Dec 06, 2007 (LBO) – Sri Lanka’s financial and accounting regulators are developing more reliable ways of valuing trees in forestry firms, the Sri Lanka Accounting Auditing Standards Monitoring Board (SLAASMB) said. “When finalized, the guidelines will provide a reliable basis to value biological assets,” the SLAASMB said.
“It will provide preparers, auditors and regulators a common platform, which will enable users to place reliance on the financial statements prepared by entities which own and manage biological assets for commercial purposes.”
Valuations of forestry firms have proved controversial in Sri Lanka. At least two listed plantation firms and one forestry firm have come under probe over their valuation of plant assets.
A committee made up of the SLAASMB, the Securities and Exchange Commission (CSE), Accounting Standards Committee, Urgent Issues Task Force (UITF) of the Institute of Chartered Accountants of Sri Lanka (ICASL), Colombo Stock Exchange, Valuation Department, Forest Department and State Timber Corporation is now studying the issue.
The will first release an exposure draft on the issue, SLAASMB said.