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54 CPM Sri Lanka | Annual Report 2019/20

1. REPORTING ENTITY

1.1 DOMICILE AND LEGAL FORM

The Institute of Chartered Professional Managers of Sri Lanka (“the Institute”) has been registered as a specially
authorized society under section 3 (b) of Societies Ordinance (Chapter 123), on 27 February 2009. The registered
office of the Institute is situated at No.29/24, Visakha Lane, Colombo 04.
“With effect from 26 March 2019, the name of the Institute was changed from The Institute of Certified
Professional Managers to The Institute of Chartered Professional Managers of Sri Lanka.”

1.2 PRINCIPLE ACTIVITIES AND NATURE OF OPERATIONS

The Institute was formed to provide a professional qualification in management, known as The Institute of
Chartered Professional Managers of Sri Lanka (CPM Sri Lanka), by conducting educational programs, providing
practical training in private and public sector entities and establishing a link between the private and public
sectors for the advancement of professional management.

2. BASIS OF PREPERATION

(A) STATEMENT OF COMPLIANCE

The financial statements have been prepared in accordance with the Sri Lanka Accounting Standards for Small
and Medium- sized Entities ( SLFRS for SMEs)

(B) BASIS OF MEASUREMENT

The financial statements have been prepared on the historical cost basis. No adjustments have been made for
inflationary factors in the financial statements.

(C) FUNCTIONAL AND PRESENTATION CURRENCY

These financial statements are presented in Sri Lankan Rupees, which is the Institute’s functional currency.

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies listed below have been applied consistently to all periods presented in these financial
statements.

(A) EQUIPMENT

(i) Recognition and measurement

Cost includes expenditure that is directly attributable to the acquisition of the asset.
Gains/losses on disposal of equipment are determined by comparing the proceeds from disposal with the
carrying amount of the equipment and are recognized net within “Other Income” in the statement or income and
expenditure