KATHMANDU, DEC 27 -
The government has planned to partially implement the International
Financial Reporting Standards (IFRS) to strengthen the accounting system
in various sectors of the economy. The new reporting standards, which
will be launched in the next fiscal year, are expected to allow
regulators to monitor companies in a more effective manner.
Auditor General Bhanu Acharya said the government planned to enforce
the accounting practices fully by 2017. “The new standards to be
implemented will help measure the actual financial health of
organizations in a more effective manner,” Acharya told a programme
organised jointly by the Institute of Chartered Accountants of Nepal and
the Society of Economic Journalists of Nepal.
Acharya added the
government envisaged implementing the standards at public enterprises
and multinational companies in the beginning. According to him, the IFRS
is now in practice in 122 countries.
The IFRS were developed by the International Accounting Standards Board
as a system of keeping accounts of companies that would be recognized
universally. Besides helping in effective regulation, the standards are
also expected to aid domestic companies attract strategic partners by
increasing foreign direct investment in the country.
The new reporting standards include balance sheet, statement of profit
and loss, statement of cash flow, statement of changes in shareholders’
equity and notes comprising a summary of accounting policies and other
explanatory notes.
Parakram Sharma, member of the Nepal Accounting Standards Board, said
the new standards would be based on general purpose financial statements
that measure the various financial components in fair value instead of
the timeframe value being implemented now.
He added that they were developing a model that would comply with the
norms of the concerned regulators and international auditing standards.
“The standards will be based mainly on financial principles than on a
rule-based system,” he added.
At present, the Nepal Accounting Standards is in effect. With the aim
of implementing the IFRS, the government has been providing training to
officials of financial regulating bodies.
Source:ekantipur.com, 27th Dec 2013
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