CMA Sri Lanka launches ‘Cost and Management Accounting Standards Board’

CMA Sri Lanka and Institute of India Cost Accountants signing the MoU 

Launch of Management Accountant Journal

The Institute of Certified Management Accountants of Sri Lanka (CMA), recognising the need for structured approach to the measurement of cost in manufacturing and services sectors and to provide guidance in cost and management accounting to the user organisations such as government ministries, state corporations, industry, services and commerce, regulators, research agencies and academic institutions to achieve uniformity and consistency in classification, measurement and assignment of cost to product and services, has constituted the Cost and Management Accounting Standards Board (CMASB) with the objective of formulating and implementing Cost and Management Accounting Standards.

With the incorporation of the Institute of Certified Management Accountants of Sri Lanka by Parliament Act No. 23 of 2009 the responsibility of the issue of Management Accounting Standards as per its objectives is of paramount importance to Sri Lanka to implement and enforce Cost and Management Accounting Standards, Records and measurement both in the Government, Public and Private Sector institutions.

In the year 2004 the then Society of Management Accountants of Sri Lanka issued the Strategic Management Accounting Guidelines for use of our membership, industry, services and commerce. This publication will now be updated and reissued by CMA Sri Lanka with the setting up of the Cost and Management Accounting Standards Board.

CMA Sri Lanka has received international recognition with the membership in the International Federation of Accountants (IFAC), South Asian Federation of Accountants (SAFA), and the Confederation of Asian and Pacific Accountants (CAPA). CMA are also members of the Organisation of Professional Associations of Sri Lanka (OPA) the apex body for professional institutions in Sri Lanka.

Keeping in view latest legal and contemporary developments, the Cost and Management Accounting Standards Board will develop Cost and Management Accounting Standards and Records vital for the economic development of the nation. The maintenance of proper cost accounting records by industries, services, government and private sector will be another area of importance for which standards will be issued.

CMA signed an MOU with the Institute of Cost Accountants of India which will enable CMA to study the 24 Cost Accounting Standards issued by Institute of Cost Accountants of India, Generally Accepted Cost Accounting Principles, 9 Guidance Notes on Cost Accounting Standards and 2 Guidance Notes which will assist in the preparation of Sri Lankan Standards. CMASB will also give due consideration to the Cost Accounting Standards, principles and practices being followed by the other countries in the world such as India, Pakistan, Bangladesh, Canada, UK and USA.

Important sectors such as power, telecom, cement, garments, petroleum, drugs, agricultural products and standards for determining costs and setting prices including price controlled items will be given high priority. Implementation of cost accounting standards and records will also enable export companies to become competitive in the global market and increase foreign exchange earnings of Sri Lanka.

It is expected that the issue of Cost Accounting Standards and Records will have a direct impact on the economy to make the industries and services competitive globally and provide cost and financial discipline, cost control, elimination of waste and make the government and private sector institutions cost conscious and accountable to its stakeholders.

Pix by Lasantha Kumara