Dear Colleagues,
As you know the Accounting Standards Board (ASB or the Board) Nepal was formed by the Government of Nepal on July 08, 2002 (2059 Ashad 24) with an amendment to the Nepal Chartered Accountants Act, 1997 (first amendment, 2002) incorporating the provision for its establishment and operation. The ASB Nepal has been formed with the responsibility to formulate accounting standards for the preparation and presentation of financial statements in Nepal. The ASB Nepal is primarily responsible for setting accounting standards for business enterprises in line with the International Financial Reporting Standards (IFRSs).

Accounting Standards are the set of basic principles and procedures covering various aspects of accounting transactions for their recognition, measurement, treatment and disclosure in the financial statements. This provides a basis for numerous types of business or entities in the preparation of the financial statements providing a standardized way of presenting the entity’s financial position and financial performance. Therefore, these standards are also a means of reducing or even eliminating the diverse practices of the generally followed accounting practices and thus enhancing the principles of transparency, consistency, comparability and reliability.

With a view of achieving these objectives, the International Accounting Standards Board (IASB) initiated efforts toward harmonization of the Accounting Standards and Accounting Practices across the international boundaries. This effort is directed towards making all the users and the stakeholders have a common understanding of the financial statements in all jurisdictions.

Further, in the scenario of globalization, Nepal cannot isolate itself from the developments taking place worldwide and therefore guided by the aim of having its own standards in line with International Accounting Standards. The Accounting Standards Board of Nepal (ASB Nepal), which is formed with the responsibility of developing Nepal Accounting Standards under the provisions of the Nepal of Chartered Accountants Act 1997, has so far set and issued the following standards for a pronouncement by the Institute of Chartered Accountants of Nepal.

• Nepal Financial Reporting Standards (NFRSs) 2018
• Nepal Financial Reporting Standards (NFRS) 2013
• Nepal Accounting Standards (NAS) 2007/2008
• Nepal Financial Reporting Standards for Small and Medium-sized Entities (NFRSs for SMEs) 2017
• Nepal Accounting Standards for Micro Entities (NAS for MEs) 2018
• Nepal Accounting Standards for Not-for-Profit Organizations (NAS for NPOs) 2018
• Nepal Public Sector Accounting Standards (NPSAS) 2007

Similarly, the ASB Nepal has also published the Application Guidance Notes of different accounting standards based on NFRS 2013 and prepared Model Financial Statements for general purpose as per NFRS 2013. As per the request of Nepal Rastra Bank, the ASB Nepal has recommended the issue of different Carve-outs on NFRS for a limited period to the Institute of Chartered Accountants of Nepal.

Similarly, on the request of the Nepal Government, Ministry of Finance, Financial Comptroller General Office (FCGO), the ASB Nepal has revised the Nepal Public Sector Accounting Standards (NPSAS) 2007 as per IPSAS 2017 and provided it to the FCGO for necessary action.
 

CA. Prakash Jung Thapa
Chairman
Accounting Standards Board, Nepal