City Housing and Real Estate Company PLC
 Introduction
 Sri Lanka Accounting Standards – LKAS 1
 Sri Lanka Accounting Standards – SLFRS 1
 Disclosure Requireme...
 International Financial Reporting Standards (IFRS) is a set of accounting
standards, developed by the International Acco...
 Sri Lanka Financial Reporting Standards
(SLFRS) 1 to 8 8
 Sri Lanka Accounting Standards(LKAS)
1 to 41 29
 Internation...
 01st April 2011 - Transition Date (Starting
point in accordance with SLFRS)
 31st March 2012 - Comparative Period
 31s...
 3 Statements of financial position.
 2 Statements of comprehensive income/two separate
income statements.
 2 Statement...
 The complete set of financial statements
compliant with SLFRS comprises 5 elements:
 a statement of financial position ...
 Fair presentation and compliance with SLFRS
 Going concern
 Accrual basis of accounting
 Materiality and aggregation
...
 Reporting entity
 The information whether the financial
statements are of an individual or of a group
 The date of the...
 Minimum Content
 ASSETS
 Property, plant and equipment
 Investment property
 Intangible assets
 Financial assets
 ...
 EQUITY AND LIABILITIES
 Issued capital and reserves attributable to owners
of the parent
 Non-controlling interests
 ...
 LKAS1 does NOT prescribe the precise format
of the statement of financial position.
Instead, several formats are accepta...
 2 Basic Elements
 Profit or loss for the period: here, all items of
income and expenses must be recognized.
 Other com...
 PROFIT OR LOSS
 Revenue
 Gains and losses arising from the derecognition
of financial assets at amortized cost
 Finan...
 Each component of other comprehensive
income classified by nature
 Share of the other comprehensive income of
associate...
 Write-downs of inventories to net realizable
value or of property, plant and equipment to
recoverable amount, as well as...
 total comprehensive income for the period, showing
separately amounts attributable to owners of the
parent and to non-co...
 Present information about the basis of preparation of the
financial statements and the specific accounting policies
used...
 Objective
 (a) is transparent to users and comparable for
all periods presented;
 (b) provides an appropriate starting...
 STEP 1
Derecognition
Ex-If the entity's previous GAAP had allowed recognition of contingent assets as defined in
LKAS 37...
 This SLFRS establishes 2 categories of
exceptions to an entities opening SLFRS
statement of Financial Position
 Retrospective Application: A retrospective
application is the application of a new accounting policy as
if that policy h...
 Two categories of exceptions are,
1. Mandotory Exceptions
2. Optional Exemptions
 Estimates
 Derecognition of financial instruments
 Hedge accounting
 Non-controlling interest
 Share-based payment transactions
 Insurance contracts
 Fair value or revaluation as deemed cost
 Leases
 Employee be...
 at least three statements of financial position;
 two statements of comprehensive income;
 two separate income stateme...
 Reconciliations of its equity reported under
previous GAAP to its equity under SLFRS at:
 The date of transition to SLF...
Slfrs city housing
Slfrs city housing
Slfrs city housing
Slfrs city housing
Slfrs city housing
Slfrs city housing
Slfrs city housing
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SLFRS, TudorV, Deshapriya Senanayake

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Slfrs city housing

  1. 1. City Housing and Real Estate Company PLC
  2. 2.  Introduction  Sri Lanka Accounting Standards – LKAS 1  Sri Lanka Accounting Standards – SLFRS 1  Disclosure Requirements  Applicable Accounting Standards  Assisting Transition to Sri Lanka Financial Reporting Standards – Diagnostic Stage
  3. 3.  International Financial Reporting Standards (IFRS) is a set of accounting standards, developed by the International Accounting Standards Board (IASB)  Nearly 100 countries have adapted their local accounting standards to conform to IFRS.  Remove some of the subjectivity from financial reporting and provide a consistent basis for recognition, measurement, presentation and disclosure of transactions and events in financial statements.  Convergence of accounting standards will have the effect of attracting investment through greater transparency and a lower cost of capital for potential investors.  Transitioning to IFRS would allow companies to compete for capital in other countries, while reducing cost and complexity for companies operating internationally
  4. 4.  Sri Lanka Financial Reporting Standards (SLFRS) 1 to 8 8  Sri Lanka Accounting Standards(LKAS) 1 to 41 29  International Financial Reporting Interpretation Committee (IFRIC) 1 to 19 19  Standing Interpretation Committee (SIC) 7 to 32 10
  5. 5.  01st April 2011 - Transition Date (Starting point in accordance with SLFRS)  31st March 2012 - Comparative Period  31st March 2013 – Reporting Period
  6. 6.  3 Statements of financial position.  2 Statements of comprehensive income/two separate income statements.  2 Statements of cash flows.  2 Statements of changes of equity and related notes.  Reconciliation of its equity reported in accordance with previous GAAP to its equity in accordance with SLFRS for date of transition and end of last period presented in accordance with previous GAAP.
  7. 7.  The complete set of financial statements compliant with SLFRS comprises 5 elements:  a statement of financial position as at the end of the period  a statement of comprehensive income for the period  a statement of changes in equity for the period  a statement of cash flows for the period  notes containing a summary of significant accounting policies and other explanatory information.
  8. 8.  Fair presentation and compliance with SLFRS  Going concern  Accrual basis of accounting  Materiality and aggregation  Offsetting  Frequency of reporting  Comparative information  Consistency of presentation.
  9. 9.  Reporting entity  The information whether the financial statements are of an individual or of a group  The date of the reporting entity and period covered  The presentation currency and the level of rounding (thousands, millions…)  LKAS1 lists the minimum content to be presented in the financial statements, except for the statement of cash flows (subject to LKAS 7)
  10. 10.  Minimum Content  ASSETS  Property, plant and equipment  Investment property  Intangible assets  Financial assets  Investments accounted for using equity method  Biological assets  Inventories  Trade and other receivables  Cash and cash equivalents  Totals of assets in accordance with SLFRS 5 Non-current assets Held for Sale and Discontinued Operations  Current tax assets  Deferred tax assets
  11. 11.  EQUITY AND LIABILITIES  Issued capital and reserves attributable to owners of the parent  Non-controlling interests  Financial Liabilities  Provisions  Trade and other payables  Totals of liabilities in accordance with SLFRS 5 Non-current assets Held for Sale and Discontinued Operations  Current tax liabilities  Deferred tax liabilities
  12. 12.  LKAS1 does NOT prescribe the precise format of the statement of financial position. Instead, several formats are acceptable if they fulfill all requirements outlined above.
  13. 13.  2 Basic Elements  Profit or loss for the period: here, all items of income and expenses must be recognized.  Other comprehensive income: items recognized directly to equity or reserves, such as changes in revaluation surplus, gains or losses from subsequent measurement of available-for-sale financial assets, etc.
  14. 14.  PROFIT OR LOSS  Revenue  Gains and losses arising from the derecognition of financial assets at amortized cost  Finance costs  Share of the profit or loss of associates and joint ventures accounted for using the equity method  Tax expense  Post-tax profit/gain or loss of operations or assets in accordance with SLFRS 5 (Non-current assets Held for Sale and Discontinued Operations)  Profit or loss
  15. 15.  Each component of other comprehensive income classified by nature  Share of the other comprehensive income of associates and joint ventures accounted for using equity method  Total comprehensive income
  16. 16.  Write-downs of inventories to net realizable value or of property, plant and equipment to recoverable amount, as well as reversals of such write-downs  Restructurings of the activities of an entity and reversals of any provisions for the costs of restructuring  Disposals of items of property, plant and equipment  Disposals of investments  Discontinuing operations  Litigation settlements  Other reversals of provisions
  17. 17.  total comprehensive income for the period, showing separately amounts attributable to owners of the parent and to non-controlling interests  the effect of retrospective application or restatement for each component of equity (if applicable)  the reconciliation between the carrying amount at the beginning and the end of the period for each component of equity. Here, the following changes shall be disclosed separately: ◦ those resulting from profit or loss ◦ resulting from other comprehensive income ◦ resulting from transactions with owners (contributions, distributions and changes in ownership)
  18. 18.  Present information about the basis of preparation of the financial statements and the specific accounting policies used;  Disclose any information required by SLFRSs that is not presented on the face of the balance sheet, income statement, statement of changes in equity, or cash flow statement; and  Provide additional information that is not presented on the face of the balance sheet, income statement, statement of changes in equity, or cash flow statement that is deemed relevant to an understanding of any of them  other disclosures, including: ◦ Contingent liabilities and unrecognized contractual commitments ◦ Non-financial disclosures, such as the entity's financial risk management objectives and policies
  19. 19.  Objective  (a) is transparent to users and comparable for all periods presented;  (b) provides an appropriate starting point for accounting under SLFRS;  (c) can be obtained at a cost not to exceed the benefits provided to users.
  20. 20.  STEP 1 Derecognition Ex-If the entity's previous GAAP had allowed recognition of contingent assets as defined in LKAS 37.10, these are eliminated in the opening SLFRS balance sheet  STEP 2 Recognition Ex-Deferred tax assets and liabilities would be recognised in conformity with LKAS 12  STEP 3 Reclassification Ex-LKAS 10 does not permit classifying dividends declared or proposed after the balance sheet date as a liability at the balance sheet date.  Step 4 Measurement
  21. 21.  This SLFRS establishes 2 categories of exceptions to an entities opening SLFRS statement of Financial Position
  22. 22.  Retrospective Application: A retrospective application is the application of a new accounting policy as if that policy had always been applied.  Prospective Application: A prospective application is the application of a new accounting policy to transactions after the date of the policy change, with recognition of the effect of changes in accounting estimates in the current and future periods.
  23. 23.  Two categories of exceptions are, 1. Mandotory Exceptions 2. Optional Exemptions
  24. 24.  Estimates  Derecognition of financial instruments  Hedge accounting  Non-controlling interest
  25. 25.  Share-based payment transactions  Insurance contracts  Fair value or revaluation as deemed cost  Leases  Employee benefits  Cumulative translation differences  Investments in subsidiaries, jointly controlled entities, associates and joint ventures Assets and liabilities of subsidiaries, associated and joint ventures  Compound financial instruments  Designation of previously recognised financial instruments  Fair value measurement of financial assets or financial liabilities at initial recognition  Decommissioning liabilities included in the cost of property, plant and equipment  Financial assets or intangible assets accounted for in accordance with IFRIC 12 Service Concession Arrangements  Borrowing costs
  26. 26.  at least three statements of financial position;  two statements of comprehensive income;  two separate income statements ( if presented);  two statements of changes in equity; and  related notes, including comparative information
  27. 27.  Reconciliations of its equity reported under previous GAAP to its equity under SLFRS at:  The date of transition to SLFRS; and  The end of the latest period presented in the entity’s most recent annual financial statements under previous GAAP

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