ACF 1101: Financial Accounting I

Semester II, Academic Year 2019/20

Lessons 01 – Introduction to the Institutional and Regulatory Framework for financial reporting
in Sri Lanka

This lesson aims to provide an introduction to the financial reporting, mean of financial reporting
and an overview of financial reporting environment in Sri Lanka.

Intended Learning Outcomes

Having completed this lecture, recommended readings and activities, you should be able to:

• Define financial reporting

• Identify the means of financial reporting
• Describe the components in financial reporting environment.
• Explain why accounting is regulated
• Explain the main legislations and regulations governing corporate financial reporting in
Sri Lanka
• Explain the standard setting process
• Identify the theories of regulations relevant to accounting & auditing

Reading:
1. Melville, Alan., (2011), International Financial Reporting, Prentice Hall (Chapter 3 and 4)

Discussion Questions
1. State the means of financial reporting.
2. Describe the components in financial reporting environment.
3. Explain why accounting is regulated.
4. Explain what regulation is.
5. Explain the regulatory framework for financial reporting in Sri Lanka.
6. Discuss how accounting practice in Sri Lanka has been regulated.
7. Explain the theories of regulations relevant to accounting & auditing