ICBI 2015

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/10527

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Value Relevance of Accounting Information and Implication on Stock Price Movement: Empirical Evidence from Listed Bank Finance and Insurance Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Jeyanthini, S.; Rubika, M.
The investigation of value relevance of accounting information and its implication for emerging markets have received dearth attention in the literature. This study evaluates the relation between the value relevance of accounting information and stock price movement, using data obtained from 20 listed Bank Finance and Insurance companies in Sri Lanka covering the period of 6 years from 2009 to 2014. In order to select the sample random, sampling method used. The research design of this study based on a quantitative approach and analysis secondary data. Data of the selected firms which are listed in the Colombo stock exchange (CSE) Sri Lanka were obtained from their websites. This study identifies value relevance of accounting information by three separate financial ratios: Earning per Share (EPS), Return on Equity (ROE) and Earning Yield (EY) as independent variable while Average share price (ASP) as a dependent variable of this study. The statistical tests were used includes: descriptive statistics, correlation and regression analyses. Through the multiple correlation analysis with the help of user friendly statistical software it is found, there is significant and positive association between ASP and EPS (P= 0.000, < 0.01). Which indicate that, as the EPS increases it would tend to increase the ASP of the company. On the other hand, there is significant and negative correlation between ASP and EY (P=0.045, < 0.05). Which indicate that, as the EY increases it would tend to reduce the ASP of the company. The study also illustrates that main accounting information proxies have strong predict powers on variations of market share price.
The Impact of Career Anchors on Job Satisfaction of Bank Managers in State Owned Commercial Banks of Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Wanigasekara, W.M.S.K.; Muthukumarana, P.P.S.
Intense customer care is one of the best practices adopted by the private sector commercial banks and this has become a critical success factor that differentiates their service from the service of state banks. Hence, employee job satisfaction is a significant matter of concern for the state banks to face this challenge and achieve service excellence. Therefore, this study investigates the impact of individuals’ selfconcept on job satisfaction in terms of career anchor concept proposed by Edgar Schein. A purposive sample of 108 managers from Bank of Ceylon and People’s Bank head office were selected by using simple random sampling technique. The independent variable representing career anchors includes the following three dimensions; talent based career anchors, need based career anchors, value based career anchors while the dependent variable job satisfaction was analyzed under two dimensions namely; intrinsic factors and extrinsic factors. There are four hypotheses were formulated using deductive approach. A self-administered questionnaire was distributed among the respondents to collect data for the research. Descriptive statistics were used to present the characteristics of the sample of the study. Furthermore the Pearson correlation coefficient and regression analysis were used to measure the impact of career anchors on job satisfaction. The study found that there is a significant impact of need based career anchors on job satisfaction whereas talent based and value based career anchors have no significant impact on job satisfaction of managerial staff at state owned commercial banks.
Relationship between Celebrity Endorsement and Brand Attitude: With Reference to Financial Services Sector Brands in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Dissanayake, D.M.R.; Ismail, N.
This study is focused on Sri Lankan service sector which has remarked a significant position in the local economy. The concept of Celebrity Endorsement has been tested in this study to evaluate on how it does relate with Brand Attitude towards financial services brands in Sri Lanka. It has followed a deductive approach in justifying the variables to conceptualize the variable relationships and measures were rationalized accordingly. Reliability was tested to verify the internal consistency of the variables. It has selected 160 respondents followed by stratified random sampling technique and hypotheses were tested by using correlation analysis via 2 tailed test. It revealed that celebrity characteristics namely Trustworthiness, Expertise and Attractiveness are highly correlated with Perceived Brand Attitude, and Similarity was found as weakly correlated factor with Perceived Brand Attitude. The characteristic of Respect was found as moderate level factor being correlated with Perceived Brand Attitude. It has proposed the propositions for the future studies referring to the research gaps found in Sri Lankan service sector followed by conclusion and notions for managerial implication at the end of the paper.
The Impact of Physical Evidences on Customer Store Loyalty with Special Reference to Supermarket Industry in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Thilina, D.K.; Liyanage, N.
In Sri Lanka, when concentrating on previous researches on supermarket environment, the main focus has gone towards how far the customer service has affected on customer satisfaction or customer loyalty. However, other than the service quality there are so many areas to be looked at on the super market environment. There has been no such research conducted to study how physical evidences are made an impact on consumer behavior in super market environment. Therefore, there is a gap on identifying variables, which affect on consumer behavior other than the service quality in Sri Lankan supermarkets. Consumer mind is changing time to time but it is questionable whether that change is captured by retailers when designing their strategies. The overall study focused on whether there is an impact on the physical evidence used in supermarkets towards achieving customer store loyalty. This survey has covered the five major supermarkets in Sri Lanka. The sample is consisted of 100 customers those who are doing shopping at supermarket. To carry out the research there were four physical evidence elements selected such as layout, signage, lighting and signboards of supermarkets. Through the research findings there are several aspects of the customer store loyalty was revealed. One of those is present context customers are moving from general trade to modern just because of the opportunity that they getting to compare prices of the goods, quality and specifications of each products unlike in the general trade shopping. The next reason is most of the people love to have family shopping specially in supermarkets. Nowadays this has become a new trend in supermarkets.
Study on the Possibilities of Utilizing HRIS for Improving of an Efficiency of HR Department in the Banking Context
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Hapugoda, L.
When going through all the activities which are practicing in the Human Resources Divisions of the all banks which are representing the Financial Sector of the Banking Industry will be basically the same in the Sri Lankan context. In the banking business HR functions and activities can be identify as a supportive function for the smooth operations of Core Banking Services. Considering about the Banks HR operations and activities, many HR Professionals are doing all hundreds of manual works for achieving its HR objectives. Therefore the Author thoroughly believes that using of effective Human Resource Information System (HRIS) will help to minimize the hundreds of manual works, mal practices & save human hours. So that it will help HR Professionals to involving more Strategic HR activities including strategic decision making in order to achieving its strategic business objectives. Further effective use of HRIS will definitely help to eliminate such manual works, mal practices from the Banking Industry as well. Case study approach and critically reviewing of Literature and observations used as Methodology of this study and all Conclusion and Recommendation are based on the discussion.
Income recognition of a loan with increasing rentals (Stepping up Loans): A case study on a selected Sri Lankan company
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Kawshalya, P.; Perera, P.
In consequence to introduction of Sri Lanka Accounting Standards (SLFRS and LKAS) compatible with International Financial Reporting Standards (IFRS), by the Institute of Chartered Accountants of Sri Lanka with effect from 1st January 2012, The Company being a registered finance company with public accountability, is required to apply provisions of the full set of accounting standards and in the preparation of the financial statements in compatible with these new accounting standards, company has encountered numerous issues regarding the deviations from the requirements of the accounting standards. Out of them, this case study discuses in detailed one of the main issues that was identified during the preparation of financial statements of this company. This company provides range of different types of loans to its customers and among them it was identified a loan category with a specific feature. This loan type is called as “Stepping Up” loans and the special feature in this loan is its monthly installment changes (increases) in every 12 months. Therefore the monthly installments in first few years are relatively lower than the monthly installments of the final years of the loan agreement. In the interest income recognition of these types of loans company has encountered a problem because Sri Lanka Accounting Standard (LKAS) 39 – ‘Financial Instruments: Recognition and Measurement’ requires recognizing the interest income of loans using effective interest method where in the first two years of the loan agreements the monthly rental is not even enough to recover the interest of these loans which is calculated using effective interest method.
Role of Facebook: A Review
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Padmasiri, M.K.D.; Kawshalya, P.
This study is a literature review regarding the role of Facebook in teaching, marketing and relationship management. The literature identifies various roles are playing in todays globalized world. As literature declares Facebook plays roles in various fields such as, marketing, online games, education, teaching, romantic relationship management, managing relationship among friends, and stakeholder engagement. The current study limits its investigation in to selected roles of Facebook due to develop a narrow scope for this review. Hence selected roles of Facebook are academic teaching, marketing and romantic relationship management. One finding of the Bullock, 2011, is using blogging tools to further develop relationships with undergraduate and graduate students and engage them in meaningful discussions outside of class time. According to the studies of Beukeboom, 2011, Facebook plays a major role in romantic relationship management which creates emotional outcomes as relationship satisfaction and trait jealousy. Scolbe, 2006 argues that network is important in changing the way of business talk with customer and Bonsón, 2013 and Dholakia, 2010 indicates that Facebook plays a role as a communication channel in marketing at business level. Among them researchers have identifies FB plays an important role in connecting the social networks but to develop the scope to this study selected roles of FB are, FB in academic teaching, FB in marketing, FB in romantic relationship and FB in online games. Based on the discussion, it can be concluded that Facebook plays an important role in various fields.
Promoting Entrepreneurship for Development: A Study based on Status of Employment Data in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Senarath, S.A.C.L.
Currently a high emphasis has been given to promote entrepreneurship as a policy instrument to acquire a rapid increase in employment generation, income creation and poverty alleviation in almost all the countries. Accordingly, Sri Lanka too has attached a considerable importance to promote this area in formulating its development policies, and already taken a number of steps for creating more entrepreneurs. However, in most of the deliberations, the need of the entrepreneurial development is discussed theoretically without even reviewing the success so far achieved based on the relevant national wide data in the economy. Nevertheless, this study, going against this conventional wisdom, attempts are made to analyze more rationally why entrepreneurship should be promoted based on the analysis of status of employment data available in Sri Lanka with catching its development so far achieved. Accordingly, the study found that the formal sectors’ labor absorption has reduced from 64.7% in 1991 to 58.7% in 2013 while that of informal sector has increased from 35.6% to 41.3% in the corresponding period on account of not expanding the entrepreneur category in the employment structure of the economy, beholding a higher level of unemployment for the more educated youths as substantiated by the available official data which indicates that open unemployment for the educated youths is as twice as that of lower level educated persons. The current study shows that percentage of the size of employers or the successful entrepreneurs compared to those of other sectors’ has been stagnated at inadequate low level around 2 to 3 percent of the employed over the study period, and this fact highlights the failure of the country’s attempts so far made to increase entrepreneurs, and why entrepreneurship should be really promoted in order to increase employment generation, income growth and poverty alleviation for the economy. Also, the study concludes suggesting more elaborative ways and means for increasing the size of the volume of employers or successful entrepreneurs to acquire a rapid increase in employment generation, income creation and poverty alleviation for the economy.
Analysis of Factors affecting to Employee Turnover in Medium Scaled Apparel Industry in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Rajapaksha, U.G.
The topic of this research is the factors affecting employee turnover in medium scaled garment industry in Sri Lanka. There were three research objectives; first objective is to identify the factors affecting employee turnover in medium scaled garment industry in Sri Lanka, second objective is to examine the impact of socioeconomic factors on employee turnover and third objective is to examine the impact of organizational factors affecting on employee turnover intention. Literature indicates employees are influenced by pay as the economic variables; age, marital status, sex, education as the demographic variables; upward mobility, integration, occupation, formal and instrumental communication, community participation is the organizational variables to influence on labor intention to leave the organization. As the sample 280 operators were selected from ten garment factories within the Colombo district. As the base of selection of the sample, operators within the factory was selected using simple random sampling method while factories were selected using purposive sampling method. Semi structured questionnaire was used as the quantitative data collection tool and interview also used as the qualitative data collection tool. Collected data was estimated using multi-variate logit model. As the statistical tool, SPSS AMOS (version 22) was used. As the dependent variable, ‘intention to leave’ is used while as the intervening variable ‘employee satisfaction’ is used. As the moderating variable ‘distributive justice’ is used while independent variables employee social economic variables, organizational variables were used. Finally study conclude that work life balance, upward mobility and routinization become the core factors while pay does not become a core factor to set a felling in the mind of employees to leave the job.
Behavioral Intentions of Healthcare Staff with respect to ICT in Western Region of Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Dileep, A.H.; Wijayanayake, W.M.J.I.
Computers are increasingly widespread, influencing many aspects of our social and work lives, as well as many of our leisure activities. As more tasks involve human computer interaction, computer skills and knowledge have become more positively correlated with both occupational and personal success. In most parts of the globe, especially the developed nations, computers are used in almost all spheres of life. Healthcare staffs are change agents in healthcare sector. They are key drivers who play crucial role in ICT integration in healthcare. The aim of this study is to examine the behavioral intentions of healthcare staff with respect to ICT in western region of Sri Lanka. A sample of 100 healthcare staff was assessed for their behavioral intentions with respect to ICT using a Likert type questionnaire. There were 64 females (64%) participants and 36 were male (36%). The average number of years of computer use was 8.46 years (SD=5.281). There were 84% participants strongly agree and 16% participant were agree for use ICT regularly for their official work in healthcare. In detail there were 78% male participant and 88% female participant strongly agree for use ICT regularly for their official work in healthcare. Behavioral intentions of healthcare staff with respect to ICT have positive responses in western region of Sri Lanka. The results of this study showed no gender differences among healthcare staff on behavioral intentions with respect to ICT. They are willing to accept, integration of ICT to the process of healthcare systems. This study clearly depict that behavioral intention of healthcare staff with respect to ICT are not the bottleneck for integration of ICT to the State hospitals in western region of Sri Lanka.
The Relationship between Board Characteristics and Earnings Management: Evidence from Sri Lankan Listed Companies
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Kankanamage, C.A.
Purpose: This paper aims to examine the impact of board characteristics on earnings management in Sri Lanka during the period from 2012-2015. Design/methodology/approach: This paper uses ordinary least squares regression (OLS) to examine the effect of board on earnings management for a sample of 160 listed firms in Sri Lanka from 2012-2015. Kothari, Lenon and Wesley (2005) performance adjusted discretionary accrual model used to measure the earnings management by using the discretionary accruals. Findings: This paper finds a significant relationship between board size, board composition, board financial expertise and board meetings and earnings management of the firms. Thus effective board of a firm is contributing to enhance the financial reporting quality and transparency. Practical implications: The findings based on this study provide useful information for regulators and the practitioners in the country to understand the significance of board characteristics of firms to constrain the earnings management and enhance the financial reporting quality and transparency. Further results provide useful information to the investors and other stakeholders in evaluating the existence of effective board characteristics in advance to put the confidence of the financial reporting quality and make their decisions.
A Survey on Capital Budgeting Techniques Practiced by the Sri Lankan Commercial Sector
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Ranaweera, A.L.; Fernado, C.S.P.K.; Rajini, P.A.D.; Weerasinghe, R.P.N.P.
Capital Budgeting (CB) is one of the most important areas of firms’ decision making process that contributes to long term growth of the firm. Various Capital Budgeting Techniques (CBTs) are being widely used among financial expertise. Several techniques are commonly used to evaluate capital budgeting projects such as Discounted Cash Flow techniques such as Net Present Value (NPV), Internal Rate of Return (IRR) and Profitability Index (PI)) and Non-Discounted Cash Flow techniques such as Payback Period (PP) and Accounting Rate of Return (ARR)). Recent studies highlighted that financial managers favor methods such as the NPV, IRR or PP techniques (Lawrence, et al., 1997). The use of techniques is varying with different factors including organizations, managers, and size of the project. This study particularly finds the Capital Budgeting Techniques (CBT) practiced in Sri Lankan commercial sector organizations. A semi-structured questionnaire survey was conducted to gather empirical findings with the selected sample. It was found that majority of the firms are using NPV as a primary CBT while the second is given to PP and IRR respectively. Some firms adopt more than one technique to be a primary tool and it was highlighted that NPV and IRR as the most commonly used combination in project evolutions. The study found that majority of the firms adopts Weighted Average Cost of Capital (WACC) as an independent measure of cost of capital. It was revealed there is a high tendency towards adopting CBTs to evaluate the projects in Sri Lankan commercial sector.
An Empirical Study on Money Demand Function in Sri Lanka: 1993 – 2013
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Adikari, A.M.P.
The importance of the demand for money has become a prominent research topic in economics due to its role in monetary policy formulation. Income elasticity and interest elasticity of money demand affect the channels of the monetary policy transmission mechanism. This study investigates the long run demand for money and the short run demand for money. The estimation of a money demand function for M2, using annual data for 1993 to 2013 forms the basis of this investigation. The significant long-run relationships were found between Broad money demand, GDP, inflation rate and interest rate. Therefore, these variables can be taken as determinants of broad money demand in Sri Lanka. The positive elasticity of money demand in respect of GDP reveals that money demand for transaction purposes increases when income increases while the negative elasticity relationship between money demand and the interest rate and inflation rate implies that demand for money declines when interest rates and inflation rates were increase, while interest rate and inflation rate are significant in the long run, it is insignificant in the short run. The empirical findings of this study show that the demand for broad money (M2) in the analyzed period in the Sri Lanka is stable, indicating that on the basis of selected determinants, its long term prediction can be carried out. This study complements the existent economic literature by analyzing the determinants and stability of money demand in the Sri Lanka. Because of, demand for money is stable then money supply is the most suitable monetary policy instrument in Sri Lanka.
Impact of Lean System on Merchandizing Performance Excellence
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Pathirathna, L.S.B.H.; Herath, H.M.R.P.
The study sets to achieve two objectives namely, identify the extent to which Lean system performance impact on Merchandizing Performance and bring recommends to horizontally replicate the research findings for similar organizations. The source of data for this study were both primary and secondary, and also the company data sources were assisted to fulfill this task. Since the company management encouraged for an effective outcome, the performance information was linked and opened throughout the research and the entire team involved taken for this program was consisted 160 merchandisers, where the total directly responding population was represented. The questionnaire was filled with main three categories, namely General Information, Lean System Performance, and Merchandising Performance and Lean System Performance was split into three sub areas, namely Safety and Ergonomics, Quality Management and Continuous Improvement. The data was analyzed through the SPSS software, and according to the findings, the Pearson’s correlation analysis justifies the positive correlations between safety and ergonomics, total quality management and continuous improvement with the Lean System Performance. The (R2) was 11.0%, which is the extent positively influenced to the Merchandizing Performance by the existing Lean System in the organization. The study also found out that the organization believes Lean System practices improve the long term business performance and this study establishes safety and ergonomics, quality management system and continuous improvement activity performance emanating from the implementation of lean system practices, and it impacts to the merchandizing performance as a front-end customer interface function of the organization.
Determinants of Employee Engagement: Evidence from Indian Industries
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Mohapatra, A.K.D.; Choudhury, S.
‘Employee engagement’ has occupied the Centre stage of corporate management today for its apparent linkage with enhanced organizational productivity. Various studies have indicated that firms with higher number of engaged employees have lower operating costs, lower attrition, greater talent pool, higher morale, higher customer satisfaction and higher profits. This study undertaken in the Indian industrial set up based on primary data collected from 169 respondents reveals that employees’ age, experience, educational qualifications and gender have a significant bearing on their engagement levels. The study further reveals that employee engagement receives equal importance from the private and the public sector firms in India. Also, six major factors, namely, organization culture, job profile and accountability, compensation and benefits, resources at work, caring attitude of organization, and communication, are found to be the major determinants of employee engagement in the Indian industries.
A Study on Colombo Stock Market Anomalies due to Presidential and General Elections
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Karunarathna, M.B.R.D.; Wijayanayake, A.
Over the years researchers are studying stock market anomalies to find ways to earn arbitrage profits. And the position of the government is an important factor when investing in stock market. Internationally extensive studies have been carried out to find whether there is a relationship between position of the government and the stock market anomalies. But there are no studies available for the Colombo Stock Exchange (CSE). Using daily market indices and election information from 1988 to 2015 this research examines the behavior of the CSE immediately before and after the presidential and general elections in Sri Lanka. Wilcoxon signed rank test and homogeneity tests were used in this analysis. Results show that share prices are continuously increasing before the election and decreasing after the polling date. There were few exceptions due to high political stability and instability in the preelection period. Banks Finance & Insurance, Hotels & travels and Manufacturing are the three sectors dominantly increased in the pre-election period. And Beverage, Food & Tobacco, Construction & Engineering and Stores & Supplies have no anomalies during the election period.
Core Banking Systems and Business Intelligence for Effective Strategic Decision Making
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Fernando, S.D.
Considering about the nature of existing core banking systems the fundamental attribute is it can be identify as a transaction processing system. It means that the system is processing day-to-day banking business transactions and stored historical information. Core banking systems are playing vital role in any fully automated bank as an information system hub. But the basic question is raised when focus to the information requirement for strategic decision making process. Are core banking systems providing required information to make effective strategic decisions? Can core banking systems fulfilling the task as an alternative for the business intelligence system? When focus to the identified problems with core banking systems it can be separated in to two categories such as system operational issues and strategic decision making difficulties due to using core banking historical system information. System integration issues due to different database platforms, data processing issues due to using different front end applications, data mining and quarry limitation can be identified as System Operational Issues and above two questions can be review under the strategy issue. Review of literature and case study approach has been applied as a methodology with qualitative analysis. Conclusions and recommendations are based on the analysis.
Perception of Generation Y towards Organic Foods in Sri Lanka: A Case of Individuals in Colombo District
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Fernando, K.G.N.; Gunawardana, H.M.R.S.S.
This study designed to understand the perception of Y generation towards organic foods available in the Sri Lankan environment. Mainly it explored the positive and negative beliefs and attitudes of Y generation towards organic food choices. Total of 20 depth interviews were carried out by selecting mix of male and female participants who have at least occasionally bought or consume organic foods and respondents who have never bought and consumer organic foods within last three months by applying convenient sampling technique to represent the Colombo district. Insights obtained from interviews were subjected to analysis with the help of software tools and revealed the attributes, consequence and values pertaining to the purchasing of organic foods. The key trigger for purchasing organic food have been attributed to expected health benefits and the respondents who have bought organic food products were inclined to have a higher educational level. The major barriers to purchasing organic food products were inadequate knowledge of consumers on organic foods and high price with limited availability. Hence enlightening consumers about exclusive traits of organic production methods, benefits that they can get from consuming organic foods and increasing availability of affordable are required to market the products. Nevertheless, this study was limited to Colombo district and hence it may not give a fair view about the researched topic with regards to the situation of the country as a whole.
An Empirical Study on Corporate Ownership Structure and Firm Performance: Evidence from Listed Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Chandrasena, S.M.; Kulathunga, K.M.K.N.S.
Ownership structure, whether it is concentrated or dispersed, is one of the main determinants of organizational performance. Theories of corporate governance insist on dispersed ownership and segregation of ownership and management. In most of the emerging countries a concentrated form of ownership is evident in listed companies. Therefore the objectives of this study are twofold; to investigate whether ownership structure has an impact on firm performance and to examine whether concentrated ownership has an impact on firm performance, in companies listed in Sri Lanka. Researchers have considered a sample of seventy six (76) non-financial listed companies in CSE during the period of 2008 to 2014. A time fixed effect model is applied into the panel regression analysis and a Generalized Least Squares (GLS) regression model is chosen. Findings suggest that a significant relationship exists between ownership structure and firm performance. Empirical evidence further elucidates that institutional ownership has a significant positive relationship with firm performance, which can be justified based on the ‘active monitoring argument’. Significant negative relationship between individual ownership and firm performance can be argued based on ‘manager discouragement argument’. Concentrated ownership too has a significant positive relationship with firm performance, supporting the wellknown agency theory propositions.
Misclassification of Investment Property: A Case Study on Selected Sri Lankan Company
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Silva, N.K.L.
Accounting doesn’t make corporate earnings or statement of financial position more volatile. Accounting just increases the transparency of volatility in earnings. Therefore, Accounting increases the effectiveness & transparency of the information that a company communicate to its all stakeholders. So every business organization should need to prepare and present the financial statements in accordance with IFRSs and IASs to provide information regarding the true financial position and performance of the business to the users of financial information in order to enable them to make effective economic decisions. In this case study report it analyzes an accounting issue of including Investment Property under the category of Property, Plant & Equipment which violate Sri Lanka Accounting Standards. In such situation, Investment Property should be disclosed separately in the statement of financial position according to LKAS 40 and how it can be done is also explained in this case study report.