|Project Name:||Increase Adoption of International Financial Reporting Standards|
|Status of Project:||Completed|
Regional - East Asia & Pacific
Country - Sri Lanka
|Focus Area(s):||Accounting education, training, and professional qualification
Adoption and implementation of international standards in accounting, auditing, and ethics
Institute of Chartered Accountants of Sri lanka
|When did/will the project commence?||2012-06|
|When was/will the project be completed?||2015-03|
|Project Objectives:||Being resilient with IFRS has become a moving target. Therefore, the primary objectives of this project were train the staff of the technical unit of CA Sri Lanka to maintain IFRS help desk; provide training of trainers with manuals being prepared, provide initial awareness and application level training on IFRS, introduce IFRS certification through online learning which will ultimately lead to fulfill the knowledge gap in IFRS among the stakeholders.|
|Key Project Components:||CA Sri Lanka undertakes the arduous responsibility of promulgating accounting standards in the country. In such a scenario, CA Sri Lanka proves to be a lifeline for companies, raising awareness amongst its members and the rest of the accounting fraternity to ensure compliance in financial reporting standards, which further ensures a common platform for financial reporting. Since January 2012, Sri Lanka has aligned its national accounting standards to that of the International Financial Reporting Standards (IFRS), which have been adopted by over 100 other countries cross the globe to date.
At a juncture when Sri Lanka is poised for enhanced economic growth, the convergence with IFRS is an important step as it means Sri Lanka is also in line with global changes and trends.
The journey that CA Sri Lanka embarked on to converge the Sri Lanka accounting and auditing standards with IFRSs has successfully completed a critical milestone as the standards are now in full compliance with IFRSs. The journey continues as Sri Lanka enters the important phase of implementation.
The World Bank grant which covers the important component of increasing adoption of IFRS supported the challenging task of rolling out and implementing the standards. The grant also made way for the enhancement of the training capacity of CA Sri Lanka to conduct awareness and detailed application level training on IFRSs.
Activities carried out under the component;
Established an IFRS help desk
Trained a panel of trainers in addition to the technical unit staff of CA Sri Lanka to deliver IFRS training
Prepare training material/manuals to assist trainers
Created initial IFRS awareness among preparers of financial statements, auditors, regulators, academia & media
Provided detailed application level training to members, corporate and other stakeholders
Offering IFRS e-learning
Introduced a certification course on IFRS
|Key Project Outputs:||Train the Trainer Programme
A ‘Train the Trainer’ programme was designed for 6 days out of which, a group of 8 resource persons were selected through a rigorous selection process and were trained based on the course material. The consultation was provided by Mike Turner, Course Director at the Institute of Chartered Accountants of England and Wales (ICAEW). He explained to the audience on the skills to be developed by an instructor, and also discussed key IFRSs in detail.
IFRS Sensitization Programme
An initial awareness training for approximately 170 participants was carried out by ICAEW. The participants included preparers of financial statements, auditors, academia and media. Status of global convergence with IFRSs, the areas of key impact on IFRSs with illustrative examples and key issues arising were discussed at length.
IFRS Application Level Training Programmes
Four IFRS Application Level Training Programmes were conducted each for a duration of four days. The first programme was conducted by the ICAEW Consultant, while the remaining three programmes were conducted by the trained local trainers. Around 500 participants representing 200 enterprises were trained using the World Bank grant..
IFRS Help Desk
An IFRS Help Desk is manned by CA Sri Lanka. ICAEW provided practical exposure on how to operate the help desk on IFRSs. The help desk helps in solving issues in relation to the IFRS implementation faced by preparers, practitioners and academia in Sri Lanka.
IFRS e-learning and Certification Course
CA Sri Lanka introduced an online certification course subsequent to developing an e-learning programme. This course provides distance learning on IFRSs in a more interactive manner and enhances the knowledge on IFRSs. The learning modules was introduced for the benefit of all relevant stakeholders.
|Key Project Outcomes:|| CA Sri Lanka technical staff provided exposure to international good practices in capacity building in IFRS.
Full set of IFRS training handbooks/manuals purchased and utilized for training. IFRS training materials and training manuals/hand books would be used by the local trainers in order to develop the capacity of CA Sri Lanka to conduct in-house IFRS Training;
IFRS awareness program carried out to benefit 200 participants.
Four IFRS Training programs for stakeholders conducted that will train at least 400 professionals
Comprehensive syllabi and course material on IFRS certification course developed and available
To provide solutions to the IFRS interpretation and implementation issues arising to the accounting professionals & general public;
More than 150 participants were able to be benefited from the IFRS Awareness Programme carried out in May 2013;
More than 500 participants representing more than 200 business enterprises, regulators, academia were able to gain an in-depth knowledge on IFRSs through the IFRS Application Level Training Programmes carried out covering the regional areas as well such as Kandy & Galle;
IFRS e-learning modules would be available to accounting professionals.
|How was the project initiated?|| The activities that are supported by the proposed IDF are closely aligned with the World Bank's Country Assistance Strategy (CAS). The Bank's 2009-2012 CAS identifies improving the investment climate and strengthening transparency and accountability as key priorities, both of which are part of the broader development objectives of the proposed IDF.
The Report on the Observance of Standards and Codes Accounting & Auditing (ROSC A&A) for Sri Lanka was prepared jointly by the Bank and the International Monetary Fund (IMF) and published in May 2004. The report involved an assessment of existing practices of corporate financial reporting and analysis of effectiveness of monitoring and enforcement mechanisms
|Total project budget (in USD)||$500,000.00|