Financial Crime World

Technical Committee Urged to Review Comments on Proposed Standard

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Kathmandu: The Technical Committee has been instructed to review and discuss the comments received on the proposed standard and submit it again to the Accounting Standards Board (ASB) Nepal for a second discussion, along with suggestions.

Exposure Draft Process

The development comes as part of the process of publishing an exposure draft of the proposed standard. If approved, the exposure draft will be made public through the Secretariat of ASB Nepal, allowing stakeholders to comment on it for at least two months.

  • After reviewing the comments and suggestions, the Technical Committee will submit a proposal to recommend the exposure draft as a standard.
  • The members of the ASB Nepal will then have 15 days to express their comments on the proposal.
  • If no changes are made, the ASB Nepal will approve the exposure draft as a final standard and recommend it to the Institute of Chartered Accountants of Nepal (ICAN) for compliance with section 11 (da) of the Nepal Chartered Accountants Act, 1997 (first amendment, 2002).

Implementation and Adoption

The ASB Nepal is also responsible for requesting regulatory bodies to facilitate the implementation of the new financial reporting standard.

NFRS Update

In related news, the implementation date of NFRS 17 has been deferred until July 16, 2024. Additionally, parts of IFRS 9 Financial Instruments have been delayed until the fiscal year ending July 15, 2024.

IFRS for SMEs Adoption

Nepal has adopted the IFRS for SMEs accounting standard, with those not having public accountability and falling under the SME definition required to prepare financial statements according to NFRS for SMEs. Micro entities, which meet specific thresholds, are also allowed to prepare financial statements in accordance with the NAS for Micro Entities on a consistent basis.

  • Local GAAP is used by SMEs that are not required to use the IFRS for SMEs Accounting Standard.
  • The ASB Nepal has stated that no further comments have been received regarding the use of the IFRS for SMEs Accounting Standard.