Sri Lanka Public Sector Accounting Standards (SLPSAS)

Report
P.Ariyasena
Chief Accountant
Ministry of Foreign Employment Promotion and Welfare
Introduction
Sri Lanka Public Sector Accounting Standards
(SLPSAS)were based on the International Public
Sector Accounting Standards (IPSAS)published by
the International Federation of Accountants
(IFAC) .
Necessity and Purposes of SLPSAS
 Accounting standards are required for the purposes of
maintain uniform and quality financial statements,
 They are intended to provide a framework and basis for
improving government Accountability
improved accounting and financial reporting.
through
 It will help for decision making process by providing
necessary information for resource allocation among the
various Public Sector entities
 Public Interest
How to help the Accounting Standards for maintaining Government
Accountability
Management is responsible for;
 Preparation of improved and quality financial and
other reporting;
 Reviewing of Financial and other reports;
 Taking corrective action based on such reviews
Purposes of quality and improved Financial
Statements to Management
The quality of Financial Statements are helped to
maintain;
 For decision making process;
 For planning and management of
public sector entities.
Purposes of quality and improved Financial
Statements to Stake Holders
Stake holders can;
 Access how the accountability has discharged by the
management;
 Access the financial and operating performance
 Compare one entity with other similar entity
 Compare one period with another period
Applicability of the SLPSAS
 Sri Lanka Public Sector Accounting Standards apply to
all public sector entities other than Government
Business Enterprises (GBEs) ,which are complianced
with SLASs
 Public Sector entities prepare FS on accrual basis of
accounting
 Applicable for general purpose FS
 For Material Items
Benefits of the applying of SLPSAS
to the Public Sector
 Improved
financial
management
and
financial
discipline
 Improved quality and reliability of financial reporting
by government
 Improved financial and economic performance
 Harmonization between economic and financial
reporting requirements
Components of Financial
Statements
 Statements of Financial Positions
 Statements of Financial Performance
 Cash Flow Statements
 Statements of Changes in Equity/Net assets
 Accounting Policies
 Notes to the FS
Accrual Basis
 Accrual Basis
means a basis of accounting under
which transactions, other events and condition are
recognized when they occur.(and not only when cash
or its equivalent is received or paid).Thefore,the
transactions and events are recorded in the accounting
records and recognized in the financial statements of
the periods to which they relate. The elements
recognized
under
accrual
accounting
are
assets,liabilities,net assets/equity, revenue and
expenses.
Shifting from Cash Basis to Accrual
Basis
 Disclosure requirements in FS
 Applicable all SLPSAS
 Required transitional period
 Major issues arise in PPEs,Revenues ,and Liabilities
Authority for SLPSAS
 GOSAL
 Financial Regulations
 Finance Act No 38 of 1971
 ICASL

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