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Enhancing Reliability

The function of the Board is to monitor compliance with the Sri Lanka Accounting Standards and the Sri Lanka Auditing Standards in the preparation, presentation and audit of financial statements of specified business enterprises.

City Housing & Real Estate Company PLC (2017)

  • incorrectly recognizing Available for Sale investments in the absence of evidence to establish its ownership and existence .( Reference paragraph 11 of LKAS 32 and paragraph 4.44 of The Conceptual Framework);
  • incorrectly recognizing the amounts payable to related parties without establishing the existence and completeness of the balances .( Reference paragraph 11 of LKAS 32 and paragraph 4.46 of The Conceptual Framework;
  •  failing to assess the impairment of the amounts due from related parties .( Reference paragraph 58 of LKAS 39)

Quick Links

  • Sri Lanka Accounting Standards
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  • IFRS Practice Statement 2, Making Materiality Judgements
  • Session Conducted for the undergraduates at University of Sri J’pura

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Latest Findings

Local Loans and Development Fund (2023)
  - Not applying the requirements of Sri Lanka Accounting Standard SLFRS 9, when preparing and presenting the financial statements for the year ended 31 December 2021, when SLFRS 9 is effective (References: Paragraph 7.1.1. of SLFRS 9).
Nawaloka Hospitals PLC (2023)
  - Failing to maintain proper accounting records and not providing the required information to the auditor for the financial year ended 31 March 2022 (Reference: Section 6 (1) of the Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995).
State Engineering Corporation of Sri Lanka (2022)
   - Incorrectly recognizing a deferred tax asset relating to tax losses without assessing the availability of the future taxable profits.
   - Not amalgamating the revenue from all the projects in the financial statements.
   - Not recognizing an adequate allowance for impairment (LKAS 39)
   - Not making a reliable estimate of the long overdue payable for VAT, GST and NSL by not reconciling the differences between the payable balance recognized in the financial statements and the payable balance confirmed by the Inland Revenue Department.


Sri Lanka Cement Corporation (SLCC) (2022)
   - Not reflecting the investment in equity shares at its fair value (Paragraph 5.2.1 of SLFRS 9).
   - Not recognizing certain lands in the financial statements of which SLCC has the control, right and potential to produce economic benefits from the lands (Paragraph 15 of LKAS1).

Contact Us

Sri Lanka Accounting and Auditing Standards Monitoring Board
3rd floor Bible House Building,
293 Galle Road, Colombo 3, Sri Lanka
94-11-2301210
94-11-2301211

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