6. Prior year Adjustments (In the Notes all amounts
shown in Sri Lanka Rupees millions unless otherwise
stated)
Deferred tax asset arising
on Investment Tax Allowances which has not been previously
recognised in the financial statements have now been
recognised on the completion of the 150K project and
on the assumption that there would be no large scale
investment projects in the foreseeable future.
The recognition of the deferred tax
asset has been accounted for as a prior year adjustment
as the Directors are of the view that this treatment
will present a fairer picture of the results, the state
of affairs and changes in equity for the year.
The impact
of this adjustment is given below:
Group/Company
Increase
in retained earnings at 1 January 2000
13,621
Increase
in net profit for the year ended 31 December 2000
40
Increase
in retained earnings at 1 January 2001 (Note
15)
