28 Account -- Basic Accounting Terminologies and Double Entry System

What do you mean by Nepal Accounting Standard (NAS) & Nepal Financial Reporting Standard (NFRS) ?

1 Answers

1. Nepal Accounting Standard (NAS): NAS refers to a set of accounting principles and guidelines that provide a standardized framework for recording, presenting, and disclosing financial transactions and events in Nepal. These standards are based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), with necessary modifications and adaptations to suit the Nepalese context. NAS aims to enhance the transparency, comparability, and reliability of financial reporting in Nepal.

2. Nepal Financial Reporting Standard (NFRS): NFRS represents a comprehensive set of standards and interpretations that dictate how financial statements should be prepared and presented in Nepal. NFRS encompasses NAS along with other relevant regulations and pronouncements related to financial reporting. The primary objective of NFRS is to ensure consistency, clarity, and relevance in financial reporting, thereby facilitating better decision-making by various stakeholders, such as investors, lenders, regulators, and the general public.

Point out the general objectives of Nepal Financial Reporting Standard (NFRS).

The general objectives of Nepal Financial Reporting Standards (NFRS) are as follows:

1. Enhancing Transparency: NFRS aims to improve the transparency and comparability of financial statements, enabling stakeholders to make informed decisions. By setting clear and comprehensive guidelines for financial reporting, it ensures that relevant and reliable information is provided to users of financial statements.

2. Facilitating Accountability: NFRS seeks to enhance accountability by establishing a...

What is Assets?

Assets are economic resources owned or controlled by individuals, businesses, or organizations, representing their potential to generate future benefits. They can include physical possessions, such as property or vehicles, financial instruments like stocks or bonds, or intangible assets like patents or trademarks.

What is Liabilities?

Liabilities refer to the financial obligations or debts owed by an individual, company, or organization. They represent the claims that others have on the entity's assets and can include loans, accounts payable, accrued expenses, and other obligations.