Nepal

Accounting Standards Board, Nepal (ASB)

The Accounting Standards Board (ASB) is the independent statutory body with the responsibility to set and issue accounting standards for preparation and presentation of financial statements in Nepal. The ASB was established in March 2003 by an amendment to the Institute of Chartered Accountants of Nepal Act 1997. While the ASB is primarily responsible for setting accounting standards for business enterprises in line with IFRS Standards, since 2007 it has also been responsible for developing accounting standards for public sector entities in line with the International Public Sector Accounting Standards (IPSASs).

www.standards.org.np

asb@standards.org.np

Yes.

The March 2003 amendment to the Institute of Chartered Accountants of Nepal Act 1997 that created the ASB requires that the ASB develop Nepal Financial Reporting Standards for business enterprises in line with the International Financial Reporting Standards (IFRS Standards).

Yes.

See above. Further the Preface to Nepal Financial Reporting Standards states that one of the objectives of the ASB is “to develop, on the basis of IFRSs and IASs issued by IASB in the public interest, a single set of high quality, understandable, enforceable and globally accepted financial reporting standards based on clearly articulated principles. These standards should require high quality, transparent and comparable information in financial statements and other financial reporting to help investors, other participants in the capital markets and other users of financial information make economic decisions.”

Nepal has adopted IFRS Standards as Nepal Financial Reporting Standards.

The ASB website states: “The process of making NFRSs/NASs in line with IFRSs/IASs has been completed & submitted to The Institute of Chartered Accountants of Nepal (ICAN) for pronouncement of those standards. ASB has prepared 42 NASs/NFRSs, (including Preface and Conceptual Framework) for full convergence with IFRSs.” The NFRS fully converged with IFRS Standards include the IASB Framework and all IAS Standards, IFRS Standards, and Interpretations. Those standards are being phased in for listed companies and government-owned business entities over a three-year period starting in 2014.

Not applicable.

IFRS Standards as issued by the Board, which are adopted as Nepal Financial Reporting Standards.

Nepal Financial Reporting Standards (NFRS).

While ‘dual reporting’ of conformity with both NFRS and IFRS Standards is not prohibited, it is not common.

No.

Not applicable.

Yes.

NFRSs are developed through due process that involves accountants, financial analysts and other users of financial statements, the business community, stock exchanges, regulatory and legal authorities, academics and other interested individuals and organisations of the country. The ASB if required consults, in public meetings, the Advisory Council on major projects, agenda decisions and work priorities, and discusses technical matters in meetings that are open to public observation. Due process for projects normally, but not necessarily, involves the following steps (the steps that are required under the terms of the ASB):

1.	The Executive Director or staff are asked to identify and review all the issues associated with the topic and to consider the application of the Conceptual Framework to the issues;
2.	study of national accounting requirements and practice and an exchange of views about the issues with national regulators.
3.	consulting the ASB members and the Advisory group about the advisability of adding the topic to the ASB's agenda;
4.	formation of an advisory group and expert team to give advice to the ASB on the project;
5.	publishing for public comment a discussion document;
6.	publishing for public comment an exposure draft (including any dissenting opinions held by ASB members) approved by ASB ;
7.	normally publishing with an exposure draft a basis for conclusions and the alternative views of any ASB member who opposes publication;
8.	consideration of all comments received within the comment period on discussion documents and exposure drafts;
9.	consideration of the desirability of holding a public hearing and of the desirability of conducting field tests and. if considered desirable holding such hearings and conducting such tests;
10.	approval of a standard by at least seven members of ASB; and
11.	if desirable, publishing with a standard

• a basis for conclusions, explaining, among other things, the steps in the ASB’s due process and how the ASB dealt with public comments on the exposure draft, and
• the dissenting opinion of any ASB member.

Once NAS/NFRS are approved by ASB Board,, they sent to Institute of Chartered Accountants of Nepal for pronouncement. The Institute determines the effective dates. As noted above, NFRS fully converged with IFRS Standards are being implemented over a three-year period 2014 to 2016 for listed companies and state-owned enterprises. Further, the Preface to NFRS states: “When IASB revises amends or withdraws International Accounting Standards, IFRSs, IFRIC or SIC such revision, amendments and withdrawals shall accordingly be treated as effected with immediate revision, amendments and withdrawals in NFRS by ASB as well to the extent not in conflict with existing National laws.”

Not applicable.

No.

Not applicable.

The same numbering as IAS/IFRS Standards has been retained in NAS/NFRS.

No. Currently the English standards are being used. But NAS/NFRS are currently being translated into Nepali.

The translation follows the official IFRS Foundation translation process.