May 2011


‣ Looking Towards the Future: ICASL embarks on a new

chapter with new infrastructure project

‣ India’s Prof. Mahadevan elucidates strategies to service

organizations to ensure long-term success

‣ Overwhelming response for ICASL-INSEAD leadership


‣ Exemptions for CIMA qualification to follow

prestigious Australian MBA offered at ICASL

‣ ICASL, CBS and ACCA to educate Sri Lanka on IFRS

‣ ICAEW’s Ahmad Musaamil obtains ICASL membership

‣ Special fellowship scheme for Associate Members

‣ Online question bank on IFRSs

‣ Broaden your horizon with Cambridge ICFE now

available at ICASL

‣ Technical Article: Sri Lanka Auditing Standard 570 –

Going Concern

‣ Vacancy

‣ ICASL Events


May 2011

Looking Towards the Future: ICASL embarks on a new chapter with new

infrastructure project

May 12 th 2011 will go down as an

unforgettable day in the history of the

Institute of Chartered Accountants of

Sri Lanka (ICASL), as it embarked on a

new chapter with the ceremonial

laying of the foundation stone for a

new multi-storied office building.

As the ICASL continues to strive to reach

greater heights, the proposed building is

aimed at enhancing the facilities provided

to the institute’s over 36,000 students, 4200 members and administrative staff.

The historic event commenced with religious observances performed by religious dignitaries

representing the four main faiths in the country -- Buddhist, Hindu, Muslim and Christian.

The foundation stone for the project was

ceremoniously laid by Minister of Co-operatives

and Internal Trade Hon. Johnston Fernando who

graced the occasion as the Chief Guest.

Joining the minister in laying the foundation stone

were President Mr. Sujeewa Mudalige, Vice

President Mr. Sujeewa Rajapakse and Chief

Executive Officer Mr. Aruna Alwis.

The momentous event was further boosted when the ICASL gave pride and place to its past

presidents, giving them the opportunity to individually lay a foundation stone each for the

beginning of this new legacy which will take forward the institute’s vision, mission and


Minister Johnston Fernando speaking on the occasion highlighted that as Sri Lanka enters a new

era of economic development striving to make the

country the wonder of Asia, the ICASL, will be called

upon to shoulder increasing responsibilities as the

country endeavors to achieve this ambitious target.

“The ICASL has made significant contribution

towards enhancing economic growth in the country,

and the status of the institute has been reinforced

through its membership, a significant number of

who hold key high positions in the country’s

business and public sector,” he added.


May 2011

Minister Fernando also requested the Institute to branch out to every district in the country,

thereby giving wider access to the youth to take up chartered accounting as a profession.

ICASL President Sujeewa Mudalige speaking at the event said, “Today is a proud occasion for

the 52 year old institute, which has come a long way since its establishment,” he said.

Mr. Mudalige also highlighted that the much needed infrastructure project which got off

ground on 12 th May was entirely funded by the funds contributed by students and members

and no outside contributions have been utilized for this project.

He concluded his statement by extending his appreciation to the minister, secretary, additional

secretary, council and members of the institute for supporting this endeavor.

The building which will cover a total area of 40,000 sq. ft. will consist of a ground floor plus

six floors and a roof terrace.

The 18-month long project is scheduled to conclude on 20th August 2012.

India’s Prof. Mahadevan elucidates strategies to service organizations to

ensure long-term success

Senior Indian Professor of

Operations Management B.

Mahadevan has adviced

developing nations such as Sri

Lanka to positively exploit

growth opportunities available

in the service sector by utilizing

Information Technology as the

backbone to bridge the

geographical gap with other

nations which will ensure long term economic growth for the country.

At a seminar titled ‘Strategies for Service Organisations’, sponsored by the Institute of Chartered

Accountants of Sri Lanka (ICASL) Prof. Mahadevan of the Indian Institute of Management,

Bangalore stressed that today, even in Sri Lanka, the service sector was the most dominant, by

contributing 60 percent to the country’s Gross Domestic Product.

“As the economy booms, issues related to the service sector should be taken into consideration

such as the pricing factor,” he noted.Citing reasons for his claim, the Professor noted that in the

past, pricing was often done on a static basis and not on a dynamic basis.


May 2011

“Firms have to understand that they should price services differently. It is only then will they

derive the benefits,” he said.

Prof. Mahadevan introduced several pricing methods during the seminar which included

different pricing styles, bundle pricing and yield management pricing, which are currently

adopted by hotels and airlines.

“Ten years back, hotels adopted a static pricing policy, where tariffs were usually a static rate

during peak period, today this style has changed and the rates keep changing from hour to

hour, minute to minute and even the service sector should adopt a similar pricing policy,” he


Prof. Mahadevan, rated as one of the top five professors at IIM Bangalore, during the initial

sessions of the seminar also focused on how manufacturing companies increasingly sees service

as an important element in their strategy while also addressing how to deal with customer

delays and adopt a well accepted service quality model.

During the sessions, he also touched in detail on growth trajectories, while emphasizing on the

growth opportunities available for the service sector.

“Although services cannot be stored, there is a class of services which are tradable, which can

be exchanged and sent across such as the BPO and IT sectors,” he highlighted.

“Success lies in such areas where we can exploit such sectors for our long term advantage.

Today in India, the designing for the car is done in India, but it can be manufactured in any

part of the world after we transmit the design via the internet,” he emphasized.

Prof. Mahadevan emphasized that Sri Lanka too had a huge potential to take advantage of

tradable services where distance and geographical positioning doesn’t matter anymore due to

the availability of IT services.

“Plus, countries such as ours also enjoy the cost advantage, and so we should be exploiting such

opportunities to the hilt,” he added.

The seminar held at the Waters Edge, Battaramulla on 5th May 2011 was well attended by top

corporate personnel in the likes of chairman, directors, CEOs, CFOs and senior management in

financial services, manufacturing, hospitality/tourism, travel, healthcare and ICT sectors

The ICASL decided to conduct a seminar on such a unique subject having understood the

importance of service economy which has been undergoing significant growth the world over,

during the last decade.

Boosted with more than 18 years of wide ranging experience, Professor Mahadevan has been

recognized for his excellence in teaching both at IIM Bangalore and outside and has been

consistently rated among the top five professors in IIM Bangalore’s teaching and executive

education programmes.


May 2011

Overwhelming response for ICASL-INSEAD leadership programme

The landmark venture between the Business School of the Institute of Chartered

Accountants of Sri Lanka (ICASL) and INSEAD, the business school for the world, has

received an overwhelming response with organizers having to increase the number of

participants by several folds to accommodate the high demand.

The ground-breaking four day global

leadership programme scheduled to commence

on 15 th June 2011 at the Cinnamon Grand,

Colombo will be conducted by renowned

Professor of Leadership, Dr. Thomas Mannarelli

from the faculty of the INSEAD Business School.

Meanwhile, the Business School of ICASL has

already commenced intakes for the next ICASL-

INSEAD global leadership programme

scheduled for September 2011.

The June course aimed at professionals and

business leaders will see a thought provoking

outline of topics covering a wide array of areas,

aimed at enhancing the leadership qualities of

the country’s corporate movers and shakers.

Topics that would be covered in the inaugural

programme will include; Vision and leadership

transition, creative thinking outside the box,

influence without authority, leading organization change, leading high performance teams,

decision making under uncertainty, negotiation dynamics and influencing for change.

Course Director, Dr. Mannarelli, who holds a PhD from the Haas School of Business at the

University of California, Berkley and a B.S. in Business Administration the Indiana University, is

a specialist in issues related to creativity, innovation and leadership in organisations.

As one of the world’s leading and largest graduate business schools, INSEAD is a pioneer of

international business education based in Europe. Its 145 renowned Faculty members from 36

countries inspire more than 1,000 participants in MBA, Executive MBA and PhD programs, and

also executives exceeding 9,500 who participate in INSEAD’s executive education programs.


May 2011

Exemptions for CIMA qualification to follow prestigious Australian MBA

offered at ICASL

The Prestigious University of Southern Queensland (USQ) is

now offering four exemptions for Chartered Institute of

Management Accountants (CIMA) qualification to follow

the Master of Business Administration (MBA), which is

currently offered in the country through the Institute of

Chartered Accountants of Sri Lanka.

Thus with these four exemptions, students can now sit for only

eight subjects instead of the required 12 subjects while studying for the MBA and complete the

course within period of a year or one and a half years.

Students with the respective exemptions will also have the opportunity of saving approximately

Rs. 300,000/-, due to the reduced number of subjects they have to undertake.

USQ is an international university of repute in distance learning and was the first accredited

‘institution of best practice’ for external higher education in Australia.

The ICASL is the premier National Accounting institute responsible for the education of

students, professional development of members and service to the business community in

auditing, taxation, financial management and business consultancy. As one of its initiatives to

be equipped to meet the challenge of the knowledge economy, lCASL came into an alliance with

USQ, to offer the MBA programme.

The ICASL, which is also the largest tertiary education establishment in the country, outside the

university system with a student base of over 36,000 and a membership of over 42000

partnered with the USQ to offer two world class recognized Masters Degree courses, namely

the MBA and the Master of Project Management (MPM) in its continuing strive to provide

professionals both in accountancy and outside the accountancy sphere the best of foreign

professional qualifications in Sri Lanka.

The USQ MBA which is of world class repute has been followed by more than 1400 students

both in Australia and outside Australia and is the largest MBA programme of any Australian


The USQ MBA programme offered through the ICASL has been well received in Sri Lanka with

very high-end professionals in the country’s corporate world also following this prestigious



May 2011

ICASL, CBS and ACCA to educate Sri Lanka on IFRS

The Institute of Chartered Accountants of Sri

Lanka (ICASL) together with the Centre for

Banking Studies (CBS) and the Association of

Chartered Certified Accountants (ACCA) of Sri

Lanka having understood the significance of

financial reporting will conduct a

comprehensive series of seminar on

International Financial Reporting Standards


Scheduled to be held from 20 th to 24 th June 2011 at the auditorium of the Centre for Banking

Studies, Rajagiriya, the seminar will be given a further boost with the participation of a foreign

expert who will articulate in detail the significance of IFRS, adopted by many countries today.

Resource person at the seminar series, Ms. Vandana Saxena

Poria, who functions as the CEO of Get Through Guides, UK

is a specialist in the subject having being involved at various

levels in IFRS conversion and implementation in Europe.

IFRS is being adopted on a fast pace across the globe, with

many countries applying the standards. At present, over 100

countries require or permit the use of IFRS for publicly traded

companies, while other countries have adopted IFRS or its

equivalent as their local Generally Accepted Accounting

Principles (GAAP).

The seminar series aim to provide an upto date, relevant conversion course giving a detailed

knowledge of international reporting standards and how they are interpreted and applied.

Ms. Poria is also the founder of Get Through Guides (GTG), a publishing, training and

consultancy company specializing in the fields of finance, accounting and management with

particular emphasis on IFRS. GTGs client base in India and Europe includes Ernst & Young,

KPMG, WNS, Grant Thornton, Genpact, Shell, ICA, ACCA and Cairn Energy.

Registration for the event will be on a first come first served basis, and due to the topical nature

of the series, participants have been adviced by the organizers to register early.


May 2011

ICAEW’s Ahmad Musaamil obtains ICASL membership

A senior member of the Institute of Chartered

Accountants of England and Wales (ICAEW), Mr.

Ahmed Mohideen Musaamil, from the United

Kingdom, was the first ICAEW member to obtain

membership from the Institute of Chartered

Accountants of Sri Lanka, following the signing of

the Memorandum of Understanding between the two

institutes in October 2010.

ICASL CEO Mr. Aruna Alwis handed over the ICASL

membership documents to Mr. Musaamil recently.

The MoU between ICAEW and ICASL enables qualified members of either Institute to join the

other and to obtain non-auditing practising rights.

The ICASL is among just a handful of national institutes which enjoys a reciprocal agreement

with ICAEW, which boast of a membership of more than 136,000 from over 160 countries.

Special fellowship scheme for Associate Members

The CPD division of the Institute of Chartered Accountants of Sri Lanka (ICASL) has

introduced a special scheme to award fellowships for

members possessing over fifteen years of experience as

an Associate Member.

Applications are currently being accepted from eligible

members along with a detailed CV that would outline the

progress of the member’s career since his or her admission

as an Associate Member. The application should ideally

include ways in which competence relating to the profession

was enhanced over the years. Applications should be

supported with relevant documentary evidence.

The offer is valid until 31 December 2011.

For more information, members can contact the following:

Tele: 011-23520000; E-mail:

The application form for this special fellowship can also be downloaded directly from


May 2011

Sri Lanka Accounting Standards

Online question bank on IFRSs

The revised Sri Lanka Accounting Standards will be implemented from 01 st January

2012 and will be tested at the ICASL examinations from June 2011 onwards.

In order to enhance the technical knowledge in accounting, ICASL has organized an on-line

course which consists of multiple choice questions on IFRS’ which is available via the Institute’s

web site.

On-line course details:


Members’ registration fee – Rs. 2,000/-

Non- Members’ registration fee – Rs. 3,000/-

Students’ registration fee – Rs. 750/-

Course details

A password and a time slot will be provided once registered.


There will be 30 questions at the examination and the pass mark will be 50.

Five attempts will be allowed

On successful completion of the course a “Certificate in IFRSs” will be awarded.

Contact Details

Mrs. Kanchana Gunasekera

Education Division- ICASL Office,

1 st Floor, AAT Centre,

540, Thimbirigasyaya Road,

Narahenpita, Colombo 5.

Telephone numbers

2585286 / 2594951 Ext. 103


May 2011

Multimedia English Language Centre

Broaden your horizon with Cambridge ICFE now available at ICASL

The Institute of Chartered Accountants of Sri Lanka

(ICASL), the national accounting body being the

pioneer in introducing Cambridge ICFE in Sri Lanka

completed its 1 st batch successfully on 22 May


In collaboration with the University of Cambridge (ESOL), the British Council and the ACCA the

Institute in its continuous efforts to provide the best to finance and accountancy professionals

embarked on this venture in January 2011 offering an international qualification right here in

Sri Lanka.

The Cambridge ICFE is a globally recognized 100 hour course consisting of 75% online learning

with 25% face-to-face sessions. This course has been meticulously designed especially for

finance professionals to achieve greater heights in their career and also to aspiring students and

trainees who would seek out gainful employment in the international finance arena. The online

element of this blended learning programme brings candidates the combined advantages of the

convenience with hands-on benefits of classroom learning. It is poised to have a great impact

in the field of finance and accounting and validates first-rate English language skills and the

ability to converse with finance and accounting professionals throughout the international

business community.

The unique features of this programme make it even more attractive with a variety of activities

that would help the candidates to gain the necessary language skills. The pre-test administered

before the commencement of each of programme provides both the candidates as well as the

lecturers an invaluable opportunity to identify their strengths and weaknesses and gauge how

much more preparation they need. This enables the students to try out real exam questions

under no cost. The lecturers who are well qualified in designing and delivering ESP (English for

Specific Purposes) courses have been hand-picked and well trained by the British Council for

the challenging task of grooming students to take up the end of course exam successfully within

a short period like ten weeks. While providing individual attention with constant feedback and

mock exams the Institute has offered the best environment for learning for its registered ICFE

students with numerous facilities such as free access to its state-of-the-art Multimedia English

Language Center and resourceful library.

The British Council at the end of each programme providing the students more support and

guidance to prepare for the Cambridge ICFE exam conducts free workshops with a focus on tips

and techniques of mastering ICFE thus enabling them to be successful in the final exam.

Those who are interested in gaining this valuable opportunity, a life time achievement may join

the next batch commencing on 6 June 2011.


May 2011

Technical Article:

Sri Lanka Auditing Standard 570 – Going Concern

The following concerned areas can be noted in the clarity standard of Sri Lanka Auditing

Standard 570 – Going Concern.

Going Concern assumption inappropriate

Where financial statements are prepared on an alternative authoritative basis, which in

auditor’s opinion is appropriate, the auditor can issue an unqualified opinion if there is

adequate disclosure, but may require an emphasis of matter in the auditor’s report.

The clarity standard requires the auditor to draw attention to the alternative basis used and the

reason for its use whereas existing SLAuS only requires to draw attention to the basis of which

the financial statements were prepared.

Management unwilling to make or extend its assessment

Where management is unwilling to make or extend its assessment when auditor request to do

so, SLAuS explicitly states it is not the auditors responsibility to rectify the lack of analysis by


The clarity standard is silent on auditor’s responsibility and states why it is impossible for the

auditor to carry out such an assessment.

Communication with those charged with governance

The auditor shall communicate with those charged with governance events or conditions

identified that may cast significant doubt on the entity’s ability to continue as a going concern.

There is no obligation under SLAuS for the Auditor to communicate with those charged with


Considerations specific to public sector entities

Management’s use of the going concern assumption is also relevant to public sector entities.

Going concern risks is not limited to situations where public sector entities operate on a forprofit

basis, where government support may be reduced or withdrawn, or in the case of


Considerations specific to smaller entities

The auditor needs to evaluate management’s assessment of the entity’s ability to continue as a

going concern in relation to a smaller entity.


May 2011



May 2011

ICASL Events:

ICASL Members - 7 - A- Side Cricket Fiesta

More ICASL Events:

Date Event Venue

5 th June 2011 Cambridge ICFE - (Batch II) MELC – Colombo

8 th June 2011 Accounting Standards Seminar on


ICASL Auditorium

15 th – 18 th June INSEAD programme Cinnamon Grand

20 th – 24 th June Seminar series on International

Financial Reporting Standards

Centre for Banking

Studies Auditorium

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