BDO Consulting guides professionals on latest changes in accounting standards

Keeping abreast of continuous technical development and the need to adapt to continuous change, BDO Consulting Ltd. organised a seminar on IFRS 9, IFRS 15 and IFRS 16 on 10 October at Ramada Hotel.

BDO Partners Managing Partner Sujeewa Rajapakse welcomed the guests and explained the importance of IFRS for companies in Sri Lanka. He emphasised the need for companies to pro-actively start complying with these accounting standards.

There were three resource persons who conducted the seminar very successfully. The fluidity with which they connected the sessions and laid the way for the case studies by explaining theory and providing real-life scenarios was indeed a break to the usual monotony found in similar technical sessions.

As a key member of the Sri Lanka Accounting and Auditing Standards Monitoring Board, which promulgates the Accounting Standards in Sri Lanka, BDO Consulting Ltd. Managing Director Nishan Fernando, was able to not only share valuable technical knowledge related to IFRS 9, IFRS 15 and IFRS 16.

An important point highlighted by him was the need for the Management of ‘all’ business entities to be geared to adapt the changes in IFRS 15. He also explained the need for entities to develop a framework within which they would identify loan provisions. In the case studies he discussed Fernando explained the practical application of the requirements of IFRS 15 and IFRS 9 while also providing tips for the financial experts to prepare for the change.

Preparation of the necessary reconciliations from the changes in the presentation of financial information with the adoption of the requirements of IFRS 15 and the Management information on which staff performance is based was highlighted. The need to provide explanations to the Department of Inland Revenue with the changes, if inquired was also explained during the discussion of one of case studies.

Subasinghe, who is a Council Member of the Institute of Chartered Accountants of Sri Lanka (ICASL), introduced IFRS 15 by building the platform to the need for the change to revenue recognition. He explained the business cases behind bringing in changes to the Accounting Standards and the new Standards. He further explained the impact of global financial crisis on the Standards on financial instruments.

He stressed on the need to identify the change to point of revenue recognition and its impact on the financial performance. His explanations were crystal clear where he drew parallels with the current practice and the new requirements.

Nishani Perera, who is a Director of BDO Partners, discussed the case studies relating to IFRS 09. She very effectively did the calculation taking the participants each step of the way with clear guidelines.

Many questions of participants were also discussed. She explained the logic behind the calculations to allow participants to understand the scenario better. It should be noted that Perera explained the simplified impairment approach for trade receivables and the accounting treatment for the impairment of interest-free loans between Related Parties. She not only discussed extensive examples for the same but also instilled the need for its identification, which usually remains unnoticed by financial experts.

BDO Consulting Ltd. is associated with BDO Partners which is a member firm of BDO International Ltd., a UK company limited by guarantee. BDO has been in existence for 59 years with a staff strength of over 375. BDO Partners provides Audit and Assurance, Tax Advisory, Risk Advisory, Corporate Finance, BPO, IS Audit Services and Corporate Secretarial Services.