International Financial Reporting Standards (IFRS) are designed and issued by International Accounting Standards Board (IASB) to harmonize accounting and reporting of the financial statements throughout the world. The Accounting Standards Board of Nepal has developed Nepal Financial Reporting Standards (NFRS) in compliance with the IFRS. Institute of Chartered Accountants of Nepal (ICAN) as the regulatory body has rolled out its implementation from the Nepali Fiscal year starting mid July 2014.The implementation is planned in a phased manner and starts with mandatory application to listed multinational manufacturing companies and listed state owned enterprises except state owned bank and financial institutions. Commercial banks and all other listed companies will have to adopt NFRS from the fiscal year commencing mid July 2015. From the year 2016/17, all the entities except SMEs will have to prepare their financial statements using NFRS.
Use of NFRS will help bring the financial statements of Nepalese enterprises at par with the international organizations. This will not only add a solid foundation for the corporate sector development in Nepal but also help bring in foreign investors by making the accounting and reporting environment uniform and familiar to the practices followed by the international business community.
Implementation of IFRS or NFRS needs specialized knowledge and skills specially for the first time adoption and continuation in the initial years. Compliance with the standards demands full compliance and gaps and lapses are not allowed. CSC & Co. has specialized team of professionals to help clients in understanding the major changes required in implementing IFRS/NFRS and managing its first time implementation. We are here to assist the management in implementation of IRFS/NFRS or provide opinion on the financial statements’ compliance with IFRS/NFRS.