Notice for Public Comments on the Exposure Drafts of NFRS 18 and NFRS 19 [NEW]

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Deadline Mangsir 8, 2083 BS24 Nov 2026

Notice for Public Comments on the Exposure Drafts of NFRS 18 and NFRS 19 [NEW] – document 1

79 pages

Notice for Public Comments on the Exposure Drafts of NFRS 18 and NFRS 19 [NEW] – document 2

84 pages

Summary

(Formed by the Government of Nepal under the Nepal Chartered Accountants Act, 1997) September 2026 Exposure Draft Nepal Financial Reporting Standards NFRS 18: Presentation and Disclosure in Financial Statements Comments to be received by 24 November 2026Preface Introduction Accounting Standards…

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5c12fe7c-614d-4581-bd65-e94c049f2179.pdfPDF · 79 pages · 1.6 MBOpen
1281cf22-5b32-4597-9e81-3099ce073e64.pdfPDF · 84 pages · 1.5 MBOpen

Key details

Organization: Accounting Standards Board
Industry: Gov. Authority/Autonomo. Body
Category: Acts & regulations
Published: 3 Oct 2026 · Ashwin 17, 2083 BS
Deadline: Mangsir 8, 2083 BS · 24 Nov 2026
Source: View on the original website

Text extracted automatically from the notice (may contain errors)

5c12fe7c-614d-4581-bd65-e94c049f2179.pdf

लेखामान बोर्ड ACCOUNTING STANDARDS BOARD (Formed by the Government of Nepal under the Nepal Chartered Accountants Act, 1997) September 2026 Exposure Draft Nepal Financial Reporting Standards NFRS 18: Presentation and Disclosure in Financial Statements Comments to be received by 24 November 2026Preface Introduction Accounting Standards Board, Nepal (ASB Nepal) was formed by the Government of Nepal on July 8, 2002 (2059 Ashad 24) through an amendment to the Nepal Chartered Accountants Act, 1997, with a mandate to formulate and issue accounting standards for business enterprises in line with the International Financial Reporting Standards (IFRSs) and to provide interpretations of those standards. Since its establishment, ASB Nepal has issued various frameworks, including multiple versions of Nepal Financial Reporting Standards (NFRSs), standards for SMEs, Micro Entities and Not for Profit Organizations, along with implementation guidelines and application guidance notes. The Board consists of 13 members, including a Chairman nominated by the Government of Nepal from among the Fellow Chartered Accountants, and representatives from key government and regulatory institutions, along with nominated Chartered Accountants and a Registered Auditor. The International Accounting Standards Board (IASB) issued IFRS 18, Presentation and Disclosure in Financial Statements, in April 2024, replacing IAS 1 Presentation of Financial Statements. IFRS 18 represents a significant shift in how financial performance is presented and explained, introducing mandatory categories and defined subtotals in the statement of profit or loss, and enhancing requirements for aggregation and disaggregation of information. It becomes effective for annual reporting periods beginning on or after January 1, 2027, with early adoption permitted. The proposed NFRS 18 is based on IFRS 18 and reflects ASB Nepal’s commitment to alignment with global standards and to enhancing the relevance, transparency, comparability and decision- usefulness of financial information in Nepal. ASB Nepal is committed to strengthening the financial reporting framework in Nepal in line with international best practices. In response to the need for updated presentation and disclosure requirements, ASB Nepal is releasing the Exposure Draft on NFRS 18: Presentation and Disclosure in Financial Statements. Rationale for the Proposed Standard Primary users of general-purpose financial statements require consistent, comparable and verifiable information to support informed economic and investment decision-making. The presentation and disclosure of financial performance are critical to assessing an entity’s prospects for future cash flows and management’s stewardship of resources. NFRS 18 responds to long-standing concerns from investors and analysts about inconsistent presentation of performance and excessive use of entity-specific subtotals. By introducing a structured statement of profit or loss and enhanced disclosure requirements, NFRS 18 aims to improve thecomparability and transparency of financial statements across entities. The proposed standard draws on internationally recognized frameworks and best practices. Through its development, ASB Nepal aims to strengthen the financial reporting landscape in Nepal, enhance investor confidence and support sustainable economic development. Stakeholder Engagement ASB Nepal emphasizes the importance of a transparent and inclusive standard-setting process. A comprehensive gap analysis was undertaken to assess Nepal’s existing financial reporting regulatory landscape and to benchmark it against international best practices. In developing the draft version of NFRS 18, the Board has built upon globally accepted standards that have undergone extensive deliberation and completed the due process of standard-setting as per the laid down procedures of the Board. The development of this Exposure Draft has followed the due process of the Board, including technical discussions, review and approval prior to its issuance. Participation of stakeholders remains central to this standard-setting process. Feedback from preparers, users, regulators, auditors and other stakeholders is essential to ensure that the standard is relevant, practical and capable of meeting users’ expectations for complete, sufficient, dependable and faithful information. ASB Nepal will consider such feedback carefully in refining and finalizing the standard. Expectations from Stakeholders Feedback from stakeholders will play a critical role in finalizing the standard and ensuring its effective implementation. ASB Nepal plans to redeliberate the Exposure Draft within its Standards Development and Revision Technical Committee and the Board based on feedback or comments from stakeholders, with a view to issuing the final standard expeditiously. Stakeholder comments will be most useful if they are specific (with reference to particular paragraphs), provide clear rationale, highlight any wording that is unclear or difficult to understand and suggest any alternative that ASB Nepal should consider. Submission of Feedback Concerned stakeholders are encouraged to participate in the standard-setting process by providing valuable and constructive comments, feedback or suggestions either directly (in person or via letter) to the Board’s Secretariat or by sending an email to [email protected] within two months from the date of release of this Exposure Draft, i.e., on or before Mangsir 08, 2083 (24 November 2026).Message from Chairman Accounting Standards Board (ASB), Nepal is pleased to issue the Exposure Draft of NFRS 18: Presentation and Disclosure in Financial Statements, for public comment. NFRSs are developed in alignment with IFRS Accounting Standards issued by the International Accounting Standards Board (IASB). In April 2024, the IASB issued IFRS 18, replacing IAS 1 and introducing enhanced requirements for the presentation and disclosure of financial performance, including defined categories and subtotals in profit or loss, management-defined performance measures, and improved principles for aggregation and disaggregation. ASB Nepal has developed NFRS 18 based on IFRS 18, with the effective date to be decided later by the Board. ASB Nepal has therefore issued this Exposure Draft of NFRS 18 for public consultation. As the proposed Standard introduces a significant change in the presentation and structure of the statement of profit or loss, including new categories of income and expenses and defined subtotals, its implementation will have an important impact on how financial performance of Nepalese entities are presented and understood. ASB Nepal encourages all stakeholders including preparers, auditors, investors, sectoral regulators, professional bodies, academics and other users of financial statements to review the Exposure Draft and provide their valuable comments and suggestions. Your feedback is an important part of the standard-setting process and will assist the ASB Nepal in finalizing NFRS 18 in a manner that is appropriate and effective for Nepal. Ramesh Kumar Dhital, FCA Chairman Accounting Standards Board, Nepal

1281cf22-5b32-4597-9e81-3099ce073e64.pdf

लेखामान बोर्ड ACCOUNTING STANDARDS BOARD (Formed by the Government of Nepal under the Nepal Chartered Accountants Act, 1997) September 2026 Exposure Draft Nepal Financial Reporting Standards NFRS 19: Subsidiaries without Public Accountability: Disclosures Comments to be received by 24 November 2026Preface Introduction The Accounting Standards Board, Nepal (ASB Nepal) was formed by the Government of Nepal on July 8, 2002 (2059 Ashad 24) through an amendment to the Nepal Chartered Accountants Act, 1997, with a mandate to formulate and issue accounting standards for business enterprises in line with the International Financial Reporting Standards (IFRSs) and to provide interpretations of those standards. Since its establishment, ASB Nepal has issued various frameworks, including multiple versions of Nepal Financial Reporting Standards (NFRSs), standards for SMEs, Micro Entities and Not for Profit Organizations, along with implementation guidelines and application guidance notes. The Board consists of 13 members, including a Chairman nominated by the Government of Nepal from among the Fellow Chartered Accountants, and representatives from key government and regulatory institutions, along with nominated Chartered Accountants and a Registered Auditor. The International Accounting Standards Board (IASB) issued IFRS 19: Subsidiaries without Public Accountability: Disclosures, in May 2024. IFRS 19 permits eligible subsidiaries to apply IFRS Accounting Standards with reduced disclosure requirements, thereby reducing the cost of preparing their financial statements while maintaining the usefulness of information for users. It becomes effective for annual reporting periods beginning on or after January 1, 2027, with early application permitted. The proposed NFRS 19 is based on IFRS 19 and reflects ASB Nepal’s commitment to alignment with global standards and to enhancing the relevance, transparency, comparability and decision-usefulness of financial information in Nepal. ASB Nepal is committed to strengthening the financial reporting framework in Nepal in line with international best practices. In response to the need for reduced disclosure requirements for eligible subsidiaries, ASB Nepal is releasing the Exposure Draft on NFRS 19: Subsidiaries without Public Accountability: Disclosures. Rationale for the Proposed Standard Eligible subsidiaries often face the burden of preparing two sets of accounting records-one for group reporting purposes using NFRS and another for their statutory financial statements using the NFRS for SMEs or local GAAP. NFRS 19 addresses this challenge by permitting eligible subsidiaries to apply NFRS with reduced disclosure requirements, enabling them to maintain a single set of accounting records while meeting the needs of both their parent company and the users of their financial statements. This reduces reporting costs and simplifies reporting systems and processes for eligible subsidiaries. The proposed standard draws on internationally recognized frameworks and best practices. Through its development, ASB Nepal aims tostrengthen the financial reporting landscape in Nepal, enhance investor confidence and support sustainable economic development. Stakeholder Engagement ASB Nepal emphasizes the importance of a transparent and inclusive standard-setting process. A comprehensive gap analysis was undertaken to assess Nepal’s existing financial reporting regulatory landscape and to benchmark it against international best practices. In developing the draft version of NFRS 19, the Board has built upon globally accepted standards that have undergone extensive deliberation and completed the due process of standard-setting as per the laid down procedures of the Board. The development of this Exposure Draft has followed the due process of the Board, including technical discussions, review and approval prior to its issuance. Participation of stakeholders remains central to this standard-setting process. Feedback from preparers, users, regulators, auditors and other stakeholders is essential to ensure that the standard is relevant, practical and capable of meeting users’ expectations for complete, sufficient, dependable and faithful information. ASB Nepal will consider such feedback carefully in refining and finalizing the standard. Expectations from Stakeholders Feedback from stakeholders will play a critical role in finalizing the standard and ensuring its effective implementation. ASB Nepal plans to redeliberate the Exposure Draft within its Standards Development and Revision Technical Committee and the Board based on feedback or comments from stakeholders, with a view to issuing the final standard expeditiously. Stakeholder comments will be most useful if they are specific (with reference to particular paragraphs), provide clear rationale, highlight any wording that is unclear or difficult to understand and suggest any alternative that ASB Nepal should consider. Submission of Feedback Concerned stakeholders are encouraged to participate in the standard-setting process by providing valuable and constructive comments, feedback or suggestions either directly (in person or via letter) to the Board’s Secretariat or by sending an email to [email protected] within two months from the date of release of this Exposure Draft, i.e., on or before Mangsir 08, 2083 (24 November 2026).Message from Chairman Accounting Standards Board (ASB), Nepal is pleased to issue the Exposure Draft of NFRS 19: Subsidiaries without Public Accountability: Disclosures, for public comment. NFRSs are developed in alignment with IFRS Accounting Standards issued by the International Accounting Standards Board (IASB). In May 2024, the IASB issued IFRS 19, providing eligible subsidiaries with a reduced set of disclosure requirements while applying the recognition, measurement and presentation requirements of other IFRS Accounting Standards. ASB Nepal has developed NFRS 19 based on IFRS 19, with the effective date to be decided later by the Board. The introduction of NFRS 19 represents an important development in financial reporting for eligible subsidiaries without public accountability. By providing a proportionate disclosure framework, the Standard aims to reduce the disclosure burden while maintaining useful and transparent financial information for users of financial statements. ASB Nepal therefore encourages all stakeholders, including preparers, auditors, investors, regulators, professional bodies, academics and other users of financial statements, to carefully review the Exposure Draft and provide their valuable comments and suggestions. Your feedback is an important part of the standard-setting process and will assist the ASB Nepal in finalizing NFRS 19 in a manner that is appropriate and effective for Nepal. Ramesh Kumar Dhital, FCA Chairman Accounting Standards Board, Nepal