Financial reporting frameworks in Nepal: NFRS, NFRS for SMEs and NAS for Micro Entities

The Accounting Standards Board Nepal (ASB Nepal) pronounces the accounting standards applied in Nepal. There are three broad frameworks.

Nepal Financial Reporting Standards (NFRS)

NFRS are based on International Financial Reporting Standards and apply to entities such as listed companies, banks and financial institutions, insurers and other entities required to apply them.

NFRS for SMEs

NFRS for Small and Medium-sized Entities is a simplified framework for entities without public accountability that meet the criteria set out by ASB Nepal.

NAS for Micro Entities

Nepal Accounting Standards for Micro Entities provide a further simplified basis for the smallest entities that meet the applicable criteria.

Identifying the applicable framework

Which framework applies depends on the nature, size and regulatory status of the entity, and on the applicability notices issued by ASB Nepal and ICAN. Regulators may also prescribe formats for the entities they supervise.