Financial Reporting Requirements in Nepal Get a Boost with Issuance of New Standards

The Institute of Chartered Accountants of Nepal (ICAN) has issued comprehensive financial reporting standards for companies operating in the country. Known as Nepal Financial Reporting Standards (NFRS), these guidelines are mandatory for all entities preparing and presenting their financial statements.

What do the NFRS Standards Cover?

• The ICAN has developed the NFRS standards to provide a framework for companies to prepare and present their financial statements in a consistent and transparent manner.
• The standards cover all aspects of financial reporting, including:
  • Accounting policies
  • Recognition and measurement of assets and liabilities
  • Income and expense recognition
  • Presentation of financial statements

Who are the NFRS Standards for?

The ICAN has issued a range of NFRS standards to cater to different types of businesses, including:

• Large corporations
• Small and medium-sized enterprises (SMEs)
• Micro entities
• Non-profit organizations (NPOs)

What are the Benefits of Adopting the NFRS Standards?

The adoption of the NFRS standards is expected to enhance the credibility and reliability of financial information reported by Nepalese companies, both locally and internationally. This move is also aimed at promoting good corporate governance and investor confidence.

Getting Help with Compliance

For companies struggling to comply with these new requirements, a dedicated team of professionals is available to assist with the conversion and reporting of NFRS standards. Our experts will help ensure that your company’s financial statements are prepared in accordance with the latest NFRS guidelines, thereby maintaining compliance and minimizing any potential risks or penalties.

By adopting the NFRS standards, companies operating in Nepal can demonstrate their commitment to transparency, accountability, and good corporate governance.