26 bodies converge in Lanka to discuss intl. standards in accounting profession
Thursday, 28 November 2013 00:01
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CA Sri Lanka hosts fifth Asian-Oceanian Standard-Setters Group annual meeting
By Cheranka Mendis
The fifth annual meeting of the Asian-Oceanian Standard-Setters Group (AOSSG) kicked off its two-day deliberations yesterday at the BMICH with representations from 26 member bodies gathering to discuss International Financial Reporting Standards (IFRS).
Hosted by Chartered Accountants of Sri Lanka (CA Sri Lanka), AOSSG – a grouping of the accounting standard-setters in the Asia-Oceanian region – is set to discuss issues and share experiences on the adoption of IFRS, and high quality set of global accounting standards.
With Asia-Oceanian region contributing to some 40% of the total GDP, with the 26 member states accounting for 37% of it, the need for professional and internationally accepted standards is important for the growth of the world economy, AOSSG outgoing Chair Kevin Stevenson said. “Reports also note that 50% of the global GDP is set to come from this region within the next decade. This is an enormous powerhouse.”
Collaborate for growth
“There is responsibility here to introduce and practice international standards.” The group has a very positive mindset on implementing and succeeding in the task of IFRS and developing financial reporting.
Taking his place as the new Chair, Clement Chan noted that the group is built on a culture that respects different views and work in a collaborative effort to harness IFRS within the member countries.
The objective of high quality global set of standards can be achieved when the regions of the world are achieving the same performance level in financial reporting using IFRS, Chan said.
“From the day of inception AOSSG membership has grown from 16 to 26 showing increasing interest to lift the region through globally accepted standards, have a stronger voice in participation of technical activities,” Chan asserted. “Though we may have different views or technical issues I believe we have built a culture among ourselves that is collaborative and respectful of different views; even if views are inconsistent with one another. We believe in providing collective views.”
Professionalism in accountancy
CBSL Governor Ajith Nivard Cabraal who was the Chief Guest at the opening session noted the importance of having a standardising process is dealing with the global market.
“We have to understand that services such as the accountancy profession and banking are all in the financial field but the real economy out there is also important,” Cabraal said, “and we in the financial field support the real economy which provides jobs, drive production, and promote services at a certain level which is important.”
“In my view, the profession of accountancy is becoming more and more globalised,” he added. Acknowledging that the globalisation of the profession dates back to the beginning of the ’70s and ’80s when the internalisation of accountancy standards took place and many countries started embracing international levels as being the standard practice in their own country, the Governor expressed that today it has become a common platform for many professions to follow.
Benefits from global connectivity
Sri Lanka is benefiting immensely by the financial systems in the world and by connecting to the financial fields of the world. In 2010 when President obtained a new mandate for the next six years – the platform on which the country progress on five hubs – maritime, aviation, knowledge, energy and commercial, the importance of accounting and financial sector was highlighted under the aspirations of a commercial hub.
“We are very keen that commercial activities are enhanced in the country, that we embrace international standards. Anyone who comes in would be aware that we are embracing the highest levels prevailing in any part of the world, and that is a commitment we hope to give the world.”
He observed: I am keen that the profession continues these efforts as a powerful catalyst in the economic development of the country.
Demand for local accountancy professionals
CA Sri Lanka President Sujeewa Rajapakse commented that the global accounting arena is at a stage where demands and expectations are diverse and ever increasing – a period of immense competition, challenges and risks. “Our accountants are primary products and are sought after both locally and globally and the challenges they face are equal to the opportunities ahead of them,” Rajapakse said. For a country in development, role of professionals play an immense part and despite growing challenges both professional and society-wise, accountants should be able to utilise the opportunities given to them and steer the nation forward.
“Chartered accounts no longer restrict themselves to only their corporate level capacity but also play a significant role in helping the nation achieve its long term development goals.”
Sri Lanka and IFRS
Rajapakse also added that Sri Lanka is today enjoying a new lease of life with a huge scale of infrastructure development witnessed not only in the main city Colombo, but also across the country. “Things are looking very positive for the country together with a booming tourism industry.”
Sri Lanka converged with IFRS in January 2012 joining 100 other countries to follow single internationally recognised standards.
“In our capacity as sole authority to promulgate accounting standards in Sri Lanka, our institute is in a continuing process to educate all stakeholders on the importance of convergence, while educating them on new standards.” In April last year CA Sri Lankan received a World Bank grant to enhance its core-technical activities including activities relevant to IFRS.
Pix by Lasantha Kumara
