Global Integration

from a regional perspective

Accounting Regulations and Standards

Ajith S Ratnayake
Director General, SLAASMB
Accounting Standards
IFRS

• Developed by IASB
• Mission
Development and enhancement of
Financial Reporting Standards
• IASs
Convergence with IFRS
• Norwalk Agreement
Sept. 2002 IASB-FASB
• 2005 ( April & October )
Reaffirmed
• ‘Roadmap for convergence’
(Feb. 2006)
• Most jurisdictions moving towards
IFRS
• Permit/require 110
(mandatory for listed 82)
• EU
• ROSC
Wide global acceptance
Global Integration from a
regional perspective
 Sri Lanka

• Standards adoption process

• Based on IFRS
Development own standards
(IFRS quality)
- Difficult
- Cost effectiveness
- Comparability of FS

Most countries - IFRS

Concerns IFRS

- Primary influence developed countries

Sri Lanka
- Retirement benefits
- IAS 39
SAFA countries

- Able to adopt with modifications

- Eventually able
End result
- Close to compliance
- Lose brand image
Likely to continue
Trend - Globalization

Prof. expertise SAFA region

Greater demand
Develop to greater heights
Globalization

Increase in standards of profession

No difficulty

Work towards achieving that goal

Accounting Regulations
FR scandals

Strengthen regulations
ROSC project
IFIAR

- Tokyo 2007
Independent of profession
Audit Regulation
Membership (Public interest)
Recurrent Inspection
international recognition
Global integration from
regional perspective
Sri Lanka
SLAASMB

First SBEs Board

• Admitted to IFIAR
• Max effectiveness
Min inconvenience
• Non compliance
www.slaasmb.org
Global integration

No failures
Not appropriate to be complacent
International community
Globally Accepted std IFIAR
Regulator

• Independent of profession
(IFIAR requirement)
• Independent of political establishment

Board with stakeholder nominees

Thank you