Sri Lanka Financial Reporting Statndards

Sri Lanka Financial Reporting Standards (SLFRS and LKAS) issued by The Institute of Chartered Accountants of Sri Lanka (ICASL) is the key financial reporting framework applicable in Sri Lanka. Until 30 November 2011, the applicable financial reporting framework in Sri Lankan context was Sri Lanka Accounting Standards (SLAS) issued by the Institute of Chartered Accountants of Sri Lanka (ICASL) which were prepared purely as Sri Lankan standards less referencing to the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Body (IASB). However with effect from 1 January 2012, Sri Lankan businesses had to adopt Sri Lanka Financial Reporting Standards (SLFRS) instead of SLAS as their financial reporting framework which were prepared based on the International Financial Reporting Standards (IFRS) issued by the IASB. This conversion was a highly discussed topic in the Sri Lankan Financial Reporting context since it has been made a huge impact on financial reporting process in Sri Lankan businesses. As a result of this adoption number of previously used Accounting Standards has been changed dramatically. Accordingly, the purpose of this report is to highlight the effects of IFRS convergence on the performance related to agricultural firms in Sri Lanka.