Nepal to adopt global accounting system

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.