Chartered Accountants moving with the times, leave old order behind
The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) is swiftly leaving the ‘old shackles’ and moving abreast with the ‘world order’ in the accountancy profession in line with the vision of the International Federation of Accountants (IFAC).
Sujeewa Rajapakse, inducted as the 21st President, CA Sri Lanka in Colombo this week by outgoing President Sujeewa Mudalige, made this comment in his inaugural address.
He said the challenge is to have the right perception and come to grips with the diverse needs and interests of the stakeholders of CA Sri Lanka.
“Precisely our vision in this regard is akin to the vision of the global profession represented by IFAC which is, serving the ‘Public Interest’,” he added.
He said that “Public Interest” is defined as the collective wellbeing of the general public. In furthering public interest, they reckon the needs of the employees of the institute, employers who employ their members, training partners, educational partners, regulators and the business com- munity at large.
Regulatory functions contribute to serve “Public Interest” and to achieve this function they would continue to work closely with the Central Bank, Accounting and Auditing Standards Monitoring Board, SEC, Finance Ministry, Auditor General, Registrar of Companies and Inland Revenue.
He said that they would discharge their duties with utmost flexibility, transparency and fall in line with the evolving global trends.
He said that law suits against members for professional negligence are on the increase globally and as a safeguard they intend to create limited liability partnerships to prevent exposing the practising members from unlimited liability.
He said that this year is significant for them due to Sri Lanka’s convergence with the International Financial Reporting Standards.
As CA Sri Lanka is the only authorized body to promulgate Accounting and Auditing Standards, this convergence spells out their commitment to be in line with global markets and developments.
Mr Rajapakse said that their duty is not merely to issue Sri Lanka Accounting and Auditing Standards and other pronouncements but to ensure that they are complied with.
He said that companies, including the SME sector should understand the need for adopting them.
He also sounded a warning of the impending economic woes in the country if practical action plans are not taken.
He said that, although Sri Lanka may not have the menace of terrorism now, elsewhere in the world it is there. Though Sri Lanka’s economic forecast is looking positive, the world is affected by the financial meltdown in which some powerful nations have been victims.
He said that large international financial institutions who suffered collapses try to be on their feet again and Mr Rajapakse sounded a warning, saying: “The adverse headwinds may affect Sri Lanka too, if we don’t watch our steps and ensure that we have a practical action plan to steer the country. Or else we too will have to pay a heavy price”.
Ajith Nivard Cabraal, Governor, Central Bank who was the Chief Guest and also a past President of CA Sri Lanka compared the statistics of then when he was the CA President and now to show the steady progress in trade and finance now prevailing in the country.