Come 2011 Sri Lanka will be keeping an important step in the field of financial accounting, as it will report the first comparative financial statements based on the international accounting standards. Simple as it may sound, it is not such an easy task!
The convergence from Sri Lanka accounting standards to the international standards will undoubtedly impact many areas of the business from sales and marketing to research and development to tax and strategy etc. It will carry total company wide impact and will require numerous system changes to capture the right information at source. The main aim of the convergence is to be in line with international practices as the world becomes more and more integrated and interdependent. It will definitely serve as a positive in attracting FDIs in a post war economy by increasing comparability of investments across borders and enhanced transparency.
So, do you think Sri Lanka is ready to take on this challenge to be fully compliant with IFRSs by 2012? What more do we need to do to speeden and streamline the convergence process?