NFRS & Financial Reporting
NFRS Services in Nepal
NFRS implementation and financial reporting for Nepali companies: first-time adoption, NFRS-compliant financial statements, accounting policies and support on complex areas such as leases, financial instruments and fair value.
What does NFRS reporting involve?
Financial reporting under NFRS is where many otherwise well-run businesses lose credibility. Statements are prepared to satisfy a deadline rather than to communicate, disclosures are copied forward year after year, and the first sign of a problem is a qualified opinion or a lender asking a question no one can answer.
We prepare and review financial statements under NFRS, resolve the technical questions that arise on the way, and translate the requirements into decisions the business can act on, revenue recognition, leases, financial instruments, impairment, consolidation, deferred tax.
Where a first-time adoption or a transition is involved, we plan it in advance rather than discovering the consequences during the audit.
When do you need NFRS support?
- Your auditor has raised the same points two years running.
- You are moving from a previous framework to NFRS and do not know what changes.
- Revenue recognition on long contracts is being handled by judgement rather than policy.
- A group structure needs consolidation for the first time.
- Lenders or investors are asking for statements you are not confident presenting.
NFRS services we provide
| Area | What you get |
|---|---|
| First-time adoption | NFRS 1 transition plan and opening balance sheet adjustments |
| Financial statements | NFRS or NFRS for SMEs statements with full notes and disclosures |
| Accounting policies | Written policies matched to your transactions and standards |
| Leases | NFRS 16 right-of-use assets and lease liabilities |
| Financial instruments | NFRS 9 classification and expected credit loss (ECL) |
| Fair value and impairment | Fair value measurement and impairment testing support |
| Auditor queries | Working papers and reconciliations ready before the statutory audit |
How an engagement runs
- 01
Scope the standards
Which NFRS requirements apply to your business and where the gaps are.
- 02
Set the opening position
Transition adjustments and opening balances worked out and documented.
- 03
Prepare the statements
Financial statements and disclosures drafted to NFRS.
- 04
Write the policies
Accounting policies and judgement papers for each material area.
- 05
Support your auditor
Working papers organised so the statutory audit, done by your appointed auditors, runs smoothly.
Common questions
What is NFRS?
NFRS, the Nepal Financial Reporting Standards, is Nepal's local framework for financial statements, issued by the Accounting Standards Board Nepal and converged with IFRS. It sets how transactions should be recognised, measured and disclosed.
Where do we start with NFRS?
Start by confirming which tier applies to you, then list your leases, long-term contracts and related-party arrangements, since adjustments usually concentrate there. Our guides on NFRS applicability and first-time adoption set this out step by step.
Which companies must follow NFRS in Nepal?
Listed companies, banks and financial institutions, insurers and other public-interest entities apply full NFRS; many other companies may use NFRS for SMEs. Our NFRS applicability guide explains which standard applies.
Do you audit NFRS financial statements?
No. We prepare and review NFRS reporting and support your team with auditor queries. The statutory audit is carried out by your independent auditor.
Do you audit the statements you prepare?
No. Preparation and audit are separate. We prepare and support; your appointed auditor forms the opinion independently.
How early should we start before year end?
For a transition or a significant judgement, three months before year end. For routine preparation, at year end is workable but leaves less room for issues.
Can you work with our existing accountant?
Yes. Most of our reporting work is done alongside an in-house team or an existing accounting provider.
Written on this, by us
- NFRS in NepalNFRS Audit Readiness: What the Auditor Will Ask For
- Company and complianceNGO and INGO Finance in Nepal: Registration, SWC Reporting and Donor Audit Support
- NFRS in NepalNFRS for a Large Retail Business: Where the Numbers Actually Move
- NFRS in NepalNFRS, NAS and IFRS: What Actually Differs
Explore NFRS & Reporting
Book a free callOther capabilities
Financial Strategy
Funding rounds, capital structure, and the models that have to hold up underneath them.
Business Performance
Margin by product, customer and branch, and the first things to change.
Finance Function & CFO Advisory
Monthly numbers that close on time, without anyone chasing them.
Tax & Technical Advisory
Tax positions that survive an IRD query, documented before the query comes.
Outsourcing & Virtual CFO
Monthly accounting, reporting and CFO-level support run for you, for businesses in Nepal and firms abroad outsourcing here.