Abstract:
The Institute of Chartered Accountants of Sri Lanka (CASL) committed to
convergence International Financial Reporting Standards (IFRS) with effect
from 1st January 2012. The convergence have been generated significant
challenges and problems on financial reporting in the terms of recognition,
measurement, disclosures on accounting policies, consolidation and reporting
to the insurance companies operated in Sri Lanka. This research highlights the
challenges in convergence of IFRS in Sri Lankan insurance sector and the
possible ways to overcome those challenges. The qualitative method was used
for the study based on both primary and secondary data gathered from
interviewing of selected insurance companies and annual reports. The
measures taken by CASL and the other regulatory bodies to facilitate the
smooth convergence to IFRS were admirable. The remedial actions such as
consulting reputed audit and advisory firms relating to IFRS issues, giving
foreign learning opportunity to the accounting staff to obtained the IFRS
knowledge, the knowledge of IFRS on newly recruited accounting staff have
been taken to overcome the problems and challenges.
