ICARE 2018

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/19607

Browse

Subject: search.filters.subject.Sri Lanka

Search Results

Now showing 1 - 10 of 16
  • No Thumbnail Available
    Item
    The Impact of IFRS Adoption on Financial Statements and Value Relevance: 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) Dissanayaka, H.M.K.G.L.B.; Karunathna, W.V.A.D.
    The aim of this study is to explore the effect of International Financial Reporting Standards (IFRS) adoption on commonly employed financial ratios and investigate the value relevance of IFRS adoption by comparing the association between accounting measures and market values under GAAP and under IFRS of listed manufacturing companies in Colombo Stock Exchange. This study employs 20 listed manufacturing companies with both pre-IFRS (2009- 2011) and post-IFRS (2013-2015) information. Data were analyzed by using panel data regression model and correlation analysis. And also T test and Wilcoxon signed rank test are used to explore the effect of IFRS adoption on financial ratios. Results of the study showed that IFRS adoption does not significantly change the central values that depict the financial position and performance of Sri Lankan companies in financial statements. Therefore value relevance of accounting information has not significantly improved in the post-IFRS period than the pre-IFRS period. However several financial statement measures and ratio are affected significantly in transition to IFRS. Further studies are encouraged to conduct on investigating the impact of IFRS adoption on financial statement and value relevance by expanding the sample size with incorporating more accounting quality measurement indicators, measurement and ratios
  • No Thumbnail Available
    Item
    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
  • No Thumbnail Available
    Item
    Stock Market Development and Economic Growth 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) Perera, K.A.H.; Madurapperuma, M.W.
    Stock market plays an important role on economic development and it promotes the economic growth and prospects of the economy. The main objective of this research was to identify the impact of Stock Market Development on the Economic Growth in Sri Lanka. Using data for the period from 2000 to 2017, this study employed ECM for long run relationship and for the short run dynamics. Market capitalization, Stock total traded value and turnover ratio and inflation were taken as independent variables; stock market development was taken as the dependent variable. The annual time series data were employed for the Sri Lanka economy for the period of 2000 – 2017. These data were collected from website of Colombo stock Exchange annual reports of Central Bank of Sri Lanka, Department of Census and Statistics of Sri Lanka web site. Multiple regression model and correlation analysis were used to analyze the data using E-views software. The findings of this study suggest a positive relationship between efficient stock market and economic growth both in short run and long run. The results are consistent with the theoretical predictions
  • No Thumbnail Available
    Item
    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
  • No Thumbnail Available
    Item
    Value Relevance of Accounting Information and Financial Statement Effect upon IFRS Adoption: Evidence from 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) Muthunayake, H.; Kawshalya, M.D.P.
    Accounting Information would be beneficial only if it is relevant to the decision being made. According to International Accounting Standard Board, the usefulness of accounting information depends on the fundamental qualitative characteristics of Relevance and Faithful Representation. As a result of harmonization and standardization, International Financial Reporting Standards (IFRS) were adopted in Sri Lanka from 1st January 2012 as a developing country. Given the differences exists between develop and developing countries in the contest of accounting profession and other contextual differences, the impact of IFRS adoption in developing countries is still remaining as an empirical gap in the accounting literature. Therefore the main purpose of current study is to examining the impact of International Financial Reporting Standard on the accounting information quality, in terms of value relevance and the effect on key financial measures of financial statement in Sri Lanka. Data for the current study is collected from audited annual financial statements and Colombo Stock Exchange reports for all the listed manufacturing companies in Sri Lanka, for the period of 9 years from 2008/2009 to 2016/2017 financial year. Based on the regression estimate obtained the study concludes that there is an incremental effect on the value relevance of earnings for share, book values of equity, and cash flow from operations. Further findings reveal that there is favorable impact financial statement measures upon IFRS adoption of listed manufacturing sector in Sri Lanka.
  • No Thumbnail Available
    Item
    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
  • No Thumbnail Available
    Item
    The Impact of Macroeconomic Variables on Stock Market Performance of 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) Vishmini, K.W.O.; Madurapperuma, M.W.
    Smooth functioning of a stock market is paramount important to a healthy economy. Investigations of relationship between macro-economic factors and performance of stock markets at many emerging economies including Sri Lanka are relatively limited. This study aims to identify the impact of macroeconomic variables on the stock market performance of Sri Lanka. The dependent variable is the All Share Price Index of Colombo stock market (ASPI) and the explanatory variables are the Gross Domestic Product (GDP), Inflation proxy by wholesale price index (WPI), Interest rate (IR), Balance of payment (BP) and Exchange rate (ER) over the period of 2010 to 2017 in a quarterly basis. All the data were collected from the Central Bank Annual Reports and from the Colombo Stock Exchange. Data were analyzed using VECM using E-Views. The results revealed that the macroeconomic variables and the stock market index (All share price index) in Sri Lanka significantly related. Analysis further showed that stock market index significantly positively related to GDP, ER and IR while it is negatively related to the inflation proxies by wholesale price index of Sri Lanka. The other variable which is the Balance of payment is insignificant in determining the stock market performance
  • No Thumbnail Available
    Item
    An Empirical Analysis of Exchange Rate Volatility on Foreign Direct Investments 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) Ariyasinghe, A.T.T.; Madurapperuma, M.W.
    Foreign direct investment is considered as one of key factor in determining factors for its economic growth. However, the macroeconomic environment in the host country must be favorable to attract foreign investment. Exchange rates of its currency against other foreign currencies are one of the main factors that affect the foreign direct investment of a country. The main objective of this study is to investigate the relationship between exchange rate volatility on foreign direct investments in Sri Lanka during the period of 2000 to 2017. Real exchange rate, Real exchange rate volatility, Openness of the economy, GDP per capita, stock of foreign direct investment and political situation were selected as independent variables while foreign direct investment was selected as a dependent variable. Data were collected through annual reports of Central Bank of Sri Lanka and World Bank. Data was analyzed using Vector Error Correction model. The results indicate a negative longrun relationship between exchange rate volatility and foreign direct investment for Sri Lanka. The existence of a short-run association was not Significant in Sri Lanka
  • No Thumbnail Available
    Item
    The Study on Determinants of Non-Performing Loans in Listed 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) Adikari, A.M.U.S.,; Rathwatha, G.M.H.P.K.
    Non-performing loans (NPLs) are considered as a critical factor for any bank and has the possibility of resulting huge losses if the required attention was not given. Though many researches have been conducted on factors affecting to NPL, this is still an open area for further studies. This study investigates determinant factors of Nonperforming loans (NPLs) in Sri Lankan banking sector. The survey has been conducted with a sample of 10 license commercial banks in Sri Lanka over the period of 2008 to 2017. This study focuses on the impact of bank specific factors on NPLs. Non-performing loan rates are measured through the gross NPL ratio published by banks and bank specific factors considered are Operating Expense to Income (OEI), Net Income to Total Assets (NITA), Loans to Total Assets (LTA), Loan Growth (LG), and Natural Logarithm of Size of Bank (NL). GDP growth rate (GDP) and Lending Rate (LR) have been considered as controlling variables in this study. The panel regression model has been applied to determine different bank specific factors that affect to NPL. During the study it was revealed that there is a positive correlation between loan to asset ratio and NPL rate while loan growth rate, size of the bank, operating expense to income, net income to total assets show a negative correlation with NPL rate
  • No Thumbnail Available
    Item
    The Impact of Foreign Direct Investment on Economic Growth 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) Malalanayake, M.T.C.K.P.; Madurapperuma, M.W.
    Foreign Direct Investment contributes to economic growth of many developed and developing countries and it is considered as a key instrument which is more than flow of capital. This study aims to identify the influence of foreign direct investment on economic growth in Sri Lanka. Net foreign direct investment was used as measurement of foreign direct investment and economic growth rate was used as economic growth indicator. The study employed secondary data covering period of 1980-2017. Data were analyzed using Johansen’s co-integration test to examine the long run relationship between foreign direct investment and economic growth in Sri Lanka. Besides, the vector error correction (VECM) was employed to examine the casual link between foreign direct investment and economic growth in Sri Lanka. Findings of this study show that FDI inflow has positive and significant impact on economic growth in long run and in the short run in Sri Lanka