Accounting standards are sets of principles that enhance the transparency and accuracy of financial reporting. The Nepal Financial Reporting Standards (NFRS) were established by the Accounting Standard Board in 2003 to provide a uniform basis for financial reporting in Nepal, aligning with international standards like IFRS and GAAP. NFRS aims to foster investor confidence, ensure consistent accounting practices, and provide reliable financial information across all entities.

1. Accounting Standard
Class 10 Accountancy

2. Introduction to Accounting Standard
 Accounting standards are Common set of principles,
standards and procedure.
 They define the basis of accounting policies and
practices.
 Accounting standard improve transparency of
financial reporting by ensuring that the information
about given entity is relevant and accurate.
 The main objective of accounting standard is to
bring a common base for evaluation through
uniform presentation, measurement, treatments
and disclosure of financial events.

3. Introduction to Accounting Standard
 Examples of IAS are
 IFRS (International Financial Reporting Standards)
 It Is European Based & most famous in the world
 GAAP (Generally Accepted Accounting Principles)
 It is US based
 NFRS (Nepal Financial Reporting Standards)
 It is Nepal Based & Based on IFRS

4. Introduction to NFRS
Government of Nepal established
Accounting Standard Board (ASB) in 2003
March 10.
Nepal Financial Reporting Standards (NFRS)
are a set of accounting standards developed
by the Accounting Standard Board (ASB).
NFRS Provides a set of principles to be
followed while accounting for transaction
and events in financial statements

5. Objectives/Importance of NFRS or NAS
Fostering Investor Confidence by providing necessary
information.
Assessing the international financial market.
Making uniformity in accounting reporting system.
Formulate accounting assumption standards in line with
IFRS.
To encourage the accountants to maintain book of
accounts in a way that they are comparable,
understandable, reliable and relevant.
To provide information about financial position,
performance and change in financial position.

6. Uses of NFRS or NAS
An accounting standard is applied to all purpose of
financial statements which is prepared and presented in
accordance with NAS.
NAS applies equally to the financial statements of
individual entities and to consolidated financial
statements for group of entities with accounting
policies.
NAS also applies to all companies including public sector
business entities.
NFRS is useful to business organization, Non Profit
organization, government and other sector.