The Institute of Chartered Accountants of Sri Lanka's accounting standards have been aligned in all aspects to international financial reporting standards and the auditing standards were in line in all aspects with international auditing standards, said Arjuna Herath, President CA Sri Lanka, at the launch of the Annual Report Awards.
Herath said, " the use of technology in accounting is in line with the latest technology available, our curriculum is world class and we produce chartered accountants to the world with approximately 25% of our members working overseas."
He said today CA Sri Lanka is considered a role model for the professional accountancy organization across the world. "As a result we are very influential in the International Federation of Accountants, the apex accountancy body in the world, has the leadership of the Confederation of Asia Pacific Accountants and we will take over the leadership of the South Asian Federation of Accounts next year. Hence we will have the leadership of the entire Asia Pacific Accounting fraternity." Herath said this has resulted in them creating a world class accounting frame work, standards and systems in the country.
"A very important element in accounting, financial reporting and corporate governance in a corporate body is the annual report. We have been very focused in recognizing the corporates producing best annual reports that adhere good principles and best practices which will allow to create a more responsible and accountable corporate world ensuring sustainable growth of not only the corporate entities but the country as a whole. In this respect we have incorporated concepts of sustainable reporting and integrated reporting in to the guidelines of producing annual reports."
The corporate world must realize that it has a responsibility towards the society when they use the immunity of limited liability, which was a license to do business with the community or society with liability limited to only amounts invested as capital in the company.
The annual report becomes a very important tool in this respect as it is the document that tells the story of what a company was doing. Therefore, the document should tell the correct story in a very concise manner and in a manner that it will be easily understood and provide an idea as to how the company will evolve and how effectively it is integrating with society and the environment, Herath added.