Sanjaya Bandara, Chairman of CA Sri Lanka, presenting the first copy of the NFR Directive to Viraj Dayaratne, Chairman of the Securities and Exchange Commission in the presence of Heshana Kuruppu, Vice Chairman of CA Sri Lanka and Nuwan Withanage, Chairman of the Task Force to develop non-financial reporting practices in Sri Lanka
As the sole authority to promulgate accounting and auditing standards in the country, the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) recently launched the Non-Financial Reporting Directive to strengthen and ensure proper reporting fair and balanced corporate governance across businesses, while promoting non-financial reporting practices amid growing demands from various stakeholders for enhanced corporate social responsibility.
The Non-Financial Reporting (NFR) Directive was launched in the presence of Viraj Dayaratne, Chairman of the Securities and Exchange Commission, Sanjaya Bandara, Chairman of CA Sri Lanka, Heshana Kuruppu, Vice Chairman of CA Sri Lanka, Nuwan Withanage, Chairman of the Task Force to Develop Non-Financial Reporting Practices in Sri Lanka and Dulani Fernando, Managing Director of CA Sri Lanka.
This NFR guideline has been developed for all entities, including listed and unlisted, as well as large and small and medium enterprises in Sri Lanka, which produce annual reports and follow the concept of EESG framework, which stands for economic, environmental , Social and Governance, instead of limiting it to the ESG (Environment, Social and Governance) framework.
This framework also introduced several innovative concepts such as the “Core and More” approach to simplify non-financial reporting practices. In addition, to improve the comparability of non-financial information, the framework included the “KPI-based approach” both quantitative and qualitative. However, having understood that reporting is a journey, CA Sri Lanka further simplified the KPIs into basic KPIs as well as advanced level KPIs to make it easier for local businesses to adopt.
One of the main benefits of this recently developed guideline, which is consistent with international non-financial reporting frameworks, is that it provides balanced and flexible guidance on reporting non-financial information in a way that helps businesses to disclose material information consistently and consistently while establishing a common language for extra-financial reporting. The framework also ensures comparability across companies and sectors.