected issues was moderated by Dinesh Weerakkody –Advisor – Ministry of National Policies and Economic Affairs.