About this course
Nepal Financial Reporting Standards (NFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable within Nepal. The rules to be followed by accountants to maintain books of accounts which is comparable, understandable, reliable and relevant as per the users internal or external.
NFRS was issued by Nepal Accounting Standard Board in 2013. Earlier it has issued Nepal Accounting Standards. NFRS is prepared in line with on IFRS.
Financial statements are a structured representation of the financial positions and financial performance of an entity. The objective of financial statements is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions.
Requirements
Internet
Laptop/PC
Good understanding of Financial Statements
Comments (1)
IAS 2 Inventories covers the following important topics:
- Definition and scope of inventories
- Valuation of inventories
- Cost formulas i.e. FIFO, weighted average, and specific identification
- Cost components of inventories
- Write-down of inventories to net realizable value
- Inventory-related costs like abnormal losses, storage costs etc.
- Disclosure requirements for inventories.
NAS 23 Borrowing Costs covers the following important topics:
- Definition and scope of borrowing costs
- Recognition of borrowing costs as an expense
- Capitalization of borrowing costs as part of the cost of an asset
- Determining the amount of borrowing costs to be capitalized
- Cessation of capitalization of borrowing costs
- Disclosure requirements for borrowing costs.
NFRS 15 Revenue from Contracts with Customers covers the following important topics:
- Scope and applicability of the standard
- Identification of the contract and the performance obligations
- Determination of the transaction price and variable consideration
- Allocation of the transaction price to the performance obligations
- Recognition of revenue when performance obligations are satisfied
- Changes in the transaction price and contract modifications
- Accounting for contract costs
- Disclosures about revenue from contracts with customers.
NAS 16 Property, Plant and Equipment covers the following important topics:
- Definition and scope of property, plant and equipment
- Recognition criteria for property, plant and equipment
- Initial measurement of property, plant and equipment
- Subsequent measurement of property, plant and equipment,
including cost model and revaluation model
- Depreciation of property, plant and equipment
- Impairment of property, plant and equipment
- Retirement and disposal of property, plant and equipment
- Disclosure requirements for property, plant and equipment.
NAS 38 Intangible Assets covers the following important topics:
- Definition and recognition of intangible assets
- Recognition criteria for internally generated intangible assets
- Measurement of intangible assets, including cost and amortization
- Recognition and measurement of research and development costs
- Impairment testing for intangible assets
- Disclosure requirements for intangible assets
- Application of IAS 38 to intangible assets acquired in a business combination.
NAS 36 Impairment of Assets covers the following important topics:
- Definition of impairment and scope of the standard
- Identification of impaired assets
- Measurement of impairment loss
- Reversal of impairment loss
- Annual impairment testing for goodwill and indefinite-lived
intangible assets
- Impairment testing for other assets
- Disclosure requirements for impairment of assets.
NAS 10 Events after the Reporting Period covers the following important topics:
- Definition of events after the reporting period
- Recognition and disclosure requirements for adjusting events
- Recognition and disclosure requirements for non-adjusting events
- Disclosure requirements for dividends declared after the reporting period
- Disclosure requirements for post-reporting period changes in accounting estimates
- Consideration of post-reporting period events in preparing financial statements.
NAS 41 Agriculture covers the following important topics:
- Definition of agricultural activity and the scope of the standard
- Recognition and measurement of biological assets
- Accounting for government grants related to biological assets
- Fair value measurement of biological assets
- Depreciation and amortization of assets used in agricultural activity
- Disclosure requirements for agricultural activity
- Treatment of gains or losses from biological assets
NAS 21 The Effects of Changes in Foreign Exchange Rates covers the following important topics:
- Functional currency determination
- Foreign currency transactions and exchange rates
- Translation of financial statements of foreign operations into the presentation currency
- Accounting for gains and losses on foreign currency transactions and foreign operations
- Hedging foreign currency risk
- Disclosure requirements for foreign exchange transactions and operations.
NAS 20 Accounting for Government Grants and Disclosure of Government Assistance covers the following important topics:
- Definition and scope of government grants
- Recognition of government grants and government assistance
- Accounting treatment of non-monetary government grants
- Accounting treatment of monetary government grants
- Accounting for government grants related to assets, income, and
expenses
- Repayment of government grants
- Disclosure requirements for government grants and government
assistance.
NAS 8 Accounting Policies, Changes in Accounting Estimates and Errors covers the following important topics:
- Selection and application of accounting policies
- Disclosure requirements for accounting policies
- Changes in accounting policies and retrospective application
- Changes in accounting estimates and prospective application
- Correction of errors in prior period financial statements
- Disclosure requirements for changes in accounting policies, changes in accounting estimates, and correction of errors.
NAS 7 Statement of Cash Flows covers the following important topics:
- Objective and scope of the statement of cash flows
- Presentation of cash flows from operating, investing and financing activities
- Treatment of interest, dividends, and taxes paid or received in the statement of cash flows
- Treatment of foreign currency cash flows
- Treatment of non-cash transactions
- Disclosure requirements for cash and cash equivalents, and changes in cash and cash equivalents
- Reconciliation of net profit or loss to cash flows from operating activities.
NFRS 16 Leases covers the following important topics:
- Definition of a lease
- Recognition, measurement, and presentation of leases by lessees
- Recognition, measurement, and presentation of leases by lessors
- Lease term and the determination of the lease payments
- Accounting for short-term and low-value leases
- Sublease accounting
- Disclosures in financial statements related to leases.
NAS 19 Employee Benefits covers the following important topics:
- Short-term employee benefits, such as wages, salaries, etc.
- Post-employment benefits, such as pensions, medical benefits, etc.
- Other long-term employee benefits, such as sabbatical leave.
- Termination benefits, such as early retirement benefits.
- Recognition and measurement of employee benefits, including
actuarial assumptions and discount rates
- Accounting for defined benefit plans and defined contribution plans
- Disclosure requirements for employee benefits.
NAS 12 Income Taxes covers the following important topics:
- Recognition and measurement of current and deferred income taxes
- Accounting for temporary differences between tax and accounting bases of assets and liabilities
- Tax losses and credits
- Deferred tax assets and liabilities and the concept of valuation allowances
- Recognition and measurement of uncertain tax positions
- Presentation and disclosure requirements for income taxes.
NAS 1 Presentation of Financial Statements covers the following important topics:
- Objective and scope of financial statements
- Components of financial statements
- Minimum requirements for the presentation of financial statements
- Guidelines for the structure and content of financial statements
- Disclosure requirements for significant accounting policies and other specific items
- Requirements for comparative information and restatement of prior period financial statements
- Guidelines for the presentation of items of income and expenses in financial statements
- Treatment of changes in accounting policies and correction of errors in financial statements.
IFRS 1 First-time Adoption of International Financial Reporting Standards covers the following important topics:
- Applicability and scope
- Preparation of the opening balance sheet
- Selection and application of accounting policies
- Recognition, measurement, and derecognition of assets, liabilities,
income, and expenses
- Transitional provisions for changes in accounting policies and
adjustments to opening balance sheet
- Disclosure requirements for first-time adopters
- Comparative information requirements
- Effective date and transition requirements for the standard.
NFRS 5 Non-Current Assets Held for Sale and Discontinued Operations covers the following important topics:
- Criteria for classification of assets and liabilities as held for sale
- Presentation and disclosure requirements for assets and liabilities held for sale
- Recognition, measurement, and presentation of discontinued operations
- Guidelines for the disposal of a group of assets
- Accounting treatment of impairment losses and reversals for non-current assets held for sale
- Disclosure requirements for non-current assets held for sale and discontinued operations in the financial statements
NAS 24 Related Party Disclosures covers the following important topics:
- Definition of related parties and related party transactions
- Disclosure requirements for related party transactions, including the nature and extent of the transactions, and outstanding balances
- Disclosure requirements for key management personnel compensation
- Disclosure requirements for transactions with state-controlled entities
- Accounting treatment of related party transactions and balances
- Exemptions from the disclosure requirements for small and medium-sized entities
- Disclosure requirements for significant influence and joint control over investees
- Definition of close family members of individuals who have significant control over an entity
- Guidelines for determining whether a person is a related party
Version: 2.2.0.0 | Last Updated: 2023-12-14 | After downloading file, contact our course team on WhatsApp: 9801074002 for activation code.
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