annual report 2015/16 - ican.org.np prasad adhikari ra. ganesh raj rai ra. dhruba prasad paudel ......

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  • The Institute of Chartered Accountants of Nepal (ICAN)

    (Established under the Nepal Chartered Accountants Act, 1997)

    ANNUAL REPORT 2015/16

  • The Institute of Chartered Accountants of Nepal7th Council Members 2016 - 2017 (Second Term)

    CA. Mahesh KhanalPresident (2016/17)

    CA. Prakash Jung ThapalVice President (2016/17)

    CA. Prakash LamsalImmediate Past President

    CA. Bharat Rijal CA. Suresh Devkota CA. Ram Prabodh Shah

    CA. Sunil Jakibanja CA. Bhaskar Singh Lala CA. Bhava Nath Dahal CA. Jagannath Upadhyay (Niraula)

    RA. Yadav Prasad Nyaupane RA. Surya Prasad Adhikari RA. Ganesh Raj Rai RA. Dhruba Prasad Paudel

    Mr. Baburam Gautam Mr. Mukunda Raj Panthi Mr. Jagannath Devkota CA. Binay Prakash ShresthaExecutive Director

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    The Logo of the Institute of Chartered Accountants of Nepal (ICAN) bears a well-known line impregnated with a rich moral lesson. It is extracted from Chapter XIX (text line no.39) of the Yajurveda. It is the second of the following four-line stanza.

    Literally, k'gGt' dg;f lwoM means: Purity of mind and clarity of wisdom.

    The Vedic text is chanted aloud during occasions of good omen for purification of mind, body and environment.

    ICAN realizes that internally purified and enlightened mind is the lifeblood of righteousness. We consider it indispensable for both doing right things and doing things right.

    We, therefore, pledge to be guided by the Vedic principle. Our policies, aspirations and expectations, strategies, and functioning style shall always be determined by the above message.

    We wish to be blessed with your best wishes for our success.

  • T H E I N S T I T U T E O F C H A R T E R E D A C C O U N T A N T S O F N E P A L

    ANNUAL REPORT 2015 - 162 The Institute of Chartered Accountants of Nepal

    Core Values Our core values are trust, mutual respect, innovation, relevance, accountability, integrity

    and professional excellence

    Mission Enhance and promote the reputation and role

    of accounting profession and ensure the highest professional quality of

    members to make them globally competent

    Vision Establish ICAN as a

    Credible professional accounting body

  • T H E I N S T I T U T E O F C H A R T E R E D A C C O U N T A N T S O F N E P A L

    ANNUAL REPORT 2015 - 16 3The Institute of Chartered Accountants of Nepal

    Objectives

    To play the role of regulatory body to encourage the members to carry on accounting profession being within the extent of the code of the conduct in order to consolidate and develop accounting profession as a cause for economic development of the nation.

    To enhance social recognition and faith in accounting profession by raising awareness of the general public towards the importance of accounting profession and the economic and social responsibility of professional accountants.

    To develop, protect and promote the accounting profession by enabling professional accountants understand their responsibility towards the importance of the accounting profession and accountancy.

    To develop mechanism of registration, evaluation and examination of accounting professionals in consonance with International norms and practice so as to make the accounting profession respectable and reliable.

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  • T H E I N S T I T U T E O F C H A R T E R E D A C C O U N T A N T S O F N E P A L

    ANNUAL REPORT 2015 - 16 5The Institute of Chartered Accountants of Nepal

    Table of Contents

    Facts about ICAN 6

    Presidents Message 7

    Brief Outline of the Institute of Chartered Accountants of Nepal 11

    International Participation 12

    Events & Activities 15

    Member Affairs 21

    Status of Membership 21

    Student Affairs 24

    Chartered Accountancy Examination 27

    Staff Affairs 29

    Audit Report and Financial Statements 30

    Annexure - 1 : Standing and Non- Standing Committees 47

    Annexure - 2 : Accounting and Auditing Standards 53

    Annexure - 3 : Organisational Structure of the Institute 58

  • T H E I N S T I T U T E O F C H A R T E R E D A C C O U N T A N T S O F N E P A L

    ANNUAL REPORT 2015 - 166 The Institute of Chartered Accountants of Nepal

    Facts about ICANEstablishment : Nepal Chartered Accountants Act, 1997

    Amendment : Nepal Chartered Accountants Act, First Amendment 2002

    Regulation : Nepal Chartered Accountants Regulation, 2004

    Amendment : Nepal Chartered Accountants Regulation, First Amendment, 2006

    Amendment : Nepal Chartered Accountants Regulation, Second Amendment 2010

    Amendment : Nepal Chartered Accountants Regulation, Third Amendment 2011

    Amendment : Nepal Chartered Accountants Regulation, Fourth Amendment 2013

    Amendment : Nepal Chartered Accountants Regulation, Fifth Amendment 2015

    Recognition and Achievement

    First Council of ICAN formed on 1st August, 1997

    ICAN became member of South Asian Federation of Accountants (SAFA) in 1998

    ICAN signed MOU with The Institute of Chartered Accountants of India (ICAI) in May 1998

    ICANbecameMemberofConfederationofAsiaandPacificAccountants(CAPA)in1999

    ICANfirstCAExaminationheldinNovember2000

    ICAN became Associate Member of International Federation of Accountants (IFAC) in 2003

    ICAN signed second MOU with The Institute of Chartered Accountants of India (ICAI) in July 2004

    ICAN became full Member of International Federation of Accountants (IFAC) in November 2008

    Government of Nepal Provided land to ICAN on 9th November, 2009

    ICAN signed MOU with Malaysian Institute of Accountants (MIA) in 10th May, 2013

    ICAN Building Inauguration by Rt. Honble President Dr. Ram Baran Yadav on 13th July, 2014

    ICAN signed MOU with CPA Australia on 10th March, 2016

    ICANofficeShiftedtoitsownbuildingatSatdobato,Lalitpur,onFalgun2071

    Total member (16th July, 2016): Chartered Accountants: 986 (FCA-276, CA-710) Registered Auditor: 7267

  • T H E I N S T I T U T E O F C H A R T E R E D A C C O U N T A N T S O F N E P A L

    ANNUAL REPORT 2015 - 16 7The Institute of Chartered Accountants of Nepal

    Presidents Message

    It is my pleasure & honor to present before you the annual report of the Institute of Chartered Accountants of Nepal for the fiscal year 2015/16 on behalf ofmy predecessor CA. Prakash Lamsal. The yearhas been remarkable, where many changes and development took place and major decisions were taken keeping in the view for the development of the accounting profession. The Institute is marching ahead gloriously in its 20th year and with great sense of pride.

    First of all I would to express my sincere appreciation and gratitude to all the members and council members for bestowing faith in me and giving me an opportunity to serve the Institute as the 20th President of the Institute andIamconfidentthatIwillgetduesupportfrompastpresidents, council members, members of the Institute and all stakeholders to achieve the objectives of the Institute and overall economic development of the country.

    During the year, outstanding progress were made to develop strong and capable profession. I would like to present some of the major achievements that took place during the year in the overall development of the Institute.

    The Institute has signed membership pathway agreement with CPA Australia which will provide membership pathway to CPA Australia for members of ICAN. Similarly, ICAN has signed MoU with ICAEW whichwillprovidequalified ICANmemberseligible toapply for ICAEW members. Recently, the Institute has signed MoU with Pokhara University for the inclusion of accounting and auditing subjects and carry out research in Pokahara Universitys curriculum.

    Similarly, the Institute has signed an agreement with Nepal Bangladesh Bank to provide educational loan to Final level students on collateral of the CAP II Certificate.

    The extension counter of NB bank has been established at the Institute. This has removed the hassle for visiting banksforfinancialtransactionforthemember,studentandother entities.This hasalsohelped the financialtransaction to be more transparent and updated.

    Membership During the year, a total of 110 members were granted new Chartered Accountant membership and a total of 22 Chartered Accountant members were granted Fellow Chartered Accountant. Similarly 59 Chartered Accountant members were granted COP during the same year.

    The number of qualified Chartered Accountantmembers as on 15th July, 2016 has become 986 out of them721areholdingcertificateofpractice.Among986members,277arequalifiedfromthisInstitute.

    During the year, a total of 4107 Registered Auditor members renewed their membership out of them 3189 areholdingcertificateofpractice.

    Continuing Professional Education DevelopmentThe Institute is committed to optimum compliance for continuing professional education and given priority for the enhancement and development of the capacity and skill of its members. Focusing on this, the Institute has been regularly conducting Continuing Professional Education Training to its member. The CPE training covered various topics regardingAccounting/AuditingStandards, Taxation and other topics on International and National issue related with the profession.

    During the year, a total of 33 CPE trainings were conducted in and outside Kathmandu, out of these 23 trainings were outsourced. Altogether 3463 members arebenefittedfromthetraining.

  • T H E I N S T I T U T E O F C H A R T E R E D A C C O U N T A N T S O F N E P A L

    ANNUAL REPO