Browsing by Author "Perera, H.A.P.L."

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Accountants’ Perception of Internal Control Problems Associated with the Use of Computerized Accounting Systems: Evidence from Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Wijesuriya, D.R.D.; Perera, H.A.P.L.
Today most of companies depend upon the computerized accounting systems and these systems have more complex in meeting information needs. Due to the enhancement of business complexity in recent decades, companies are facing internal control problems associated with the use of computers and computer related systems. The main purpose of this study is to examine the accountants’ perception of internal control problems associated with the use of computerized accounting systems exist. For this study, the main instrument of data collection was the questionnaire. Data is collected from 84 accountants in selected companies covering different types of industries and Descriptive statistics such as frequency distributions, percentage distribution of responses, means, cross tabulation and ANOVA were used to analyze the data. The results indicate that there are internal control problems exist with the use of computerized accounting system in Sri Lankan companies. The major important problems are Unfamiliar user may enter incorrect data, Great potential for error by employees as a result of insufficient knowledge about the system ,Great speed of computers can be manipulated to the advantage of users, New sources and potential for errors are likely to arise in the: Hardware and software, Duties are concentrated within the computer (i.e. no separation of duties as in the manual system), Information can be changed without physical traces, concentrated information is easy to steal and Electronic information is easy to lose, Employees, customers and other users trust the computer output .However, they perceive that certain control procedures can be undertaken to overcome them such as authorized access to computers, Proper system design, Use physical controls and proper authorization, Use backup copies, only authorized people should have access to the records, Use physical control and cross-check and Use control totals to check computer results .It was found that the problems in the storage level are most frequently occurred internal control issues.
Change Driven to Success Case Study on Screenline Holdings (Pvt) Ltd, Sri Lanka
(Staff Development Unit, Faculty of Commerce & Management Studies, University of Kelaniya, 2015) Rathnasiri, U.A.H.A.; Rajapakse, R.M.D.A.P.; Perera, H.A.P.L.; Aruppala, W.D.N.; Kaushalya, M.D.P.; Thilakarathna, W.D.N.; de Silva, N.M.T.; Kumara, N.
Our desire in writing Change Driven to success was to provide faculty with a developed teaching package that allows them to enhance students’ learning and application of knowledge in business management. Appropriate use of theory and the acquisition of factual content and analytical skills are also important goals, but the main objective is to improve the ability of handling different types of managerial problems and opportunities intelligently. This case study book depicts a wide range of business management applications specially focusing on Entrepreneurship Development, Strategic Management, Management and Financial Management etc. Sufficient information is given in each module to support students in analyzing and decision making. The Change Driven to success reflects on the identified structural change in Screenline Holdings (Pvt) Ltd. which is one of the Sri Lanka’s largest screen printers and embellishers. This book comprises with five modules and each module ends with a contribution to practice to assist students in combining theoretical aspects with emerging workplace realities. This case study book submitted in partial fulfilment of the requirement for Staff Development Programme, Faculty of Commerce and Management Studies, University of Kelaniya conducted for Probationary and Assistant Lecturers.
Computerized Accounting System Usage of Small & Medium Scale Enterprises in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Weerasinghe, H.D.S.S.; Perera, H.A.P.L.
Most of the researches were found that, Small and Medium Enterprises (SMEs) play a significant role in almost all economies. For developing countries it is more critical than developed countries. As a developing country SMEs are identified as one of the most important elements in the economy by Sri Lankan government. Accounting system is a main component of an organization which determine the existence if the organization though evaluating the performance. In present most of the businesses are using Computerized Accounting System ot enhance the effectiveness and efficiency of accounting process. This research analyzed the Computerized Accounting System Usage by Small & Medium Scale Enterprises in Sri Lanka with reference to Colombo district. 100 SMEs were selected to obtain data and data collected through a questionnaire from SMEs in Colombo District. Out of the 100 samples selected 75 responses were received. The received data were analyzed using frequency analysis and cross tab analysis in descriptive statistics. It is found that majority of the SMEs are using computerized accounting systems but not the best software available in the market. Also there is a relationship in computerized accounting systems and the level of education of business owner and the accountant, number of accounting staff and the organizational structure. It is recommended to guide and carrying out trainings for SMEs by the government to adopt Computerized the SMEs with the technology and the boost the performance of the SMEs in Sri Lanka.
Corporate Social Responsibility and the Financial Performance of the S &P Sl Top 20 Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Lelwala, U.L.; Perera, H.A.P.L.
In present business context most of the business organizations are engaged in different kind of corporate social responsibility programmes voluntarily. There is no any law or government influence that the organizations must perform or engaged in corporate social responsibility activities. For those activities businesses incurred their financial resources and other non-financial resources. Most of the researchers researched on the relationship between corporate social responsibility and the financial performance because in general corporate social responsibility activities are cost to any company. There are many studies supporting for different types of relationships between the corporate social responsibility (positive, negative and neutral) and financial performance. For this analysis, it was selected 20 listed companies, in the S&P SL 20 in the Colombo stock exchange and for this analysis it was considered annual report data for the period from 2011 to 2015. This analysis mainly focussed on three regression models to test the relationship between the corporate social responsibility and the financial performance. These models represent the regression results of relationship between the corporate social responsibility and profit after tax, relationship between corporate social responsibility and return on assets and relationship between the corporate social responsibility and return on equity. Research findings shows that there is a positive relationship between the corporate social responsibility and profit after tax and negative relationship with return on assets and return on equity. Therefore it is concluded that, there is a relationship between the corporate social responsibility and financial performance of the companies.
Effect of Credit Management on Profitability of Listed Companies in Sri Lanka
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Samarkoon, R.M.; Perera, H.A.P.L.
Credit management is a very important activity of any organization and it will be the reason to increase firm’s revenue and ultimately firm’s profitability. The purpose of this study is to identify the impact of credit management on profitability of listed companies in Sri Lanka. The sample of the current study was only the manufacturing sector companies listed in Colombo Stock Exchange in Sri Lanka for the period of 2011 to 2017. Due to the unavailability of data, only 30 listed manufacturing companies were selected for the data analysis. The researcher used Debtor’s turnover ratio, Account receivable ratio and Liquidity management as independent variables to measure the credit management and Return on Assets (ROA) is used as dependent variable to measure the company’s profitability. Panel data regression was used to analyze data using E-views software. According to the results, Debtor’s turnover ratio, Account receivable ratio and Liquidity management are affected for the profitability of listed manufacturing companies in Sri Lanka. This study establishes that there is a positive relationship between credit management policies and company’s Return on Assets in listed companies of Sri Lanka
Effect of Working Capital Management on the Performance of Listed Food Beverage Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Silva, A.M.P.K.; Perera, H.A.P.L.
This study investigated the relationship between the efficient working capital management and the performance of Food & Beverage Companies in Sri Lanka. To achieve the objectives of the study, the researcher used secondary data of eighteen Food & Beverage Companies using annual reports published during the period 2009-2015. The dependent variable, return on asset is used as the measures for the Performance. The key independent variables used in the analysis are receivables, stocks, cash and payables. The SPSS & E-views were used to analyze the collected data by the researcher. According to the outputs generated through statistical packages there is a significant relationship between Credit Ratio & the Return on Asset, which is the measure of the profitability. Similarly, there is a significant relationship between Debt Collection period, Credit Payable Period, Cash Conversion Cycle and & the Return on Asset. In addition, the results showed that there is a significant negative relationship between ratio of debt collection period, Cash Conversion Cycle and profitability. As well as there is positive relationship between ratio of Creditor payable period, Current ratio and Profitability. The results also show that there is a significant relationship between working capital and return on assets of selected companies. It means that when the working capital decreases it will lead to increase profitability of the firms. Further it was recommended that the selected companies adequately plan and control their credit policy, day to day operations and outstanding by the level of managers with the discussions, board meetings, suggestions and proposals so as to achieve the profitability.
Identification of Factors influencing to Efficiency of Accounting Information Systems in SMEs
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Edirisinghe, K.E.I.K.; Perera, H.A.P.L.
Small and Medium Enterprises (SMEs) play very important role in many countries including Sri Lanka, as it mostly contributes for the country's economic growth. Accounting Information Systems consider as a set of capital and human resources within an organization and it is responsible for the preparation of financial information and also obtained the information from the collection and process of transaction data and provides more valuable information for decision makers, therefore it is very important to identify the factors influencing to efficiency of AIS. This study identifies the factors influencing to efficiency of Accounting Information System in Small and Medium Size Enterprises in Gampaha District. For this study, we used five main factors and nineteen sub factors under main factors. The data were collected using a standard questionnaire. Questionnaires were distributed among 80 companies in Gampaha district. Data were analyzed by using SPSS software. According to analysis, it was showed to that proper securities measure as highly influencing factor for the increase efficiency of Accounting Information System existing within SMEs with reference to Gampaha district. Based on the findings, some recommendations are given to increase the efficiency of existing AIS. Results of this study will help SMEs to understand the level of the efficiency of AIS.
Impact of Corporate Social Responsibility on Firm Financial Performance: Evidence from the Listed Manufacturing Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Lakshitha, W.R.; Perera, H.A.P.L.
This study analyzes the relationship between corporate social responsibility (CSR) practices and Firm Financial Performance of the listed manufacturing companies in Sri Lanka with the utilization of data, obtained from thirty two (32) firms' audited annual report and financial statements between 2010-2015, Variables used for the study include, CSR spending of the company (salaries and wages spending of employees, donation in the form of health, environment, sports, community and education etc., employees’ welfare funds & Other benefits), Return on Assets (ROA), Net profit ratio (NPR) and control variable (total assets). Previous literatures provide conflicting results on the relationship between corporate social responsibility (CSR) practice and firm financial performance with some studies showing a positive relationship, others negative and still others showing that there is no relationship between the two variables. It is with this background that this study sought to establish the relationship between corporate social responsibility practice and financial performance. The correlation and regression tests were conducted by using SPSS. The results suggested significant negative relationship between CSR and ROA without adding control variable and adding the control variable. As well as there is a significant negative relationship between CSR and NPR with and without adding control variable. The actual responsibility of conducting CSR activities are, to share their profits with society as without them they could not survive. Also future research should be conducted to quantify how much or to what degree these CSR programs have impacted on the society and its corresponding value generation for the company. The value from a practical perspective, the study is required to assess if investments in CSR is worthwhile or not.
The Impact of Internal Corporate Governance on Convergence of IFRS: Evidence from Sri Lanka
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Harshana, R.D.U.; Perera, H.A.P.L.
The convergence of International Accounting Standards (IAS) with International Financial Reporting Standards (IFRS) is an important debate among standards setters, policy makers, regulators, professional bodies and companies worldwide. The objective of this research is to examine the impact of internal corporate governance on convergence of International Financial Reporting Standards (IFRS) and to measure the impact of individual corporate governance factors to the convergence of IFRS. Changes of equity during the year were used as the dependent variable of the model and no of financial and non-financial variables were used as independent variables. Financial and non-financial data were collected from annual reports published by the listed manufacturing companies in Colombo Stock Exchange (CSE) during the period of 2009 to 2015. This six (6) year period was divided into two categories as before and after convergence of IFRS. All the manufacturing sector companies were selected as the sample of the research. Due to the unavailability of data, there were 29 companies used for the final analysis. Panel data regression was used to analyze data using E-views software. The results of the study revealed that, effective internal corporate governance mechanism helps companies more aligned with convergence of local accounting standards to IFRS and thereby provide high quality financial information to users of the information
The Impact of Trade Credit Usage on Firm’s Profitability of Listed Manufacturing Companies in Sri Lanka
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Weerawickrama, V.L.; Perera, H.A.P.L.
Trade credit has been recognized as a crucial source of short-term financing for listed manufacturing companies. A trade credit contract is a legally binding agreement between two parties that allows a buyer to purchase goods or services on account and pay the supplier at a later date. The main purpose of this study to investigate trade credit as a financing source among listed manufacturing companies particularly the influence of short-term credit usage on profitability of the companies and to ensure whether theoretical concepts of trade credit usages are practicable in real business environment. Ordinary least squares (OLS), fixed-effects and generalized method of moments (GMM) system models were used to analyze the data using Eveiws. The sample of this study is all the listed manufacturing companies in CSE during the period of 2009 to 2017. Initially there were 41 listed companies in the sample and due to the availability of data 31 listed manufacturing companies were selected for final analysis. The study provides empirical evidence that profitability significantly and negatively influenced by trade credit accounts payable and that short-term debt positively influences. Furthermore liquidity level and firm size are positively related to profitability, while firm age is negatively related to profitability. The present study adds to the literature by using OLS, fixed-effects and GMM system models to analyze a sample in an Asian country where trade credit is considered important financing instruments
Information Technology and its Implication on Internal Auditing in Sri Lankan Companies
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Udayangani, M.A.S.; Perera, H.A.P.L.
Information Technology (IT) is a very much important function in designing, implementing and directing many controls over the organizations’ business processes. Currently both internal & external auditing processes are rapidly changing and one of the main reasons is the changes in IT. This study aims to find the impact of IT and its implications on Internal Auditing. Further, the study examines the influence from Objectives and the Organizational Characteristics on the IT Evaluations performed in Sri Lankan companies. IT Evaluations, Objectives and Organization Characteristics were used as independent variables and IT Evaluation categories were used as the dependent variable. This study carried out using a standard questionnaire which consists of mainly four parts. 100 questionnaires were distributed to companies representing manufacturing, service, banks and hotel sector using the cluster sampling method. Data received from 80 respondents representing all sectors. Data were analyzed using the Statistical Package for Social Science (SPSS). According to the results of the study, internal auditors mainly focus on traditional risk such as IT data integrity, asset safeguarding, privacy and security and less attention has given to system development and acquisition
Internet Adoption in SMEs in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Sudarshani, P.E.; Perera, H.A.P.L.
The growth of information technology in the business world is spreading at a phenomenal rate. The uses of the internet for e-commerce purposes have seen a high increase due to growth in websites for commercial purposes. The success of a business organization stands at the usage of IT in their business. This paper aims to investigate empirically the decision of small and medium sized enterprises (SMEs) to adopt the internet in their business. This study investigates the major determining factors for e-commerce adoption in Srilankan SMEs. The data were collected using a standard questionnaire. SPSS software was used for analysis purpose. Analysis were carried out to investigate the adoption of Internet in Sri Lankan SMEs. The results show that knowledge of English language, Technical compatibility, perceive benefits and cost of web adoption have significant relationships with internet adoption, the results of the study of highly educated managers of SMEs also exposure a non-significant relationship between innovation adoption tendency and adoption of internet. This study provides more understanding of manager’s perceptions about internet adoption on their businesses. Those in promoting the web may find these results helpful in guiding their efforts.
Quality of Loan Portfolio Management and Its Impact to the Financial Performance of Commercial Banks in Sri Lanka
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Hewaarachchi, H.A.H.M.; Perera, H.A.P.L.
In today’s world, banking sector has become extremely competitive powerful industry, providing many services to the society. Careful management of banks’ loan portfolio is very much essential for their stability as significant amount of banks’ revenue is collected from loans and advances given. This study aims to find out the relationship between quality of loan portfolio management and the financial performance of Commercial Banks in Sri Lanka and the impact of it. Return on Assets (ROA) was used as the dependent variable to measure the financial performance of Sri Lanka, while Loan Portfolio Profitability (LPP) and Loan Loss Provision to Gross Loan Advances (LLP/GLA) were used as independent variables to measure the quality of loan portfolio management. Cost Income Ratio (CIR), Liquid Funds to Total Assets (LF/TA) and Total Assets (TA) were used as control variables. Due to the unavailability of data, only 15 Commercial Banks in Sri Lanka were considered for the period of 2008 to 2017. The panel data regression was used to test the hypothesis formulated, and data were analysed using the E-Views software. The results reveal that, the overall quality of loan portfolio management has a significant impact on the performance of Commercial Banks in Sri Lanka
Recognition of Bearer Plants under Biological Asset or PPE
(Department of Accountancy, University of Kelaniya, 2016) Rathnayake, N.O.P.; Perera, H.A.P.L.
Flora Exotics (Private) Limited (“Company”) is a limited liability company incorporated and domiciled in Sri Lanka. The principal activity of the company is to grow and export horticultural products engendered from tissues of exotic plants. The company is operating under Plantation sector. It was observed and understood that the company is not recognizing their mother plants in the financial statements which are the most valuable asset that generate the future economic benefits to the company. Therefore this case study elaborates how these mother plants should be recognized in the financial statements.
Revenue recognition of date on which the export sales in CIF term
(Department of Accountancy, University of Kelaniya, 2014) Premarathna, P.V.I.; Perera, H.A.P.L.
Service Quality, Client Satisfaction and Loyalty towards Audit Firms: Perception of Sri Lankan Companies
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Sudusinghe, L.H.; Perera, H.A.P.L.
In the context of auditing, the quality of service provided by audit firms is a very important issue when signs of dissatisfaction with the services arise. In today, quality of services is an important element for enhancing customer satisfaction and customer loyalty. Service quality is the major force for business sustainability, it is recognized that high quality service is essential for the success of the firms. The main objective of this study is to examine the relationship between service quality, client satisfaction and client loyalty towards audit firms in Sri Lankan companies. In order to accomplish the objective of the study, data were gathered from primary source using a standard questionnaire. The simple random sampling technique was used and questionnaires were sent to 100 randomly selected companies in Sri Lanka who used and received audit service from audit firms in Sri Lanka. The mediating effect of the client satisfaction is separately examined with the client satisfaction and the client loyalty. Regression, Descriptive Statistic and correlation analysis were used as the data analysis tools of this study. According to the results of the study, client companies were satisfied with the tangible dimension but were dissatisfied with the other four dimensions. Customer satisfaction was found to partially mediate the relationship of reliability and customer loyalty.
A Systematic Literature Review on Forensic Accounting
(11th International Conference on Business and Information (ICBI 2020), Colombo, Sri Lanka., 2020) Wijerathna, A.G.H.S.K.; Perera, H.A.P.L.
The objective of this study is to systematically analyze the existing literature on forensic accounting and thereby identifying the existing gap in the forensic accounting literature. In the era of increasing accounting scandals, the importance of forensic accounting is also increasing. This study provides an overview of previous studies which have been conducted in the area of forensic accounting which can be used by professionals, regulators, academics, researchers, forensic accounting practitioners and etc. The current study systematically analyzes a sample of twenty-four (24) research articles which have been conducted in the broad area of forensic accounting. The sample has been selected from research articles published during period starting from 2015 to 2020. The results of this study reveal importance of incorporating forensic accounting education into undergraduate and graduate level courses. More importantly, forensic accountant should have skills in multi-disciplinary areas. Similarly, knowledge on big data is essential to be a good forensic accountant. Further, this study suggests four (04) key areas for future researches which are; importance of forensic accounting education, how forensic accounting could be used to reduce financial collapses practical application of forensic accounting, and the role of forensic accountant in the field of auditing.
Tax Practices in Sri Lanka: Evidence from Tax Payer’s Perception
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Senevirathne, R.P.S.M.; Perera, H.A.P.L.
Tax payer plays a major role in the economy. The main purpose of this research was to identify taxpayer’s perception of current tax practices in Sri Lanka. The taxpayer perception is one of the most powerful variables affected for the current practice of taxation in Sri Lanka. Taxpayer’s perception is one of the sources of making decisions about the current practice of taxation in Sri Lanka. It is with the help of taxpayer’s perception that the current practice of taxation in Sri Lanka can be reviewed more clearly and decisions made from such reviews. In Sri Lanka there are some population groups. We can categorize them as religion, age and race. These different population groups may have differing perceptions about current tax practices in Sri Lanka. Tax payer’s perception is also may depends on some economic factors of the business such as number of years, monthly income of the business and etc. Other factors are taxpayer’s knowledge about taxation and taxpayer’s behavior and attitudes. This research was attempted to review current practice of taxation in Sri Lanka; a research of taxpayer perception by using the questionnaire, given to businessman’s in Colombo district. This research will help to the Department of Inland Revenue to identify taxpayer perception about current tax practices in Sri Lanka. Then Department of Inland Revenue can get future decisions about future tax practices in Sri Lanka.
The Utilization of Generalized Audit Software (GAS) by Sri Lankan External Auditors
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Senarathne, G.R.S.D.; Perera, H.A.P.L.
Generalized audit software is a tool used by auditors to automate various audit tasks. As most accounting transactions are now computerized, auditing of accounting data is also expected to be computerized as well. The purpose of this study is to investigate the utilization of generalized audit software by external auditors in Sri Lanka and what are the factors influenced the use of generalized audit software. This study carried out using a standard questionnaire which consists of mainly five parts. The sample of the study was auditors of five international audit firms and five local audit firms. 100 questionnaires have been distributed to auditors and out of all, 70 responses were received from the selected sample, 40 from international audit firms and 30 from local audit firms. The collected data have analyzed using the Statistical Package for Social Science (SPSS) software. According to the findings of the research, the utilization of generalized audit software is low among local audit firms and all the international firms use generalized audit software. Organizational factors, technological factors, client factors and personal factors influence to the usage of generalized audit software and audit profession factor not influence to utilization of audit software. This will provide useful insights for audit professionals, software developers, vendors, academicians and researchers
Valuation of Biological Assets
(Department of Accountancy, University of Kelaniya, 2016) Rajapaksha, S.R.; Perera, H.A.P.L.
‘Green Acre Farms PLC’ is a listed company on Colombo Stock Exchange, which has the largest and most modern poultry hatcheries and breeder farms in Sri Lanka. In performing the operations, selective breeding, hatching and sale of commercial day old chicks are provided by the Green Acre Farms (GAF). Following the ruling issued by Institute of Chartered Accountants of Sri Lanka (ICASL), on 2nd March 2012 on bearer Biological Assets, cost basis was used by the company in measuring their biological assets. However, company had to change their policy of measuring the biological assets from cost basis to fair value basis, due to the request by the company’s main investor and the auditors.