Nepal should follow the
standard accounting format prescribed by the International Financial Reporting
Standards (IFRS) by 2015, to make its presence felt in the global market.
However, domestic
companies should implement the standards in a phase-wise manner, according to
the Accounting Standards Board.
Commercial banks and
listed public enterprises should introduce IFRS by next July, and development
banks, and finance and insurance companies should follow the global accounting
standards by July 2014.
All the remaining
companies should adopt IFRS by July 2015, the board informed, adding that
multinational companies listed at Nepal Stock Exchange (Nepse) started
following the provision only from July.
IFRS is designed to make
company accounts understandable and comparable across international boundaries.
"The international accounting standard will help domestic companies
attract strategic partners that are expected to increase foreign direct
investment in the country," it added.
"Nepal Telecom — a
Nepse listed company — is planning to bring in a strategic partner and with the
new rule, it will be easier for the telecom operator to find one."
Meanwhile, a two-day
fourth meeting of Asian Oceanian Standards Setters Group (AOSSG) started is going to be
held in Kathmandu from tomorrow. A total of 64 delegates from 18 countries are
participating in the meeting, the board said, adding that promoting the
adoption of international financial reporting standards is the main objective
of the meeting.
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