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Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB). SLAS. SLAS. Duties of Specified Business Enterprises (SBEs). Prepare its financial statements in compliance with Sri Lanka Accounting Standards. SLAS ?. SLAS ?. SLAS ?. SLAS ?. SLAS @. SLAS #. SLAS ???. SLAS ?.

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Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB)

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Sri lanka accounting and auditing standards monitoring board slaasmb

Sri Lanka Accounting and Auditing Standards Monitoring Board(SLAASMB)


Duties of specified business enterprises sbes

SLAS

SLAS

Duties of Specified Business Enterprises (SBEs)

  • Prepare its financial statements in compliance with Sri Lanka Accounting Standards.

SLAS ?

SLAS ?

SLAS ?

SLAS ?

SLAS @

SLAS #

SLAS ???

SLAS ?

SLAS $

SLAS ?

SLAS ?

SLAS ?

SLAS ?


Duties of specified business enterprises sbes1

Duties of Specified Business Enterprises (SBEs)

  • Take all necessary measures to ensure that the financial statements are audited in accordance with Sri Lanka Auditing Standards with the object of presenting a true and fair view of the financial performance and financial position of such enterprise.


Duties of specified business enterprises sbes2

B.Sc.

ACA

Duties of Specified Business Enterprises (SBEs)

  • To have the financial statements audited by members of the Institute of Chartered Accountants of Sri Lanka holding a certificate to practice, issued by the Institute.


Duties of sbes

AFMA Ltd.

Annual Report

2008/09

Duties of SBEs

  • Submit a copy of the annual financial

    statements of the enterprise to

    the SLAASMB, to enable the Board to

    determine whether the financial

    statements have been prepared in

    compliance with Sri Lanka Accounting

    Standards, and


Duties of sbes1

Duties of SBEs

To furnish to the Board or to any person authorized by the Board any information pertaining to its financial statements as may be required

by the Board or any person

authorized by the Board within

such time, as may be specified

in a notice issued by the

Board or any person

authorized by it.


Duties of auditors

B.Sc.

ACA

Duties of Auditors

  • The financial statements of every specified business enterprise shall be audited by a member of the Institute of Chartered Accountants of Sri Lanka holding a certificate to practice issued by the institute.


Duties of auditors1

True & Fair

Duties of Auditors

  • The Act requires the auditors to certify

    in their audit report that the audit has

    been conducted in accordance with

    Sri Lanka Auditing Standards and

    that the financial statements have been

    prepared and presented in accordance

    with Sri Lanka Accounting Standards.


Duties of auditors2

Duties of Auditors

  • Where any Qualified Auditor fails to comply with the Sri Lanka Accounting Standards and the Sri Lanka Auditing Standards as required by the Act, he shall specify clearly,

    - the deviation made

    - reasons for such deviations

SLAS


The sri lanka accounting and auditing standards monitoring board slaasmb

The Sri Lanka Accounting and Auditing Standards Monitoring Board(SLAASMB)

  • The Sri Lanka Accounting and Auditing Standards Monitoring Board was established by the Act No.15 of 1995.


Functions of the board

Functions of the Board

To monitor the compliance with the Sri Lanka Accounting and Auditing Standards by the Specified Business Enterprises

Monitor

SLAuS

SLAS


The sri lanka accounting and auditing standards monitoring board slaasmb1

The Sri Lanka Accounting and Auditing Standards Monitoring Board(SLAASMB)

  • All members of the Board are either ex-officio members by virtue of the holding of a specified public office, or are members appointed out of persons nominated by specified institutions.


The slaasmb consists of the following members

1. Registrar of Companies;

3Director General of the SEC of Sri Lanka

CIR

CIR

DSEC

ROC

The SLAASMB consists of the following members

  • Three members ("ex officio members") who shall be the persons holding office as

2 Commissioner General of Inland Revenue


The slaasmb consists following members

The SLAASMB consists following members

Ten members appointed by the Minister

("appointed members")

1. An officer of the Central Bank nominated by the Governor of the Central Bank. 2. Three members of the Institute selected from among persons nominated by the Institute.3. A member of the Chartered Institute of Management Accountants of the United Kingdom selected from among three members nominated by the Sri Lanka Division of the Institute.


The slaasmb consists of the following members1

The SLAASMB consists of the following members

4. One senior lawyer selected from among three senior lawyers nominated by the Bar Association of Sri Lanka.5. Two experienced company directors from SBEs

(one of whom shall be selected from a panel of three names submitted by the Ceylon Chamber of Commerce, and the other from a panel of three names submitted by the Federation of Chambers of Commerce and Industry of Sri Lanka.)6. One Senior Banker selected from a panel of three bankers nominated by the Sri Lanka Banks’ Association

7. One person selected from a panel of three persons nominated by the University Grants Commission.


Investigative powers of the slaasb

Investigative Powers of the SLAASB

The Board or any person duly authorized by the Board may:

1. By notice in writing require a SBEs or its auditors to furnish to the Board or to a person authorized by the Board any information pertaining to its financial statements and it shall be the duty of such SBES or its auditors to comply with such requirement within the time specified in the notice.

(Above notice has to be issued not later than one year after the specified business enterprises has submitted the relevant financial statements to the Board. There is no time limit to exercise the other powers.)


Investigative powers of the slaasb1

Investigative Powers of the SLAASB

The Board or any person duly authorized by the Board may:

  • 2. To summon and question any director, officer or auditor of any specified business enterprise on any matter pertaining to the preparation or presentation of its financial statements


Investigative powers of the slaasmb

Investigative Powers of the SLAASMB

The Board or any person duly authorized by the Board may:

3.Carry out investigations or hold inquiries ofany director, officer or auditor of any SBEs to appear before the board at any such investigation or inquiry or to produce any books or documents in the possession or control of such director, officer or auditor as are required for the purpose of such investigation or inquiry.


Board s consideration of public complaints

Board’s Consideration of Public Complaints

  • The Board would welcome public complaints. However, the Board would act with care and caution to ensure that SBE are not unduly harassed due to frivolous complaints.


Board s consideration on media comments

Board’s Consideration on Media Comments

  • The Board would peruse information published in the media with a view to detect a need to carryout an investigation. Here too, the Board would act with caution to ensure that SBEs are not unduly harassed.


Offences

Offences

1. Every

a. Persons who fails to Prepare its Accounts in accordance with SLAS and take all necessary measures to audit those accounts in compliance with SLAuS,(non compliance with Sec. 6 & 7),….

b. Who fails to submit information or non producing of documents requested by the board during an investigation or knowingly furnishes any false information,…..


Offences1

Fine

Offences

c. Director, Officer of Auditor of a SBE who fails to appear before the SLAASMB when required to do so or who refuses to answer any question put him by the Board or refuse to produce any book or document in his possession or knowingly give false information,…..

Shall be Guilty of an Offence under this Act

After summary trial before a Magistrate be liable to a

not ExceedingRs. 500,000


Offences2

Imprisonment

Not exceeding

Five Years

Offences

Where a person is convicted of an offence under this Act and the court holds that the offence was done with the intension of misleading shareholders (Bank-depositors) court may sentence the offender to,


Offences3

Offences

Where an offence is committed by a body

corporate, A director, Manager,

Secretary or other similar officer

of that body corporate shall be

deemed to be guilty of that

offence (unless he proves

the offence was committed

by the firm without his

knowledge)

I Don’t know


Compounding of offences

Compounding of Offences

The board may, having regard to the nature of the offence, compound such offence for a sum of money not exceeding one third of the fine imposable for such offence


Contravenes to the act that are not serious nature

Contravenes to the Act that are not Serious Nature

a. Direct such SBEs to have their accounts re-audited or where such accounts have been published, to republish them or to include suitable corrections in its accounts for the following year.

AFMA

Company

2009

Financial

Statements


Contravenes to the act that are not serious nature1

Contravenes to the Act that are not Serious Nature

b.Where such SBE is a public company direct it to send notification in writing to all its shareholders explaining the reason for such noncompliance and the financial effect of such noncompliance on the accounts

Non compliance


Contravenes to the act that are not serious nature2

Contravenes to the Act that are not Serious Nature

c.Where such SBE is a public company listed in the Colombo Stock Exchange (licensed by SECSL) to send in addition a copy of notification to such Commission and suck Stock Exchange.


Board to inform professional institutes of any violation

Board to inform Professional Institutes of any Violation

Where any accountant of any SBE violates any provision of this Act, it shall be the duty of the board to bring such violation to the notice of any professional body of which such accountant is a member for the purpose of enabling such body to take appropriate action against such accountant

aat


Board to inform regulatory authority and inland revenue department

Is your club listed here ?Contact us to create yourSports Club News & Eventspage here

Is your club listed here ?Contact us to create yourSports Club News & Eventspage here

Board to inform regulatory authority and Inland Revenue Department

Where any SBE has failed to comply with the provision of this Act, it shall be the duty of the board to bring such violation to the notice,

of any authority which is empowered by law to regulate or supervise the activites of such SBE

of the Inland Revenue Department if the board considers that such noncompliance has resulted in a substatntial reduction of thhe tax liability of such SBE


Practical cases

Practical Cases

The Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB) acting under the Sri Lanka Accounting and Auditing Standards Act No 15 of 1995 last week decided to release to the public regarding significant cases detected during the 2004.The significant cases detected in year 2004 are as follows.1. Senkadagala Finance Company Limited The Board issued a direction to Senkadagala Finance Company Limited to send a notification to all parties who received the annual audited financial statements explaining a related party transaction that was not adequately disclosed in their financial staements.-


Practical cases1

Practical Cases

2. W. M. Mendis & Company LimitedW. M. Mendis & Company Limited had not issued consolidated financial statements for the year ended 31st March 2003, consolidating the financial statements of Mendis Carbon (Pvt) Limited which became a subsidiary during the year. The auditors have not qualified their report in this respect. Users of the financial statements of a parent of a group of companies need to be informed about the financial position, results of operations and changes in financial position of the group as a whole. This need is served by consolidated financial statements. Company agreed to consolidate the financial statements of Mendis Carbon (Pvt) Ltd and to issue consolidated financial statements of W. M. Mendis & Company Limited for the year ended 31st March 2004.


Practical cases2

Practical Cases

Exam type Question

ABC Limited a Public Quoted Company which is listed in the Colombo Stock Exchange has failed to comply with certain accounting standards. The Board of Directors are of the view that the contravention with the Sri Lanka Accounting and Auditing Standards Act No. of 1995 is not of a serious nature. Advise the directors as to what action SLAASMB may take in this situation


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