background note on action plans · update sections relevant to smo 1 as necessary. once updated...
TRANSCRIPT
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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
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
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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 Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
Status as of Date of Publication Page 3 of 23
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.
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
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# Start Date Actions Completion Date
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
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
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# Start Date Actions Completion Date
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
Quality Assurance Manager
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
Quality Assurance Manager
16. January ‘10 Introducing the Quality Assurance Review System on voluntary Basis to the Practitioners.
Sept. ‘12 Quality Assurance Committee
Quality Assurance Manager
17. January ‘11 Make it mandatory to submit the above Self Review Questionnaire in renewing the firm’s certificate.
January ‘13
Quality Assurance / Committee
Quality Assurance Manager
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
Quality Assurance Manager
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
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# Start Date Actions Completion Date
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.
On going Quality Assurance Committee
Quality Assurance Manager
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.
On going Quality Assurance Committee
Quality Assurance Manager
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 Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
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Action Plan Subject: SMO 2 and International Education Standards (IESs)
Action Plan Objective: Continuous Improvement in Line with SMO 2
# Start Date Actions Completion Date
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
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
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# Start Date Actions Completion Date
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
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
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# Start Date Actions Completion Date
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
Overseas Resource Person
38. Mar. 2012 One Day workshop on the subject ‘Developing and Installing an Integrated Risk Management Framework’.
Mar. 2012 Director Member Relations
Overseas Resource Person
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
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
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# Start Date Actions Completion Date
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
Review of CA Sri Lanka’s Compliance Information
45. 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 Head of Training & Education
Lecturer Practicing Accountant
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
Status as of Date of Publication Page 11 of 23
Action Plan Subject: SMO 3 and International Auditing and Assurance Standards Board (IAASB) Pronouncements
Action Plan Objective: Continuous Improvement in Line with SMO 3
# 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 (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.
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
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# Start Date Actions Completion Date
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
Review of CA Sri Lanka’s Compliance Information
53. Ongoing Perform periodic review of CA Sri Lanka’s response to the IFAC Compliance Self-Assessment questionnaires and update sections relevant to SMO 3 as necessary. Once updated inform IFAC Compliance staff about the updates in order for the Compliance staff to republish updated information.
Ongoing The Council / Auditing Standards Committee
Sub Committee appointed by the Main Committee /Technical Division
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
Status as of Date of Publication Page 13 of 23
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
# Start Date Actions Completion Date
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
The Council Ethics Committee
56. Conducting Awareness Programs on the importance of adhering to the Code of Ethics.
September ’09 - Completed
The Council Ethics Committee
Maintaining Ongoing Processes
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
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
Status as of Date of Publication Page 14 of 23
# Start Date Actions Completion Date
Responsibility
Resource
Review of CA Sri Lanka’s Compliance Information
58. Ongoing Perform periodic review of CA Sri Lanka’s response to the IFAC Compliance Self-Assessment questionnaires and update sections relevant to SMO 4 as necessary. Once updated inform IFAC Compliance staff about the updates in order for the Compliance staff to republish updated information.
Ongoing The Council Ethics Committee
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
Status as of Date of Publication Page 15 of 23
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
# Start Date Actions Completion Date
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
The Council Council Members
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
Status as of Date of Publication Page 16 of 23
# Start Date Actions Completion Date
Responsibility Resource
61. February '08 Determining the Terms of Reference of the PSASC. February '08 Completed
The Council Council Members
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
The Council Council Members
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
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
Status as of Date of Publication Page 17 of 23
# Start Date Actions Completion Date
Responsibility Resource
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
Maintaining Ongoing Processes
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
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
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# Start Date Actions Completion Date
Responsibility Resource
Review of CA Sri Lanka’s Compliance Information
80. Ongoing Perform periodic review of CA Sri Lanka’s response to the IFAC Compliance Self-Assessment questionnaires and update sections relevant to SMO 5 as necessary. Once updated inform IFAC Compliance staff about the updates in order for the Compliance staff to republish updated information.
Ongoing PSASC Committee Members
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
Status as of Date of Publication Page 19 of 23
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
# Start Date Actions Completion Date
Responsibility Resource
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.
Maintaining Ongoing Processes
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
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
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# Start Date Actions Completion Date
Responsibility Resource
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
Review of CA Sri Lanka’s Compliance Information
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 Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
Status as of Date of Publication Page 21 of 23
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
# Start Date Actions Completion Date
Responsibility Resource
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
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
Status as of Date of Publication Page 22 of 23
# Start Date Actions Completion Date
Responsibility Resource
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
Financial Reporting Faculty
86. Ongoing Conduct regular awareness Programs on Sri Lanka Accounting Standards & IASs/IFRSs.
Ongoing
Financial Reporting Faculty
Financial Reporting Faculty
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
Maintaining Ongoing Processes
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
Statutory Accounting Standards Committee
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
Action Plan Developed by The Institute of Chartered Accountants of Sri Lanka (ICASL)
Status as of Date of Publication Page 23 of 23
# Start Date Actions Completion Date
Responsibility Resource
Review of CA Sri Lanka’s Compliance Information
91. Ongoing Perform periodic review of CA Sri Lanka’s response to the IFAC Compliance Self-Assessment questionnaires and update sections relevant to SMO 7 as necessary. Once updated inform IFAC Compliance staff about the updates in order for the Compliance staff to republish updated information.
Ongoing The Council
Statutory Accounting Standards Committee