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
The list of NAS contains: 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 |
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Click on link for YouTube videos topic wise : |
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Accounting Equation |
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Basic Journal Entries in Nepali |
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Basic Journal Entries |
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Journal Entry and Ledger |
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Ledger Account |
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Subsidiary Book |
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Cash Book |
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Trial Balance and Adjusted Trial Balance |
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Bank Reconciliation Statement (BRS) |
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Depreciation |
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Click on link for YouTube videos chapter wise: |
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Financial Accounting and Analysis (All videos) |
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Accounting Process |
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Accounting for Long Lived Assets |
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Analysis of Financial Statement |
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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
The list of IAS contains: 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
The list of NFRS contains: 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.
The IFRS is not free from difficulties; some problems are:
(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. |
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Keep in mind
The list of IFRS contains: 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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