Govt. proposed plans to deter accountants?

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Outgoing CA Sri Lanka President issues caution on new SEC Act initiative, says will have implications in terms of independence
Proposed accounting body for public sector not necessary with five accounting bodies already operating

By Shehana Dain

The outgoing CA Sri Lanka President Arjuna Herath on Tuesday expressed caution on the counter productive actions that are in the making by the Government which he said will slow the progress the accounting profession is making.

In his speech at the induction of the CA President 2016, Herath opined that due to lack of awareness about the accounting profession due status and appreciation is not given to local accountants who are on par with global standards.

“There seems to be missions and initiatives contemplated such as a proposal that has been bought to the table to create a separate professional accounting body for the public sector accountants. This new institution will be in addition to five accounting bodies operating in the country, with two of them legislated and three of them international foreign professional accounting bodies,” Herath opined.

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Additionally he elaborated on a specific planned change of the new Securities and Exchange Commission (SEC) Act in the pipeline which could be disadvantages if executed. “There has been a change that has been proposed to the Securities and Exchange Commission Act to have a new reporting mechanism and an oversight role over the accounting professionals which will have implications on conducting audits in aspects of independence. The SEC wishes to create this role in addition to similar role performed by the existing oversight board The Sri Lanka Accounting Standards and Monetary Board,” he added.

As a solution to this Herath opined that “As the national accounting body needs to create the required awareness of the current status in relation to financial reporting and auditing framework legislations so that any shortfall in fulfilling expectations of stakeholders will be fulfilled using the current infrastructure institution and legal framework and legislation avoiding suboptimal solutions.”

CA Sri Lanka inducts new board with Lasantha at helm

New Board to focus on four core areas, emphasis on research support facility in areas of accounting and auditing

Lasantha Wickremasinghe was on Tuesday inducted as the 23rd President of CA Sri Lanka by outgoing President Arjuna Herath for a two year tenure along with Jagath Perera as Vice President in its new Board for 2016.

Wickremasinghe is a fellow member of CA Sri Lanka counting for 20 years of experience and is a Partner at B.R. De Silva and Co. Chartered Accountants. He has served in the CA Sri Lanka Council since 2006, and prior to his induction as President, he was Vice President from 2014 to 2015. Meanwhile Perera is a Partner at KPMG Sri Lanka and has served in the CA Sri Lanka Council since 2010.

Wickramasinghe pointed out four key areas he wishes to focus on during his term as President: “Firstly to provide members with the relevant information and opportunities, to develop

Skills in new areas; secondly to enhance our involvement and support the business community and the

Government; thirdly to enhance our international prestige through a new concept called ‘cooption’ signifying collaboration with respect but also engaging competitively with other accounting bodies and institutions and finally to enhance the quality of training and education and continuous development of the examination processes,” he quipped.

Moreover elaborating on the board’s plans to develop the profession further he noted: “We will set up a preliminary research support facility to coordinate research in areas of accounting and auditing, in collaboration with Universities and research bodies. Further, a new scholarship scheme will be established to attract students from different A/L streams and those who excel in extra-curricular activities. In a fresh effort aimed at enhancing the services we provide to our stakeholders, we intend to develop a core information system, which will be both efficient and dynamic for the benefit of our members and students.”

Pivotal role for chartered accountants: Speaker

Speaker of Parliament Karu Jayasuriya who was the Chief Guest of the CA Sri Lanka Presidential Installation remarked that the Chartered Accountants should play a pivotal role in enhancing financial management skills in the public sector.

“The skills and expertise of the chartered accountants of Sri Lanka have been recognised all over the world and more than 27% of its total membership serve with distinction abroad. The general perception is that they shall possess the required professional skills and expertise to keep pace with international best practices. This is why the Institute needs to step in, to enhance the financial management skills in the public sector. We appreciate the Institute’s interest displayed in this regard,” Jayasuriya emphasised.