Financial Accounting (Essay Sample)

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Asian Hotels and Properties PLC
As aforementioned, The Institute of Chartered Accountants of Sri Lanka is the body that sets accounting standards in Sri Lanka (Narayan 2002). However, International Accounting and Financial Reporting Standards were adopted in Sri Lanka as early as 1st January 2012. As such, Asian Hotels and Properties PLC, in their annual reports, have to comply with CIA’s Code of Best Practice on Governance (Asian Development Bank 2002). CIA is a major player in the Sri Lankan Financial Reporting and Accounting Standards setting, and all the elements that they set must be adhered to (Saudagaran 2005). The political influences have also been reflected on the financial reporting of Asian Hotels and Properties PLC where the reports clearly state that they are in accordance with the legal provisions of the country (Banfield 1961), and have met all the financial obligations. Such obligations include publishing of pre-tax and post-tax profits, and most importantly, compliance with the tax remittance requirements (Tarr 2013). This is in addition to policies regarding currency conversion, financial instruments and property and plant equipment among others (Lindstrom 2008).
The culture of Sri Lanka, based on Hofstede’s model, presents a highly feminine people (reserved and less aggressive) (Mueller 1988) with a masculinity score of 10. This femininity explains, in part, the concentration of the Asian Hotels and Properties PLC’s holdings only located in Sri Lanka, particularly in the capital, Colombo. Also, the detailed account of risk and the methods employed in dealing with it concurs to the uncertainty avoidance score of the Sri Lankan people (Erdener 1998). Indeed, the company explicitly adheres to the precautionary principle in dealing with risk.
Also, with the Sri Lankan society coming across as a highly collectivist one, the accounting practices of Asian Hotels and Properties PLC reflect this through showing commitment to reduction in carbon emission and development of green hospitality (Quality Assurance Agency For Higher Education 2004). Indeed, in the financial records, Asian Hotels and Properties PLC identifies her stakeholders to include the shareholders, business partners, customers, suppliers, the community, the media and other pressure groups (Hannigan 2009). For this, ethics are highly glorified in all operations of the business. Finally, the company identifies partnerships as the most preferred mode of venturing into new markets.
Conclusion
The Institute of Chartered Accountants of Sri Lanka is the authority that formulates accounting standards in Sri Lanka. Also, the country adopts, and possibly amends, other International Accounting and Financial Reporting Standards. Looking to partner with Asian Hotels and Properties PLC which runs a chain of hotels in Colombo, it is essential to learn the Sri Lankan culture and its effect on the accounting financial reporting practices adopted by firms. The financial reporting practices of Asian Hotels and Properties PLC reflect the cultural character of the Sri Lankan people. For instance, the reports comply with CIA’s Code of Best Practice on Governance. Also, the legal requirement of tax compliance is conformed to by listing both pre and post-tax gains in addition to the expenses in the financial year. The less-aggressive nature of the Sri Lankans is demonstrable in the spreading of Asian Hotels and Properties PLC’s property which is mainly in the capital city. Due to this, Asian Hotels and Properties PLC identifies partnerships as the best option to spreading wings as well as dealing with risk. Finally, Asian Hotels and Properties PLC’s financial is influenced by the collective nature of Sri Lankans and identifies the stakeholders to include shareholders, business partners, customers, suppliers, the community, the media and other pressure groups.

Works Cited
Banfield, E. C. (1961). Political inf...