Sri Lanka Public Sector Accounting Standards (SLPSAS)

P.AriyasenaChief AccountantMinistry of Foreign Employment Promotion and Welfare

Introduction

Sri Lanka Public Sector Accounting Standards (SLPSAS)were based on the International Public Sector Accounting Standards (IPSAS)published by the International Federation of Accountants (IFAC) .

Necessity and Purposes of SLPSAS Accounting standards are required for the

purposes of maintain uniform and quality financial statements,

They are intended to provide a framework and basis for improving government Accountability through improved accounting and financial reporting.

It will help for decision making process by providing necessary information for resource allocation among the various Public Sector entities

Public Interest

How to help the Accounting Standards for maintaining Government Accountability

Management is responsible for;

Preparation of improved and quality financial and other reporting;

Reviewing of Financial and other reports;Taking corrective action based on such

reviews

Purposes of quality and improved Financial Statements to Management

The quality of Financial Statements are helped to maintain;

For decision making process;

For planning and management of public sector entities.

Purposes of quality and improved Financial Statements to Stake Holders

Stake holders can;Access how the accountability has discharged

by the management;Access the financial and operating

performanceCompare one entity with other similar entityCompare one period with another period

Applicability of the SLPSASSri Lanka Public Sector Accounting

Standards apply to all public sector entities other than Government Business Enterprises (GBEs) ,which are complianced with SLASsPublic Sector entities prepare FS on accrual

basis of accountingApplicable for general purpose FSFor Material Items

Benefits of the applying of SLPSAS to the Public Sector

Improved financial management and financial discipline

Improved quality and reliability of financial reporting by government

Improved financial and economic performance

Harmonization between economic and financial reporting requirements

Components of Financial StatementsStatements of Financial PositionsStatements of Financial PerformanceCash Flow StatementsStatements of Changes in Equity/Net assetsAccounting PoliciesNotes to the FS

Accrual BasisAccrual Basis means a basis of accounting

under which transactions, other events and condition are recognized when they occur.(and not only when cash or its equivalent is received or paid).Thefore,the transactions and events are recorded in the accounting records and recognized in the financial statements of the periods to which they relate. The elements recognized under accrual accounting are assets,liabilities,net assets/equity, revenue and expenses.

Shifting from Cash Basis to Accrual BasisDisclosure requirements in FSApplicable all SLPSASRequired transitional periodMajor issues arise in PPEs,Revenues ,and

Liabilities

Authority for SLPSASGOSAL

Financial RegulationsFinance Act No 38 of 1971

ICASL