International Financial Reporting Standards in Sri Lanka by 2011

Accountants say Sri Lanka is to implement International Financial Reporting Standards (IFRS) by 2011.

“As you all know Sri Lanka is moving to IFRS from 2011, which means that comparative financial statements will need to be ready by 2010,” CEO of Get Through Guides (GTG), Vandana Saxena Poria, said at a Breakfast Meeting, organised by the Association of Chartered Certified Accountants of Sri Lanka (ACCA) and the Institute of Chartered Accountants of Sri Lanka (ICASL) on Decemebr 15, 2009.

CEO of Get Through Guides, Vandana Saxena Poria at a Breakfast Meeting organised by the Association of Chartered Certified Accountants Sri Lanka (ACCA) and the Institute of Chartered Accountants of Sri Lanka (ICASL), on adopting International Financial Reporting Standards in Sri Lanka. Photo provided by Stratix Promotions.

The IFRS will give a common platform for business in different countries to report their financial performance.

“However, the complexity of implementing the common language in accounting, “IFRS”, has always been a challenging task across various nations with their diverse cultural, political, management, legal, economic, tax, regulatory and IT differences. This task has become even more challenging with the global financial meltdown spread across the world again due to close inter-connection of trading and economic activities of nations,” said President, ACCA Sri Lanka, Nandika Buddhipala.

IFRS compliance would mean aligning IT systems and data analysis and making company managers aware of how IFRS will affect decision making.

“This might be a very vital initiatives because in this part of the world is currently in the process of moving towards a single set of global accounting standards. As the forces of globalisation prompt more and more countries to open their doors to foreign investment and as businesses themselves expand across borders, both the public and private sectors are increasingly recognising the benefits of having a commonly understood financial reporting framework supported by strong globally accepted standards,” said President ICASL, Nishan Fernando.

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