This document provides an overview of accounting standards LKAS 01, 02, 16, 37, and 38 and their application to Dialog Axiata PLC's financial statements. It summarizes Dialog Axiata's business, vision, mission and financial performance for 2020-2021. Key points include a decrease in profit from 2020 to 2021 due to higher expenses. Total assets increased in 2021 due to rises in inventories, receivables, property and cash. Equity increased slightly from 2020 to 2021 because of a smaller dividend payment leading to higher reserves. Net cash flows also increased over this period. The document was prepared by accounting students at Rajarata University of Sri Lanka.

1. Financial Accounting - 1133
Department of marketing Management
Faculty of Management Studies
Rajarata University of Sri Lanka

2. Dialog Axiata PLC
Group 06

3. Learning objectives
 Overview of the Accounting Standards.
 Dialog Axiata PLC
 LKAS 01 in Financial Statement
 LKAS 02 in Financial Statement
 LKAS 16 in Financial Statement
 LKAS 37 in Financial Statement
 LKAS 38 in Financial Statement
 Financial statements review

4. Overview of the Accounting Standards
 Accounting standards is a common set of principles,
standards and procedures that are used to prepare
the financial statements of an entity.
 Also accounting standards specify how transactions
and other events are recognized, measured ,
present and disclose in financial statements.
LKAS 01 – Presentation of Finance Statement
LKAS 02 – Inventories
LKAS 16 – Property, Plant & Equipment
LKAS 37 – Provisions, Contingent Liabilities & Contingent Assets
LKAS 38 – Intangible Assets

5. Introduction about Dialog Axiata PLC
 Dialog Axiata company is the largest and fastest
growing mobile telecommunication provider.
 Also this company is one of the largest listed
company in the Colombo stock exchange in terms of
market capitalization.
 Dialog Axiata is the largest mobile network operating
with 17.1 million subscribers and amount of 57% of
the Sri Lankan mobile market.

6. Vision
Being the undisputed pioneer in the delivery of multi-
sensory connectivity, always empowering and
enhancing Sri Lankan lives and businesses.
Mission
To lead in the provision of technology enabled
connectivity touching multiple human senses and
faculties, through committed adherence to customer-
driven, ethical, responsive and flexible business
processes, and through the delivery of quality service
and leading edge technology unparalleled by any
other, spurred by an empowered set of dedicated
individuals who are driven by an irrepressible desire to
work as one towards a common goal in the truest sense
of team spirit.

7. LKAS 01 in Financial Statement
 LKAS 01 is intended to explain the preparation of general
purpose financial statements of public limited
companies in accordance with the recommendations
of Sri Lanka Accounting Standard 01 (Presentation of
Financial Statements).
 The purpose of LKAS 01standerd is discuss the basis for
presenting a set of financial statement for public interest
and thereby ensure the ability of the business to
compare with the financial statements of previous years
and other business statement.

8.  Complete set of financial statements
 A statement of profit or loss and other comprehensive income
for period This statement is a record of revenue and expenses
incurred by a business during the relevant period.
 A statement of financial position as at the end of the period It is
a statement that indicates the financial status of the business for
a given day.
 A statement of changes in equity for the period This is the
statement of change of ownership during the reporting period.
 A statement of cash flows for period This is the statement that
changes the currency and its equivalent over the reporting
period.
 Notes , comprising significant accounting policies and other
explanatory information Disclosure of policies used in the
preparation of financial statements to guide the parties using
financial statements to make more accurate decisions

9. LKAS 02 in Financial Statement
 Definitions

10. LKAS 16 in Financial Statement
(Property, Plant and Equipment)
 Assets that are held for the production and distribution of good and
service or are held for rent to others or for administrative purpose
and are expected for be used for more than one accounting
period are known as property, plant and equipment.
 Key point of LKAS 16
Recognition
Measurement at recognition
Measurement after recognition
Depreciation
Derecognition

11. Depreciation
➢ Dialog company annual depreciation under the finishing
balance method used for depreciation.
➢ Depreciation of property, plant and equipment divided by to
methods:
o Simple part method
o Finishing balance annuity

12.  Dialog company annual depreciation under the finishing balance method
used for depreciation
 Here is the cost of the property equipment to 1 January 2021
Cost

13. LKAS 37 in Financial Statement
 Provision
➢ Provision is a liability of uncertain timing or amount.
➢ It should satisfy conditions are present obligation of a
past event, outflow of resources embodying economic
benefits will be required to settle the obligation and that
amount of the obligation can be measured reliably.
 Contingent liability
➢ Contingent liability outflow of resources embodying
economic benefits will be required to settle the
obligation and that amount obligation cannot be
measured with sufficient reliability.

14.  Contingent assets
➢ Contingent assets are arises for past events and that
existence will be confirmed only by the non occurrence
of one or more uncertain future events not comfortably
within the control of the entity.

15. LKAS 38 in Financial Statement
Definition
Intangible assets are identifiable non monetary assets without
physical substance There are three major characteristics of
intangible assets.
1) They are non monetary
2) They are identifiable
3) lack of physical substance
Recognition and initial measurement
Once you determine that an item meets the definition of an
intangible assets following criteria should be made fulfill to
recognize an asset.
1) It probable that future economic benefits flow to the entity
2) cost of the assets can be measured reliably Intangible Assets
are required to be initially measured at cost (purchase price +
directly attributable costs)

16. Criteria for recognition and initial measurement
LKAS 38 analysis four ways intangible assets may be acquired
1) by separate acquisition
2) Acquisition as part of a business combination
3) Acquisition by way of Government grants
4) Internally generated
➢ According to the above information dialog Axiata
company recognize intangible assets as follows Good will In
the dialog Axiata company goodwill arises from a business
combination .
➢ And represents the excess of the aggregate of fair value of
consideration transferred. and the amount of non controlling
interest to acquire.
➢ Goodwill is not amortize .but it is tested for improvement
annually .

17. ➢That is need to be impaired and it carried at cost
less accumulated impairment losses Other
intangibles In the dialog Axiata company other
intangible assets consists of the licenses and
computer software .
➢Licenses Separately acquired licenses represent at
historical cost .
➢Licenses acquired in business combination are
recognized at fair value at the acquisition date
Computer software Acquired computer software
licenses are capitalized on the basis of the cost
incurred to acquire and bring the use of the
specific software.

18. Review of the financial statements
 Financial statements review provides financial
information of the company's financial performance,
how our business assets are been financed and how
our cash inflows and outflows changes .and financial
statements include.
 Income statement
 Financial position statement
 Changes of the equity
 Statement of cash flows
 Notes and disclosure
 And these financial statements review useful to various
interest parties for decision making.

19. Income statement
➢ Statement of compressive income
shows a profit in 2020 and 2021.
➢ By considering above two profits
there is a gradual decrease of the
profit in 2021 compared to the 2020.
➢ That means in 2021 expenses is higher
than total revenue but in 2020
expenses are decrease and profit
increases.

20. Financial position statement
➢ The statement of financial position
shows that how our business assets
are been financed.
➢ In total assets are compared to 2020
in 2021 total assets are increases
gradually.
➢ The reasons to increase in total assets
in 2021 is increase in inventories,
trade receivables, property plant
equipment, cash and cash
equivalents compared to 2020.

21. Changes of the equity
➢ The statement of changes of equity
shows how our company’s equity has
been changed.
➢ In 2020 the amount of the stated
capital and in 2021 sated capital,
there is a little increase in sated
capital in 2021 compared to 2020.
➢ And the number of reserves in 2020
and 2021 the reason to increase
reserve amount in 2021 is lower
amount of dividend payment
compared to 2020 that’s why reserve
amount increase in 2021.

22. Statement of cash flows
➢ Statement of cash flows shows the
changes between cash inflows and
outflows regarding to the company.
➢ In 2020 net cash flows amount and
2021 net cash flows considering
above factors net increase in cash
flows.

23. Group Members
Student
Number
Name
2021/MM/257 A.P.K.D.P. Pathirana
2021/MM/293 H.K.M.P. Ranjith
2021/MM/319 S.V.D. Samaraweera
2021/MM/320 K.K.M. Sandamali
2021/MM/326 W.P.K. Sathsarani

24. Thank you