Nepal Financial Reporting Standards (NFRS) 


The Nepal Financial Reporting Standards (NFRS) serve as a common global language for business affairs within Nepal. These standards ensure that company accounts are comparable, understandable, reliable, and relevant to internal and external users. Here are some key points about NFRS:

  1. Scope and Purpose:
    • NFRS provides guidelines for maintaining books of accounts by accountants.
    • The goal is to create financial statements that are consistent, transparent, and useful for decision-making.
  2. Applicability:
    • NFRS applies to various types of entities based on their characteristics and size.
    • The adoption timeline varies for different categories of entities:
      • Listed Multinational Manufacturing Companies and Listed State-Owned Enterprises (SOEs) with a minimum paid-up capital of Rs. 5 billion adopted NFRS in 2014-15.
      • Commercial Banks, other Listed SOEs, and Financial Institutions adopted NFRS in subsequent years.
  3. Specific Standards:
    • NFRS covers a range of accounting topics, including:
      • Presentation of Financial Statements (NAS 1)
      • Inventories (NAS 2)
      • Statement of Cash Flows (NAS 7)
      • Accounting Policies, Changes in Accounting Estimates & Error (NAS 8)
      • Construction Contracts (NAS 11)
      • Revenue Recognition (NAS 18)
      • Impairment of Assets (NAS 36)
      • Fair Value Measurements (NFRS 13), and more.
  4. Conceptual Framework:
    • The Conceptual Framework for Financial Reporting underpins NFRS, providing fundamental principles and concepts for preparing financial statements.

NFRS aims to enhance transparency, comparability, and reliability in financial reporting, benefiting businesses and stakeholders. For more detailed information, refer to the official Institute of Chartered Accountants of Nepal (ICAN) NFRS page.

S.N.NFRSsName of Standards
Conceptual Framework
1NAS 1Presentation of Financial Statements
2NAS 2Inventories
3NAS 7Statement of Cash Flows
4NAS 8Accounting Policies, Changes in Accounting Estimates & Error
5NAS10Events after the Reporting Period
6NAS 11Construction Contracts
7NAS 12Income Taxes
8NAS 16Property, Plant & Equipment
9NAS 17Leases
10NAS 18Revenue
11NAS 19Employee Benefits
12NAS 20Accounting for Government Grants & Disclosure of Government Assistance
13NAS 21The Effects of Changes in Foreign Exchange Rates
14NAS 23Borrowing Cost
15NAS 24Related Party Disclosures
16NAS 26Accounting & Reporting by Retirement Benefit Plans
17NAS 27Consolidated and Separate Financial Statements
18NAS 28Investments in Associates
19NAS 32Financial Instruments : Presentation
20NAS 33Earnings Per Share
21NAS 34Interim Financial Reporting
22NAS 36Impairment of Assets
23NAS 37Provisions, Contingent Liabilities and Contingent Assets
24NAS 38Intangible Assets
25NAS 39Financial Instruments: Recognition and Measurement
26NAS 40Investment Property
27NAS 41Agriculture
28NFRS 1First-Time Adoption of Nepal Financial Reporting Standards 
29NFRS 2Share based Payment
30NFRS 3Business Combination
31NFRS 4Insurance Contracts
32NFRS 5Non-Current Assets Held for Sale & Discontinued Operation
33NFRS 6Exploration  for and Evaluation of Mineral Resources
34NFRS 7Financial Instruments: Disclosure
35NFRS 8Operating Segments
36NFRS 9Financial Instruments
37NFRS 10Consolidated Financial Statements
38NFRS 11Joint Arrangements
39NFRS 12Disclosure of Interests in other Entities
40NFRS 13Fair Value Measurements

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Jayanti Shiwakoti

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