Applicability of NFRS
The 244th meeting of the Council dated 25 June 2020, in exercise of powers conferred by section 11 (m) of Nepal
Chartered Accountants Act 2053 has decided to pronounce the following list of Nepal Financial Reporting Standards
(NFRSs) including IFRIC and SIC for implementation with effective dates as mentioned in table below. The pronounced
standards are the updated standards in line with the International Financial Reporting Standards (IFRSs) issued on 01
January 2018 by International Accounting Standards Board (IASB).
Detail List of Nepal Financial Reporting Standards 2018
| Nepal Financial Reporting Standards (NFRS) with Conceptual Framework | ||
| S. No. | Name of Standards | Effective Date |
| The Conceptual Framework for Financial Reporting |
July 16, 2020 | |
| 1 | NFRS 1 First-time Adoption of Nepal Financial Reporting Standards | |
| 2 | NFRS 2 Share-based Payment | |
| 3 | NFRS 3 Business Combinations | |
| 4 | NFRS 4 Insurance Contracts | |
| 5 | NFRS 5 Non-current Assets Held for Sale and Discontinued Operations | |
| 6 | NFRS 6 Exploration for and Evaluation of Mineral Resources | |
| 7 | NFRS 7 Financial Instruments: Disclosures | |
| 8 | NFRS 8 Operating Segments | |
| 9 | NFRS 9 Financial Instruments | July 16, 2021 |
| 10 | NFRS 10 Consolidated Financial Statements |
July 16, 2020 |
| 11 | NFRS 11 Joint Arrangements | |
| 12 | NFRS 12 Disclosure of Interests in Other Entities | |
| 13 | NFRS 13 Fair Value Measurement | |
| 14 | NFRS 14 Regulatory Deferral Accounts | July 16, 2021 |
| 15 | NFRS 15 Revenue from Contracts with Customers | |
| 16 | NFRS 16 Leases | |
| 17 | NFRS 17 Insurance Contract | July 17, 2023 |
| Nepal Accounting Standards (NAS) | ||
| Name of Standards | Effective Date | |
| 18 | NAS 1 Presentation of Financial Statements |
July 16, 2020 |
| 19 | NAS 2 Inventories | |
| 20 | NAS 7 Statement of Cash Flows | |
| 21 | NAS 8 Accounting Policies, Changes in Accounting Estimates and Errors | |
| 22 | NAS 10 Events after the Reporting Period | |
| 23 | NAS 12 Income Taxes | |
| 24 | NAS 16 Property, Plant and Equipment | |
| 25 | NAS 19 Employee Benefits | |
| 26 | NAS 20 Accounting for Government Grants and Disclosure of Government Assistance | |
| 27 | NAS 21 The Effects of Changes in Foreign Exchange Rates | |
| 28 | NAS 23 Borrowing Costs | |
| 29 | NAS 24 Related Party Disclosures | |
| 30 | NAS 26 Accounting and Reporting by Retirement Benefit Plans | |
| 31 | NAS 27 Separate Financial Statements | |
| 32 | NAS 28 Investments in Associates and Joint Ventures | |
| 33 | NAS 29 Financial Reporting in Hyperinflationary Economies | July 16, 2021 |
| 34 | NAS 32 Financial Instruments: Presentation |
July 16, 2020 |
| 35 | NAS 33 Earnings per Share | |
| 36 | NAS 34 Interim Financial Reporting | |
| 37 | NAS 36 Impairment of Assets | |
| 38 | NAS 37 Provisions, Contingent Liabilities and Contingent Assets | |
| 39 | NAS 38 Intangible Assets | |
| 40 | NAS 39 Financial Instruments: Recognition and Measurement | |
| 41 | NAS 40 Investment Property | |
| 42 | NAS 41 Agriculture | |
| IFRIC | Remarks | |
| 1 | IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities |
As per IFRS 2018 |
| 2 | IFRIC 2 Members’ Shares in Co-operative Entities and Similar Instruments | |
| 3 | IFRIC 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds | |
| 4 | IFRIC 6 Liabilities arising from Participating in a Specific Market—Waste Electrical and Electronic Equipment | |
| 5 | IFRIC 7 Applying the Restatement Approach under NAS 29 Financial Reporting in Hyperinflationary Economies | |
| 6 | IFRIC 10 Interim Financial Reporting and Impairment | |
| 7 | IFRIC 12 Service Concession Arrangements | |
| 8 | IFRIC 14 IAS 19—The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction | |
| 9 | IFRIC 16 Hedges of a Net Investment in a Foreign Operation | |
| 10 | IFRIC 17 Distributions of Non-cash Assets to Owners | |
| 11 | IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments | |
| 12 | IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine | |
| 13 | IFRIC 21 Levies | |
| 14 | IFRIC 22 Foreign Currency Transactions and Advance Consideration | |
| 15 | IFRIC 23 Uncertainty over Income Tax Treatments | |
| SIC | ||
| 1 | SIC-7 Introduction of the Euro | |
| 2 | SIC-10 Government Assistance—No Specific Relation to Operating Activities | |
| 3 | SIC-25 Income Taxes—Changes in the Tax Status of an Entity or its Shareholders | |
| 4 | SIC-29 Service Concession Arrangements: Disclosures | |
| 5 | SIC-32 Intangible Assets—Web Site Costs |
Note: NFRS 2013 version of NAS 11: Construction Contracts, NAS 17: Leases and NAS 18: Revenue Contracts, will continue to be effective until superseding standards will come into force on July 16, 2021. NFRS 17: Insurance Contract will be effective from 17th July, 2023Other Accounting Standards
| S.No. | Accounting Standards | Effective Date |
| 1 | Nepal Financial Reporting Standards for Small and Medium-sized Entities (NFRS for SMEs) 2017 | Voluntarily upto 18th July, 2023 & Mandatorily from 17th July, 2023 |
| 2 | Nepal Accounting Standards for Micro Entities (NAS for MEs) 2018 | |
| 3 | Nepal Accounting Standards for Not-for-Profit Organizations (NAS for NPOs) 2018 |