Applications for 54th Annual Report Awards now open

From left: CA Sri Lanka Vice President Manil Jayasinghe, CA Sri Lanka President Jagath Perera, Annual Report Committee Chairman Heshana Kuruppu, CSE Chairman Ray Abeywardena, Colombo Stock Exchange Head of Market Development Niroshan Wijesundere and CA Sri Lanka Secretary Prasanna Liyanage – Pic by Indraratne Balasuriya

By Rahel Kirinde

The Institute of Chartered Accountants of Sri Lanka (ICASL) on 14 August deemed submission of entries open for the 54th Annual Report Awards competition, scheduled to be held on 4 December, with the Colombo Stock Exchange (CSE) serving as its strategic partner for the fourth consecutive year.

The Annual Report Awards competition was established to recognise and reward organisations that put out the most consistent and clear annual reports, while stepping out of the boundaries of financial reporting to promote transparency, accountability and good governance.

“The Annual Report Awards competition has built a reputation as a significant competition, that promotes companies to produce high quality annual reports that are cohesive, clear and go beyond the statutory boundaries of reporting,” said ICASL President Jagath Perera, speaking at a press briefing event.

He added that producing precise and transparent annual reports, in line with the highest global standards, should remain at the top of the agenda of any organisation immaterial of its stature, as accurate financial reporting has a long-term bearing on both the company and the country.

As Sri Lanka moves closer towards being an upper middle-income country, the professional community and corporates have a vital role to play in the country’s advancing journey, he further stated.

Speaking on the influence of the awards competition, Annual Reports Committee Chairman Heshana Kuruppu said: “A properly assessed, meticulously formulated annual report can contribute to the development of the capital market in the country, therefore ensuring complete and concise and complete information is imperative for current shareholders and potential investors to make informed investment decisions.”

He added that a major objective of the awards is also to encourage corporates in compiling annual reports which ensure that the comprehensive financial and non-financial disclosures required by all stakeholders are included, while maintaining user friendliness, clarity and compliance to accounting standards.

Entries can be made for financial statements prepared for the year ended 31st December 2017 and 31st March 2018, and reports of any organisation that produce an annual report will be accepted as valid entries.

Kuruppu affirmed that the institute has made the maximum effort in updating the marking scheme in terms of latest accounting standards and other relevant pronouncements, to ensure the relevance of the competition and fairness in evaluation.

“It is refreshing to see that organisations from blue chip companies to even small-time non-profit organisations have continuously demonstrated their commitment towards best practices in annual corporate reporting. I encourage corporates in Sri Lanka that produce annual reports to promote the core areas that is transparency, accountability and good governance,” he stated.

Organisations from small-time community groups to large-scale conglomerates, representing 25 sectors including banking institutions, state banks, diversified holdings, finance companies, leasing companies and other financial institutions, food and beverage companies, healthcare institutions, trading companies, hotel and hospitality companies, insurance companies, land and property companies, manufacturing companies, motor companies, service organisations, telecommunication companies, unit trusts, media and entertainment companies, state corporations and statutory boards, plantation companies, construction companies, power and energy companies, non-profit organisations (NPO) including Non-governmental organisations (NGO) and small and medium sized entities can apply for this year’s competition. 

Elaborating further on the significance of the awards, CSE Chairman Ray Abeywardena said: “The expectations of reporting have been evolving and consequently stakeholders’ demand, top calibre corporate governance disclosures, communicating information on risks and opportunities related to external environments.” He added that the initiative taken through the implementation of the awards has led to improvements in integrated reporting, disclosure frameworks and the inclusion of robust sustainability metrics in reporting.

Apart from the overall winners and the winners under each sector, the competition will also honour organisations for corporate governance disclosure, corporate social responsibility reporting, management commentary, integrated reporting, integrated reporting - best disclosure on capital management and integrated reporting - best disclosure on business model.