SRI LANKA ACCOUNTING AND AUDITING STANDARDS ACT

Arrangement of Sections

1. Short title.

2. Adoption of Sri Lanka Accounting Standards.

3. Adoption of Sri Lanka Auditing Standards.

4. Power to vary and amend standards.

5. Application of standards.

6. Duly to comply with standards adopted.

7. Auditing of accounts of specified business enterprises to be done by qualified Auditors.

8. Accounting Standards Committee.

9. Auditing of Standards Committee.

10. Period of service resignation.

11. Establishment of Accounting and Auditing Standards Monitoring Board.

12. Constitution of the Board.

13. Term of office of appointed members.

14. Removal of appointed members.

15. Resignation of appointed members.

16. Eligibility for reappointment.

17. Filling of vacancies.

18. Meetings of the Board.

19. Remuneration of members.

20. Chairman of the Board.

21. Seal of the Board.

22. Staff of the Board.

23. Function of the Board.

24. Powers of the Board.

25. Copy of annual accounts furnished to the Board.

26. Board to carry out investigation.

27. Offences.

28. Compounding of offences.

29. Board to inform professional institute of any violation.

30. Board to inform regulatory authority and Inland Revenue Department.

31. Accounting and Auditing Standards cess.

32. Fund of the Board.

33. Financial year and audit of accounts.

34. Annual Report.

35. Protection for action taken under this Act or on the direction of the Board.

36. Members, officers and servants of the Board deemed to be public servants.

37. Board to be a scheduled institution.

38. Regulations.

39. Sinhala text to prevail in case of inconsistency.

40. Interpretations.

SCHEDULE

15 of 1995.

AN ACT to provide for the establishment of Sri Lanka Accounting Standards and Sri Lanka and Auditing Standards; to establish the Sri Lanka Accounting Standards Monitoring Board; and to provide for matters connected therewith or incidental thereto.

[Date of Commencement: 25th August, 1995]

1. Short title.

This Act may be cited as the Sri Lanka Accounting Short title and Auditing Standards Act.

2. Adoption of Sri Lanka Accounting Standards.

(1) The Institute of Chartered Accountants of Sri Lanka (hereinafter referred to as the "Institute”) shall, from time to time, adopt such accounting standards (hereinafter referred to as "Sri Lanka Accounting standards”) as may be necessary for the purpose of maintaining ‘uniform and high standard in the preparation and presentation of accounts of business enterprises

(2) The Sri Lanka Accounting Standards adopted under subsection (1) shall be punished in the Gazette and shall become effective from and after the date of such publication or such later date as may be specified therein.

3. Adoption of Sri Lanka Auditing Standards.

(1) The Institute shall, from time to time, adopt appropriate auditing standards (hereinafter referred to as "Sri Lanka Auditing Standards”) as may be necessary to govern the conduct of the audit of accounts of business enterprises.

(2) The Sri Lanka Auditing Standards adopted under subsection (1) shall be published in the Gazette and shall become effective from and after the date of such publication or such later date as may be specified therein.

4. Power to vary and amend standards.

(1) The Institute shall, whenever necessary revise, alter and amend the Sri Lanka Accounting Standards and Sri Lanka Auditing Standards adopted by it under this Act and shall cause such revised, altered or amended standards to be published in the Gazette, and such revisions, alterations and amendment shall become effective from and after the date of such publication or such later date as may be specified therein.

(2) The Institute shall notify the public of the Sri Lanka Accounting Standards and the Sri Lanka Auditing Standard an of the revisions, alterations and amendments made thereto, by notice published in the Gazette or in such ether manner as is calculated to give publicity thereto.

5. Application of standards.

The standards adopted by the Institute under sections 2 and 3 of this Act shall be applicable to all business enterprises specified in the Schedule to this Act (hereinafter referred to as "specified business enterprises”).

6. Duly to comply with standards adopted.

(1) It shall be the duty of every specified business enterprise to prepare its accounts in compliance with the Sri Lanka Accounting Standards and take all necessary measures to ensure that its accounts are audited in accordance with the Sri Lanka Auditing Standards with the object of presenting a true and fair view of the financial performance and financial condition of such enterprise.

(2) Any specified business enterprise which acts in contravention of the provisions of subsection (1) shall be guilty of an offence under this Act.

7. Auditing of accounts of specified business enterprises to be done by qualified Auditors.

(1) The accounts of every specified business enterprise shall be audited by professionally qualified auditors who shall be members of the Institute holding a certificate to practice, issued by the Institute, and it shall be the duty of such auditors to certify in their audit report that the audit has been conducted in accordance with the Sri Lanka Auditing Standards and that accounts have been prepared and presented accordance with the Sri Lanka Accounting Standards.

(2) Where any qualified auditor fails to comply with the Sri Lanka Accounting standards and the Sri Lanka Auditing Standards as required by subsection (1), he shall specify clearly the deviations made and give reasons for such deviations.

8. Accounting Standards Committee.

(1) An Accounting Standards Committee consisting of such members as are specified in subsection (2) is hereby established and such Committee shall make recommendations and otherwise assist the Institute in the adoption of accounting standards under section 2 of this Act.

(2) The Accounting Standard Committee shall consist of—

(a) the President of the Institute and five other members of the Institute nominated by the Council of such Institute;

(b) one member nominated by the Sri Lanka Division at the Chartered Institute of Management Accountant at the United Kingdom;

(c) the Registrar of Companies;

(d) the Director-General of the Securities and Exchange Commission of Sri Lanka;

(e) one member to represent the Central Bank nominated by the Governor of the Central Bank;

(f) one member who shall be a director of a company or person having extensive experience at senior managerial level in a specified business enterprise, nominated by the Ceylon Chamber of Commerce; and

(g) one member who shall be a director of a company or a person having extensive experience at a senior level in a specified business enterprise, nominated by the Federation of Chambers of Commerce and Industry of Sri Lanka.

(3) Notwithstanding the provisions of subsection (1), the Accounting Standards Committee shall, where it is called upon to make recommendations regarding accounting standards to be adopted in respect of licensed commercial banks or other financial institutions coining within the supervisory control of the Central Bank, consult the Central Bank and obtain its concurrence, before making such recommendations.

This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article.


Recent Updates

PROVINCIAL COUNCILS ELECTIONS (AMENDMENT) ACT, No. 17 OF 2017


FISHERIES AND AQUATIC RESOURCES(AMENDMENT) ACT, No. 11 OF 2017


NATION BUILDING TAX (AMENDMENT)ACT, No. 13 OF 2017


SUGATHADASA NATIONAL SPORTS COMPLEX AUTHORITY (AMENDMENT) ACT, No. 14 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


PROVINCIAL COUNCILS ELECTIONS (AMENDMENT) ACT, No. 17 OF 2017


FISHERIES AND AQUATIC RESOURCES(AMENDMENT) ACT, No. 11 OF 2017


NATION BUILDING TAX (AMENDMENT)ACT, No. 13 OF 2017


SUGATHADASA NATIONAL SPORTS COMPLEX AUTHORITY (AMENDMENT) ACT, No. 14 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


PROVINCIAL COUNCILS ELECTIONS (AMENDMENT) ACT, No. 17 OF 2017


FISHERIES AND AQUATIC RESOURCES(AMENDMENT) ACT, No. 11 OF 2017


NATION BUILDING TAX (AMENDMENT)ACT, No. 13 OF 2017


SUGATHADASA NATIONAL SPORTS COMPLEX AUTHORITY (AMENDMENT) ACT, No. 14 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


PROVINCIAL COUNCILS ELECTIONS (AMENDMENT) ACT, No. 17 OF 2017


FISHERIES AND AQUATIC RESOURCES(AMENDMENT) ACT, No. 11 OF 2017


NATION BUILDING TAX (AMENDMENT)ACT, No. 13 OF 2017


SUGATHADASA NATIONAL SPORTS COMPLEX AUTHORITY (AMENDMENT) ACT, No. 14 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


PROVINCIAL COUNCILS ELECTIONS (AMENDMENT) ACT, No. 17 OF 2017


FISHERIES AND AQUATIC RESOURCES(AMENDMENT) ACT, No. 11 OF 2017


NATION BUILDING TAX (AMENDMENT)ACT, No. 13 OF 2017


SUGATHADASA NATIONAL SPORTS COMPLEX AUTHORITY (AMENDMENT) ACT, No. 14 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


PROVINCIAL COUNCILS ELECTIONS (AMENDMENT) ACT, No. 17 OF 2017


FISHERIES AND AQUATIC RESOURCES(AMENDMENT) ACT, No. 11 OF 2017


NATION BUILDING TAX (AMENDMENT)ACT, No. 13 OF 2017


SUGATHADASA NATIONAL SPORTS COMPLEX AUTHORITY (AMENDMENT) ACT, No. 14 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


PROVINCIAL COUNCILS ELECTIONS (AMENDMENT) ACT, No. 17 OF 2017


FISHERIES AND AQUATIC RESOURCES(AMENDMENT) ACT, No. 11 OF 2017


NATION BUILDING TAX (AMENDMENT)ACT, No. 13 OF 2017


SUGATHADASA NATIONAL SPORTS COMPLEX AUTHORITY (AMENDMENT) ACT, No. 14 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


PROVINCIAL COUNCILS ELECTIONS (AMENDMENT) ACT, No. 17 OF 2017


FISHERIES AND AQUATIC RESOURCES(AMENDMENT) ACT, No. 11 OF 2017


NATION BUILDING TAX (AMENDMENT)ACT, No. 13 OF 2017


SUGATHADASA NATIONAL SPORTS COMPLEX AUTHORITY (AMENDMENT) ACT, No. 14 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015