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

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”


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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Table of Contents

Facts about ICAN 6

President’s 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



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. Hon’ble 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



President’s 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 University’s 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.



Seminar, Workshop and TrainingWith a viewpoint of providing exposure and knowledge and to keep the member abreast with the current changes in the profession and to enhance the profession skill of the members, various seminar, workshop, training and interaction programs inside and outside the valley were conducted in different part of the country. These programs not only provided our members with opportunities to discuss the recent developments in accounting and auditing profession but also assisted the Institute in developing long term collaboration with the members and other agencies who were participated in these programmes.

During the year 6 national seminar were conducted. Similarly the Institute conducted 5 training on member's capacity building for its member's in different parts of the country on the topics relating to accounting, auditing and taxation.

With a view to keep abreast with the Information Technology related to accounting and auditing profession, the Institute organized an ISA Course for its members with the technical assistance from ICAI. Altogether 30 members participated in the course. I would like to reassure that more of such quality programs will be conducted for our members with topics pertaining to the profession.

Code of Ethics In order to intensify that the members maintain professional integrity and highest ethical standard, the Institute is committed to fully enforce the code of ethics. In order to maintain ethics and professional integrity of its member the Institute has adopted the International Federation of Accountants (IFAC) Code of Ethics. I sincerely urge all members to works towards making our profession more effective, independent and more responsible towards the profession and further enhance the reputation of this profession by carrying out the professional conduct with utmost honesty and sincerity. Similarly the Institute while investigating case for professional misconduct, has taken disciplinary action against its member for non compliance with the code of ethics and professional misconduct .

The Institute has also published the summarized version of the handbook of code of ethics based on IAESB code of ethics 2014.

Students ActivitiesEducationDuring the year, a good response has been received from student pursuing Chartered Accountancy course and Accounting Technician course. This is reflectedin the enrolment status of the student registering for Chartered Accountancy and Accounting Technician Course which has been increasing year by year, I believe thisdevelopmentasatrustandconfidencebestowedin accountancy profession by the young talents, During the year altogether 1842 students enrolled for different level of the Chartered Accountancy Course.

To keep the Chartered Accountancy Curriculum at par with the International standards, revision of the syllabus has been made regularly on timely basis.

As a corporate social responsibility, the Institute has been providing scholarship to the outstanding and underprivileged student's to pursue of pursuing chartered accountancy education. This year full and partial scholarship were awarded to 60 students pursuing different level of chartered accountancy course. The Institute is also persuading the Government to provide a regular support to those needy and outstanding students to help them to pursue Chartered Accountancy study.

With a view to raise awareness about the Chartered Accountancy Education and Accounting Technician Course, the Institute organized career counseling program on chartered accountancy education in different part of the country which included college visits, free seminar, TV and Radio promotional program etc. The Institute also participated in career fair in different part of the country. The program helped students solved their queries on various aspect of CA course. The participants showed keen interest on chartered accountancy and accounting technician course and expressed their enthusiasm to join the course.

As a part of the Chartered Accountancy curriculum, the Institute conducted General Management and Communication Skill (GMCS) training, altogether 71 students participated in the training. Similarly as a part of the curriculum, the Institute conducted IT training to students of in CAP II, CAP III and accounting technician course. I believe that such trainings will enhance the skill of our students.



ExaminationAs the increase in the number of registration of the Chartered Accountancy course, the number of students appearing in the examination has also risen sharply, altogether 4668 candidates appeared in different level of CA examination and 269 candidates appeared for the CA membership examination, similarly 16 candidates appeared for the Accounting Technician Examination.

The trend of passing rate in different level of CA examination is also increasing year by year. During theyear,73studentsqualifiedintheCAPIII/Finallevelexamination. Similarly, 150 students in CAP II level and 798 students in CAP I level were declared successful. Similarly, 39 students qualified the CA Membershipexamination and 5 students were declared successful in the Accounting Technician examination.

In order, to make hassle free for the students to appear for the CA examination the Institute has set up examination centre at branches namely Biratnagar, Butwal, Birgung and Pokhara.

PublicationDuring the year the Institute has published four issues of the Nepal Chartered Accountant Journal along with one special issue of Earthquake and four issues of newsletter has been published.

Similarly, study materials of CAP I , CAP II and CAP III level Chartered Accountancy Course has also been published . As a reference material for the students the Institute has regularly published Revision Test Papers and Suggested Answers of past examinations which has been a guiding tool to the students for preparation in the examination

Accounting/ Accounting StandardsThe Institute has closely worked with the Nepal Accounting Standards Board and Nepal Auditing Standards Boards in pronouncing Accounting and Auditing Standards which will help members in preparation of the financial statements on par withInternational Standards. Till date the Institute has declared 40 Nepal Financial Reporting System and 25 and Nepal Standards on Auditing. All the accounting and auditing standards are for mandatory compliance. My sincere appreciation to the chairman

and board members of the Accounting and Auditing Standards Board for their tiring effort in formulating the standards.

International RelationsThe Institute has given a high priority to International relationship and has shown a strong presence in various International forums like International Federation of Accountant (IFAC), Confederation of Asia PacificAccountants (CAPA) and South Asian Federation of Accountants (SAFA) and put forward our issues and ideas. The Institute participated in the various board meeting, assembly and committee meeting of these accounting bodies and put forward issues and ideas and has accomplished task assigned with capability. This year, ICAN has been selected on the Board Member of CAPA.

Human Resource DevelopmentInordertoincreasetheskill,knowledgeandefficiencyof the staff, training on accounting package, business communication,reportwriting,officemanagementandother technical skill development on need basis were imparted.

Similarly, a two day in-house training was organized for all level of staff, the training focused on the skill development, time management and motivational process.

As a part of exposure visit two senior level staff were provided the opportunity for foreign visit to share the idea about CA course and examination system.

Financial Result ReviewOn review of the financial statement for the year2072/73, income from education activities has beenincreased by 2.39% to Rs. 62.11 million against Rs. 60.66 million of the previous year. Likewise,income from members has been decreased by 13.66%. Similarly, income from professional development activities has been decreased by 13.44% and publication activities has been increased by 62.18% as compared to previous year. Income from examination activities has been decreased by 7.61%. The overall core activities income has been decreased by 3.74%. The administrative expenses and staff cost has been decreased by 28.79% and 1.04% respectively as



compared to previous year. Overall the institute's incomefor2072/73hasbeendecreasedby2.32%toRs. 127.81 million (last year Rs. 130.84 million).

The retained surplus for the year is Rs. 38.37 million against Rs. 48.14 million in previous year.

AcknowledgementDear Friends, for all these achievement, I attribute to the valuable support and guidance received from the Council Members, Past Presidents, Regulating Authorities, Government Officials, Members of thevarious standing and non standing committee, Board and various task force, Members of the Institute, stakeholders and staff. Without their support and cooperation would not have achieved the desired goals and results. I would like to express my sincere gratitude and appreciation.

We have several goals yet to accomplish and have set in motion many new initiatives, I look forward with anticipation and expectation for the same support and contribution in bringing the Institute to a greater height of Glory. I once again urge all members and stakeholder to come together and focus on the development of accounting profession as a whole and contributing in theprocessofnationbuildingandfulfillingtheirdutieswith outmost integrity and professional ethics.

I assure that ICAN as a regulatory body in the profession of accountancy in Nepal will focus its role in formulating and implementing financial/corporatelaws, fiscal policies, investment policies, maintainingfinancialtransparency,etc.

Lastbutnottheleast,Icannotconcludewithoutgivingthanks and recognizing the spirit of team work and hard works of the staffs led by CA. Binay Prakash Shrestha, Executive Director of the Institute for their tiring effort to drive the Institute to progress and look forward to their even bigger role in the days ahead.

Best Wishes

CA. Mahesh Khanal President30th January, 2017



Brief Outline of the Institute of Chartered Accountants of Nepal

CouncilThe Council as constituted under the Nepal Chartered Accountants Act,1997 governs the Institute. It consists of 17 members of whom ten are elected from Chartered Accountants members, four from Registered Auditor members and the remaining three are nominated by the Government of Nepal at the recommendation of the Auditor General. The members of the Council are elected every three years. The President and Vice President are elected from the Fellow Chartered Accountants members of the Council by the council members for a period of one year. The Council being the governing body of the Institute has the right to regulate accounting profession in the country as conferred by the act.

Regulations and Bye-LawsThe activities of the Institute are administered under the Nepal Chartered Accountants Regulation, 2004. In addition the Council has approved various procedures for conducting its activities:

The Executive DirectorAnExecutiveDirectorappointedbytheCouncilforthetermoffouryearistheChiefExecutiveOfficerofthe Institute and executes the decision of the Council.

CommitteesThe act provides for four standing committees to advice and facilitate the council in taking its decisions. Except in theDisciplinaryCommittee, thePresident andVice-President of theCouncil areEx-officioChairman and Vice-Chairman respectively of all Standing Committees. The Council has also constituted various Non-Standing Committees and Boards. The names of Committees, Boards and its member are exhibited in the Annex 1.

Organisational StructureThe organisational structure of ICAN comprises of the Council and six departments namely Members and Professional Development, Administration, Education, Examination, Financial Management and Information Technology. The structure is exhibited in the Annex 3.



International Participation

SAFA Board, SAFA Committees Meetings and International Conference Colombo, Sri Lanka

Delegates at the 40th SAFA Board Meeting

A five member’s delegation team led by ICANPresident CA. Prakash Lamsal attended the 40th

SAFA Board Meeting, various Committee Meetings and ICMA Management Accounting Summit on “Business Resilience through Integrated Reporting” in Colombo, Sri Lanka from 26th to 29th July 2015. The Delegation consists of Vice President

CA. Mahesh Khanal, Council Member CA. Ram Prabodh Sah, Council Member RA. Yadav Prasad Nyaupane and SAFA Committee Member and Past President Dr. CA. Suvod Kumar Karn.

CAPA Annual General Meeting, CAPA Board Meetingand CAPA Conference, Seoul, South KoreaPresident CA. Prakash Lamsal and other fourmembers delegation visited South Korea to attend the CAPA Annual General meeting, CAPA Board meeting and 19th CAPA Conference from 26th to 30th October 2015hostedbytheKoreanInstituteofCertifiedPublicAccountants (KICPA).

The delegation team comprises of Vice President, CA. Mahesh Khanal, Council Members CA. Bhaskar SinghLala,RA.GaneshRajRaiandExecutiveDirectorCA. Binay Prakash Shrestha. On the occasion, ICAN PresidentCA.PrakashLamsalwaselectedasaBoardMember of the CAPA representing ICAN for the four years tenure.

Delegates at the CAPA Annual General Meeting



IFAC Board and Council Meeting, Singapore President CA. Prakash Lamsal and Vice PresidentCA. Mahesh Khanal attended the IFAC Board meetings and Council Meeting in Singapore from 10th to 13th November, 2015. The meeting discussed about IFAC Strategy for year 2016–2018 and its Implementation Plan.

Malaysian Institute of Accountants (MIA) Visit

ICANPresident&VicePresidentwithMIAofficials

President CA. Prakash Lamsal and Vice PresidentCA. Mahesh Khanal visited Malaysian Institute of Accountants (MIA) to discuss on the renewal of Memorandum of Understanding (MOU) signed between ICAN and MIA and other contemporary issues. ICAN had signed MOU with MIA on 10th May, 2013.

SAFA iTAG Committee Meeting: Dhaka, Bangladesh Council Member RA. Dhruba Prasad Paudel and Technical Director CA. Paramananda Adhikari attended SAFA iTAG Committee Meeting held on 17th October 2015 at Dhaka, Bangladesh representing the Institute of Chartered Accountants of Nepal. In the meeting a comprehensive discussion was held on marking moderationprocessinordertofinalizetheSAFABPA& CG winners.

Further ICAP has agreed to host the SAFA BPA Awards Ceremony 2014 on 30th January, 2016 at Lahore,Pakistan.

SAFA BPA Conference Marking Meeting: Colombo, Sri LankaThe SAFA Best Presented Annual Report Awards (BPA) -2014 and Technical Committee meeting was held to finalizethewinnersofSAFABPA&CGAwards,2014from 5th to 7thNovember,2015atColombo,SriLanka.The Technical Committee moderated the marks awarded bythememberbodiesandrecommendeditsfindingtothe SAFA iTAG Committee. Technical Staffs from the five SAFA Member Bodies represented the markingsession and comprehensive discussion was held for the preliminarymarkingsmoderationprocesstofinalizetheSAFA BPA & SAARC Corporate Governance Award winners. Based on the present marking criteria, the Technical Committee carried out the marking session andfinalizedallthebusinesscategoriesnominatedforSAFA BPA Awards from member bodies.

CA. Paramananda Adhikari, FCA Technical Director attended the Technical Committee meeting representing the Institute of Chartered Accountants of Nepal.

Meeting of the SAFA iTAG Committee: Colombo, Sri Lanka The SAFA iTAG Committee meeting was held from 5th

to 7th November, 2015 inSri Lanka hosted byCASriLanka. Themeeting recognized the contribution of theTechnical Committee for the work done during the three day conferencemarking sessions for the finalizationofSAFA BPA award winners. Altogether 74 entities were selectedfortheawardandmeritcertificatesfromthefivemember countries. Out of 74 entities, 31 were from Sri Lanka,15werefromBangladesh,15werefromPakistan,10 were from India and 3 were from Nepal.

CA. Paramananda Adhikari, Technical Director attended the ITAG Committee Meeting representing the Institute of Chartered Accountants of Nepal.

Conference on “Empowering Asia’s Small and Medium Business Hub”Council Member CA. Prakash Jung Thapa attended the conferencejointlyorganizedbyCASriLanka,IFACandSAFA on “Empowering Asia’s Small and Medium Business Hub”inColombo,Sri-Lankaon26th January, 2016. CA. Thapa as a resource person and panelist presented paper on “Growing your Practice: Review, Compilation and Agreed-Upon Procedures Engagements”.



SAFA Committees and SAFA Board Meeting, PakistanPresidentCA.PraksahLamsalvisitedLahore,Pakistanon 28th to 29th January, 2016 and attended the SAFA Board and Committee meeting hosted by ICAP.

SAFA Board, Committee and SAFA-IFAC Regional PAIB Forum, IndiaA four member team led by President, CA. Prakash Lamsal attended SAFA Board Meetings, CommitteeMeetings and SAFA-IFAC Regional PAIB Forum in India Mumbai on 9th to 12th April, 2016. The other delegates from ICAN were Council Members CA. Jagannath Upadhyay, RA. Surya Prasad Adhikari and Chairman SAFA Committee CA. Suvod Kumar Karn.

CAPA AGM, CAPA Board meeting and FRED 2 Conference, MalaysiaA four member team led by President, CA. Prakash Lamsal attended CAPA AGM, CAPA Board Meetingand FRED 2Conference in Kuala Lumpur,Malaysiaon 16th to 19th April, 2016. The other delegates from ICAN were Council Members CA. Suresh Devkota, RA.

Yadav Prasad Nyaupane and Mr. Mukunda Raj Panthi.

41st SAFA Board Meeting - Dhaka, BangladeshThe Institute of Cost and Management Accountants of Bangladesh (ICMAB) organized 41st SAFA Board Meeting on 18th October, 2015. The Board Meetings discussed inter alia legal status of SAFA Virtual Knowledge & Training Centre, signing of MoU amongst member bodies for sharing of their material/courses and other documents available fortheir members and students, study report on Impact of Basel-II implementation in SAARC Countries, Integrated Reporting, SAFA-IFAC Regional SMP Forum 2016, SAFA Best Presented Annual Report Awards, Integrated Reporting Awards and SAARC Anniversary Awards for Corporate Governance Disclosures Competition 2014.

On the occasion, The Institute of Cost and Management Accountants of Bangladesh (ICMAB) organized SAFA International Conference on the theme “Financial Reforms to Boost Industry and Service Sectors” at Dhaka, Bangladesh.

Delegates at the 41st SAFA Board Meeting



Events & Activities

Election of President and Vice President The election of President and Vice-President for the 2nd term of the 7th Council was held on July 2016. CA. Mahesh Khanal was elected unanimously as President and CA. Prakash Jung Thapa was elected as Vice-President. CA. Mahesh Khanal was accomplished his responsibility as a Vice President of 1st Tenure of 7th Council and accomplished his responsibility as a Council Member in 5th Council. CA. Prakash Jung Thapa accomplished his responsibility as council member for 1st Tenure of 7th Council. As stipulated by Nepal Chartered Accountants Act, 1997, the tenure of President and Vice President is of one year.

National BPA Award-2014 and Oath Taking Ceremony ChiefGuestHon’blefinanceMinisterDr.RamSharanMahat inaugurated the Oath Taking Ceremony of the Newly Elected President & Vice President and National BPA Award Distribution program on 22nd

July, 2015. On the Occasion President CA. Prakash LamsaltooktheoathofofficefromtheAuditorGeneralMr. Bhanu Prasad Acharya as the 19th President of ICAN. Speaking on the occasion the outgoing

President CA. Narendra Bhattarai highlighted the key achievement made in his presidential tenure and various aspects of the program being initiated. He also emphasized on the three pillars NAS, NSA and code of ethics for the development of the accounting profession. CA. Bhattarai thanked all the stakeholders such as individuals, entities and the institutions for their meaningful support for making his tenure successful. Expressing his best wishes to newly elected President and Vice President CA. Bhattarai handed over the president medallion to the newly elected President.

Elected Council Member Tanking the Oath

Vice-President concluding the BPA and Oath taking program 2072



Similarly, Newly elected Vice President CA. Mahesh Khanal took the oath of office from PresidentCA.PrakashLamsal.

Speaking on the occasion, Chief Guest Honourable Finance Minister Dr. Ram Sharan Mahat congratulated the newly elected President and Vice-President and expressed best wishes for the success of their tenure.

ThenewlyelectedCouncilMemberstookoathofofficeand secrecy from Auditor General for in the special function organized for swearing and BPA award ceremony, 2014.

Accepting the responsibility, President CA. Prakash Lamsal thanked all newly elected council membersfor electing him unanimously as a President of the Institute.

On the occasion, the Chief guest Dr. Mahat distributed National BPA awards under five different categories to those organizations who obtained the competitive marks on the competition for 2014.

The following organizations were declared winner and runner up in different category.

S.No.

Sector Winner Runner Up

1 Banking Sector (Private and Public)

NabilBankLtd. Standard Chartered Bank(Nepal)Limited.

2 Financial Sector (Development Banks and Finance Companies)

KailashBikasBankLtd. Narayani National FinanceLtd.

3 Insurance Sector NLGInsurance -

4 Public Sector Entities Employment Provident Fund

5 General Sector Butwal Power Company Ltd.

Nepal Doorsanchar Co.Ltd.

The newly elected Vice President CA. Mahesh Khanal concluded the program with a vote of thanks.

ICAEW Team Visited ICANA two member representatives of ICAEW, Mr. Stephen Lamdin and Dr. David Brookfield visited Nepal tostudy the scope of auditing profession in Nepal and

ICAN Syllabus of CA education for twinning in line with ICAEW Course on second week of September 2015. The delegates also visited Honorable Auditor General,ComptrollerGeneral,variousauditingfirms,chartered accountancy tuition providers and corporate houses of Nepal.

Meeting with Deputy Governor for Implementation of NFRS for BanksA team led by Vice President CA. Mahesh Khanal met Deputy Governor of Nepal CA. Maha Prasad Adhikari on 6th September, 2015 for proper implementation of NFRS for Banks. According to the directives published byICAN,NFRSbecamemandatoryfrom2015/16forall commercial Banks.

Diploma in IFRSThe Institute of Chartered Accountants of Nepal (ICAN) successfully conductedDiploma in IFRSCertificationCourse from 6th to 12th October, 2015, jointly with The AssociationofCharteredCertifiedAccountantsofUK(ACCA) in Kathmandu. The Course was designed to provide depth knowledge of International Financial Reporting Standards (IFRS). Altogether 29 members participated at the program.

ICAN submitted SMO Action Plan (2015-17) to IFACThe Institute of Chartered Accountants of Nepal has submitted its Statements of Membership Obligations (SMOs) Action Plan (2015-17) on 15th December 2015 to the International Federation of Accountants (IFAC) that provide clear benchmark to ensuring high-quality performance by professional accountants. The SMOs cover IFAC member bodies’ obligations to support the adoption and implementation of international standards and other pronouncements issued by the International Auditing and Assurance Standards Board (IAASB), International Accounting Education Standards Board (IAESB), International Ethics Standards Board for Accountants (IESBA), International Public Sector Accounting Standards Board (IPSASB), and International Accounting Standards Board (IASB), and the establishment of quality assurance, investigation and disciplinary systems. The action plan prepared and reviewed by compliance staffs was comprehensively discussed in the Council Meeting before submission to the IFAC.



Rules AmendmentsThe fifth amendments of the Nepal CharteredAccountants Regulation, 2061 have been approved by the Ministerial Level decision of Nepal Government.As per the decision a total 17 Regulations have been either revised or added with new provision.

19th Anniversary Program of the InstituteThe Institute celebrated its 19th Anniversary on 31st

January, 2016 by organizing special program at Hotel Yak & Yeti. The Program was formally inaugurated by the Chief Guest Honourable Finance Minister of Nepal Mr. Bishnu Prasad Paudel by lightning the lamp. During theprogramPresidentCA.PrakashLamsalpresentedtheannualreportofICANfortheF/Y2071/72andalsohighlight the achievement made by the Institute during the period.

During the program Honourable Finance Minister of

Nepal Mr. Bishnu Prasad Paudel awarded away the medal and certificate to themerit holder students ofDecember 2014 and June 2015 chartered accountancy examination.

Similarly, Honourable Finance Minister distributed prize tothewinnerandfirstrunner-upofchesstournamentorganized by the National employee union of Nepal (NEON/ICAN) on the occasion of 19th anniversary of the Institute.

Addressing the occasion, Honourable Finance Minister Mr. Bishnu Prasad Paudel urged that the audit report issued by ICAN’s member should be fair and trustworthy to the general public to make assure of its credibility. Mr. Paudel appreciated the Institute for the progress achieved till date and emphasized that as a regulatory body ICAN has still to improve its regulatory functions.

The programme concluded with a closing remarks from Vice President CA. Mahesh Khanal.

Hon’ble Finance Minister inaugurating the anniversary program



Malaysia and Singapore Visit

Participants of exposure visit to MIA

The Institute of Chartered Accountants of Nepal arranged an exposure cum study visit of Malaysia and Singapore from 27 February to 03 March 2016 for its members with the objective of providing exposure of Malaysian Institute of Accountants (MIA), National Audit Department of Malaysia (NADM) and PWC Malaysia, a 14 members delegation team was led by Mr. Binod Neupane, Joint Director of ICAN.

Membership Pathway Agreement with CPA AustraliaICAN has signed Membership Pathway Agreement with CPA Australia on 10th March, 2016. This agreement has opened up ICAN domiciled members to become the member of CPA Australia subject to some papers.

The MOU was signed by President CA. Prakash LamsalonbehalfofICANandChiefOperatingOfficerMr. Jeff Hughes on behalf of CPA Australia.

Representation on WorkshopThe World Bank organized a workshop on the Report on Observance of Standards and Codes- Accounting and Auditing (ROSC- AA) in Kathmandu on 22nd June, 2016. The program was chaired by Coordinator, PEFA Secretariat Mr. Kewal Bhandari and ICAN President CA. Prakash Lamsal Co-chaired the program.Mr. Rajendra Prasad Nepal, Financial Comptroller General of Nepal was the Chief Guest of the Program. Speaking on the occasion CA. Prakash Lamsalpresented the current scenario of the Institute and the obligation that need to be attained within the IFAC framework.

President, Vice-President & Executive Director with CPA Australia representative



Seminar Workshop & Training

Conference on Contemporary Issues and Accounting ProfessionThe Institute of Chartered Accountants of Nepal organized a one day Conference on “Contemporary Issues and Accounting Profession” on 22nd July, 2015 in Kathmandu. The program formally commenced with an opening remarks by ICAN President CA. Narendra Bhattarai.

The conference was organized in three sessions. The First session on the topic “Salient features of the New Code of Ethics and its Social Values”, was presented by CA. Madan Krishna Sharma and Chaired by Kaushlendra Kumar Singh, Past President, ICAN. The Second session on the topic “Overview of Nepal Auditing Standards based on ISA Clarity Project and recently pronounced by ICAN” was presented by CA. Nanda Kishore Sharma and chaired by CA. Sunil Kumar Dhungel Past President, ICAN and the third and last session was the “Panel Discussion on the Impact of Earthquake on Nepalese Economy”.

Workshop on NFRS Implementation in Commercial Banks In collaboration with Nepal Rastra Bank, the Institute of Chartered Accountants of Nepal organized a workshop on Nepal Financial Reporting Standards (NFRS) Implementation Status and Preparatory Work in Commercial Banks of Nepal on Friday, 9th October 2015 in Kathmandu. The workshop mainly focused ontheroleofChairmanoftheBoard/ChairmanoftheAuditCommittee/BoardMembersandChiefExecutiveOfficersoftheCommercialBanks.

Penalist at the workshop

Training for Trainers (TOT)The Institute of Chartered Accountants of Nepal (ICAN) conducted TOT program on Nepal Public Sector Accounting Standards (NEPSAS) from 11-16 October, 2015, with the joint initiatives of Financial Comptroller General Office (FCGO) in Kathmandu. The trainingwas designed to provide the knowledge about Nepal Public Sector Accounting Standards.

Altogether 25 officials of FCGO and Office of theAuditor General (OAG) participated in the training program.

Penalist at the TOT program

Workshop on Valuation Techniques The Contemporary Issues Discussion Committee of the Institute of Chartered Accountants of Nepal conducted a half day workshop under the theme “Valuation Techniques” in Kathmandu on 18th December, 2015 (Poush 3, 2072). Altogether 71 participants attended the workshop.

Training Course on NFRS/ NAS

RA. Member Capacity Development Committee of The Institute of Chartered Accountants of Nepal successfully conducted a 60 hours training course on NFRS/NASfrom22nd January to 26th March, 2016 on implementations of NFRS.

Altogether 45 members participated in the training course. The objective of the training course was to provideknowledgeonNFRS/NASanditsadoption invarious sectors.



Conference on “Earthquake & Supply Constraints- Opportunities & Challenges”

The Institute of Chartered Accountants of Nepal organized a Conference on the theme “Earthquake & Supply Constraints- Opportunities & Challenges” in hotel Yak and Yeti on 31st January, 2016, coinciding with 19th anniversary of the Institute. The conference commenced with an opening speech from ICAN PresidentCA. Prakash Lamsal. The conferencewasconducted in two sessions. Altogether 100 individuals participated in the conference.

Conference on “Emerging Issues in Accounting Profession”The Institute of Chartered Accountants of Nepal (ICAN) organized a Conference on “Emerging Issues in Accounting Profession “on 27th May, 2016 (Jestha 14, 2073), at Soaltee Crowne Plaza, Kathmandu. The Program was formally inaugurated by ICAN President CA.PrakashLamsalwithaninauguralspeechandtheopening remarks. Altogether 90 participants including members and non-members actively participated in the conference.

Penalist at the conference

Workshop on Anti- Money LaunderingThe Institute of Chartered Accountants of Nepal, Contemporary Issue Discussion Committee organized A half day workshop on Anti- Money laundering on 22nd

April, 2016 in Kathmandu.

Chairman of Contemporary Issue Discussion Committee CA. Sunil Jakibanja welcome the participants and highlighted the objectives of the program. Program was conducted in two sessions. Deputy Governor of Nepal RastraBankCA.MahaPrasadAdhikariandCertified

Anti Money Laundering Specialist CA. DevendraGautampresentthepaperonAntiMoneyLaundering.

Interaction Program

An interaction program on “Role of Non-financialProfessionals on Anti Money Laundering” inassociation with Institute of Chartered Accountants of Nepal and Anti Money Laundering Departmentwas organized on 9th May, 2016. The participants of the program highlighted the role of auditor in effective implementationofAntiMoneyLaunderingAct. In theforum,AntiMoney LaunderingDeparment requestedauditors to be cautious while discharging audit and comply the provision of Anti Money Laundering Act,which require some reporting in suspicious transaction to Financial Information Unit.

Training Course on NFRS in Chitwan, Nepalgunj, Pokhara and ItahariRA. Member Capacity Development Committee of the Institute conducted NFRS training in Chitwan, Nepalgunj, Pokhara and Itahari on 7th to 9th April, 6th

to 8th May, 10th to 12th June, and 24th to 26th June, 2016 respectively. The number of Participants on the program was 29, 27, 24, 33, respectively in Chitwan, Nepalgunj, Pokhara and Itahari. The Institute has been regularly conducting NFRS training aiming with providingknowledgeonNFRS/NAS.

Education Committee Replaced by Board of StudiesWith the fifth amendment of Nepal CharteredAccountants Rules 2061, the Education Committee has been replaced by the Board of Studies (BOS) to carry out all the work of Education Committee. The tenure of the Board is of three years. The Board Comprises of President council member and expert of the related subject.

Interaction with CA Students of CAP-III LevelThe Institute of Charted Accountants of Nepal organized an interaction program on 1st January, 2016 at ICAN Office, Satdobato, Lalitpur. The students ofCAP-III level interacted with the President and Vice President on various matters relating to education system and identify the room for further improvement for the betterment of professional education.



Member Affairs

Status of Membership During the year, altogether 110 chartered accountants have been enrolled as chartered accountants members. With this, total number of chartered accountants and registered auditor members as on 15th July, 2016 became 986 and 7267 respectively. During the year a total numbers of 713 chartered accountant and 4113 registered auditor members renewed their membership.

FCA Conferred During the year, the Institute conferred fellow chartered accountant (FCA) Membership to 22 chartered accountant upon the completion of necessary requirements as per the Nepal Chartered Accountants Act. With this, the total number of FCA members has reached to 276.

Certificate of Practice Duringtheyear,theInstitutehasgrantedCertificateofPractice (COP) to 59 Chartered Accountant Members.

The numbers of chartered accountants member holding

COP has thus reached 721. Out of which 369 member have renewed their COP.

Similarly, during the year, the Institute has granted certificate of practice (COP) to 9 register auditormembers. With this the number of register auditors member holding COP had reached 6708 out of them 3192 have renewed their COP.

Audit Firm During the year, the Institute has registered new 72 CAand774RAauditfirms.Withthisatotalnumberofauditfirmshavereached4274.Outofwhich632areCAfirmsand3642areRAfirms.

Registered Auditor (RA) COP Up-gradation The registered auditor upgrade written examination was held on June 2015. Based on the result published, 7 registered auditor members were upgraded. Accordingly, 5 C class registered auditors were upgraded to B class and 2 D class auditor members were upgraded to C class.

MemberstatusfortheFiscalYear2072/73

CategoryMembership COP Firm

Total No. Renewal No Total No. Renewal No Total No. Renewal No

FCA 276 191 183 133632 368

CA 710 522 538 236

RA-B 3380 1967 3145 1395 1628 1394

RA-C 1603 866 1471 687 821 686

RA-D 2284 1280 2092 1110 1193 1104

Total 8244 4826 7429 3561 4274 3552

CategoryMembership

Total Member CertificateofPracticeFemale Male Pass from ICAN Pass from Others

FCA/CA 104 873 277 700 977 721

Renewal 713 369

Non Renewal 264 352

RA. 148 7119 7267 6708

Renewal 4113 3192

Non Renewal 3154 3516

Total 252 7992 277 700 8244 7429



Status of Male & Female member of The institute


Membership & Renewal Status

0

1000

2000

3000

4000

5000

6000

7000

8000

FCA/CA RA

Male

Female

0

500

1000

1500

2000

2500

3000

3500

4000

FCA CA RA-B RA-C RA-D

Total No.

Renewal No




0

1000

2000

3000

4000

5000

6000

7000

8000

FCA/CA RA

Male

Female

0

500

1000

1500

2000

2500

3000

3500

4000


Total No.

Renewal No



COP & Renewal StatusCOP & Renewal Status

Firm & Renewal Status

0

500

1000

1500

2000

2500

3000

3500


Total No.

Renewal No

0

200

400

600

800

1000

1200

1400

1600

1800

CA RA-B RA-C RA-D

Total No.

Renewal No


COP & Renewal Status


0

500

1000

1500

2000

2500

3000

3500


Total No.

Renewal No

0

200

400

600

800

1000

1200

1400

1600

1800

CA RA-B RA-C RA-D

Total No.

Renewal No



Student Affairs

Student Enrolment During the year, altogether 1842 students enrolled for different level of chartered accountancy course. Overwhelmed response has been received from students interested in pursuing chartered accountancy course. This development is trust and confidencebestowed in accountancy profession by young talent.

The status of student enrolment for various levels of chartered accountancy course and accounting technician course during the year is as follows.

Studentenrollmentforthefiscalyear072/73

Level CAP I CAP II CAP III

No. of Enrollment 883 830 129

ScholarshipDistributionforthefiscalyear2072/73

Level FullScholarship

PartialScholarship Total

CAP I 5 17 22

CAP II 6 24 30

CAP III 8 8

Total 11 49 60

Student Enrollment Chart

Student Enrollment Chart

CAP I

CAP II

CAP III 883

830

129

Scholarship Distribution The Institute has been regularly awarding the scholarship to the needy and meritious students with academic excellence pursuing different level of chartered accountancy courses. The Institute has been providing full and partial scholarship every year to student pursuing chartered accountants course.

The scholarship amount has been provided to the students on need cum merit basis selected by the scholarship selection committee. Altogether 60 students studying at different levels of chartered accountancy course received the scholarship during fiscalyear2072/73.

Crash Course The Institute has been regularly conducting crash coursetofacilitatespecificneedsofstudentinthecoresubjects. The Institute in its endeavour to provide quality education to the student, have conducted crash course for CAP II and CAP III level students on various subjects basedonthespecificneedofthestudents.Thecourseaimed at providing technical details and guidance with a special focus on clarifying the student’s queries on the course matter.

Study Materials The Institute has published the study materials of all subjects of CAP I, CAP II and CAP III level. The study materials are distributed free of cost to the registered students and are also available on sale at the Institute.

General Management and Communication Skills The Institute has been regularly organizing GMCS training since 2011 to enhance the communication and management skills of newly qualified charteredaccountants of the Institutes.

The 8th and 9th batch GMCS training were conducted from 23rd November to 11th December, 2015 and 16th March to 3rd April, 2016, respectively, altogether 32 and 39 students participated in the training. Institute has been organizing GMCS training at an interval of 6 month.

The training has been made mandatory to obtain membership of the Institute.



Delegates at the national convention

Career CounsellingThe Institute of Chartered Accountants of Nepal organized career counseling program in different parts of the country with the aim of providing the importance and awareness of chartered accountancy education to the interested visitors. During the program, various aspects of CA education such as the eligibility criteria of enrollment, future prospects, recognition, membership criteria of the Institute and relevant information was briefed and discussed. During the period around 1000 students in Kathmandu valley and 5000 in outside the valley got opportunity to get information on CA Education. The participants of the program showed keen interest on the CA education.

National Convention on “Spectrum of Opportunities”

National Convention on “Spectrum of Opportunities” for CA Students was held on 18th & 19th March, 2016, jointly organized by the Institute of CharteredAccountants of Nepal (ICAN) and Nepal Chartered Accountant Students Association (NCASA) in

Biratnagar, Morang. The convention was hosted by Biratnagar Branch of ICAN and Eastern Regional Chapter of NCASA.

The Program was conducted in four technical sessions and a total of 12 papers were presented on the topic related to NFRS, Forensic Audit, DTAA and Transfer Pricing and Auditing in Computerized Environment.

Hon’ble Judge Kumar Pokharel was the chief guest and delivered encouraging words to the students. Altogether 297 students including paper presenters from Nepal and India participated in the convention. The Convention ended with Valedictory Sessionaddressed by CA. Aswani Bansal.

Participation in Kantipur HISSAN Edu Fair 2016The Institute of Chartered Accountants of Nepal participated in Kantipur HISSAN Edu Fair 2016 at Brikhuti mandap, Kathmandu from 19th to 22nd May, 2016 jointly organized by Higher Secondary School’s Association Nepal (HISSAN) and Kantipur Publication.



During the Fair approximately 800 students and other stakeholders visited ICAN stall to get and share knowledge on information about Chartered Accountancy education in Nepal and its future prospects and opportunities.

Chartered Accountancy Career Expo, 2016The Institute of Chartered Accountants of Nepal organized a two days Career Expo, 2016 in association withfiveaccreditedInstitutionsin14th to 15th May, 2016 in Kathmandu.

ThefiveaccreditedInstitutesNamelyCIMAAcademicsPvt. Ltd., CAI Pvt. Ltd., CAI Pvt. Ltd., Elite Instituteof Management Pvt. Ltd. and Chaitanya Instituteof Management Pvt. Ltd. participated in the career

expo. During the Fair approximately 400 students and other stakeholders visited the ICAN stall to get proper information about chartered accountancy education in Nepal, future prospects and opportunities after completion of the course.

One year internship for foreign CA degree holdersPursuant to Nepal Chartered Accountants Regulation, 2061, Rules 41(KA) of its 5th amendment, The Institute of Chartered Accountants of Nepal has made mandatory provision of one year internship to the foreign CA degree holders for getting Membership and CertificateofPractice.Duringtheperiod,totalnumberof 35 chartered accountants from ICAI has joined one year internship.

2nd ICAN CA Career Expo 2016



Chartered Accountancy Examination

The Chartered Accountancy Examinations of December 2015 and June 2016 have been conducted successfully. In December 2015 CA Examination, altogether 673 students of CAP-I (Foundation), 1322 students of CAP-II (Intermediate) and 459 students of CAP-III (Final) level students appeared examinations. Similarly, in June 2016 CA Examination, altogether 376 students of CAP-I (Foundation), 1325 students of CAP-II (Intermediate) and 511 students of CAP-III (Final) level students appeared their examinations.

Altogether, 536 students of CAP-I (Foundation), 46 students of CAP-II (Intermediate) and 31 students of CAP-III (Final)levelwerequalifiedinDecember2015.Similarly,altogether262studentsofCAP-I(Foundation),104studentsofCAP-II(Intermediate)and42studentsofCAP-III(Final)levelwerequalifiedinJune2016CAExaminations.

The details of the result of Chartered Accountancy Examinations are as Follows:Details of the Result of December 2015 Examination:

CAP I CAP II CAP III

Total Group I Group II Both Group I Group II Both

Applicants 704 348 300 812 164 159 178

Appeared 675 290 255 777 152 132 175

Passed 536 32 34 17 30 48 9

Qualified 536 46 31

Details of the Result of June 2016 Examination:CAP I CAP II CAP III

Total Group I Group II Both Group I Group II Both

Applicants 401 391 361 734 182 150 215

Appeared 376 316 314 695 168 131 212

Passed 262 49 72 50 25 79 9

Qualified 262 104 42

(Note:Thefiguresofstudentswhopassedasinglegroup(GroupIorGroupII)alsoincludethosestudentswhoappeared for both group but were successful in single group only.)

Result of Chartered Accountancy Membership Examination

Details of CA membership Examination December 2015 Details of CA membership Examination June 2016Particular Number Particular NumberApplicants 147 Applicants 178

Appeared 115 Appeared 154

Qualified 19 Qualified 20

Result of Accounting Technician Examination

Details of AT membership Examination September 2015 Details of AT membership Examination March 2016Particular Number Particular NumberApplicants 8 Applicants 12

Appeared 4 Appeared 12

Qualified 1 Qualified 3



Recipients of Awards for the Chartered Accountancy Examination, December 2015

S.No. Medal Fund Regd. No. Name of Recipients

1 K.B Chitracar Gold Medal Standing Rank First in CAP - III (Final level) Examination

FN00797 Ms. Sarita Duwal

2 Shiva Man Singh and Chandra Bhandari Silver Medal

StandingRankSecondinCAP-III(FinalLevel)Examination

FN00327 Mr. Niraj Shrestha

3 B.K Agrawal Gold Medal Standing Rank First in CAP-II (Intermediate Level)Examination

KI005490 Ms. Anuja K.C.

4 Narayan Bajaj Silver Medal Standing Rank Second in CAP-II (Intermediate Level)Examination

KI005263 Mr. Utsab Maharjan

5 Prakash Jung Thapa Gold Medal

Securing Highest marks in Advanced Financial Reporting (Advanced Accounting) in CAP-III (Final level) Examination

FN00863 Mr. Prakash K.C.

6 Dr. Govind Ram Agrawal Gold Medal

Securing Highest marks in Strategic Management and Decision Making Analysis in CAP-III(FinalLevel)Examination

FN00797 Ms. Sarita Duwal

7 Narendra Vashishtha Gold Medal

Securing Highest marks in Advanced Audit and Assurance in CAP-III (Final Level)Examination

FN00792 Mr.LomashJayana

Mr.ManikMaharjan (Regd. No. KF009581) Scoring 262marks stood First Rank in CAP-I (Foundation) LevelExamination in December 2015.

Recipients of Awards for the Chartered Accountancy Examination, June 2016S.No. Medal Fund Regd. No. Name of Recipients

1 K.B Chitracar Gold Medal Standing Rank First in CAP-III (Final Level)Examination

FN00928 Mr. Ganesh Panthi

2 Shiva Man Singh and Chandra Bhandari Silver Medal

StandingRankSecondinCAP-III(FinalLevel)Examination

FN00593 Ms. Shreejana Poudyal

3 B.K Agrawal Gold Medal Standing Rank First in CAP-II (Intermediate Level)Examination

KI005669 Mr. Kailash Joshi

4 Narayan Bajaj Silver Medal Standing Rank Second in CAP-II (Intermediate Level)Examination

KI005705 Mr. Roman Bhandari

5 Prakash Jung Thapa Gold Medal

Securing Highest marks in Advanced Financial Reporting (Advanced Accounting) in CAP-III (FinalLevel)Examination

FN00839 Ms. Asmita Dhakal

6 Dr. Govind Ram Agrawal Gold Medal

Securing Highest marks in Strategic Management and Decision Making Analysis in CAP-III(FinalLevel)Examination


7 Narendra Vashishtha Gold Medal

Securing Highest marks in Advanced Audit and Assurance in CAP-III (Final Level)Examination


Mr.AbisheshKumarKarn(Regd.No.KF0010105),scoring255marksstoodFirstRankinCAP-I(Foundation)LevelExamination in June 2016.



Staff Affairs

Staff Exposure Visit to the Institute of Chartered Accountants of Sri Lanka (ICASL)A team of two joint directors Mr. Binod Neupane and Mr. Shyam Mani Dahal visited Institute of Chartered AccountantsofSriLanka(ICASL)fromAugust23rd to 29th,2015asanexposure/studyvisit.Duringthevisitthey got exposure and studied the operational activities of different departments of the Institute of Chartered AccountantsofSriLanka.

The main objective of the visit was to increase good relationwithCASriLanka,exchangethepracticesinboth Institutes, and familiarize with the systems and officialpracticesofCASriLankaparticularlywithrespectto education system, examination system, membership procedure, organizational and governance structure, and other areas of services. During the visit they met andinteractedwiththeofficialsofCASriLanka.

RecruitmentTo cope with the increasing work-load as the Institute venturing with new activities, the Institute has recruited the following staff through open competition.

1. Ms.SwetaChitrakar-Officer2. Mr.ShreeramThakur-Officer3. Mrs. Anita Bhandari - Sr. Assistant4. Mr. Dev Raj Adhikari - Jr. Assistant

5. Mrs. Anita Ghimire - Jr. Assistant6. Mrs. Kalpana Kumari Sha - Jr. Assiatant.

During the Year following staff were promoted by the process of performance evaluation and internal competition.

1. Mr. Amod Khanal - Sr. Assistant2. Mr. Kumar Thapa - Sr. Assistant3. Ms. Krishna Kumari BC - Sr. Assistant

Staff resignationDuring the year following staff members have resigned from their respective posts.

1. CA. Parmananda Adhikari - Director

2. Mr.ShreeramThakur-Officer

Staff FelicitationOn the occasion of the 19th Anniversary of the Institute Mrs. Pragya Aryal, Senior Officer, and Ms. KrishnaKumari BC and Mr. Hardulal Chaydhary were felicitated as best staff by the Chief Guest for their outstanding performance and contribution to Institute.

Residence staff trainingThe Institute organized a two day residential training for its staff members. The training program focused on the skill development, time management and motivational matters.

Merit Holder Students, Staff and Dignitaries on 19th Anniversary Program



Audit Report and Financial Statements



Current Year Previous Year

Assets Notes Rs. Rs.

Non-Current AssetsProperty, Plant and Equipment 10 176,684,524 158,812,304

Intangible Assets 11 1,504,213 1,100,323

Investment 12 30,000,000 10,000,000

Earmarked Investment 13 11,486,000 8,151,160

Total Non-Current Assets 219,674,737 178,063,787

Current Assets Investment 12 80,000,000 75,500,000

Inventories 14 2,333,623 2,256,846

Trade and other receivables 15 9,105,679 9,278,195

Cash and cash equivalents 16 74,155,674 73,998,604

Total Current Assets 165,594,976 161,033,645

Total Assets 385,269,713 339,097,432

Funds & Reserves Reserves 17 148,291,489 145,086,273

Earmarked Fund 18 174,197,030 139,092,453

Total Funds & Reserves 322,488,519 284,178,726

Liabilities

Non-Current Liabilities Provision for Employment Benefits 19 32,060,154 28,875,298

Current Liabilities Trade and other Payables 20 30,721,041 26,043,408

Total Liabilities 62,781,195 54,918,706

Total Funds & Reserves and Liabilities 385,269,713 339,097,432

…... ………………………… …………………………CA Binay Prakash ShresthaExecutive Director

………………………………. ……………………………. …………………………...….Mahesh Chitrakar CA Ram Prabodh Sah RA Surya Prasad AdhikariAssistant Director/Head of Finance Executive Committee MembersDate: Mangsir 10, 2073Place: Lalitpur

Chartered Accountants

AS AT 31 ASHADH, 2073 (JULY 15, 2016)

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NEPALSTATEMENT OF FINANCIAL POSITION

President

…………………………CA Mahesh Khanal CA Suman Dangol

S. Dangol & Associates Vice-President

………………………CA Prakash Jung Thapa

As per our report attached Accounting Policies and Notes to Accounts (1 to 24) are integral part of this Statement of Financial Position



Notes Current Year Previous Year Rs. Rs.

Operational activities 5.1 119,577,770 124,222,711

Government Grant 5.2 1,200,000 1,200,000

Interest Income 5.3 6,850,058 5,085,856

Other 5.4 179,450 328,990

Depreciation written back from capital reserve 5.5 4,321 5,376

Total Income 127,811,599 130,842,933

Expenditure on:

Operational activities 6 44,760,363 34,115,809

Staff Cost 7 32,102,949 32,438,968

Administrative Expenses 8 9,739,883 13,677,828

Depreciation and amortization expense 9 2,835,078 2,468,258

Total Expenditure 89,438,273 82,700,863 Net result 38,373,326 48,142,070

APPROPRIATION 22

Transferred to building fund 10,000,000 10,000,000

Transferred to scholarship fund 1,918,666 2,407,103

Transferred to ICAN Employee Welfare Fund 916,899 821,715

Transferred to general fund 25,537,761 34,913,252 38,373,326 48,142,070

………………………………… …………………………CA Binay Prakash ShresthaExecutive Director

………………………………. ……………………………. …………………………...….Mahesh Chitrakar CA Suresh DevkotaCA Ram Prabodh Sah RA Surya Prasad AdhikariAssistant Director/Head of FinanceDate: Mangsir 10, 2073Place: Lalitpur

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NEPALSTATEMENT OF INCOME AND EXPENDITURE

FOR THE YEAR ENDING 31 ASHADH 2073 (JULY 15, 2016)

Total

CA Mahesh Khanal CA Suman Dangol………………………

As per our report attached

Income From:

Accounting Policies and Notes to Accounts (1 to 24) are integral part of this Statement of Financial Position

…………………………


CA Prakash Jung Thapa Vice-President President S. Dangol & Associates

Executive Committee Members




Interest Income 5.3 6,850,058 5,085,856

Other 5.4 179,450 328,990


Total Income 127,811,599 130,842,933

Expenditure on:


Staff Cost 7 32,102,949 32,438,968




APPROPRIATION 22









Total



Income From:


…………………………







Interest Income 5.3 6,850,058 5,085,856

Other 5.4 179,450 328,990


Total Income 127,811,599 130,842,933

Expenditure on:


Staff Cost 7 32,102,949 32,438,968




APPROPRIATION 22









Total



Income From:


…………………………







Interest Income 5.3 6,850,058 5,085,856

Other 5.4 179,450 328,990


Total Income 127,811,599 130,842,933

Expenditure on:


Staff Cost 7 32,102,949 32,438,968




APPROPRIATION 22









Total



Income From:


…………………………






Current Year Previous Year Rs. Rs.

A. CASH FLOWS FROM OPERATING ACTIVITIESNet surplus during the year 38,373,326 48,142,070 Adjustment For: - - Depreciation & Amortization 2,835,077 2,468,258 Prior period adjustments - 74,797 Contribution on earthquake relief fund - (1,000,000) Fixed Assets written off - 20,880 Depreciation written back from capital reserve (4,321) (5,376) Interest received on ICAN Employee Welfare Fund 47,218 44,035 Increase in ICAN Employee Welfare Fund (2,000,000) - ICAN Employee Welfare Fund expenses (67,065) - Increase in building Fund 4,001,237 4,041,975 Interest received on building fund 9,888 11,577 Increase in scholarship fund - 1,039,000 Interest received on scholarship fund 307,737 213,669 Scholarship expenses (1,086,350) (867,600) Interest received on medal fund 81,167 64,907 Increase in medal fund 351,000 30,000 Medal expenses (48,455) (47,063) Interest from investment (6,850,058) (5,085,856) Changes in working capital 7,958,228 29,269,388 Cashflows from operating activities 43,908,630 78,414,660 B. CASH FLOWS FROM INVESTING ACTIVITIESGain on Sale of Assets - (2,823) Purchase of fixed assets (24,326,878) (7,552,770) Addition in Intangible Assets (439,900) - Sale of fixed assets - 6,000 Decrease in building fund investment 714,013 (11,577) Increase in medal fund investment (17,997) 246,538 Increase in scholarship fund investment (2,030,856) (2,118,224) Increase in short term investments (4,500,000) (58,000,000) Increase in long term investments (20,000,000) 10,000,000 Interest received from investments 6,850,058 5,085,856 Increase in ICAN building WIP - (37,609,821) Net cashflows from investing activities (43,751,560) (89,956,821)

Net changes in cash and cash equivalents during the year 157,070 (11,542,160) Cash and cash equivalents at the beginning of the year 73,998,604 85,540,764 Cash and cash equivalents at the end of the year 74,155,674 73,998,604

…... ………………………… ………………………………… …………………………CA Binay Prakash Shrestha CA Prakash Jung ThapaExecutive Director Vice-President


……………………………. RA Surya Prasad Adhikari

Date: Mangsir 10, 2073Place: Lalitpur

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NEPAL STATEMENT OF CASH FLOWS

FOR THE YEAR ENDING 31 ASHADH, 2073 (JULY 15, 2016)

…………………………

Assistant Director/Head of Finance Executive Committee MembersMahesh Chitrakar CA Ram Prabodh Sah……………………… …………………………….

CA Mahesh Khanal CA Suman Dangol President S. Dangol & Associates



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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NEPALSignificant Accounting Policies and Notes to the Financial Statements

FORTHEYEARENDING31ASHADH2073(JULY15th, 2016)

1 Background The Institute of Chartered Accountants of Nepal (ICAN) is a statutory body established under a special Act, The Nepal Chartered Accountants Act, 1997 to enhance social recognition and faith of people at large in the accounting profession by raising public awareness towards the importance of accounting profession as well as towards economic and social responsibility of the accountants, and to contribute towards economic development of the country. The Institute is an autonomous body and the Council is fully authorized by the Act toundertakeregulationofaccountancyprofession inNepal. Institute isoperating itsactivityvia itsfivebranchesalloverNepalandit'sregisterofficeisatSatdobato,Lalitpur.

2 Basis of preparation 2.1 Statement of Compliance

ThefinancialstatementshavebeenpreparedonhistoricalcostconventionandinaccordancewithNepalAccounting Standards. The Financial Statements were authorized for issue by the Executive Committee on Mangsir 10, 2073.

2.2 Critical Accounting Estimates

ThepreparationofthefinancialstatementsinconformitywithNepalAccountingStandardsrequirestheuse of certain critical accounting estimates and judgments. It also requires management to exercise judgment in the process of applying the Institute’s accounting policies. The Institute makes certain estimates and assumptions regarding the future events. Estimates and judgments are continuously evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual result may differ from these estimatesandassumptions.Theestimatesandassumptions thathaveasignificant riskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararetobe disclosed.

2.3 Functional and Presentation Currency

ThefinancialstatementsarepreparedinNepaleseRupees,whichistheInstitute’sfunctionalcurrency.

3 Financial Risk Management 3.1 Financial Risk Factor

Senior management directly controls day-to-day policies and operations. Financial risk management issues are covered by ICAN’s risk management process. Board and council members are regularly updatedonanysignificantissuesrelatingtofinancialriskmanagement.

Financial risks to which ICAN is exposed are summarized below: 3.2 Currency Risk

All day to day transaction are done on functional currency Nepali Rupees(NPR) so ICAN does not faces any currency risks. However in the case of registration and renewal of international membership currency riskarisesduetoexchangeratefluctuation.

3.3 Credit Risk

ICANisnotexposedtoanysignificantcreditriskasallthereceivablesarefromthemembersandstaffs.Vehicle loan provided to ICANStaffs are secured against individualProvident Funds,Gratuty, LeaveEncashment and CIT deposit so it does not impose credit risks.



3.4 Going Concern Financial Statements of the ICAN have been prepared on Going Concern basis as the organization is making continuous surplus over the years and also getting incentives and support from government as well as other stakeholders.

4 Accounting policies

Theprincipalaccountingpoliciesadoptedinthepreparationofthefinancialstatementsaresetoutbelow.Thepolicies have been consistently applied to all the years presented, unless otherwise stated. The preparation of financialstatementsrequirestheuseofcertainaccountingestimates.Theareaswheresignificantjudgmentsandestimateshavebeenmadeinpreparingthefinancialstatementsandtheireffectsaredisclosed.

4.1 Property, plant and equipmentItems of property, plant and equipment are initially recognised at cost. Cost includes the purchase price and other directly attributable costs. Property, plant and equipment are stated at cost less accumulated depreciation.Subsequentexpenditureiscapitalizedonlyif it isprobablethatfutureeconomicbenefitsassociatedwiththeexpenditurewillflowtotheInstitute.

4.2 Intangible Assets

Intangible assets comprises computer software initially recognised at cost incurred to acquire and bring to use the software. Intangible Assets are stated at cost less accumulated depreciation. Amortization is charged to the statement of income and expenditure on a reducing balance method at the rate specified. Amortization on Intangible assets under construction does not commence until they are complete and available for use. Amortization on additions is charged from the subsequent month from the date of purchase.

4.3 InvestmentsLong-terminvestmentsarecarriedindividuallyatcostlessprovisionfordiminution,otherthantemporary,in the value of such investments. Current investments are carried individually, at the lower of cost and fairvalue.AllInvestmentsofinstitutearethedepositsheldinbanksandfinancialinstitutionswithfixedmaturity. The investments with more than one year to maturity are stated as long term investments and the investments with less than one year to maturity are treated as short term investment, all investments have been recorded at cost.

4.4 Inventories

Inventoriesarecarriedatlowerofcostandnetrealisablevalue.Thecostisdeterminedonfirst-infirst-out(FIFO) method and includes expenditure incurred in acquiring the inventories and bringing them to their present location and condition. Books, publications and other materials purchased and published solely for sale have been booked as inventory and are initially recognised at cost, and subsequently at the lower of cost and net realisable value.

4.5 Trade and Other Receivables Trade and other receivables are stated at their cost less provision for impairment. The amount of the provision is recognized in the statement of income and expenditure.

4.6 Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short- term balances, with an original maturity of three months or less , highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes invalue.



4.7 Retirement and Other Benefits TheInstitute’sobligationinrespectofthedefinedfuturebenefitplansiscalculatedseparatelyforeachbenefitplansbyestimatingtheamountoffuturebenefitthatemployeeshaveearnedinthecurrentandpriorperiods.Thecalculationofthedefinedbenefitobligationsisperformedannually.

Gratuity,medicalfacilities&accumulatedleaveprovisionhasbeenprovidedasperEmployeeByeLaw,2066, assuming that all the staffs will be retired at the Balance Sheet date.

4.8 Trade and Other Payables Trade and other payables are stated at their cost.

4.9 Revenue Recognition

Fee Income Revenues are accounted for on accrual basis except Membership fee and Student Fee which are recognised as income as and when received. Fee received for the period beyond the period of the Financial Statement is grouped under current liabilities and booked as income in the year it pertains. Governments GrantsGovernment Grants is recognised in Income and Expenditure account in the period in which grant is received. Interest Income Interest income on both long term and short term Investments are recognised on accrual basis using effective interest rate. Other IncomeOther income are recognised in the period in which it is received.

4.10 Depreciation

Depreciation on property plant and equipment has been calculated using diminishing balance method at therateprovidedbelow.Leasedassetsaredepreciatedovertheperiodofleaseterm.Intangibleassetsareamortisedusingdiminishingbalancemethodattheratespecified. Depreciation on property, plant and equipment under construction is not charged until they are complete and available for use. Depreciation on additions is charged from the subsequent month from the date of purchase. RatesofDepreciation/Amortizationare:

Vehicles 20%

Computer & accessories 15%

Furniture&fixtures 15%

Officeequipment 15%

Other Fixed Assets 15%

Partition 15%

Intangible Assets 20% 4.11 Taxation

The Institute is registeredwith InlandRevenueDepartmentandobtainedTaxExempttionCertificate.Hence, provision for income tax has not been made.



Other Explanatory Notes

5 Revenue

5.1 Operational ActivitiesIncomefromoperationalactivitiesreceivedduringthefinancialyear2072-73areasfollows:

• IncomefromEducationalactivitiesincludesincomefromAccrediation,Coaching,FeefromStudents,LibraryMembership,ExemptionFee,SaleofStudyMaterial.

• Income fromExaminationactivities includes income fromExam formandExamFeeofAT,CA,Upgrading,DuplicateAdmitcard,Duplicatemarksheet/certificate.

• IncomefromMembers includesmembershipregistration/renewalfee,COPregistration/renewal&firmregistration/renewalfee.

• IncomefromprofessionaldevelopmentactivitiesincludesfeesfromCPEtraining,variousseminars,NFRS/IFRStraininganddifferentworkshopsorganizedduringthecurrentperiod.

• IncomefrompublicationsincludesincomefromJournal,advertisement,saleofNAS/NFRS,IFRSand other publications.

Particulars Current Year Previous Year

Income from educational activities 62,109,573 60,658,333

Income from examination activities 30,449,100 32,956,800

Income from members 17,943,502 20,783,160

Income from professional development activities

7,848,925 9,068,058

Income from publications 1,226,670 756,360

TOTAL 119,577,770 124,222,711

5.2 Government Grant The Institute has received block grant of Rs. 1,200,000.00 from Nepal Government, Ministry of Finance to meet operating expenses.


Grant received from Nepal Government 1,200,000 1,200,000

TOTAL 1,200,000 1,200,000

5.3 Interest Income


Interest From Call Account 1,677,037 1,568,795

Interest From Fixed Deposit 5,028,012 3,300,959

InterestFromOthers-BIKELOAN 27,929 41,313

Interest From Saving Accounts 117,080 174,789

TOTAL 6,850,058 5,085,856



5.4 Other Income other than from operational activities are categorised under other income and recognized on cash basis in statement of income and expenditure.


Election Income 6,300 51,100

Miscellaneous Income 144,270 201,890

NCASA Election Nomination Income 14,080 -

Recruitment Income 14,800 76,000

TOTAL 179,450 328,990

5.5 Depreciation written back from Capital Reserve Depreciation charged on Fixed Assets granted by ADB amounting Rs. 4,321 recognized under other income has been written back from capital reserve.


Depreciation written back from Capital Reserve

4,321 5,376

TOTAL 4,321 5,376

6 Operational Activities Operationalactivitiesexpensesarerecognizedonaccrualbasisandclassifiedonthesamebasisasincomeareclassified.


Educational activity expenses 13,745,720 8,778,181

Examination expenses 13,271,876 10,141,277

Members activity expenses 2,339,304 2,366,157

Professional development activity expenses 5,565,982 6,287,289

International affairs expenses 7,201,813 5,497,184

Publication expenses 2,544,205 1,045,721

Quality assurance board expenses 91,463 -

TOTAL 44,760,363 34,115,809

7 Staff Cost Staff costs include salary and other benefits provided to employees currentlyworking at the institute andrecognized in statement of income and expenditure on accrual basis.


Salariesandbenefits 26,932,554 24,828,690

Medical & leave expenses 1,841,897 3,310,386

Gratuity expenses 2,764,547 3,724,997

Recruitment & promotion expenses 218,552 372,127

Staff training & skill development 345,399 202,768

TOTAL 32,102,949 32,438,968



8 Administrative Expenses Administrativeexpensesaretheexpensesthatareincurrednotdirectlytiedtoaspecificfunctionandrecognizedon accrual basis.


Localtravelexpenses 82,451 24,661

Fuel & transportation 957,386 1,090,722

Communication expenses 413,758 347,789

Printing & stationery 334,791 393,003

Officematerials&lowcostequipments 238,601 204,182

Notificationandpublicity 78,168 74,447

Hospitality expenses 945 -

House Rent - 1,908,351

LandLeaseatSatdobato 21,714 21,714

Books & periodicals 27,095 26,852

Water & electricity 614,119 427,621

Insurance 181,292 174,179

Repair & maintenance 747,368 625,650

Software Expenses 11,300 11,300

Meeting expenses 1,333,989 1,172,592

Audit fee 268,845 297,770

Functions expenses 1,236,125 2,104,049

Professional service fees 487,800 201,500

Rates & taxes 148,955 136,275

Officerenovation&furnishing 82,976 17,167

Miscellaneous expenses 557,672 532,444

Biratnagarbranchoffice 517,925 487,866

Pokharabranchoffice 287,140 246,721

Butwalbranchoffice 346,500 274,404

Birgunjbranchoffice 357,754 453,924

Nepalgunjbranchoffice 313,442 359,514

Building related Expenses 91,772 2,063,131

TOTAL 9,739,883 13,677,828

Land LeaseAgreementbetweenMinistryofFinanceandICANwasmadeon23Kartik2066fortheleaseofLandlocatedat Satdobato owned by Government of Nepal. As per the lease agreement 6-6-3-1 ropani land was leased for theperiodof50yearsfromthedateofagreementmadewiththeyearlyleaseofRs3,379.08perropani.Leasepaymentfortheyear2072/73hasbeenshownundertheadministrativeexpensesasLandleaseatSatdobato.TotalLeasechargedtoincomeandexpenditurefortheperiodisNPR21,714.

Not Later than one year

Later than one year and not later than five years

Later than five years

LandLeaseAmount 21,714 86,856 846,846



9 Depreciation and Amortization Expense

Particulars Depreciation Amortization Total

Depreciation/Amortizationchargedforthepreviousyear 2,438,246 30,012 2,468,258

AccumulatedDepreciation/Amortizationasat1Shrawan2072 12,391,220 100,272 12,491,492

Depreciation/Amortizationchargedfortheyear 2,799,067 36,010 2,835,078

AccumulatedDepreciation/Amortizationasat31Ashad2073 15,190,287 136,282 15,326,569

10 Property, Plant & Equipment

Particulars Vehicles Computer &

accessoriesFurniture& fixtures

Office equipment

Other Fixed

Assets

Partition ICAN Building

Other WIP

Total

Cost at 1 Shrawan 2072 8,848,473 7,349,087 6,501,196 2,191,146 925,422 3,498,676 29,314,000

Additions 662,726 555,723 991,224 863,384 153,888 - 160,846,007 2,143,450 166,216,402

Opening balance adjustment - - - (150,450) 150,450 - - - -

Disposals - - - - - - - - -

Balance at 31 Ashad 2073 9,511,199 7,904,810 7,492,420 2,904,080 1,229,760 3,498,676 160,846,007 2,143,450 195,530,402

Depreciation and Impairment Losses -

Accumulated Depreciation as at 1 Shrawan 2072 4,193,814 4,510,745 2,124,158 833,713 470,469 258,321 - - 12,391,220

Opening balance adjustment - - - (29,875) 29,875 - - - -

Adjustments for depreciation against building fund 3,655,591 3,655,591

Depreciation Rate 15% 20% 15% 15% 15% 15%

Depreciation charged for the year 726,070 592,046 692,079 209,117 93,702 486,053 - - 2,799,067

Accumulated Depreciation as at 31 Ashad 2073 4,919,884 5,102,791 2,816,237 1,012,955 594,046 744,374 3,655,591 - 18,845,878

Carrying Amount -

1 Shrawan 2072 4,654,659 2,838,342 4,377,038 1,357,433 454,953 3,240,355 141,889,524 - 158,812,304

31 Ashad 2073 4,591,315 2,802,019 4,676,183 1,891,125 635,714 2,754,302 157,190,416 2,143,450 176,684,524

ICAN Building located at Satdobato has been capitalized on 1 shrawan 2072 previously recognised as Building under construction. Building fund of Rs. 16,08,46,007 is shown against the value of building which is comprised of accumulated building fund balance received of Rs 12,85,17,782, Rs. 10,000,000 transferred from surplus and Rs. 2,23,28,225 transferred from General Fund. Depreciation of Building is calculated on the Straight line basis for remaining lease period of land of 44 years. Depreciation charge for the period Rs. 36,55,591 is written off from the Building Fund Balance. OtherWIPincludescostofpartitiononICANBuilding4thfloorandfurnitures.



11 Intangible Assets

Particulars Intangible Assets

Intangible Assets Under Construction

Total

Cost at 1 Shrawan 2072 220,320 980,275 1,200,595

Addition at Cost 439,900 - 439,900

Deletion at Cost - - -

Balance at 31 Ashad 2073 660,220 980,275 1,640,495

Amortization and Impairment Losses

Accumulated Balance as at 1 Shrawan 2072 100,272 - 100,272

Amortization Rate 20% 20%

Amortization charge for the year 36,010 - 36,010

Accumulated Balance as at 31 Ashad 2073 136,282 - 136,282

Carrying Amount

1 Shrawan 2072 120,048 980,275 1,100,323

31 Ashad 2073 523,938 980,275 1,504,213

12 Investment


Non - Current Assets

Fixed Deposit in Banks 30,000,000 10,000,000

Total 30,000,000 10,000,000

Current Assets

Fixed Deposit in Banks 80,000,000 75,500,000

Total 80,000,000 75,500,000

13 Earmarked Investment Earmarked investment includes fund collected from members, students and various parties which are deposited inbanksandfinancialinstitutionsonaseparatefundaccounts.


Building fund - 714,013

Medal funds 1,501,000 1,483,003

ICAN scholarship fund 7,985,000 5,954,144

ICAN Employee Welfare Fund 2,000,000 -

TOTAL 11,486,000 8,151,160



14 Inventories


Stock - Publications 327,043 481,682

Stock - Study Materials 2,006,580 1,775,164

TOTAL 2,333,623 2,256,846

15 Trade and other receivables StaffAdvancesareadvancesprovidedtostafftoconductvariousofficeprograms.SalaryAdvance&LoanstostaffsaretheamountsprovidedtoICANpermanentemployeesaspertheEmployeeByeLaw,2066.Accountand other receivables are generated in the course of day to day activities. Trade and other receivables are statedattheircostandshownascurrentassetsinthestatementoffinancialpositionwhichiscomprisedoffollowing :


Prepaid expenses 365,650 183,460

Security deposits 267,731 264,231

Staff advances 177,316 165,708

Salary Advance 3,804,015 3,764,079

Loantostaff 403,137 892,261

Interest receivables 10,503 389,649

Account receivables 1,008,602 1,002,662

Other receivables 2,718,725 791,162

Advance to ICAN Building Contractor - 1,474,983

Advance for share in NATI 350,000 350,000

TOTAL 9,105,679 9,278,195

16 Cash and cash equivalents Balance with Institute in Employee Welfare Fund, Medal fund and Scholarship fund are shown under Balance at Bank.


Cash in hand 114,900 163,665

Balance at bank 74,040,774 73,834,939

TOTAL 74,155,674 73,998,604

17 Reserves The general reserve is the remaining amount of surplus after the transfer to various funds carried forwarded from the previous years and appropriated surplus of current year. Capital reserves also includes ADB granted assets.


Capital fund 1,225,500 1,225,500

General reserves 146,945,480 143,735,943

Capital reserves (ADB grant assets) 120,509 124,830

Total 148,291,489 145,086,273



18 Earmarked Fund Earmarked fund includes the amount contributed by various donors and amount transferred from the surplus of Institute. 18.1 Medal, Scholarship and Other Fund

Medal fund includes amount contributed by various donors. Interest earned from Medal funds during the year are added to medal funds after deducting the cost of medals distributed. ICAN scholarship fund and ICAN Employee Welfare Fund includes amount transferred from the surplus. Interest earned from funds during the year are added to funds after deducting the scholarship distributed and cost incurred for staff welfare.

Particulars Balance at the

beginning

Addition /transfer

fromSurplus

Interest earnedduring

the year

Expenses Remaining Fund

balance

KBC gold medal fund 360,472 100,000 17,547 (9,888) 468,131

BKA gold medal fund 285,336 - 13,890 (9,522) 289,704

Narayan Bajaj silver medal fund 115,039 - 5,600 (4,399) 116,240

Prakash Jung Thapa gold medal fund 256,348 - 12,479 (9,381) 259,446

Shiva Man Singh & Chandra Bhandari silver medal fund

384,795 - 18,731 (10,006) 393,520

Dr. Govind Ram Agrawal gold medal fund 116,643 - 5,678 (4,535) 117,787

Narendra Vasistha gold medal Fund - 251,000 7,242 (724) 257,518

ICAN scholarship fund 8,786,740 1,918,666 251,399 (1,086,350) 9,870,455

Batuk Bdr. Rajbhandary Scholarship Fund

345,117 - 8,945 - 354,061

Binod Bdr. Rajbhandary Scholarship Fund

362,666 - 18,951 - 381,617

Narendra Vasistha Scholarship Fund 336,762 - 17,597 - 354,358

Dr. Govind Ram Agrawal Scholarship Fund

306,426 - 10,846 - 317,272

Building fund 124,506,656 36,329,462 9,888 (3,655,591) 157,190,416

AT scholarship fund 253,000 - - - 253,000

ICAN Employee Welfare Fund 2,676,453 916,899 47,218 (67,065) 3,573,505

Total 39,092,453 39,516,027 446,011 (4,857,461) 174,197,030



18.2 Building Fund Building fund includes amount collected from the members, students and amounts transferred from the surplus and depreciation on building capitalized has been written off from the building fund.

Particulars Amount

Balance at the beginning 124,506,656

Addition during the year 4,001,237

adjusted frm General reserve 22,328,225

Interest earned during the year 9,888

Transferred from Statement of Income and Expenditure 10,000,000

Expenses during the year (3,655,591)

Total 157,190,416

19 Provision for Employment Benefits


Medical 10,612,243 9,757,781

Gratuity 13,917,389 11,887,492

Accumulated leave 7,530,522 7,230,025

TOTAL 32,060,154 28,875,298

20 Trade and other Payables Fee from various activities are recognized on cash basis however fee received in advances are recognized as advance and shown under trade & other payables.


Annual membership fee received in advance 81,624 68,169

Audit fee payable 357,650 301,900

Creditors, accrued & other liabilities 27,968,074 23,833,729

Withhold tax payable 766,333 532,690

Payable to staff 1,547,360 1,306,920

TOTAL 30,721,041 26,043,408

21 Prior Period Expenses TheexpenseamountRs95,016ofpreviousfiscalyearhasbeenincludedinInternationalaffairexpenses.



22 Appropriation The Institute has a policy to transfer 5% of surplus to ICAN Scholarship fund which amounted to Rs. 1,918,666.00, similarly Rs. 916,899.00 has been transferred to ICAN Employee Welfare Fund as per Karmachari Kalyan Kosh Byawasthapan yewan Sanchalan Karyabidhi, 2068 and Rs. 10,000,000.00 has been transfered to building fund as per the decision of Executive Committee. The balance amount of surplus Rs. 25,537,761.00 after transfer as above has been transferred to general reserve fund.

Particulars Current Year Previous Year Transferred to building fund 10,000,000 10,000,000



Transferred to general fund 25,537,761 34,913,252

TOTAL 38,373,326 48,142,070

23 Related Party Transactions A related party transaction is a transfer of resources, services, or obligations between related parties, regardless ofwhetherapriceischarged.Followingrelatedpartytransactionsareoccurredduringthecurrentfinancialyear: 23.1 Key Management Compensation

Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the entity, directly or indirectly, including any directors (whether executive or otherwise) of the entity.

23.2 Executive Director ExecutiveDirectorisafulltimeemployeeoftheInstituteandhasaspecifieddecisionmakingrole.AnnualSalaryofExecutiveDirector isRs.24,09,303.60 for theyear2072/73.Executivedirectorhasbeen provided a vehicle facility with monthly fuel limit of 100 lts petrol and mobile facility with monthly bill limit upto amount Rs. 2000.00

ICAN is providing Council meeting allowance Rs. 2,400 and Committee meeting allowance Rs. 1,200 for those who attends the meetings.

23.3 President President has been provided monthly fuel limit of 60 lts petrol and mobile facility with monthly bill limit uptoamountRs.3000duringtheyear2072/73

23.4 Vice-PresidentVice president has been provided monthly fuel limit of 40 lts petrol and mobile facility with monthly bill limit uptoamountRs.2000duringtheyear2072/73.

23.5 Transaction with Auditing Standard BoardDifferent publications published by auditing standard board are purchased by ICAN. Transaction of Rs. 3,13,150hasbeendonewith theAuditingStandardBoardduring the year 2072/73.Rs. 2,06,900 isshown as payable to Auditing Standard Board.

23.6 Transaction with Accounting Standard BoardDifferent publications published by accounting standard board are purchased by ICAN. Transaction of Rs.6,05,808hasbeendonewiththeAccountingStandardBoardduringtheyear2072/73.Rs.3,93,308is shown as payable to Accounting Standard Board.

24 Others

Figuresare roundedoff tonearestRupees.Previous year's figureshavebeen regroupedand rearrangedwherevernecessarytoconfirmtocurrentyear'spresentation.



1 Executive Committee

S.N Name Position

1 CA.PrakashLamsal President

2 CA. Mahesh Khanal Vice-President

3 CA. Suresh Devkota Council Member

4 RA. Yadav Prasad Nyaupane Council Member

5 CA. Binay Prakash Shrestha Member Secretary

2 Professional Development Committee

S.N Name Position

1 CA.PrakashLamsal Chairman

2 CA. Mahesh Khanal Vice-Chairman

3 CA.BhaskarSinghLala Council Member

4 RA. Surya Prasad Adhikari Council Member

5 Mr. Baburam Gautam Council Member

6 CA. Bijaya Raj Ghimire Member

7 RA. Dol Prasad Dahal Member

8 Mr. Binod Prasad Neupane Secretary

3 Disciplinary Committee

S.N Name Position

1 CA. Prakash Jung Thapa Chairman

2 CA. Jagannath Upadhyay Council Member

3 RA. Ganesh Raj Rai Council Member

4 Mr. Mukunda Raj Panthi Council Member

5 CA. Jitendra Kumar Mishra Member

6 RA. Bahadur Singh Bista Member

7 Mr. Ishwor Nepal Member

8 Ms. Goma Raut Secretary

4 Examination Committee

S.N Name Position



3 CA. Bharat Rijal Council Member

4 RA. Dhruba Prasad Paudel Council Member

5 Mr.Jagannath Devkota Council Member

6 CA. Achyut Raj Joshi Member

7 RA. Krishna Prasad Poudel Member

8 Mr. Shyam Mani Dahal Secretary

Non-Standing Committees 2072/731 Editorial Committee

S.N. Name Position



3 CA. Nil Bahadur Saru Magar Member

4 CA. Hemanta Pokharel Member

5 CA. Sanju Adhikari Member

6 CA. Shraddha Singh Shrestha Member

7 RA. Dev Bahadur Bohora Member

8 RA. Dharanidhar Adhikari Member

9 RA. Surendra Keshar Amatya Member


Annexure - 1

Standing and Non- Standing Committees As per the Nepal Chartered Accountants Act, there is a provision for formation of various committees and board to advice and facilitate the council and its decisions. During the year 4 standing committee, 24 non-standing committee, Peer Review Board, Accounting Technician Board, Board of Studies, Quality Assurance Board and 5BranchAdvisoryCommitteewere formed.Thenameof committe’s/boardand itsmembersof the fiscal year2072/073isasfollows:

Standing Committees 2072/73



2 Education Committee

S.N. Name Position





5 CA. Dr. Govinda Ram Agrawal Member

6 CA. Nanda Kishore Sharma Member

7 CA.Tika Ram Khatiwada Member

8 CA. Bhoj Raj Pandey Member

9 RA. Dinkar Man Singh Pradhan Member

10 CA. Paramananda Adhikari Secretary

3 Ethics Committee

S.N. Name Position

1 CA. Kaushalendra Kumar Singh Chairman

2 CA. Ram Prabodh Sah Council Member

3 CA.Purneshwor Shrestha Member

4 CA. Sudhir Sharma Member

5 CA.SantoshLamsal Member

6 CA.Sujan Shrestha Member

7 CA. Bijayshwar Poudel Member

8 RA. Pradip Kumar Yadav Member

9 RA. Balram Chaudhary Member


4 Continuing Professional Education Committee

S.N. Name Position

1 CA.BhaskarSinghLala Chairman


3 CA. Khagendra Bhattarai Member

4 CA. Gopal Shrestha Member

5 CA. Bhanu Bhakta Joshi Member

6 CA. Chhetra Gopal Pradhan Member

7 CA. Jyoti Prakash Pandey Member

8 CA. Shailendra Upreti Member

9 RA. Meera Shrestha Member


5 NFRS (Excluding Banks & Insurance), NSA and NPSAS Implementation Committee

S.N. Name Position

1 CA. Mahesh Kumar Guragain Chairman

2 CA. Bhava Nath Dahal Council Member

3 CA. Madan Krishna Sharma Member

4 CA. Gyanendra Bahadur Bhari Member

5 CA. Rajesh Prasad Giri Member

6 CA. Prabin Kumar Jha Member

7 CA.SujanKumarKafle Member

8 RA. Bhola Nath Pathak Member

9 RA. Kedar Nath Poudel Member

10 Representative- MOF Invitee

11 Representative- CRO Invitee

12 RA. Thaneshwor Gautam Invitee

13 RA. Nawaraj Adhikari Invitee


6 Audit Committee

S.N. Name Position

1 CA. Ram Prabodh Sah Chairman



4 Mr. Mahesh Chitrakar Secretary

7 Scholarship Selection Committee

S.N. Name Position



3 CA. Ram Prabodh Sah Council Member


5 CA. Pramila Shrestha Member

6 CA. Jaldeep Karki Member

7 CA. Mukul Bhatta Member

8 RA. Jaya Kumari Jha Member

9 RA. Rajendra Prasad Dhungana Member




8 Expert Advisory Committee

S.N. Name Position

1 CA. Pradeep Kumar Shrestha Chairman

2 CA. Bhava Nath Dahal Council Member


4 CA. Parakram Nath Sharma Member

5 CA. Gopal Kumar Agrawal Member

6 CA. Binit Dhungana Member

7 CA. Bhupendra Pandey Member

8 RA. Uday Kant Jha Member

9 RA. Ram Gopal Maharjan Member

10 CA. Pushpendra Singh Secretary

9 Information Technology Committee

S.N. Name Position

1 CA. Bharat Rijal Chairman


3 CA. Pramod Nath Pyakuryal Member

4 CA. Nagendra Sah Member

5 CA. Ranjit Kumar Yadav Member

6 CA.LokRajSharma Member

7 CA. Rajendra Mahat Member

8 CA.RupeshLuitel Member

9 RA. Hiraratna Bajracharya Member

10 Mr. Basanta Ranjitkar Secretary

10 Small and Medium Practices (SMP) Committee

S.N. Name Position

1 CA. Bijay Kumar Agrawal Chairman

2 CA. Sunil Jakibanja Council Member

3 CA.ArunLuitel Member

4 CA. Gyanendra Subedi Member

5 CA. Kaushalendra Kumar Jha Member

6 CA. Bikash Bhattarai Member

7 CA. Jagadish Khadka Member

8 RA. Chiranjibi Dwa Member

9 RA. Shoba Kant Jha Member


11 Monitoring Committee

S.N. Name Position

1 CA. Jagannath Upadhyay Chairman


3 CA. Surendra Man Pradhan Member

4 CA. Yuddha Raj Oli Member

5 CA. Deepak Pyakurel Member

6 CA. Ramesh Nepal Member

7 CA. Dipendra Kumar Mishra Member

8 RA. Bharat Kumar Shrestha Member

9 RA. Shibaji Pandey Member


12 Recruitment Committee

S.N. Name Position

1 CA. Mahesh Khanal Chairman


3 Mr. Baburam Gautam Council Member

4 CA. Binay Prakash Shrestha Member Secretary

13 Committee for Members in Industry

S.N. Name Position

1 CA. Suresh Devkota Chairman

2 CA. Sunil Jakibanja Council Member

3 CA.SurajLamichhane Member

4 CA. Kamlesh Ratna Konajo Member

5 CA. Ganesh Parajuli Member

6 CA. Tej Prasad Subedi Member

7 CA. Deepak Prasad Tripathee Member

8 RA. Tanka Prasad Pandey Member

9 RA. Madhav Prasad Parajuli Member


14 Career Counselling Committee

S.N. Name Position

1 CA. Narayan Bajaj Chairman

2 CA. Jagannath Upadhyay Member

3 CA. Suresh Raj Khakurel Member

4 CA. Suman Kumar Bohara Member

5 CA.Khomi Shev Dhungana Member

6 CA. Bisesh Bibu Acharya Member

7 CA. Roshan Dahal Member

8 RA. Mohan Kumar Parajuli Member

9 RA. Dr. Durga Nand Chaudhari Member




15 Research & Development Committee

S.N. Name Position


2 Mr.Mukunda Raj Panthee Member

3 CA. Hari Kumar Silwal Member

4 CA. Suman Rayamajhi Member

5 CA.LilaRajDhakal Member

6 CA. Kabi Raj Adhikari Member

7 CA. Thanesor Bashyal Member

8 RA. Hari Bahadur Karki Member

9 RA. Bishnu Hari Timilsina Member


16 Committee for Implementation of NFRS - Bank

S.N. Name Position



3 CA. Chandra Raj Sharma Member

4 CA. Vinay Raman Poudel Member

5 CA. Dhiraj Raj Subedi Member

6 CA. Santosh Timilsina Member

7 CA. Ramesh Dhital Member

8 RA. Shiva Prasad Acharya Member

9 RA. Maya Bade Shrestha Member

10 Mr. Jagadish Kumar Invitee


17 Committee for Implementation of NFRS - Insurance

S.N. Name Position

1 CA. Madhu Bir Pande Chairman

2 CA. Jagannath Upadhyay Council Member

3 CA. Sunil Devkota Member

4 CA. Jeetendra Dhital Member

5 CA. Aman Raj Upreti Member

6 CA. Bigyan Shrestha Member

7 CA. Manish Raj Uprety Member

8 RA. Ramji Prasad Adhikari Member

9 RA. Mitha Ram Sapkota Member

10 Mr. Santosh Prasai Invitee

11 CA. Binay Prakash Shrestha Secretary

18 Law Reform Committee

S.N. Name Position

1 CA. Bhava Nath Dahal Chairman

2 CA. Kiran Dangol Member

3 CA. Devendra Raman Khanal Member

4 CA. Mahesh Rimal Member

5 CA. Gobinda Sharma Gairhe Member

6 CA. Hem Kumar Kaphle Member

7 CA. Tulasi Raj Rijal Member

8 RA. Prem Bahadur Shrestha Member

9 RA. Keshav Prasad Poudyal Member


19 Fiscal & Taxation Committee

S.N. Name Position

1 CA. Narendra Bhattarai Chairman

2 CA.BhaskarSinghLala Council Member

3 CA. Anal Raj Bhattarai Member

4 CA. Raju Kumar Sibakoti Member

5 CA. Krishna Prasad Acharya Member

6 CA. Bishnu Bhandari Member

7 CA. Ananda Shrestha Member

8 RA.Dilip Kumar Dhungana Member

9 RA. Surendra Man Shrestha Member


20 RA. Member Capacity Development Committee

S.N. Name Position

1 RA. Surya Prasad Adhikari Chairman

2 CA. Prakash Jung Thapa Council Member

3 CA. Umesh Prasad Dhakal Member

4 RA. Niranjan Prasad Neupane Member

5 RA.JhalakManiLamsal Member

6 RA. Abdul Karim Khan Member

7 RA. Posh Raj Nepal Member

8 RA. Keshav Raj Acharya Member

9 RA. Shanker Gyawali Member




21 Building Committee

S.N. Name Position

1 CA. Suvod Kumar Karn Chairman

2 CA. Mahesh Khanal Council Member


4 CA. Subhash Kumar Jhunjhunwala Member

5 CA. Umesh Prasad Dhakal Member

6 RA. Rajendra Shrestha Member

7 Mr. Dev Bahadur Bohara Member

8 RA. Dilip Kumar Dhungana Member

9 RA. Badri Prasad Bhattarai Member

10 RA. Mohan Raj Regmi Member

11 Mr. Jay Dev Shrestha Member


22 Accounting Technician Board

S.N. Name Position

1 CA. Suvod Kumar Karn Chairman

2 CA. Prakash Jung Thapa Council Member

3 Mr.Baburam Gautam Council Member

4 RA. yadav Prasad Nyaupane Council Member


6 CA. Bhavanath Dahal Council Member

7 Mr.Ram Chandra Poudel Member


23 Peer Review Board

S.N. Name Position

1 CA. Sunir Kumar Dhungel Chairman

2 Mr.Mukunda Raj Panthee Council Member

3 CA. Shashi Satyal Member

4 CA. Yagya Raj Bhatta Member

5 RA. Badri Prasad Bhattarai Member


24 Contemporary Issue Discussion Committee

S.N. Name Position

1 CA. Sunil Jakibanja Chairman

2 CA.. Mukunda Subedi Member

3 CA. Janak Raj Kalakheti Member

4 CA. Santosh Ghimire Member

5 CA. Anil Regmi Member

6 CA. Shankar Gautam Member

7 CA.PrabinRajKafle Member

8 RA. Vinod Kumar Chankhun Member

9 RA. Devi Prasad Dallakoti Member


25 Committee for NPO's and Cooperatives

S.N. Name Position


2 CA. Shambu Prasad Chaudhary Member

3 CA. Umesh Paneru Member

4 CA. Sudarshan Chapagain Member

5 CA. Rajan Ghimire Member

6 CA. Rabindra Shahi Member

7 CA. Gaurab Rijal Member

8 RA. Nutan Man Bajracharya Member

9 RA. Dilli Ram Upadhyay (Subedi) Member


26 Board of Studies

S.N. Name Position



3 CA.Ram Prabodh Sah Council Member


5 Mr.Mukunda Raj Panthi Council Member


7 RA. Dinkar Man Singh Pradhan Member

8 Mr. Ramesh Silwal Member

9 Mr. Saroj Ghimire Member

10 CA.Pushpendra Singh Secretary



27 ICAN Advisory Committee

S.N. Name Position

1 CA.PrakashLamsal Co-ordinator

2 CA. Komal Bahadur Chitracar Member

3 CA. Tirtha Raj Upadhyaya Member

4 CA. Kaushalendra Kumar Singh Member

5 CA. Gopal Prasad Rajbahak Member

6 CA. Prabhu Ram Bhandary Member

7 CA. Bijay Kumar Agrawal Member

8 CA. Pradeep Kumar Shrestha Member

9 CA.PushpaLallShrestha Member

10 CA. Narayan Bajaj Member

11 CA. Ratna Raj Bajracharya Member

12 CA. Tanka Prasad Paneru Member

13 CA. Suvod Kumar Karn Member

14 CA. Sunir Kumar Dhungel Member

15 CA. Sudarshan Raj Pandey Member

16 CA. Madhu Bir Pande Member

17 CA. Mahesh Kumar Guragain Member

18 CA. Narendra Bhattarai Member


28 Quality Assurance Board

S.N Name Position

1 Mr. Ramesh Raj Satyal Chairman

2 CA. Jagannath Upadhyay (Niraula) Council Member


4 CA.Krishna Prasad Acharya Member

5 RA.LaxmanKhanal Member

6 MS.LilaDeviGadtoula Member

7 Mr. Bishwonath Regmi Member


Branch Advisory Committe 2072/731 Butwal Branch Advisory Committee

S.N Name Position

1 CA. Rupesh Kumar Maheshwari Co-ordinator

2 CA. Sheo Hari Sharma Member

3 RA. Shridhar Raj Sharma Member

4 RA. Govinda Prasad Regmi Member

5 CA.HariLamsal Member

2 Biratnagar Branch Advisory Committee

S.N Name Position

1 CA. Aswini Bansal Co-ordinator

2 CA. Pawan Kumar Rathi Member

3 CA. Kamlesh Kumar Karn Member

4 CA. Sushil Kumar Agrawal Member

5 RA. Prakash Narayan Chaudhary Member

6 RA.Gopal Prasad Pandey Member

7 RA. Bijay Hari Sharma Member

3 Birgunj Branch Advisory Committee

S.N Name Position

1 CA. Arvind Kumar Khetan Co-ordinator

2 CA. Jagadish Prasad Khandelwal Member

3 CA. Ramesh Agrawal Member

4 CA. Subhash Khandelwal Member

5 RA.RajendraLalDas Member

6 RA. Din Nath Rauniyar Member

7 RA. Pradyumna Sedai Member

4 Pokhara Branch Advisory Committee

S.N Name Position

1 CA. Prakriti Raj Timalsina co-ordinator

2 CA. Pramesh Parajuli Member

3 RA. Kesh Bahadur K.C Member

4 RA. Chandra Subedi Member

5 RA.Chandra Bahadur Thapa Member

6 CA. Amit Thapa Member

5 Nepalgunj Branch Advisory Committee

S.N Name Position

1 CA.Kanaihyalal Tandon co-ordinator

2 CA.Chhabilal Acharya Member

3 RA. Ashok Kumar Basnet Member

4 RA. Binam Kumar Shrestha Member

5 RA. Mohammad Zuber Rai Member

6 RA.Abdul karim Khan Member

7 RA.Gokarna Prasad Acharya Member



Annexure - 2

Accounting and Auditing Standards As per the provision of the Nepal Chartered Accountants Act, 1997, the Institute has pronounce the following Accounting and Auditing Standards for implementation upon the recommendation from the Accounting Standards Board (ASB) and Auditing Standard Board (AuSB) which are prepared in line with the International Financial Reporting Standard (IFRS).

Nepal Financial Reporting StandardsS.N. NFRSs Name of Standards

PrefaceConceptual Framework

1 NAS 1 Presentation of Financial Statements2 NAS 2 Inventories3 NAS 7 Statement of Cash Flows4 NAS 8 Accounting Policies, Changes in Accounting Estimates & Error5 NAS10 Events after the Reporting Period6 NAS 11 Construction Contracts7 NAS 12 Income Taxes8 NAS 16 Property, Plant & Equipment9 NAS 17 Leases10 NAS 18 Revenue11 NAS 19 EmployeeBenefits12 NAS 20 Accounting for Government Grants & Disclosure of Government Assistance13 NAS 21 The Effects of Changes in Foreign Exchange Rates14 NAS 23 Borrowing Cost15 NAS 24 Related Party Disclosures16 NAS 26 Accounting&ReportingbyRetirementBenefitPlans17 NAS 27 Separate Financial Statements18 NAS 28 Investments in Associates & Joint Ventures19 NAS 32 Financial Instruments : Presentation20 NAS 33 Earnings Per Share21 NAS 34 Interim Financial Reporting22 NAS 36 Impairment of Assets23 NAS 37 Provisions,ContingentLiabilitiesandContingentAssets24 NAS 38 Intangible Assets25 NAS 39 Financial Instruments: Recognition and Measurement26 NAS 40 Investment Property27 NAS 41 Agriculture28 NFRS 1 First-Time Adoption of NFRS29 NFRS 2 Share based Payment30 NFRS 3 Business Combination31 NFRS 4 Insurance Contracts32 NFRS 5 Non-Current Assets Held for Sale & Discontinued Operation33 NFRS 6 Exploration for and evaluation of mineral resources34 NFRS 7 Financial Instruments: Disclosure35 NFRS 8 Operating Segments36 NFRS 9 Financial Instruments37 NFRS 10 Consolidated Financial Statements38 NFRS 11 Joint Arrangements39 NFRS 12 Disclosure of Interests in other Entities40 NFRS 13 Fair Value Measurements



Nepal Standards on Auditing

S. No. Existing NSAs NSAs Revised Serial Number Name Effective Date (Original) Revised Date

01 NSQC 1 Nepal Standards on Quality Control (NSQC)1: Quality control forfirm'sthatperformauditsandreviewofhistoricalFinancialInformation and other. Assurance and related Service Engagement

1 Shrawan 2065 (16 July 2008)

02 Preface to the Nepal Standards on Quality Control, Auditing, Review, and other Assurance and related Service.

1 Shrawan 2065 (16 July 2008)

03 Nepal Framework for Assurance Engagements 1 Shrawan 2062 (16 July 2005) 1 Shrawan 2065 (16 July 2008)

04 01 200 Objectives and General Principles Governing an Audit of Financial Statements

1 Shrawan 2060 (17 July 2003) 1 Shrawan 2065 (16 July 2008)

05 02 210 Terms of Audit Engagements 1 Shrawan 2060 (17 July 2003) 1 Shrawan 2065 (16 July 2008)

06 03 230 Audit Documentation 1 Magh 2060 (15 January 2004) 1 Shrawan 2065 (16 July 2008)

07 04 500 Audit Evidence 1 Magh 2060 (15 January 2004)

08 05 240 The Auditor's Responsibility to Consider Fraud and Error in an Audit of Financial Statements

1 Shrawan 2061 (16 July 2004) 1 Shrawan 2065 (16 July 2008)

09 06 320 Audit Materiality 1 Shrawan 2061 (16 July 2004) 1 Shrawan 2065 (16 July 2008)

10 07 300 Planning an Audit of Financial Statements 1 Shrawan 2061 (16 July 2004) 1 Shrawan 2065 (16 July 2008)

11 08 700 The Independent Auditors Report on a Complete Set of General Purpose Financial Statement

1 Shrawan 2061 (16 July 2004)

12 09 530 Audit Sampling and other Selective Testing Procedures 1 Shrawan 2061 (16 July 2004)

13 10 570 Going Concern 1 Shrawan 2061 (16 July 2004)

14 11 580 Management Representation 1 Shrawan 2061 (16 July 2004)

15 13 260 Communication of Audit Matters with Those Charged with Governance

1 Magh 2061 (14 January 2005) 1 Shrawan 2065 (16 July 2008)

16 15 250 ConsiderationofLawsandRegulationsinanAuditofFinancialStatements

1 Magh 2061 (14 January 2005) 1 Shrawan 2065 (16 July 2008)

17 16 560 Subsequent Events 1 Magh 2061 (14 January 2005)

18 17 505 ExternalConfirmations 1 Magh 2061 (14 January 2005)

19 18 600 Using the work of Another Auditor 1 Magh 2061 (14 January 2005)

20 19 610 Considering the Work of Internal Auditor 1 Magh 2061 (14 January 2005)

21 20 620 Using the Work of an Expert 1 Magh 2061 (14 January 2005)

22 21 510 Initial Engagements- Opening Balances 1 Magh 2061 (14 January 2005)

23 22 720 Other Information in Documents Containing Audited Financial Statements

1 Magh 2061 (14 January 2005)

24 23 540 Audit of Accounting Estimates 1 Shrawan 2062 (16 July 2005

25 24 710 Comparatives 1 Shrawan 2062 (16 July 2005

26 25 550 Related Parties 1 Shrawan 2062 (16 July 2005

27 26 800 The Auditor's Report on Special Purpose Audit Engagements 1 Shrawan 2062 (16 July 2005

28 220 Quality Control for Audit of Historical Financial Information 1 Magh 2067 (15 January 2011)

29 315 Understanding the entity and its Environment and Assessing the Risks or Material Misstatement

1 Magh 2067 (15 January 2011)

30 330 The Auditor's Procedures in Response to Assessed Risks 1 Magh 2067 (15 January 2011)

31 520 Analytical Procedures 1 Magh 2067 (15 January 2011)

32 701 ModificationstotheIndependentAuditor'sReport 1 Magh 2067 (15 January 2011)

Nepal Standards on Related Services (NSREs):

S. No. ExistingNSAs

NSAs Revised Serial Number(Effective from 2064-2-22)

Name Effective Date EffectiveFrom

01 27 4400 Engagements to perform Agreed upon Procedures Regarding Financial Information 1 Shrawan 2062 (16 July 2005)

02 28 2400 Engagements to Review Financial Statements 1 Shrawan 2062 (16 July 2005)

03 29 4410 Engagements to Compile Financial Information 1 Shrawan 2062 (16 July 2005)

Guidance Note:S. No. G N Name

1 201 Guidance Notes on Independence of Auditors

2 202 Guidance Notes on Preparation of Financial Statements on Letter- Heads and Stationery of Auditors



Nepal standards on Auditing(Based on IAASB Hand Book 2012 Edition)

LIST OF STANDARDSS.No. NSA No. Standards

NEPAL STANDARDS ON QUALITY CONTROL(NSQCs)

1 NSQC1 Nepal Standard on Quality Control (NSQC) 1 : Quality Control For Firms that Perform Audits and Reviews Of Financial Statements, and Other Assurance and Related Services Engagements

AUDITS OF HISTORICAL FINANCIAL INFORMATION

200-299 GENERAL PRINCIPLES AND RESPONSIBILITIES

1 NSA 200 Overall Objective of the Independent Auditor and the conduct of an Audit in Accordance with Nepal Standards on Auditing

2 NSA 210 Agreeing the Terms of Audit Engagements

3 NSA 220 Quality Control for an Audits of Financial Statements

4 NSA 230 Audit Documentation

5 NSA 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements

6 NSA 250 ConsiderationofLawsandRegulationsinanAuditofFinancialStatements

7 NSA 260 Communication with Those Charged with Governance

8 NSA 265 CommunicatingDeficienciesinInternalControltoThoseChargedwithGovernanceand Management

300-499 RISK ASSESSMENT AND RESPONSE TO ASSESSED RISKS

9 NSA 300 PlanninganAuditoffinancialstatements

10 NSA 315 (Revised)

Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment

11 NSA 320 Materiality in Planning and Performing an Audit

12 NSA 330 The Auditor’s Responses to Assessed Risks

13 NSA 402 Audit Considerations Relating to an Entity Using a Service Organization

14 NSA 450 EvaluationofMisstatementsIdentifiedduringtheAudit

500-599 AUDIT EVIDENCE

15 NSA 500 Audit Evidence

16 NSA 501 AuditEvidence-SpecificConsiderationsforSelectedItems

17 NSA 505 ExternalConfirmations

18 NSA 510 Initial Audit Engagements—Opening Balances



S.No. NSA No. Standards

19 NSA 520 Analytical Procedures

20 NSA 530 Audit Sampling

21 NSA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures

22 NSA 550 Related Parties

23 NSA 560 Subsequent Events

24 NSA 570 Going Concern

25 NSA 580 Written Representations

600-699 USING THE WORK OF OTHERS

26 NSA 600 Special considerations-Audit of Group Financial statements (including the work of component Auditors)

27 NSA610(Revised)

Using the work of Internal Auditors

28 NSA 620 Using the work of an Auditors Expert

700-799 AUDIT CONCLUSIONS & REPORTING

29 NSA 700 ForminganopinionandReportingonfinancialstatements

30 NSA 705 ModificationstotheopinionintheIndependentAuditorsreport

31 NSA 706 Emphasis of Matter Paragraphs and other Matter Paragraphs in the Independent Auditors Report

32 NSA 710 comparative information-corresponding Figures and comparative Financial Statements

33 NSA 720 The auditor’s responsibilities relating to Other information in Documents Containing Audited Financial statements.

800-899 SPECIALIZED AREAS

34 NSA 800 specialConsiderations-AuditoffinancialstatementsPreparedinaccordancewithspecial Purpose Frame works

35 NSA 805 specialConsiderations-AuditsofSingleFinancialstatementsandSpecificElements,Accounts or Items of a Financial statements

36 NSA 810 Engagements to Report on Summary of Financial Statements

NEPAL AUDITING PRACTICE NOTES

37 NAPN 1000 Special considerations in Auditing Financial Instruments

AUDITS AND REVIEW OF HISTORICAL FINANCIAL INFORMATION

2000-2699 NEPAL STANDARDS ON REVIEW ENGAGEMENTS(NSREs)

38 NSRE 2400 Engagement to Review Financial Statement



S.No. NSA No. Standards

39 NSRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity

ASSURANCE ENGAGEMENTS OTHER THAN AUDITS OR REVIEWS OF HISTORICAL FINANCIAL INFORMATION

3000-3699 NEPAL STANDARDS ON ASSURANCE ENGAGEMENTS (NSAEs)

3000-3399 APPLICABLE TO ALL ASSURANCE ENGAGEMENTS

40 NSAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information

3400-3699 SUBEJECT SPECIFIC STANDARDS

41 NSAE 3400 The Examination of Prospective Financial Information

42 NSAE 3402 Assurance Reports on Controls at a Service Organization

43 NSAE 3410 Assurance Engagements on Greenhouse Gas Statements

44 NSAE 3420 Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus

RELATED SERVICES

4000-4699 NEPAL STANDARDS ON RELATED SERVICES (NSRSs)

45 NSRS 4400 Engagements to Perform Agreed-Upon Procedures Regarding Financial Information

46 NSRSs4410(Revised)

Compilation engagements



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The Institute of Chartered Accountants of NepalPast Presidents

CA. Komal Bahadur Chitracar(1997-1998)

CA. Tirtha Raj Upadhyay(1998-1999)

CA. Kaushalendra Kumar Singh(1999-2000)

CA. Gopal Prasad Rajbahak(2000-2001)

CA. Prabhu Ram Bhandary(2001-2002)

CA. Bijay Kumar Agrawal(2002-2003)

CA. Pradeep Kumar Shrestha(2003-2004)

CA. Pushpa Lall Shrestha(2004-2005)

CA. Narayan Bajaj(2005-2006)

Late. CA. Binod B. Rajbhandary(2006-2007)

CA. Ratna Raj Bajracharya(2007-2008)

CA. Tanka Prasad Paneru(2008-2009)

CA. Suvod Kumar Karn(2009-2010)

CA. Sunir Kumar Dhungel(2010-2011)

CA. Sudarshan Raj Pandey(2011-2012)

CA. Madhu Bir Pande(2012-2013)

CA. Mahesh Kumar Guragain(2013-2014)

CA. Narendra Bhattarai(2014-2015)

CA. Prakash Lamsal(2015-2016)