Accounting Standards Board Nepal has developed Nepal Accounting Standards (NAS) under the Nepal Chartered Accountants Act 1997 (ICAN).
Accounting Standards Board Nepal (ASB Nepal) has developed NAS on the basis of International Financial Reporting Standards (IFRS).
The Government of Nepal established Accounting Standards Board (ASB) in March 2003.
Since 2007, ASB has also entrusted by Nepal Government with the responsibility to develop accounting standards for public sector in line with the International Public Sector Accounting Standards (IPASs).
ASB has developed a number of NAS which were based on equivalent IFRS.
It is responsible to set accounting standards for preparation and presentation of financial statements in Nepal.
It is an independent statutory body.
It is sets of accounting and financial reporting standards for business enterprises in Nepal.
NAS does so in line with the Interactional Financial Reporting Standards (IFRS) and International Accounting Standard Board (IASB).
Recently, ASB Nepal has prepared the Exposure Draft of Nepal Public Sector Accounting Standards (NPSAS) for public sector in line with IPSAS 2017 cash basis as per the request of Financial Comptroller of General Office (FCGO).
(a) To formulate accounting standards in line with IFRS issued by IASB.
(b) Full discretion in developing and pursuing the technical agenda for setting Accounting Standards in Nepal
Keep in mind
NAS 1: Presentation of Financial Statements
NAS 2: Inventories
NAS 7: Statement of Cash Flows
NAS 8: Accounting Policies, Changes in Accounting Estimates and Error
NAS10: Events after the Reporting Period
NAS 11: Construction Contracts
NAS 12: Income Taxes
NAS 16: Property, Plant & Equipment
NAS 17: Leases
NAS 18: Revenue
NAS 19: Employee Benefits
NAS 20: Accounting for Government Grants and Disclosure of Government Assistance
NAS 21: The Effects of Changes in Foreign Exchange Rates
NAS 23: Borrowing Cost
NAS 24: Related Party Disclosures
NAS 26: Accounting & Reporting by Retirement Benefit Plans
NAS 27: Consolidated & Separate Financial Statements
NAS 28: Investments in Associates
NAS 32: Financial Instruments: Presentation
NAS 33: Earnings Per Share
NAS 34: Interim Financial Reporting
NAS 36: Impairment of Assets
NAS 37: Provisions, Contingent Liabilities & Contingent Assets
NAS 38: Intangible Assets
NAS 39: Financial Instruments: Recognition & Measurements
NAS 40: Investment Property
NAS 41: Agriculture
Click on link for YouTube videos topic wise :
Basic Journal Entries in Nepali
Basic Journal Entries
Journal Entry and Ledger
Trial Balance and Adjusted Trial Balance
Bank Reconciliation Statement (BRS)
Click on link for YouTube videos chapter wise:
Financial Accounting and Analysis (All videos)
Accounting for Long Lived Assets
Analysis of Financial Statement
IAS was the first international accounting standards.
The International Accounting Standards Committee (IASC) issued them in 1973.
It is an independent international standard-setting body based in London.
The goal of IAS is to make easier to compare businesses around the world, increase transparency and trust in financial reporting, and foster (raise) global trade and investment.
This remains today also.
IAS enables investors and other market participants to make economic decisions about their investment opportunities.
IAS reduces reporting and regulatory costs, especially for companies with international operations and subsidiaries in multiple countries.
The International Financial Reporting Standards (IFRS) replaced IAS in 2001.
At present more than 166 nations adopted IFRS for their domestic companies which are listed on stock exchange; the United States, Japan, and China are the only major capital markets without an IFRS mandate.
The U.S. accounting standards body has been collaborating with the Financial Accounting Standards Board (FASB) since 2002 to improve and coverage American GAAP and IFRS.
Keep in mind
IAS 1: Presentation of Financial Statements
IAS 2: Valuation of Inventories
IAS 7: Cash Flow Statement
IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors
IAS 10: Events after Reporting Period
IAS 11: Construction Contracts
IAS 12: Income Taxes
IAS 14: Reporting Financial Information by Segments
IAS 15: Information reflecting the effects of Changing Prices
IAS 16: Property, Plant and Equipment
IAS 17: Leases
IAS 18: Revenue
IAS 19: Employees Benefits
IAS 20: Accounting for Government Grants and Disclosure of Government Assistance
IAS 21: The Effects of Changes in Foreign Exchange Rates
IAS 22: Business Combinations
IAS 23: Borrowing Costs
IAS 24: Related Party Disclosure
IAS 26: Accounting and Reporting by Retirement Benefits Plans
IAS 27: Separate Financial Statements
IAS 28: Investments in Associates and Joint Ventures
IAS 29: Financial Reporting in Hyperinflationary Economics
IAS 30: Disclosure of Financial Statement and Banks and Similar Financial Institutions
IAS 31: Financial Reporting of Interests in Joint Ventures
IAS 32: Financial Instruments: Presentations
IAS 33: Earning per Share
IAS 34: Interim Financials Reporting
IAS 35: Discontinuing Operations
IAS 36: Impairment of Assets
IAS 37: Provisions, Contingent Liabilities and Contingent Assets
IAS 38: Intangible Assets
IAS 39: Financial Instruments: Recognition and Measurement
IAS 40: Investment Property
IAS 41: Agriculture.
NFRS is a common set of accounting standards and reporting language.
Nepal Accounting Standard Board issued NFRS in 2013.
NFRS is prepared in the line of IFRS.
It aims to bring a common base for presentation, measurement, treatments and disclosure of financial events.
NABS published NFRS subjecting the diversity of business scenario and accounting complexity.
There are 40 standards issued by Accounting Standard Board and implemented by Institute of Chartered Accountant of Nepal (ICAN).
ICAN has made it mandatory for listed multinational companies.
ICAN has also made it mandatory for all financial institutions and Nepali listed companies who has minimum paid up capital of Rs 5 crore from fiscal year 2016/17.
Keep in mind
NFRS 1: First Time Adoption of Nepal Financial Reporting Standards
NFRS 2: Share-based payment
NFRS 3: Business Combination
NFRS 4: Insurance Contracts
NFRS 5: Non-Current Assets Held for Sale & Discontinued Operation
NFRS 6: Exploration for and Evaluation of Mineral Resource
NFRS 7: Financial Instruments: Disclosures
NFRS 8: Operation Segments
NFRS 9: Financial Instrument
NFRS 10: Consolidated Financial Statements
NFRS 11: Joint Arrangements
NFRS 12: Disclosure of Interest in Other Entities
NFRS 13: Fair Value Measurement
International Financial Reporting Standards (IFRS) are practically principle-based standards interpretations
International Accounting Standard Boards adopts framework of IFRS.
The International Accounting Standards Board (IASB) took the responsibility to set the various International Accounting Standards from the IASC.
IASB will continue to develop various needed standards which are popularly known as IFRS.
In short, IFRS are the sets of accounting standards which are developed by the IASB.
These standards are global standards in order to prepare the financial statement of Joint Stock Company.
At present more than 166 nations adopted IFRS for their domestic companies which are listed on stock exchange.
Of them, 140 countries have totally conformed to IFRS which are promulgated by IASB.
IFRS includes a statement acknowledging such conformity in their audit reports.
Nepal has adopted IFRS in March 2014.
As such Nepali listed companies are trying to achieve the important milestones while adopting various clauses of the regulations of IFRSs.
(a) IFRS helps to raise foreign capital since both the countries use IFRS for their allocating standards i.e. the basis is same.
(b) IFRS helps to present its financial statements in international basis; it becomes easy to comparison.
(c) Subsidiary of a foreign company must use IFRS if its parent company using IFRS.
(d) It helps the foreign investors to invest who are using IFRS.
(e) IFRS uses only English language for its work; it becomes easy to work in case of a foreign company having subsidiary in other countries.
(a) Some IFRS issuers resist IFRS because there is not any market incentive for the preparation of IFRS financial statements.
(b) Adopting IFRS is very costly.
(c) IFRS charges cost to conversation.
(e) There is potential impact on banking agreements.
(d) There are hidden dangers compliance with IFRS such as data capture, embedded derivatives, burden on resources, possible system changes etc.
Keep in mind
The difference between International Accounting Standard (IAS) and International Financial Reporting Standard (IFRS)
IAS and IRRS are the same.
The difference between them is that IAS represents old accounting standard, IFRS represents new accounting standard.
Such as IAS 17 Leases while IFRS 16 Leases.
IFRS 16 replaces IAS 17 effective from 1 January 2019.
Keep in mind
IFRS 1: First Time Adoptions of IFRS
IFRS 2: Share-Based Payments
IFRS 3: Business Combination
IFRS 4: Insurance Contracts
IFRS 5: Non-Current Assets held for Sale and Discontinued Operations
IFRS 6: Exploration for and Evaluation of Mineral Resources
IFRS 7: Financial Instruments; Disclosures
IFRS 8: Operating Segments
IFRS 9: Financial Instruments.
IFRS 10: Consolidated Financial Statements
IFRS 11: Joints Agreements
IFRS 12: Disclosure of Interests in Other Entities
IFRS 13: Fair Value Measurement
IFRS 14: Regulatory Deferral Accounts
IFRS 15: Revenue from Contract with Customers
IFRS 16: Leases
IFRS 17: Insurance Contacts
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