Practical Training Guide

PRACTICAL TRAININGGUIDE

( Effective from 2010 )

MESSAGE FROM THE PRESIDENT

The Institute of Chartered Accountant of Sri Lanka (ICASL) continues to be the premier national accounting body responsible for producing competent Chartered Accountants in Sri Lanka.

The new scheme of practical training which will be effective in 2010, has been designed in keeping with the objectives of the revised curriculum of ICASL. This curriculum is based on the International Accounting Education Standards which focus on skill and competency based learning outcomes.

The demand of a Chartered Accountant in the commercial world is highly sensitive to the wide spectrum of practical training acquired by him/her over several years because such practical training plays a vital role in building the required skills and competencies expected of a professional accountant.

Hence a prospective professional accountant should embrace all areas of knowledge one could perceive to be absolutely necessary to equip him/her in the practical aspects of the profession.

I am aware of the tremendous effort made by the Chairman and the members of the Students Training and Development Committee together with the Education and Training Division of the Institute in relation to this revision and its implementation. On behalf of the Council and my own behalf I thank them for their valuable contribution.

Nishan Fernando

Institute of Chartered Accountants of Sri Lanka

President

MESSAGE FROM THE CHAIRMANStudents Training and Development Committee

The Institute of Chartered Accountants of Sri Lanka has continuously endeavoured to produce professionals of high quality, through education, practical training and skills development.

The new scheme of practical training has taken in to account the changes taking place globally to provide the framework that would enable the ICASL qualification to compete with the leading accountancy qualifications in the world.

Without compromising the quality, the new training requirements have been rearranged based on the concept of working days at each level. Monitoring process of practical training of trainees will be strengthened by increasing the number of assessments conducting for strategic level trainees during their training period.

In conclusion the revised scheme will enable the ICASL qualification to compete with the leading accountancy qualifications in the world.

I take this opportunity to thank the President, the Vice President and the members of the Council, members of The Students Training and Development Committee and the Education and Training Division of the ICASL for their valuable contribution to develop the new training scheme.

Lasantha Wickramasinghe

Chairman

Students Training and Development Committee

INTERPRETATIONS 2 - 3

APPROVED TRAINING ORGANIZATIONS 4 - 10Approval of a Training OrganizationCategories of Approved Training OrganizationsNumber of Trainees in Approved Training Organizations Expectations of Approved Training Organizations and the TraineesAreas of Development in Practical TrainingAuthorized Officer of the Training OrganizationSupervising Member

MINIMUM TRAINING REQUIREMENTS 11 - 12Training alongside of StudyTwo phases in Practical TrainingPeriod of TrainingMinimum Training Requirement in Specified Experience Categories

PROCEDURE IN OBTAINING PRACTICAL TRAINING 13 - 18Registration for Practical TrainingPractical Training requestResponsibility of Training Organization with Regard to Changes to Training AgreementChanging the Training OrganizationInterruption and Suspension to of Approved TrainingCancellation of Training AgreementTraining without an AgreementRecords of TrainingMonitoring of Practical Training by the Committee

COMPLETION OF PRACTICAL TRAINING AND EXAMINATIONS 19 - 20Eligibility to Sit the ExaminationsRecommended Leave for Study Purpose

OVERSEAS TRAINING 21 - 22Practical Training Acquired in OverseasRecognition of Secondments

FINAL REPORT OF SUPERVISING MEMBER AND CERTIFICATION OF TRAINING 23 - 24Admission to Associate MembershipDiploma in Accounting and Business (DAB)Certificate in Accounting and Business (CAB)

CERTIFICATE TO PRACTICE 25Entitlement for Public Practice

APPLICATION OF PROFESSIONAL VALUES, ETHICS AND ATTITUDES 26

WORK-BASED LEARNING 27

EXEMPTIONS 28 - 29Exemptions for full time AcademicsExemptions for Members of CIMA – UKExemptions for Members of AAT

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CONTENTS

PRACTICAL TRAINING GUIDE

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The Practical training requirement as described in this practical training guide has to be satisfied by the students under the following stages.

• Module11224-InternshipI:CertificateLevel• Module19324-InternshipII:StrategicLevelI(DiplomaLevel)• Module25424-InternshipIII:StrategicLevelII

Focus:The practical training requirements are revised to ensure the quality and relevance of the practical training of the registered students of the Institute of Chartered Accountants of Sri Lanka (ICASL) in compliance with the competency based approach and standards of IFAC International Education Practice Statement. Any student, who satisfies the prescribed practical training requirements and examinations, is entitled to be admitted as an associate of ICASL. All admissions and refusals of membership shall be made by the Council of ICASL.

Scope Training requirements to apply for the following certificates issued by the ICASL are governed by this guide. • AssociateMembership.• DiplomainAccountingandBusiness.• CertificateinAccountingandBusiness.• CertificatetoPractice.

Effective Date The revised practical training requirements of the registered students of ICASL shall apply to all Training Agreements ongoing and commencing on or after 01/01/2010.

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INTERPRETATIONS

The following terms have been defined for the purpose of maintaining a common understanding within regulations given under this practical training guide.

The Institute – The Institute of Chartered Accountants of Sri Lanka.

Council – The Council of the Institute.

Committee – The Student Training and Development Committee (STDC) or such other Committees, as the Council may from time designate under its direction.

Member – A member of the Institute. Certificate to Practice – A certificate issued to a member by the Institute authorizing him/her to engage in Public Practice.

Approved Training – Practical training and experience obtained under valid Training Agreement of the Institute.

Approved Training Organization – An organization approved by the Council to provide practical training.

Training Agreement – An agreement made with an Approved Training Organization, a registered student and a Supervising Member to facilitate the required practical training of a student.

Supervising Member – The member who is responsible for monitoring and certifying the approved training of a trainee.

Authorized Officer – Member who manages the approved training in accordance with the Institute’s rules and regulations.


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Trainee – A student who is undergoing training under a Training Agreement.

Student – A person who is registered with the Institute.

Post Qualifying Work Experience – Work experience received after the date of qualification.

Associate – The class of membership of the Institute to which a person is admitted after satisfying the requirements for membership prescribed in this practical training guide.

Certificate in Accounting and Business – A certificate awarded by the Institute on successful completion of the Certificate Level examinations and the Certificate Level training.

Diploma in Accounting and Business – A certificate awarded by the Institute on successful completion of the Diploma Level examinations and Diploma Level training.

Working day – A working day with a minimum of 7 hours and maximum of 8 hours work is considered as a full working day.

Study leave – Period of leave approved for trainee by the Supervising Member and the training organization to complete an examination of the Institute.

Cancellation of a Training Agreement – The termination of a Training Agreement prior to the completion of approved training.

An Approved University – A University approved by the University Grant Commission of Sri Lanka or by the Association of Common Wealth Universities

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APPROVED TRAINING ORGANIZATIONS

APPROVAl Of A TRAINING ORGANIZATION

The criteria for an organization to be considered as an Approved Training Organization shall be determined by the Council from time to time based on the recommendation from the Student Training and Development Committee (STDC).

An organization shall be approved as a Training Organization only if it satisfies the followingconditions:

• It is an organization registered in Sri Lanka or in any other country approved by the Council;• ItnominatesafulltimeemployeewhoisaMemberoftheInstituteasthe officer responsible for practical training (Authorised Officer).• Duringtheentireperiodoftrainingshipitsatisfiesthatthecapabilityof meeting the practical training standards or any other conditions as the Council determine from time to time.

CATEGORIES Of APPROVED TRAINING ORGANIZATIONS

Approved Training Organizations are identified under two categories;

Public Practice Organizations – Firms of Chartered Accountants and the Auditor General’s Department. Non-public Practice Organizations – all other organizations approved by the Institute other than those classified as Public Practice.

Public Practice OrganizationsCriteria to approve an organization under Public Practice

An organization under Public Practice shall satisfy the following basic conditions to apply as an Approved Training Organization.

• TheOrganizationshallprovidesufficientpracticaltraininginthefields of auditing, accounting, taxation, use of information technology and any other advisory/consulting services.

• Theassignmentsmustcoveratleastfourcategoriesselectedoutof Manufacturing, International Trading, Local Trading, Agriculture, Construction and Services.

• Iftheapprovalissoughtfromasole-proprietorshipinpublicpractice,such an organization shall nominate another approved Training Organization in Public Practice, which should provide the consent to accept all ongoing Training Agreement in the event of prolonged absence of the member of the sole-proprietorship.


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• TheOrganizationshouldbewillingtoallowstudentsaperiodofpaid/no pay study leave as recommended by the Committee.

Application to approve an organization as a Training Organization in Public Practice

An organization seeking recognition to provide approved practical training in Public Practice should submit an application on the prescribed form. A Member of the Institute who signs such form and any related letters takes the full responsibility for the correctness and the accuracy of the information disclosed therein.

Committee may review the information declared in the application which may include reviews of business profile, organization structure and facilities for practical training.

A responsible officer representing the Training Division of the Institute will visit the prospective training organization prior to grant the approval.

The approval shall be granted initially for Certificate Level training and that may be extended to the Strategic Level subsequently.

Non-public Practice OrganizationsCriteria to approve an organization under Non-public Practice

An organization under Non-public Practice shall satisfy following basic requirements to apply for registration as an Approved Training Organization. At Certificate Level

Presence of a Member/s full time in that organization and the practical training shall be under the direct supervision of a Member. However under exceptional circumstances where an organization has a member who can effectively allocate and supervise the tasks of the trainee, even without a direct organizational relationship to such trainee, will be permitted on a case by case basis.

Existence of a satisfactory organizational structure with at least five full time accounts personnel in the Finance Division.

Trainee/s shall be attached to the Internal Audit Division or Finance Division of the organization in order to obtain required practical training in specified experience categories.

Availability of in-house IT facilities with a computerized accounting application.

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Submission of self declaration forms by Approved Training Organizations

All Approved Training Organizations are required to submit a self declaration form once in two years to the ICASL. The declaration form is available on the ICASL website. Authority of the Committee over granting approval

The Committee shall have the discretion to withhold the approval of existing training organizations and may grant a reasonable period of time to meet the required standards.

levies for approval of Training Organizations

The Approved Training Organization shall pay a levy prescribed by the Council from time to time.

At Strategic Level

The organization should have the approval for the Certificate Level training before it is considered for approval at Strategic Level training.

The Finance Division and the Internal Audit Division of the organization must be structured in such a manner that would enable trainees to rotate within different functions periodically.

If there is no Internal Audit Division to provide the minimum training required in Auditing that should be substituted with the training in Financial Management.

The Organization should be willing to allow students a period of paid/no pay study leave as recommended by the Committee.

All Non-public Practice Organizations should undertake to provide practical training in all experience categories as provided in the specimen training programme.


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The year of Approval

Quota for a Partner

Quota for qualified others (Managers & above) Additional Quota for

a Partner(for branches )0-5

Experience5-10

ExperienceOver 10

Experience

1 6 3 N/A N/A 2

2 - 5 12 6 N/A N/A 4

6 - 10 20 10 15 N/A 5

Over 10 30 15 20 25 6

Note: Experience mentioned in the above table should be the post membership experience obtained by a member.

The maximum number of trainees (quota) per Supervising Member for Approved Training Organizations in Public Practice is as follows.

The maximum number of Trainees (quota) per Supervising Member for Approved Training Organizations in Non-public Practice as follows.

Post membership experience of the Supervising Member (in years)

Quota per Supervising Member

0 - 1 5

2 - 5 10

6 - 10 15

Over 10 20

Auditor General’s Department

The Auditor General’s Department is an Approved Training Organization under the Public Practice. Trainees of the Auditor General’s Department come under three levels of supervision viz. the Auditor General, Deputy Auditor General & Assistant Auditor General who are members of the Institute.

Eachofthemisentitledtosuperviseamaximumof30trainees.

NuMbER Of TRAINEES IN APPROVED TRAINING ORGANIZATIONS (QuOTA fOR SuPERVISING MEMbERS)

The maximum number of trainees permitted to supervise by a Member is recommended by the Committee and approved by the Council from time to time.

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ExPECTATIONS Of APPROVED TRAINING ORGANIZATIONS AND ThE TRAINEES

All Approved Training Organizations are expected to provide the required quality of practical training for trainees and the trainees are expected to make a valuable contribution to the business of the training organizations.

AREAS Of DEVElOPMENT IN PRACTICAl TRAINING

The practical training must provide an opportunity to develop following areas of the trainee.

•Applicationoftechnicalknowledge (Ability to relate the knowledge gained from accounting, taxation, auditing and financial management to other business functions and activities).

•Applicationofprofessionalvalues,ethicsandattitudes (Developing appropriate professional values, ethics and attitudes in practical, real life situations).

•Gainingresponsibility (Opportunity to work at different levels of responsibility).

• Businessawareness (Becoming aware of the environment in which services are provided).

• Professionalskills (Intellectual, interpersonal, communication and business management skills).

• Informationtechnology (IT, while included as a separate area enables the application of the other areas set out above.)

AuThORIZED OffICER Of ThE TRAINING ORGANIZATION

Member who manages the approved practical training in accordance with the Institute’s rules and regulations is known as the Authorized Officer. The Authorized Officercanbe:

• AMemberwhoisaseniorpartnerintheorganizationiftheorganization is in the public practise or;• A Member who is the senior officer or any other appropriate status in the organization in case of Non- public Practise.

In case of an Authorized Officer is not available the respective Supervising Member shall be considered as the Authorized Officer of such organization.


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Responsibility of an Authorized Officer

The Authorized Officer of the training organization should notify to the Committee of any material change in his/her organization which may affect his/her ability to meet the practical training standards determined by the Council.

In the event of change in the Authorised Officer, the training organization should inform such details to the Institute.

SuPERVISING MEMbER

A member who is responsible for monitoring and certifying the approved practical training of the respective trainee.

Qualification to become a Supervising Member

Any member of the Institute is eligible to act as a Supervising Member provided that he or she is attached to an Approved Training Organization.

Relationship between a Supervising Member and a Trainee

The Supervising Member should be an independent party to the trainee and the independence shall be disclosed to the Institute in writing.

The trainee and the Supervising Member should not be immediate family members. The immediate family member includes a parent, spouse, child, sibling, brother, sister and spouse of brother or sister and any other dependent.

full time employment requirement for Supervising Members

A Member who is applying to act as a Supervising Member should be in full-time employment in the Approved Training Organization.

However if a trainee and a Supervising Member are employing at different organizations within a same group, such member will be permitted to act as a Supervising Member on a case by case by basis.

Responsibilities of the Supervising Member

Proactive supervision and regular performance evaluation

The progress of the trainee should be reviewed on a regular basis and the range and depth of technical knowledge gained should be discussed with the trainee.

If the trainee has not acquired the requisite number of days of specified technical areas by the end of the training period, the agreement shall be extended suitably.

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Building a foundation for lifelong learning and skills development

A trainee who is attached to a Public Practice organization should be given an opportunity to gain practical training in different types of experience categories as well as in different types of industries.

A trainee who is attached to a Non-public Practice Organization should be given an opportunity to gain training in different business areas and at different levels of responsibilities of the organization.


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Trainees are required to complete minimum of three years practical training with 220 working days per year.

Minimum Training Requirement in years and working days

A working day shall be a day with a minimum of 7 and a maximum of 8 working hours. Half-a-day shall be considered on proportionate basis.

Working hours gathered during weekends or on part time basis assignments will not be considered as equivalent of a working day.

Minimum Training Requirement Certificate Level

Strategic Level

Strategic LevelI

Strategic LevelII

In Years 1 year 1 year 1 year

In working days 220 days 220 days 220 days

MINIMUM TRAINING REQUIREMENTS

TRAINING AlONGSIDE Of STuDY

Practical training is considered as on the job training alongside of the study curriculum and such training enables students to demonstrate that they have gained relevant professional skills, knowledge, attitudes and behaviour required of a qualified accountant.

TwO PhASES IN PRACTICAl TRAINING

The total period of approved practical training is divided into two phases.

1. Certificate Level Training

2. Strategic Level Training 2.1 Strategic Level I (Diploma Level) 2.2 Strategic Level II

The training should be registered under a Training Agreement in order to recognize it as valid practical training. Certificate Level Training Agreement shall be separated from the Strategic Level Training Agreement.

PERIOD Of TRAINING

Total Training Period

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Specified Experience Categories

Public Practice Non-public Practice Organization

Certificate Level

StrategicLevel I

Strategic Level II

Certificate Level

StrategicLevel I

Strategic Level II

Financial Accounting & Management Accounting

40 50 50 100 90 90

Audit & Assurance 8075

(Note vi) 75

(Note vi)-

20(Note v)

20(Note v)

Taxation 10 15 15 10 15 15

Financial Management - 20 20 20

Use of Information Technology

20 25 25 20 25 25

Secretarial Practice 5 5 - - -

Total minimum training requirement in accordance with

Experience Categories

150 170 170 150 170 170

Notes

i. The days of attending training programmes or any workshops conducted by the ICASL or any other recognized training organization will be considered as working days.

ii. Any shortfall between the annual minimum training requirement (220 days) and the total minimum training requirement in accordance with specified experience categories per year can be completed using any experience category listed in the above table.

iii Any trainee who fails to obtain the specified minimum number of days in Information Technology or Taxation will be required to undergo training in courses that are conducted by the IT Faculty and the Taxation Faculty of the Institute.

iv At the Strategic Level training, minimum of 25% of total requirement in Taxation should be in Income Tax

v In the absence of an Internal Audit Division, the Financial Management experience category should be increased to 40 days per year.

vi The training requirement for Certificate to Practice eligibility is specified in the Certificate to Practice section of this guide.

MINIMuM TRAINING REQuIREMENT IN SPECIfIED ExPERIENCE CATEGORIES

The minimum training requirement of 220 days per year should be acquired in accordance with the specified experience categories as given below. (in working days)


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PROCEDURE IN OBTAINING PRACTICAL TRAINING

REGISTRATION fOR PRACTICAl TRAINING

Tripartite Training Agreement

The trainee must register under a Tripartite Training Agreement with the Supervising Member and the training organization.

1. Registered student who is undergoing training with valid Training Agreement of the Institute is known as a “Trainee”.2. Member of the Institute who takes the responsibility of the training is known as a “Supervising Member”.3. Theorganizationwhichisprovidingtrainingshallbeknownasthe “Approved Training Organization”.

The Supervising Member and the Approved Training Organization shall support the trainee to acquire the required practical experience during the period of the Training Agreement.

All parties of the agreement are committed to fulfil the terms and conditions specified in the Training Agreement.

PRACTICAl TRAINING REQuEST

Students are required to apply for registration under Training Agreements to the Institute through the respective training organization and the Supervising Member.

Information required for the practical training request

The request for the Training Agreement should consist of following information.

• Fullnameandtheregistrationnumberofthestudent.• Name,designationandmembershipnumberoftheprospective Supervising Member. • Leveloftrainingrequired.• Dateofcommencementofthetraining.• Nameofthetrainingorganizationandthedivision/sinwhichthetraining is provided.• Proofofexemptionsoftraining,ifapplicable.

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Additional information required with regard to Non-public Practice Organizations

All requests made by Non-public Practice organizations should consist of the following additional details.

• Proposedpracticaltrainingprogrammecoveringtheareasofpracticaltraining shown in the specimen Training Programme.

• Thepossibilityofrotationamongbusinessactivitiesandexperience categories during the period of practical training.

• Aletterstatingtheaddressofthetrainingplaceofthetrainee,thework place of the Supervising Member, their organizational relationship and any other particulars relating to the Training Agreement.

Submission of the Training Agreement to the Institute

Duly completed Training Agreement with relevant copies should be submitted to the Training Division of the Institute for registration as a valid Training Agreement.

Probationary period of practical training

The terms and conditions of practical training may include a probationary period not exceeding more than four months from the initial date of joining the training organization.

Date of Commencement of the Training Agreement

Trainee may enter into a Training Agreement from the date he/she joined with the Approved Training Organization, provided that he or she is a registered student of the Institute.

However, the date of commencement of the Training Agreement will be determined with backdating of four months maximum from the date of receipt of the relevant documents to the Training Division of the Institute.

A duly completed Training Agreement is considered as the relevant document in case of a Public Practice organizations and the duly completed training programme is considered in case of Non-public Practice Organizations.

The Manager Training may call for training records and interview the trainee before permitting the backdating of the commencement date.

However this date will not be extended beyond the date of the actual commencement of training or the date of registration of the student.


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Selecting training commencement dates

Since the completion of specified period of practical training is a requirement to apply for certain examinations of the Institute trainees and training organizations should consider such requirements in determining the commencement date of the Training Agreement.

The discretions of the Committee over the Training Agreement

The Committee has the authority to recommend to the Council in relation to a suspension or cancellation of a Training Agreement due to a misconduct of a trainee.

The validity of the Training Agreement shall be withdrawn or shall deem to have been withdrawn on the date on which the Training Agreement was suspended or such other date as decided by the Council.

RESPONSIbIlITY Of APPROVED TRAINING ORGANIZATION wITh REGARD TO ChANGES TO PRACTICAl TRAINING AGREEMENT

The Approved Training Organization shall promptly notify to the Institute with regard to any cancellation, suspension, interruption, reduction or extension of Training Agreement or any other change in the Approved Training Organization affecting to the Training Agreement.

Changing the name of the Approved Training Organization within the same management structure

In case of a change in the name of the training organization all existing Training Agreements will be replaced under the new name, provided that the management structure of the initial organization is unchanged.

Transfer of the Supervising Member within the Approved Training Organization

A Training Agreement may be transferred from the current Supervising Member to another member within the Approved Training Organization and such transfer may not affect the period of training initially agreed by all parties.

Risk of joining Non-public Practice organization with one Member

Students should be mindful of the risk that they carry in joining a Non-public Practice Organization, which has only one Member of the Institute, as it may not be possible to transfer the Supervising Members within the Approved Training Organization in the event of resigning of the existing member.

However in such a situation the trainee is permitted to suspend the training for a period of 8 months. During the period of suspension Trainee can recommence the balance period of training under a new Supervising Member in the present training organization or in another approved training organization.

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ChANGING ThE TRAINING ORGANIZATION

Existing Training Agreement can be transferred to a new training organization with the consent of the existing and the prospective Supervising Members/ Training Organizations. In case where such a transfer does not affect to the initial period of the training, such training shall be considered as uninterrupted training and continued under a new Training Agreement.

Any period which is not covered by a Training Agreement is treated as unauthorised interruption of training and would be liable to automatic penalty extensions of the training period.

INTERRuPTION AND SuSPENSION Of APPROVED TRAINING

The period covered under a Training Agreement shall be considered as the approved training period. Any interruption or suspension of the approved training will not be permitted unless a minimum period of 220 working days have been completed.

Suspension of training for university studies

Internal students of approved universities are permitted to be in training provided that the training is full-time and the Supervising Member signs the training records.

Those students are permitted to suspend their practical Training Agreements subjecttofulfilmentoffollowingconditions:

• Completionofaminimumtrainingperiodof110workingdays.• Priorwrittenconsentofthetrainingorganization,theSupervisingMember and the Institute.• Followingafulltimedegreecourseorpostgraduatestudiesinrelationto the profession.

Other Interruptions

Any other interruptions may be permitted only on the grounds of maternity leave, prolonged illness or any other circumstances that the Committee in its absolute discretion considers applicable. In the case of prolonged illness; the Committee may deem the suspension to have commenced from the onset of such illness.

Resumption of suspended training

Completion of the period of approved suspension of training should be informed to the Institute and the resumption of such training will be permitted with an extension to the initial period of training based on the period of suspension.


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unapproved interruptions in training

Any unapproved interruptions of practical training will make the trainee automatically liable to a penalty of an additional six months training and further training depending on the period of interruption.

CANCEllATION Of TRAINING AGREEMENT

Mutual cancellation of Training Agreement

Training Agreement shall be cancelled by mutual agreement among the parties or by one party giving written notice to others in accordance with the terms and conditions mentioned in the Training Agreement.

A trainee will be permitted to enter into a new Training Agreement, only after completion or cancellation of previous Training Agreement if any.

Automatic Cancellation of a Training agreement

Training Agreement shall be automatically cancelled from the date the training organization ceases to be approved under the practical training guidance.

TRAINING wIThOuT AN AGREEMENT

The training undergone without an agreement is not recognized as approved training.

RECORDS Of TRAINING

Trainees are required to maintain weekly records on their practical training and such records should be certified periodically by the Supervising Member.

The trainee and the Supervising Member can get registered with the Institute’s Training Division for the electronic submission of training records through the Website of the ICASL.

The printed students’ training record books also can be used to maintain the records of practical training.

The trainee shall use either of the above two methods and submit his/her training recordsandquarterlysummariestotheTrainingDivisionwithin30daysfromthelast day of each quarter of approved training.

Delay in submission of records shall be liable for a penalty of extension of the training period.

The record book will be stamped and acknowledged with date by the Training Division on every quarter. However, that does not denote an acceptance of training completed by a trainee.

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MONITORING Of APPROVED TRAINING bY ThE COMMITTEE

Periodic assessment of training during the period of the agreement

Periodic assessment of practical training with regard to the specified number of working days and on the adequacy will be conducted by a member of the Committee or any other member appointed by the Committee.

Objectives of conducting periodic assessments

The assessments will help trainees to identify the areas that need improvement during the balance period of the training. The areas identified for improvements will be communicated to the respective Supervising Member.

Certificate level

Assessments of trainees will be conducted on random basis.

Strategic level

Minimum of one compulsory assessment will be conducted for a trainee at the Strategic Level.


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COMPLETION OF PRACTICAL TRAINING AND EXAMINATIONS

ElIGIbIlITY TO SIT ThE ExAMINATIONS

The Chartered Accountancy qualification is designed with a combination of examination, practical training and skills development programmes.

Students are required to satisfy practical training requirement decided by the Council in order to be eligible to sit for specific examinations of the Institute.

Practical training requirement applicable for the examinations

Certificate Levels and Strategic Level I

Completion of training is not mandatory to apply for the Certificate Levels and Strategic Level I examinations. Nevertheless, students are encouraged to commence practical training at the early stage of their examinations.

Strategic Level II

Following requirements to be fulfilled on or before the commencement date of the examination

• Completionof220workingdaysofCertificateLeveltraining

• Completionof220workingdaysofStrategicLeveltrainingafterbeing eligible for Certificate in Accounting and Business.

• HavingobtainedorappliedfortheCertificateinAccountingand Business.

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level of Examination

Number of Subjects Study leave

Available Annual leave

No pay leave Total

CAb I(three subjects)

Full examination1st attempt 2 0 0 2

CAb II(four subjects)

Full examination 3 2 0 5

Subsequent attempt 0 1 2 3

Two subjects 1 2 0 3


Three subjects 2 2 0 4


Strategic level I

(five subjects)







Four subjects 3 2 0 5


Strategic level II

(four subjects)







The above leave is inclusive of the examination dates.

RECOMMENDED lEAVE fOR STuDY PuRPOSE (IN wEEKS)


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OVERSEAS TRAINING

PRACTICAl TRAINING ACQuIRED IN OVERSEAS wITh INTERNATIONAllY AffIlIATED PublIC PRACTICE ORGANIZATIONS

acquired in overseas with an internationally affiliated Public Practice Organizations will be considered as approved training for Strategic Levels subject to satisfying followingrequirements:

• Successful completion of the intermediate /Certificate Level training in an Approved Training Organization in Sri Lanka.

• The training is conformed to the guidelines and standards applicable to trainees in Sri Lanka.

• Supervision by a member of the Institute.

However under this arrangement trainees are required to satisfy minimum of three months Strategic Level training with an Approved Training Organization in Sri Lanka, prior to applying for the Associate Membership.

The Training Organization should inform details of the training place of a trainee to the Institute along with the request of the Training Agreement.

RECOGNITION Of SECONDMENTS

Secondments of trainees by training organizations are recognized as approved training provided such arrangements will enhance the skills and knowledge of the trainee and also meet the requirement of practical training.

Criteria applicable in Secondments

• Secondments arranged with industry, public sector, branches or offices shouldnotexceedbeyond50%oftheentiretrainingperiod.

• Training should be supervised by a member of the Institute and the work environment should provide an opportunity to comply with the rules and standards of the profession.

Secondments beyond 50% of the entire training period

Secondmentsbeyond50%of the trainingperiodwill bepermittedonly uponprior written approval from the Institute.

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Categories of Secondments

• Secondments to industry in Sri Lanka by Public Practice Organizations in Sri Lanka.

• Secondments to industry in overseas by Public Practice Organizations in Sri Lanka.

• Secondments to overseas offices by Non-public Practice Organizations in Sri Lanka.

The following instances are not recognised as secondments but considered as approved training.

• Secondments to branches of Sri Lanka by Public Practice Organizations within Sri Lanka

• Secondments to branches of Non-Public Practice Organizations within Sri Lanka

• Secondments to overseas offices managed by Public Practice Organizations in Sri Lanka.

However in secondments to overseas offices, trainees are required to complete minimum three months Strategic Level training in an Approved Training Organization in Sri Lanka prior to applying for the Associate Membership.

The Training Organization should inform the details relating to secondments of trainees to the ICASL.


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FINAL REPORT OF SUPERVISING MEMBER AND CERTIFICATION OF TRAINING

At the end of the training period, the training organization and the Supervising Member should issue a certification of training obtained by the trainee through a summary report and should recommend the suitability of the trainee to become a Certificate holder/ Diploma holder or an Associate Member of the Institute.

ADMISSION TO ASSOCIATE MEMbERShIP

The trainees who have fulfilled following criteria can submit an application for admission to the Associate Membership (the application is available at the Training Division of the Institute).

• Successful completion of all examinations of the Institute. • Successful completion of Certificate Level and Strategic Level training along with the certification of the Supervising Member and the Training Organization.• Successful completion of the interview on practical training. (VIVA)• Successful completion of all other structured training requirements (compulsory communication skills and IT courses).

Assessment of Practical Training by an Interview Panel (VIVA)

Authenticity of the training records will be assessed prior to admission to the Associate Membership by a panel appointed by the Committee.

The assessment of authenticity of training will be through a presentation and an oral interview by the panel.

With the recommendation of the panel, the Committee may recommend the applicant for the approval of the Council.

On the approval of the Council, the Members Relations Division will process the applicant to the Associate Membership of the Institute.

The trainees who have completed Strategic Level II examination, Strategic Level training and the Compulsory Communication skills programme are also permitted to apply for the VIVA.

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DIPlOMA IN ACCOuNTING AND buSINESS (DAb)

Application for Diploma in Accounting and business

On successful completion of Strategic Level I (Diploma Level) training and the examination, students are eligible to apply for the Diploma in Accounting and Business.

The applicant should submit the training records of Strategic Level I with the certification of the Supervising Member and the training organization along with the duly filled application.

The applications are available at the Training Division of the Institute.

Recommendation for Diploma in Accounting and business

On satisfactory completion of specific requirements, the Committee may recommend the applicant for the approval of the Council.

On the approval of the Council the Examination Division will issue the Diploma in Accounting and Business to the applicant.

CERTIfICATE IN ACCOuNTING AND buSINESS (CAb)

Application for Certificate in Accounting and business

On successful completion of the Certificate Level training and Certificate Level examinations, students are eligible to apply for the Certificate in Accounting and Business.

The applicant should submit the training records of Certificate Level with the certification of the Supervising Member and the training organization along with the duly filled application.

The applications are available at the Training Division of the Institute.

Recommendation for Certificate in Accounting and business

On satisfactory completion of specific requirements the Committee may recommend the applicant for the approval of Council.

On the approval of the Council the Examination Division will issue the Certificate in Accounting and Business to the applicant.


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CERTIFICATE TO PRACTICE

ENTITlEMENT fOR PublIC PRACTICE

A Member of the Institute will be entitled to engage in Public Practice in Sri Lanka only if such Member holds a Certificate to Practice issued by the Institute.

Eligibility Requirements for Certificate to Practice

a. Membership of the Instituteb.Completionofminimum440daysofStrategicLeveltraininginaPublic Practice Organization after being eligible for the Diploma in Accounting and Business.

Theabove440daystrainingshouldmeetthecriteriagivenbelow:

• Minimum of 220 days to be covered under statutory audits of companies or other organizations.

• The balance period can be covered either at statutory audits or other work similar to audit recognised by the Committee as listed below.

Other working experience recognised for the Certificate to Practice Eligibility

• The exercise of expressing an opinion on Financial Statements relating to I. Conversion, or acquisition of companies II. Redemption or purchases of shares

• Financial Accounting and external reporting• Audits of offices, associations, clubs and societies• General business advisory services including internal audits• Taxation• Investment analysis• Statutory declaration of solvency• Accountants’ report on prospectors• Treasury and business finance

Trainees /Members who have failed to fulfil the above requirements during the period of Strategic Level training are required to enter into a new agreement and complete the balance period, in order to qualify for the Certificate to Practice.

Application for Certificate to Practice

On completion of the above requirements members are eligible to apply for the Certificate to Practice through the Members Relations Division of the ICASL.

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APPLICATION OF PROFESSIONAL VALUES, ETHICS AND ATTITUDES

The ethics and attitudes are the cornerstone of a Chartered Accountant. Ethics and ethical behaviour help to their personal and professional reputation and also to protect clients, employers and the public. The trainees are expected to act ethically in the public interest at all times.

Training organizations are expected to provide guidance and opportunities to trainees to gain appropriate training in professional values, ethics and attitudes during the period of training. Accordingly, by the end of the training period a trainee should be ;

• familiar with the Institute’s Professional Code of Ethics.

• able to identify and analyze the ethical issues likely to be encountered in their work environment.

• understand the procedures for resolving ethical issues.

A module on ethics, values and attitudes will be incorporated with the compulsory communication skills work shops.


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WORK-BASED LEARNING

A data base of questions developed based on practical scenarios is available at the ICASL Website. Trainees are required to answer at least three questions per quarter with the certification of the Supervising Member.

This scheme is designed to help trainees to integrate the work experience and the professional skills with their study programme.

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EXEMPTIONS

ExEMPTIONS fOR full TIME ACADEMICS

The following concessions are applicable for full time lecturers in accounting or/and finance subjects, attached to approved universities.

• Entitle to apply for the Strategic Level II examination without completing the practical training requirement.

• Entitle to complete the practical training requirement under the special scheme given below.

An approved University means a University approved by the University Grant Commission of Sri Lanka or by the Association of Common Wealth Universities.

Special Training Scheme

Full time lecturers who satisfy the above requirements are permitted to enter into short term Training Agreements with approved training organizations to complete the practical training requirement. Period of a short term agreement should not belessthan55days.

Under this scheme the total training period of 660 days to be covered with maximum of three approved training organizations within five years.

Work during weekends will also be recognized as working days.

ExEMPTIONS fOR MEMbERS Of CIMA - uK

Training requirements to obtain ACA Membership

• Associate Members of CIMA with less than three years of Post Membership Experience

Two years of monitored training with 220 working days per year under a Training Agreement approved by the Council of the Institute.

• Associate / Fellow Members of CIMA With over three years post membership experience

One year of monitored training with 220 working days per year under a Training Agreement approved by the Council of the Institute.


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Training requirements to obtain Certificate to Practice

Members who satisfy the requirements for Certificate to Practice Eligibility mentioned in this guide are entitled to apply for the Certificate to Practice.

ExEMPTIONS fOR MEMbERS Of AAT (ThE ASSOCIATION Of ACCOuNTING TEChNICIANS Of SRI lANKA)

Members/passed finalists of AAT completed two years training are excempted from the Certificate Level training requirement of the ICASL, subject to satisfy the following requirements.

• Completion of two years practical training in a training organization approved by the ICASL, under the supervision of a member of the ICASL.

• Such training should be completed under a Training Agreement identical to an agreement signed by a Certificate Level trainee of the ICASL.

• The records of training should be maintained in a manner identical to the scheme specified for a Certificate Level trainee of the ICASL.

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NOTES:

Practical Training Guide

Documents