Nepalese Financial Reporting Standard
The Institute of Chartered Accountants of Nepal (ICAN) has announced the implementation of NFRS in Commercial Banks from fiscal year 2015/16. However, Nepal Rastra Bank has issued its directive to commercial banks to prepare their financial statements of 2017/18 based on NFRS. NFRS is principle based a high quality standard which is divergent to local GAAP. Adoption of NFRS impacted greater areas including financial reporting as well as loan loss provisioning requirements.