Global Adoption of International Financial Reporting Standards

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Recommended: Structure of international financial reporting standards in various countries

2.2. International Financial Reporting Standards (IFRS) Adoption
International Financial Reporting Standards (IFRSs) is a set of accounting standards developed by an independent, non-profit making organization popularly known as International Accounting Standard Board (IASB) which was created under the laws of state of Delaware, United States of America, on 8 March, 2001 (IFRS foundation) (IFRS.org, 2017) The objective of the IFRS is to present a unique and comparable accounting framework on how to prepare and disclose their financial statements globally. (Cotter, D., 2012) The most important change that occurred in the history of accounting was the adoption of International Financial reporting standards all around the world.
During the period …show more content…

The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) is seen as a body sovereign charged with the duty to develop and issue Sri Lankan Accounting Standards (SLAS) for financial statement preparers and users.
The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) in 2011 took the steps to adopt the International Financial Reporting Standards (IFRS) on 1 January 2011 successfully in the country by issuing Sri Lanka Financial Reporting Standards (SLFRS) and Sri Lanka Accounting Standards (LKAS) which consist of preparing the financial statements in compliance with IFRS comprises the followings: Statement of Financial Position, Statement of Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows and Accounting Policies.
With the adoption of the new Sri Lanka Financial Reporting Standards, entities are required to apply SLFRS 1 – First time adoption of Sri Lanka Financial Reporting Standards for annual financial periods beginning on or after 1 January 2012.
The Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995 define a class of companies as Specified Business Enterprises (SBEs). SBEs

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