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Sri Lanka

Financial reporting framework in Sri Lanka

The following table lists Sri Lanka Accounting Standards 2011, published in late 2010 and effective from 1 January 2012. In late 2009, the Institute of Chartered Accountants of Sri Lanka made a decision to converge fully with all pronouncements issued by the IASB and thereafter to adopt all pronouncements issued by the IASB. Accordingly, the standards listed below incorporate all new and revised International Financial Reporting Standards as published by the IASB in the 2009 Bound Volume of IFRSs.

Sri Lanka Accounting Standards 2011

SLFRS/ LKAS Standard name Equivalent IAS/IFRS(1)
Framework for the Preparation and Presentation of Financial Statements
SLFRS 1 First-time Adoption of Sri Lanka Accounting Standards (SLFRSs)(2) IFRS 1
SLFRS 2 Share-based Payment IFRS 2
SLFRS 3 Business Combinations IFRS 3
SLFRS 4 Insurance Contracts IFRS 4
SLFRS 5 Non-current Assets Held for Sale and Discontinued Operations IFRS 5
SLFRS 6 Exploration and Evaluation of Mineral Resources IFRS 6
SLFRS 7 Financial Instruments: Disclosure IFRS 7
SLFRS 8 Operating Segments IFRS 8
LKAS 1 Presentation of Financial Statements(3) IAS 1
LKAS 2 Inventories IAS 2
LKAS 7 Statement of Cash Flow Statements IAS 7
LKAS 8 Accounting Policies, Changes in Accounting Estimates and Errors IAS 8
LKAS 10 Events After the Balance Sheet Date IAS 10
LKAS 11 Construction Contracts IAS 11
LKAS 12 Income Taxes IAS 12
LKAS 16 Property, Plant and Equipment IAS 16
LKAS 17 Leases IAS 17
LKAS 18 Revenue IAS 18
LKAS 19 Employee Benefits IAS 19
LKAS 20 Accounting for Government Grants and Disclosure of Government Assistance IAS 20
LKAS 21 The Effects of Changes in Foreign Exchange Rates IAS 21
LKAS 23 Borrowing Costs IAS 23
LKAS 24 Related Party Disclosures IAS 24
LKAS 26 Accounting and Reporting by Retirement Benefit Plans IAS 26
LKAS 27 Consolidated and Separate Financial Statements IAS 27
LKAS 28 Investments in Associates IAS 28
LKAS 29 Financial Reporting in Hyperinflationary Economies IAS 29
LKAS 31 Interests in Joint Ventures IAS 31
LKAS 32 Financial Instruments: Presentation IAS 32
LKAS 33 Earnings Per Share IAS 33
LKAS 34 Interim Financial Reporting IAS 34
LKAS 36 Impairment of Assets IAS 36
LKAS 37 Provisions, Contingent Liabilities And Contingent Assets IAS 37
LKAS 38 Intangible Assets IAS 38
LKAS 39 Financial Instruments: Recognition and Measurement IAS 39
LKAS 40 Investment Property IAS 40
LKAS 41 Agriculture IAS 41
SLFRS for SMEs Sri Lanka Accounting Standard for Small and Medium-sized Entities(4) IFRS for SMEs

(1)   As published in the 2009 edition of the IAS Bound Volume of International Financial Reporting Standards.

(2)   Application of SLFRS and LKAS for the first time is deemed to be an adoption for the first time for the purposes of SLFRS 1 notwithstanding the entity's previous financial statements complied with Sri Lanka Accounting Standards, or otherwise contained a statement of compliance with Sri Lanka Accounting Standards, even though SLFRS also means Sri Lanka Accounting Standards.

(3)   Paragraph 16 of LKAS requires the following: "An entity whose financial statements comply with SLFRSs shall make an explicit and unreserved statement of such compliance in the notes".

(4)   The SLFRS for SMEs is intended for use by small and medium-sized entities, i.e. which do not have public accountability and which publish general purpose financial statements for external users. A number of entities are deemed to fall outside the standard by the Sri Lanka Accounting and Auditing Standards Act.

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