Significance of Study the IFRS

Sri Lanka is an Agricultural country from the history. Every government which ruled Sri Lanka and currently ruling Sri Lanka has been allocated significant amount of resources to agricultural sector since it is a very important sector to the Sri Lankan economy. As per statistics of the Annual Report of Central Bank of Sri Lanka 2012, agricultural sector contributed around 11% to the total GDP. In addition to that as per current government’s policy publication “The Mahinda Chinthana” has also stated that the government allocates significant amount of resources in order to develop the agricultural sector in Sri Lanka. Therefore we believe that agriculture sector has a significant influence in Sri Lankan economy and as a result of that this convergence of IFRS related to agricultural companies could make an impact on the economic development in Sri Lanka. In addition, we believe that this study will help to overcome the lack of proper studies in this area since this convergence has happened during recent past.