BACKGROUND NOTE ON ACTION PLANS · update sections relevant to SMO 1 as necessary. Once updated inform IFAC Compliance staff about the updates in order for the Compliance staff to

Status as of Date of Publication Page 1 of 23

BACKGROUND NOTE ON ACTION PLANS Action Plans are developed by IFAC members and associates to address policy matters identified through their responses to the IFAC Compliance Self-Assessment Questionnaires. They form part of a continuous process within the IFAC Member Body Compliance Program to support the ongoing development and improvement of the accountancy profession around the world. Action Plans are prepared by members and associates for their own use based on the national frameworks, priorities, and processes and challenges specific to each jurisdiction. As such, they will vary in their objectives, content and level of detail, consistent with their differing national environments and stages of development, and will be subject to periodic review and update. Refer to responses to the Part 1 Assessment of the Regulatory and Standard-Setting Framework Questionnaire and Part 2 SMO Self-Assessment Questionnaire for background information on each member and associate their environment and existing processes. These responses may be viewed at: http://www.ifac.org/ComplianceAssessment/published_surveys.php Use of Information Please refer to the Disclaimer published on the Compliance Program website. ACTION PLAN IFAC Member: The Institute of Chartered Accountants of Sri Lanka (ICASL) Original Publish Date: May 2011 Last Updated: June 2012 Next Update: June 2013

http://www.ifac.org/ComplianceAssessment/published_surveys.php�

Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)


GLOSSARY CA Sri Lanka Institute of Chartered Accountants of Sri Lanka CEO Chief Executive Officer CMA Certified Management Accountants ED Exposure Draft I&D Investigation and Discipline IAASB International Auditing and Assurance Standards Board IAESB International Accounting Educational Standards Board IAS International Accounting Standards IASB International Accounting Standards Board ICAP Institute of Chartered Accountants of Pakistan IESBA International Ethics Standards Board for Accountants IESs International Educational Standards IFRS International Financial Reporting Standards IPSAS International Public Sector Accounting Standards IPSASB International Public Sector Accounting Standards Board ISA International Standards on Auditing ISAs International Standards on Auditing ISQC 1 International Standard on Quality Control 1 PSASC Public Sector Accounting Standards Committee QA Quality Assurance SAFA South Asian Federation of Accountants SBE Specified Business Enterprise SEC Securities and Exchange Commission SLAASMB Sri Lanka Accounting and Auditing Standards Monitoring Board SLFRS/LKAS Sri Lanka Accounting Standards SLSQC 1 Sri Lanka Standard on Quality Control 1 SME Small and Medium Enterprises SMP Small and Medium Practices SPLSAS Sri Lanka Public Sector Accounting Standards



Action Plan Subject: SMO 1 and Quality Assurance (QA)

Action Plan Objective: Adopt a QA Standard Based on International Standard on Quality Control 1 (ISQC 1) and Comply with SMO 1 Requirement

# Start Date Actions Completion Date

Responsibility

Resource

Background:

According to the Sri Lanka Accounting and Auditing Standards Act No.15 of 1995 the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) is the sole accounting and auditing standards setting authority in the country. The Act has defined certain enterprises to be Specified Business Enterprises (SBE), for which these standards have been made mandatory.

With this mandate CA Sri Lanka has adopted the national standard Sri Lanka Standard on Quality Control 1 (SLSQC 1) based on the International Standard on Quality Control 1 (ISQC 1) and is in the preliminary stages of establishing the basis for a Quality Assurance Review System. SLSQC1 will be applicable from 1st Jan 2013.

In March 2012 approval was received for a World Bank grant which includes USD 198,200 for technical initiatives. This includes implementation of a Quality Assurance Review Program. These funds may be utilized as follows:

• To create awareness among practitioners on the requirements under SLSQC 01 • To develop a framework for a QA program with corresponding guidelines • In awareness building for QAB members and assistance on the policy and planning process • To train the QA Review Panel to undertake QA engagements and report their findings

Expertise is currently being sought to assist in implementation.

More detailed information regarding CA Sri Lanka and its activities can be found on the website (http://www.casrilanka.com).

Adoption of ISQC 01

1. September ‘08

Reviewing the ISQC 1 Document and submission of its suggestions to the Council.

September ’08 - Completed

The Council / The Auditing Standards Committee

The Sub-Committee appointed by the Auditing Standards Committee.

2. October ‘08

Seminar/Workshop held with the Institute of Chartered Accountants of Pakistan (ICAP) Representative to initially educate the Practitioners on ISQC 1.

December ’08 -

Completed

The Auditing Standards Committee

Presenter from a Member Body or a local presenter.




Responsibility

Resource

3. April‘09 Circulating ISQC 1 together with a Self Assessment Questionnaire and obtaining comments from the Practitioners.

June’09 - Completed

Auditing Standards Committee

The Sub-Committee appointed by the Auditing Standards Committee & the Technical Division

4. January ‘10 Adoption of SLSQC 1 on voluntary basis. December ‘10

The Council The Auditing Standards Committee

5. January ‘11 Making SLSQC 1 Mandatory for the Auditors of All the Listed Entities.

January ‘13 The Council The Auditing Standards Committee

Introduction of a Quality Assurance Mechanism

6. January ‘08 Appointment of a Quality Assurance Committee. February ‘08 Completed

The Council Chairperson & the Members of the Committee.

7. January ‘08 Defining & obtaining the Council Approval on the Terms of Reference of the Committee.

February ‘08 Completed

The Council Chairperson

8. February ‘08

Communicating to the Practicing Members about the necessity of introducing a QA Mechanism as well as the benefits of such a system.

M-06. 31st March 2008 circular to Members

April ‘08 Completed

Chief Executive Officer (CEO)

A Circular to be sent by CEO/Secretary of the Council to the Members in Practice. An E-Circular to be sent to All the Members.

9. April ‘08 Obtaining Council approval and sending a Staff Member to ICAP for a period of two weeks to study the system in place in Pakistan.

July ‘08 Completed

The Council / Quality Assurance Committee

ICAP

10. August ‘08 Organizing a seminar to increase the awareness of the members in Practice of the QA Mechanism and its benefits to them.

The Seminar conducted with the ICAP Representative.

December ‘08 Completed

Quality Assurance Committee

ICAP resource person




Responsibility

Resource

11. October ‘08 Recruitment of a Quality Assurance Manager. April ’09 – Completed

The Council Advertisement / Circular etc.

12. January ‘09 Appointment of a Quality Assurance Board and a Technical Committee also comprising the practitioners to assist the Board in clarifying technical matters.

February ’10 – Completed

The Council Senior distinguished Members and regulatory representatives

13. June ‘09 Development of a Self Review Questionnaire on Quality Control of Audit Work and adopting the Questionnaire.

In progress Quality Assurance Committee

Quality Assurance Manager

14. June ‘09

Develop an SLSQC 1 Toolkit, based on the IFAC published Quality Control Implementation Guide for Small and Medium Practices (SMPs) intended to help SMPs understand and efficiently apply SLSQC 1.

Toolkit issued and other activities are in progress.

Quality Assurance Committee


15. January ‘10 The Self Review Questionnaire to be made a prerequisite (Initially on a voluntary basis) for purpose of issuing a certificate to register practicing firms that audit “public interest entities”. The Introduction of such a certificate system should be an initiative of CA Sri Lanka Council with collaboration from other regulators such as the SEC, Central Bank etc so that only firms that obtain such certification are eligible to audit such entities. When issuing such certificate to firms, the self review questionnaire could be made a prerequisite.

Commenced for the practitioners who are applying the standard on voluntary basis.

The Council/Quality Assurance Committee


16. January ‘10 Introducing the Quality Assurance Review System on voluntary Basis to the Practitioners.

Sept. ‘12 Quality Assurance Committee


17. January ‘11 Make it mandatory to submit the above Self Review Questionnaire in renewing the firm’s certificate.

January ‘13

Quality Assurance / Committee


18. January ‘11 Make it mandatory for the Auditors of listed entities to be subject to the Quality Assurance Review System.

Jan 2013 Quality Assurance Committee





Responsibility

Resource

Maintain Ongoing Processes

19. On going Organize seminars to increase the awareness of the members in Practice of the QA Mechanism and its benefits to them.

On going Quality Assurance Committee

Foreign and local resource persons

20. On going Review the QA Review System on an ongoing basis as compared to the international best practice SMO1. This includes revaluating plans and updating the Action Plan.



21. On going Organize a seminar series for the new auditing standards which includes ISQC 01 to guide and encourage practitioners and an audit toolkit has been made available to practitioners.



Review of CA Sri Lanka’s Compliance Information

22. Ongoing Perform periodic review of CA Sri Lanka’s response to the IFAC Compliance Self-Assessment questionnaires and update sections relevant to SMO 1 as necessary. Once updated inform IFAC Compliance staff about the updates in order for the Compliance staff to republish updated information.

Ongoing



Action Plan Subject: SMO 2 and International Education Standards (IESs)

Action Plan Objective: Continuous Improvement in Line with SMO 2


Responsibility

Resource

Background:

CA Sri Lanka requires candidates to obtain relevant accounting education, pass a final assessment, and have three years of practical experience in order to be certified as a Chartered Accountant. Since 2010 CA Sri Lanka educational requirements are aligned with the International Educational Standards.

The qualification is due for revision in 2015, following the introduction of revised IESs.

More detailed information regarding education, examinations, and practical training is available via the CA Sri Lanka website

(http://www.casrilanka.com ).

Strengthening Continuing Professional Development (CPD)

23. 05 July 2008 Increase awareness of mandatory CPD among Fellow members, Associate members and New associates though interactive workshops with members at the institute and off site educative sessions at the firms and institutions.

June 2009

Completed

CEO/

Chairman CPD

CPD committee members

24. 24 Sep 2008 Making CPD accredited activities available for members both through structured programs and on line courses.

Dec 2008 Completed

Director CPD CPD Committee/ CPD Secretariat/ Resource Persons

25. 01 Jan 2009 Keeping members advised of accumulated CPD hours at regular intervals on both web and e mail basis. Developing an e-based system to record and monitor CPD hours.

April

2009

Completed

CEO

Director CPD

CPD Committee/ Secretariat

CIO of IT unit

26. Nov 2008 Obtaining the service of professionals/academics to get proposals for CPD accredited events.

And seek assistance from fellow members engaged in academic activities in foreign/local universities as well as affiliated institutions and universities.

Dec 2008 Completed

Director CPD CPD Committee/ Secretariat

http://www.casrilanka.com/�




Responsibility

Resource

27. 01 Sep 2008 The duties and responsibilities of the CPD secretariat of the institute team.

Oct 2008 Completed

CEO/

Chairman CPD

CPD Secretariat

28. 01 Sep

2008

Member Communication channels establishment where feedback is sought on CPD requirements as well as CPD.

Oct 2008 Completed

CEO Director CPD/CPD Secretariat

29. 01 Jan 2009 Requesting comments/suggestions of members in order to make sure the smooth functioning of activities to achieve mandatory CPD.

May 2009 Completed

CEO

Chairman CPD

Director CPD/CPD Secretariat

30. April 2011 Introduce revised CPD Guidelines. The salient features of the revisions include enhancement to monitoring and delivery, making the program more flexible and enabling members to plan their preferred CPD subjects & areas more effectively. On-line opportunities are also offered. The revised program is in compliance with IFAC requirements.

Jan 2012

Completed

Director Member Relations

CPD Committee Members & CPD Technical Subcommittee

31. Nov 2011 Establish the process of compliance with the revised CPD Guidelines.

Feb 2012

Completed

Director Member Relations

CPD Division

Delivery of Training

32. June/Aug 2011

International Financial Reporting Standards (IFRS) Seminars: 2 programs, 5 days each. June/Aug 2011 Director Member

Relations In collaboration with ACCA

33. 05 May 2011 One Day program on ‘Strategies for Service Organizations’. 05 May 2011 Director Member Relations

Overseas Resource Person (IIMB)

34. Aug. 2011 A two hour presentation on ‘Economic Outlook’. Aug. 2011 Director Member Relations

Sri Lanka Representative for World Bank




Responsibility

Resource

35. 24 Nov 2011 One Day program on ‘Integrated Reporting’ with SAFA. 24 Nov 2011 Director Member Relations

Certified

Management Accountants (CMA)– UK Overseas Resource Person

36. 03 Jan 2012 One Day event held on ‘Beyond Budgeting’. 03 Jan 2012 Director Member Relations

Overseas Resource Person

37. 30 Jan 2012 One Day program on ‘Future of Financial Reporting’. 30 Jan 2012 Director Member Relations


38. Mar. 2012 One Day workshop on the subject ‘Developing and Installing an Integrated Risk Management Framework’.

Mar. 2012 Director Member Relations


Maintaining Ongoing Processes

39. Monthly Regular reporting to the Council the progress of work. Monthly Director CPD CPD Committee

40. March 09 Review of ongoing work to ensure it is in line with the IFAC guidelines and update action plan.

Quarterly Director CPD CPD Secretariat

41. Ongoing Monitor the International Education Standards issued and ensure that the Institute’s education requirements are constantly up to date.

Ongoing Head of Training & Education

Education and Curriculum Development Committee

Training Committee

42. Ongoing Ensure that new and revised standards on auditing, financial reporting and ethics are incorporated into CA Sri Lanka’s training and education requirements.

Ongoing

43. April 2011 Assess the trends and core subject areas and incorporated in the program line up.

Ongoing Director Member Relations

CPD Division & CPD Committee




Responsibility

Resource

44. April 2011 3 Months Rolling Plan and a tentative annual plan to accommodate the trends and core subject areas.

Ongoing Director Member Relations

CPD Division



Ongoing Head of Training & Education

Lecturer Practicing Accountant



Action Plan Subject: SMO 3 and International Auditing and Assurance Standards Board (IAASB) Pronouncements

Action Plan Objective: Continuous Improvement in Line with SMO 3


Responsibility

Resource

Background:

According to the Sri Lanka Accounting and Auditing Standards Act No.15 of 1995, the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) is the sole accounting and auditing standards setting authority in the country. The Act has defined certain enterprises to be Specified Business Enterprises (SBEs), for which these standards have been made mandatory.

With this mandate CA Sri Lanka’s Auditing Standards Committee regularly reviews IAASB pronouncements, and recommends to the Council the recommendation of Sri Lanka Auditing Standards and Sri Lanka Other Audit Pronouncements.

Efforts are currently focused on supporting the implementation of Sri Lanka Auditing Standards that are in line with the Clarity International Standards on Auditing (ISAs). These will be effective from January 2013.

More detailed information regarding CA Sri Lanka and its activities can be found on the website (http://www.casrilanka.com).

Adoption and Implementation of Auditing Standards

46. Jan’ 2011 Adopted all the ISAs as Sri Lanka Auditing Standards as per the 2009 edition of the IFAC Hand Book.

May ‘11 Auditing Standards Committee

Sub Committees appointed by the Main Committee / Technical Division

47. Mar’ 2011 Published the above adopted standards as the 2011 Bound Volume of the latest Auditing Standards (Clarity project).

June ‘11 Auditing Standards Committee

Technical Division of CA Sri Lanka

48. On going Consider details on ongoing process to adopt new and amended ISAs, comment on EDs, implementation support, education and awareness building, etc.

On going Auditing Standards Committee

Technical Division of CA Sri Lanka

49. July 2012 Conduct a comprehensive seminar series on the new Sri Lanka Auditing Standards. (clarity project).

Aug’ 2012 Audit Faculty The Members of the Institute who are updated with these developments.




Responsibility

Resource

50. Oct’ 2012 Conduct workshop styled training programs to practitioners. Oct’ 2012 Audit Faculty The Members of the Institute who are updated with these developments.

51. Feb’ 2012 Set up help desk function to facilitate practitioners and preparers of Financial Statements.

July 2012 Audit Faculty Representatives from Audit Firms

52. On going Ongoing monitoring and review of IAASB pronouncements following the IAASB’s work program, and updating the Action Plan for future activities where necessary.

Ongoing The Council / Auditing Standards Committee

Sub Committee appointed by the Main Committee / Technical Division



Ongoing The Council / Auditing Standards Committee

Sub Committee appointed by the Main Committee /Technical Division



Action Plan Subject: SMO 4 and the International Ethics Standards Board for Accountants (IESBA) Code of Ethics

Action Plan Objective: Adoption and Implementation of the IESBA Code of Ethics


Responsibility

Resource

Background:

CA Sri Lanka makes modifications to the IESBA Code in developing the CA Sri Lanka Code of Ethics. This includes a paragraph referring to the second schedule of the CA Sri Lanka Act in the preface to the Code. The second schedule has also been reproduced with the Code, though not directly part of it. The CA Sri Lanka Code is available only in English.

The current Code is aligned with the 2009 IESBA Code. A CA Sri Lanka Ethics Committee is in place, and in the process of reviewing the Code to bring it in line with the 2010 IESBA Code.

Adoption and Implementation of the IESBA Code of Ethics

54. Issue latest IESBA Code of Ethics for Professional Accountants as Exposure Draft for members’ comment.

31.03.08 Completed

The Council Ethics Committee

55. Adoption of latest IESBA Code of Ethics for Professional Accountants for CA Sri Lanka’s members with effect from 01.01.2010.

August ’09 - Completed


56. Conducting Awareness Programs on the importance of adhering to the Code of Ethics.

September ’09 - Completed



57. Ongoing Monitor the changes made to the IESBA Code of Ethics and adopt the changes following the existing due process. In particular, monitor closely the IESBA work program and proposed revisions to the IESBA Code of Ethics so they can be incorporated into CA Sri Lanka’s framework on a timely basis. This includes updating the Action Plan as necessary.

Ongoing The Council Ethics Committee




Responsibility

Resource



Ongoing The Council Ethics Committee



Action Plan Subject: SMO 5 and International Public Sector Accounting Standards (IPSASB) Pronouncements

Action Plan Objective: Best Endeavors to Encourage Public Sector Entities in Sri Lanka to Improve their Financial Accountability, Financial Management and Financial Reporting in Line with SMO 5


Responsibility Resource

Background:

In Sri Lanka, enabling Acts of Parliament, Financial Regulations, Guidelines and Circulars issued by the General Treasury, Ministry of Finance & Planning and Line Ministries govern the issue of general purpose financial statements by public sector entities.

Standing alone, the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) has no power to require the public sector to comply with Sri Lanka Public Sector Accounting Standards (SLPSASs). However, in line with current IFAC initiatives to improve the quality of general purpose financial reporting of public sector entities, Public Sector Accounting Standards are issued jointly by the CA Sri Lanka and the Ministry of Finance & Planning. The Public Sector Accounting Standards Committee includes four senior officers of the Ministry of Finance & Planning, who are formally nominated by the Ministry. By the end of 2012 CA Sri Lanka will have adopted the full suite of IPSAS as SLPSAS.

Government has already issued a circular requesting that Sri Lanka Public Sector Accounting Standards are implemented in all Statutory Boards (non-commercial public corporations) and local authorities, which already follow accrual based accounting. The Central Government and Provincial Councils will be asked to apply these standards once they complete the process of migration to accrual system of accounting.

In March 2012 approval was received for a World Bank grant which includes USD 198,200 for technical initiatives.. This includes a focus on closing gaps in the knowledge base of public sector accountants and introduction of a separate qualification aimed specifically at public sector accountants. In March 2012 approval was received for a World Bank grant which includes USD 198,200 for technical initiatives. Under world bank funding, following activities may be performed.

• Train the trainers in SLPSAS • Develop training material and training manuals for trainers • Develop a plan for rolling out the SLPSAS in phases to Statutory Boards and Local Authorities • Create awareness of the newly issued SLPSAS among Statutory Boards and Local Authorities • Roll out the SLPSAS in phases to Statutory Boards and Local Authorities

Establishing Convergence Mechanism and Process with IPSAS

59. February '08 Appointment of the Public Sector Accounting Standards Committee (PSASC).

February '08 Completed

The Council Council Members

60. February '08 Appointment of the Public Sector Accounting Standards Committee (PSASC).

February '08 Completed






61. February '08 Determining the Terms of Reference of the PSASC. February '08 Completed


62. February '08 Selection of members to the Committee.. February '08 Completed

Chairman & Secretary to the Committee

Chairman & Secretary to the Committee

63. March '08 Identification of the public sector institutions which can apply IPSAS. May '08 Completed

PSASC Committee Members

64. March '08 Prioritization of the IPSAS based on the relevance & importance of IPSAS to Sri Lankan public sector.

May 08 Completed

PSASC Committee Members

65. March '08 Review of selected IPSASs, in order of priority, by sub - committees nominated by the PSASC.

December '09 Sub - Committee

Sub - Committee Members

66. April '08 Review of findings of Sub - Committees by the PSASC (as and when sub - committee findings are submitted to the PSASC ).

December '09 PSASC PSASC Committee Members

67. June '08 Appoint a Technical Resource Person to peruse IPSASs recommended by the PSASC.

September '08 Completed


68. August '08 Strengthen the PSASC by requesting to appoint key personnel (non chartered accountants) in the key public sector entities, to the Committee.

September '08 Completed

Chairman - PSASC

Chairman - PSASC

69. September '08

Refer all IPSASs , which are recommended by the PSASC for implementation, to the Technical Resource Person for perusal.

December ' 09

Completed

PSASC PSASC Committee Members

70. September '08

Perusal of selected IPSASs by the Technical Resource Person and submit his recommendations to the PSASC.

December '09

Completed

Technical Resource Person

Financial resources are required





71. January '10 Effective communication by conducting awareness programs to the accounting staff in the relevant public sector entities.

December '10

Completed

PSASC & resource persons nominated by the Ministry of Finance & Planning

PSASC and resource persons nominated by the Ministry of Finance & Planning and the Public Sector Training Institute.

Financial resources are required.

72. January '11 Adoption of selected IPSAS for implementation. January '11 The Council Council Members

73. February‘11

Translation of SLPSAS approved by PSASC to Sinhala & Tamil Languages.

June ‘11 PSASC Translators

74. April ‘11 Moderation of SLPSAS translated to Sinhala & Tamil Languages. August ‘11 PSASC Moderators

75. April ‘11 Perusal of selected IPSASs by subcommittees approved by PSASC.

August ‘11 Sub Committee Sub Committee Members

76. July ‘11 Study the amendments done by the sub committees to suit to local requirements and approve new SLPSAS.

October ‘11 PSASC Committee Members

77. August ‘11 Translation of SLPSAS approved by PSASC to Sinhala & Tamil Languages.

December‘11 PSASC Translators

78. October ‘11 Moderation of SLPSAS translated to Sinhala & Tamil Languages. February ‘12 PSASC Moderators


79. Ongoing Continue to identify opportunities to further assist in implementation of IPSASs. This includes review of the existing activities and preparation of the Action Plan for future activities such as workshops etc where necessary.

Ongoing PSASC Committee Members







Ongoing PSASC Committee Members



Action Plan Subject: SMO 6 and Investigation and Discipline (I & D)

Action Plan Objective: Continue to Ensure Members and the Public Understand How to Raise Complaints and the Processes Resolving Them



Background:

Explanation of the ongoing CA Sri Lanka’s I&D processes are provided below.

When a complaint is received against a Member the Secretary acknowledges receipt of complaint and request to submit the information on the specified complaint form and informs the complainant, that it would be addressed. The Complaint is referred to the Member against whom the complaint has been made, and his observations/ explanations is called for. On receipt of observations/explanation of the person against whom the complaint was made, as well as the complaint is referred to the Ethics Committee. The Ethics Committee or a Panel of the Ethics Committee studies the complaint. Where necessary the complainant as well as the member against whom the complaint was made is interviewed by the Ethics Committee or its Panel.

Any evidence / documentation available is considered, to see whether there is a prima facie case. Legal Opinion is consulted where necessary. If there is no prima facie case both parties are informed accordingly and the process and findings are intimated to the Council. If there is a prima facie case a report is submitted to the Council. The Council appoints a Disciplinary Committee constituting three Members of the Council. A statement is prepared setting out the charges to be investigated by the Disciplinary Committee and the Secretary transmit a copy of the statement to each member of the Disciplinary Committee and the person whose conduct is the subject of investigation. Secretary gives notice of the first date fixed for the inquiry to the person whose conduct is under inquiry. Such notice to be given 14 days before the date fixed for inquiry.

The Secretary of CA Sri Lanka is the Secretary of the Disciplinary Committee. Every Disciplinary inquiry is held in camera. At the conclusion of the inquiry the Disciplinary Committee will submit a Report of the findings to the Council and send a copy of such Report to the person against whom the inquiry was held. The Council will take appropriate action thereafter.

If the complaint is proved the member concerned may be warned, reprimanded, or suspended from Membership, depending on the gravity of the lapse.

During the period May 2011 - April 2012, 6 cases have been handled. During the period 3 cases were upheld and another 3 are pending. CA Sri Lanka has dismissed only one case during the period.


81. Ongoing Continue to publicize CA Sri Lanka I&D procedures via the website and distribution of the Act of Incorporation among members.

Ongoing CEO/Council





82. On going Continue to ensure CA Sri Lanka’s investigation and disciplinary mechanism continues to addresses all SMO 6 requirements. This includes review of the existing mechanism and updating the Action Plan for future activities where necessary.

On going CEO/Council


83. On going Perform periodic review of CA Sri Lanka’s response to the IFAC Compliance Self-Assessment questionnaires and update sections relevant to SMO 6 as necessary. Once updated inform IFAC Compliance staff about the updates in order for the Compliance staff to republish updated information.

On going CEO/Council



Action Plan Subject: SMO 7 and International Financial Reporting Standards (IFRSs)

Action Plan Objective: Adoption and Implementation of Accounting Standards in Line with SMO 7



Background:

CA Sri Lanka is the body responsible for setting accounting standards. The national Sri Lanka Accounting Standards for listed and other public interest entities are the IFRSs adapted for slight modifications. This requirement is specified by the Sri Lanka Accounting and Auditing Standards Act.

More detailed information regarding the Sri Lanka Accounting Standards can be found on the CA Sri Lanka website: (www.casrilanka.com) under the subsection My Guide to Regulations/Accounting Standards.

In March 2012 approval was received for a World Bank grant which includes USD 198,200 for technical initiatives, which includes adoption and implementation of accounting standards.

IFRS-aligned Sri Lanka Accounting Standards are due to be implemented from 2013.

Adoption and Implementation of Accounting Standards in Line with SMO7

84. Adoption of IFRS for Small and Medium Enterprises (SMEs) for small and Medium Term Entities.

This includes:

• Conducting the Due Review Process

• Conducting necessary awareness programs in terms of the Round table Discussion and seminars for preparers of such financial statements

• Adoption and printing of standard

31.08.09

31.05.09

01.06.09-

31.12.09

- Completed

The Council

Statutory Accounting Standards Committee

One series is already completed on November ‘08

The Financial Reporting Faculty

http://www.casrilanka.com/�





85. Adoption of IFRS 10,11,12,13 with effect from 31/12/2013

This includes

• conducting the Due Review Process

• Conducting necessary awareness programs in terms of the Round table Discussion and seminars for preparers of such financial statements

• Adoption and printing of standard

21 Sept. ‘11 (10,11 &12)

25 Apr. ’12 (13)

- Completed

Financial Reporting Faculty


86. Ongoing Conduct regular awareness Programs on Sri Lanka Accounting Standards & IASs/IFRSs.

Ongoing



This is a continuous process

87. January 2012

Establish IFRS implementation task force for banks and plantation companies to address the practical implications of applying IFRSs in these sectors.

Jan. 2012

Completed

CEO/Council Financial Reporting Faculty

88. Develop IFRS e-learning module developed in order to enhance the knowledge on IFRSs among professionals.

Nov. 2011 CEO/Council Financial Reporting Faculty


89. Ongoing Continue to use best endeavors by identifying opportunities to further assist in implementation of IFRS in Sri Lanka. This includes review of the existing activities and updating the Action Plan for the future activities where necessary.

Ongoing The Council


90. Ongoing IFRS implementation task force for finance companies and Unit Trusts to address the practical implications of applying IFRSs in each of the above sectors was established.

Ongoing CEO/Council Financial Reporting Faculty







Ongoing The Council


Documents

BACKGROUND NOTE ON ACTION PLANS · update sections relevant to SMO 1 as necessary. Once updated inform IFAC Compliance staff about the updates in order for the Compliance staff to