NFRS stands for Nepal Financial Reporting Standards. These are a set of accounting standards issued by the Institute of Chartered Accountants of Nepal (ICAN) for use by companies, non-profit organizations, and other entities in Nepal to prepare their financial statements.
The NFRS is based on the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). The purpose of the NFRS is to provide a common financial reporting framework to ensure that financial statements prepared by Nepalese entities are reliable, relevant, and comparable.
The NFRS includes standards for topics such as revenue recognition, financial instruments, leases, and presentation of financial statements. It also provides guidance on the disclosure of information in financial statements to help users make informed decisions.
Compliance with NFRS is mandatory for certain entities in Nepal, such as those listed on the Nepal Stock Exchange, financial institutions, and other public interest entities. Adherence to these standards helps to improve the quality and transparency of financial reporting in Nepal and promotes investor confidence in the Nepalese market.
