NFRS & Financial Reporting
Reporting to a foreign parent or investor
“Head office wants numbers on its timetable and in its format.”What owners tell us
The situation
Signs you are facing this
- Group reporting packs are prepared in a scramble each quarter
- Differences between local statutory and group numbers take days to explain
- Inter-company balances, fees and loans do not agree between entities
- Questions on repatriation, withholding or transfer pricing arrive late
The situation
Reporting to a foreign parent or investor
Driver 1
Two reporting bases and no bridge
Local accounts and group policies differ, and no one owns the reconciliation.
Driver 2
A month-end close that is too slow
Group deadlines arrive before local books are final.
Driver 3
Related-party records scattered
Agreements, invoices and settlements sit in different places.
- 1
Diagnose
Agree the pack and the calendar
Fix what head office needs, in what format and by when.
- 2
Design
Build the bridge
A repeatable reconciliation from local statutory numbers to group reporting.
- 3
Embed
Document related-party flows
Agreements, pricing basis and evidence of services and settlement.
- Group reporting pack and calendar
- Local-to-group reconciliation
- Related-party register and evidence file
- Repatriation and withholding checklist
Start this week
- Agree a group reporting calendar with head office
- Maintain a local-to-group reconciliation each period
- Reconcile inter-company balances monthly
- Keep agreements and evidence for every related-party charge
Common questions
Why do local and group numbers differ?
Local statutory accounts follow Nepali standards and tax rules, while a group may report under IFRS and its own policies. A reconciliation explains each difference.
What should be documented for related-party dealings?
Agreements, the pricing basis, evidence that services were received and how they were settled, so transfer pricing and tax positions can be supported.
Related situations
- “Money moves between the family and the company and nobody can say what it means.”Family and company money, kept apart
- “We are thinking of selling, merging or bringing in a partner.”Selling, merging or bringing in a partner
- “We need help with tax, NFRS or a complex financial matter.”Help with tax, NFRS or a complex financial matter