Académique Documents
Professionnel Documents
Culture Documents
ANNUAL REPORT
2011/2012
The Institute of Chartered Accountants of Nepal
Babar Mahal, P O Box 5289, Kathmandu
Tel. No. 4269130, 4258569, 2030021
Fax No. 4258568
E-mail: ican@ntc.net.np
Website: www.ican.org.np
The Institute of Chartered Accountants of Nepal
6th Council Members 2012 - 2013 (First Term)
CA. Achyut Raj Joshi CA. Prakash Lamsal CA. Jitendra Kumar Mishra CA. Bhaskar Singh Lala
CA. Nirajan Simkhada CA. Narendra Bhattarai CA. Suresh Devkota CA. Tek Nath Acharya
RA. Badri Prasad Bhattarai RA. Dol Prasad Dahal RA. Mohan Kumar Parajuli RA. Mohan Kumar Subedi
Mr. Sukdev Khatry Mr. Mahesh Prasad Dahal Mr. Jaya Dev Shrestha CA. Binay Prakash Shrestha
Executive Director
The Institute of Chartered Accountants of Nepal
Past Presidents
CA. Komal Bahadur Chitracar CA. Tirtha Raj Upadhyay CA. Kaushalendra Kumar Singh
(1997-1998) (1998-1999) (1999-2000)
CA. Gopal Prasad Rajbahak CA. Prabhu Ram Bhandary CA. Bijay Kumar Agrawal
(2000-2001) (2001-2002) (2002-2003)
CA. Pradeep Kumar Shrestha CA. Pushpa Lall Shrestha CA. Narayan Bajaj
(2003-2004) (2004-2005) (2005-2006)
Late. CA. Binod B. Rajbhandary CA. Ratna Raj Bajracharya CA. Tanka Prasad Paneru
(2006-2007) (2007-2008) (2008-2009)
CA. Suvod Kumar Karn CA. Sunir Kumar Dhungel CA. Sudarshan Raj Pandey
(2009-2010) (2010-2011) (2011-2012)
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.
k'gGt' df b]jhgfM
k'gGt' dg;f lwoM .
k'gGt' ljZjf e"tflg
hftj]bM k'gLlx df ..
The Vedic text is chanted aloud during occassions 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.
Mission Statement/Objectives
Mission Statement
“ICAN aims to be recognized as a respected and highly professional accounting body, providing
leadership on standards, education and self-regulation in Nepal”
Objectives
The well-set objectives tailored to attain the mission are as follows:
• To play the role of regulatory body in order to encourage the members to carry on accounting
profession being within the limit of the code of the conduct laid down so as to make accounting
profession transparent.
• To develop, protect and promote the accounting profession by making the members and
the practicing accountants understanding the responsibility towards the importance of the
accounting profession and the accountancy.
• To support the government with constructive suggestions towards the formulation and the
revision of legislation in regards to commerce, trade, accounting, revenue etc.
• To support the economic development process by increasing the confidence among investors
and general public towards the capital market by pronouncing the standards of disclosure in
financial reporting practices.
Table of Contents
Members Affairs 21
Students Affairs 23
Staff Affairs 27
Financial Statement 29
Annexure
Accounting/Auditing Standards 45
Dear Colleagues,
I would like to extend my warm welcome to all of you Branch Expansion
on the occasion of the 16th anniversary of the Institute In order to expand facilities to members and students
of Chartered Accountants of Nepal. I on behalf of my outside the capital, it was decided to open a branch
predecessor CA. Sudarshan Raj Pandey take pride and in Pokhara. Accordingly, all arrangement to operate a
honour to present before you the annual report for the branch at Pokhara has been completed and branch will
fiscal year 2068/069. The preceding year for the Institute be operative very soon.
was filled with remarkable milestone and exponential
growth as significant plans and programmes and some During the year as part of ICAN’s commitment for
major decisions were taken for the development of the continuous institutional development, amendment in
accounting profession. the Nepal Chartered Accountants Regulation, 2061 was
made. It was third amendment in the regulations. This
Amongst others the election for the 6th council was held in amendment will pave way for smooth implementation of
Jestha 2069 (June 2012) and an overwhelming response the plan and policies of the Institute.
was received from members to exercise their votes.
I express my gratitude to all member of the institute for SAFA Board and Committee Meetings
having given me an opportunity to serve the institute The Institute hosted the 17th SAFA Board Meeting in
as the first President of 6th council and 16th President of Kathmandu which was attended by board member and
the Institute of Chartered Accountants of Nepal. I feel head of accounting bodies of SAFA. Similarly a number
honoured to assume this responsibility and express my of SAFA committee meetings were also held coinciding
commitment to give my best effort to uplift the accounting with the Board Meeting.
profession in Nepal. I am confident that I will get support
and cooperation from past presidents, vice president, Membership
council members and all the members of the Institute for During the year a total of 60s were granted new CA
our endeavour to make ICAN finest professional Institute membership and a total of 3 CA members were granted
in the country. Fellow Chartered Accountant (FCA). Similarly 29 CA
members were granted COP during the same year.
I am also confident that I will get due support from all
stakeholders of the economy so that our objective to The number of qualified CA members reached 596 at
optimize our contribution to economic development of the end of the year as compared to 538 in the previous
the country is achieved. year, out of them 524 were holding certificate of practice
as compared to 497 in the previous year. Out of that 124
I would like to present some of the major achievements were qualified from ICAN.
that took place during 2011-2012.
A total of 4669 RA members renewed their membership
Building Construction this year as compared to 4874 in the previous year, out
The significant progress was made on the construction of of them 3784 were holding certificate of practice as
ICAN building at Satdobato, Lalitpur on the land received compared to 4013 in the previous year.
on lease from the Government of Nepal. The structure
part of the construction has already been completed and Similarly, a total of 5 “C” Class Registered Auditor
it is expected that the building will be fully completed by Members were upgraded to “B” Class and 37 “D” Class
the end of this year. Registered Auditor Members were upgraded to “C” Class.
Continuing Professional Development With a view to keep abreast with the Information
The Institute has given highest priority to the capacity Technology related to accounting and auditing profession,
building of it’s members and has been conducting CPE the Institute organized an ISA Course with the technical
programs along with workshops/seminars in joint venture assistance from ICAI. Altogether 27 participated in the
with other regulatory and professional organisations. course.
Training with structured curriculum covering Accounting
and Auditing Standards, Taxations and other relevant During the year eight national seminar/workshop and
subjects concerning accounting profession were one International seminar was conducted. Similarly the
conducted in different part of the country to enhance Institute conducted four training on member’s capacity
the capacity and skill of members. Similarly, various building for its member’s in different parts of the country
interaction programmes were also conducted in different on the topics pertaining to accounting, auditing and
parts of the country. Such interaction programmes taxation.
provided platform to understand members need
and concerns and also the issues in the accounting In order to enhance the role and quality of our members
profession requiring attentions and actions. more plan has been designed to conduct more capacity
building programs. I would like to reassure our members
During the year a total of 31 CPE trainings were that we are committed to bring more capacity building
conducted in and outside Kathmandu, out of which 21 programs for our members.
trainings were outsourced to the registered outsourcing
units. Altogether around 3500 members benefitted from Code of Ethics
the CPE trainings. In order to maintain professional integrity and highest
ethical standard the Institute has full enforcement of
I would like to express my sincere thanks to the CPE disciplinary mechanism. During the preceding year
Committee Chairman and its members and ICAN staffs, disciplinary actions against 3 members were taken. I
resource persons and volunteers for the successful sincerely urge all members to works towards making
conduct of CPE programmes during the year. our profession more effective, independent and more
responsible towards the profession and nation and
Seminar, Workshop and Training to further enhance the reputation of this profession
Enhancing the capacity of our members and keeping by carrying out the professional conduct with utmost
them abreast of the current changes in our profession honesty and sincerity.
is one of the main responsibilities of the Institute.
Keeping this in mind, different interaction programmes The Institute has also published a handbook of the
with entities like Nepal Rastra Bank, Insurance Board code of ethics for professional accountants, which is a
(Beema Samiti), Bankers Association, Nepal Insurers summarized version of the IFAC code of Ethics 2010.
Association and others were organized to discuss and This is a easy reference and quick understanding of the
resolve current issues in banking and insurance sector IFAC code of ethics.
concerning regulators, operators and the auditors. These
interaction programmes not only provided our members International Relations
opportunities to discuss the recent developments in ICAN always has given high priority to international
financial sectors and but also assisted the Institute in membership and relation. We believe that in this era
development long term collaboration with these entities. of global networking it’s very important to maintain
relationship with various accounting bodies across the
On the occasion of 15th anniversary of the Institute a one globe to share the national and international experience
day conference in association with Bankers Association and to upgrade our skill and knowledge.
was conducted on the topic “Contemporary Issues on
Banking from the Perspective of Regulator, Auditors and ICAN has shown strong presence in various international
Bankers” The Institute also conducted a one day seminar forums like IFAC, CAPA and SAFA. The Institute
on the contemporary issues of Insurance in association participated in the various board meeting, assembly
with Nepal Insurer’s Association and Beema Samiti. and committee meeting of these accounting bodies and
put forward issues and ideas and has accomplished
task assigned with capability. The Institute effective and Accounting Technician manual for Accounting
participation provided platforms to present itself which Manual.
has assisted in enhancing the recognition of the Institute.
Similarly questions banks and suggested answers of
Due to our professional commitment and strong presence past examinations of various level were published. During
in international forum, we have been nominated as a the year Revision Test Paper (RTP) of certain subject
member of newly established Public Sector Financial were also published.
Management (PSFM) Committee of CAPA. I am also
pleased to inform that ICAN will be hosting third PSFM In order to provide short guidance and technical details
committee meeting along with CAPA conference on crash courses were conducted on various subjects
PSFM on March 7 and 8, 2013. The CAPA meeting for CAP-II and CAP-III level as per need basis of the
students. The Institute has been providing scholarship
and conference will be a step forward towards ICANs
to the outstanding and underprivileged students for
international recognition.
pursuing chartered accountancy education. During
the year full and partial scholarship was awarded
to 30 students pursuing different level of chartered
Students Activities
accountancy course.
student to register themselves electronically for the hall of performance appraisal as per the Nepal Chartered
tests and postal test. Now they do not have to visit the Accountants Administrative Bye-Laws 2066, Based
Institute personally. This will save their precious time and on this, two Deputy Director were promoted to Joint
can focus more on their education and training. Director. Similarly, two Senior Officer has been promoted
to Assistant Director and two Senior Assistant has been
Accounting Technician Course promoted to Officer. Similarly, one Senior Officer, and
In order to develop the middle level accounting one Senior Assistant resigned from their respective post.
professional, the Institute has launched the Accounting
Technician Course under the Accounting Technician For the human resource development, employees
Board. Currently 152 students are pursuing this course. were given training on accounting package, business
communication, report writing and English proficiency
Examination on need basis.
The number of students appearing in the examination
has risen sharply. A total of 3639 candidates appeared A one day in-house training was organized for all level of
in different level of CA examination and 131 candidates staff, the training focused on the skill development, time
appeared for the CA membership examination. There has management and motivational process.
been some satisfying result of late as pass percentage
is on increasing trend. During the year out of 325 Financial Result Highlights
candidates, 18 students qualified in the CAP-III/Final Financial statement for the year 2068/069 has shown
level examination. Similarly, 35 candidates passed the a decrease in income from education activities by 26%
CA membership examination. to Rs. 38.75 million as against Rs. 52.17 million in the
previous year. Likewise, income from membership
To facilitate the students, the examination centres will increased by 4%. Similarly, income from professional
be expanded to the branches at Biratnagar, Butwal and development activities during the year decreased by
Birgunj and also at upcoming Pokhara branch. 30% and publication activities decreased by 52% as
compared to previous year. Income from examination
Publications activities increased by 34%. The overall core activities
As a regular process, four issues of the Nepal Chartered income has decreased by 16%. The office overhead
Accountant Journal along with one special issue of SAFA and employee expenses increased by 22% and 35%
Conference and four issues of newsletter were published. respectively as compared to previous year. Overall the
Similarly, CAP-I and CAP-II level study materials has institute’s income for 2068/069 decreased by 13% to
also been published and CAP-III level study material is Rs. 78.74 million (last year Rs. 90.85 million).
in the publishing stage.
The retained surplus for the year was Rs. 19.52 million
Accounting and Auditing Standards against Rs. 36 million in previous year.
The Institute has pronounced 26 Accounting Standards
and 34 Auditing Standards out which 19 Accounting The size of balance sheet as on this year-end was
Standards are for mandatory compliances. All auditing Rs. 129.49 million against Rs. 105.51 million in previous
standards are for mandatory compliance. year and net cash outflow for the year was Rs. 34.66
million against Rs. 21.86 million of the previous year.
The Accounting and Auditing standards Boards have
closely worked with the Institute in pronouncing Way Forward
Accounting and Auditing Standards. As we all know accounting profession all around the world
is facing new challenges vis-à-vis value addition and its
My sincere appreciation goes to the chairman and board contribution to society and economy. We professional
members of the Accounting and Auditing Standards for accountants need to rise above our level to achieve the
their effort in formulating the standards. competency and show our commitment by adhering to
appropriate practices in order to meet the expectation
Human Recourse Development of society and country.
During the year, staffs were promoted on the basis
ICAN aspires to stand on equal alongside all other the desired results. We should continue focusing the
international accounting bodies and therefore committed development of the profession in more effective manner
to adopt a robust education and training module as well and always look for role in contributing the process
as strong working standards and ethics for its members. of nation building. ICAN as a regulatory body in the
With the introduction of uniform global accounting profession of accountancy in Nepal focuses its role in
language such as IFRS has thrown a big challenge to formulating and implementing financial/corporate laws,
us to upgrade and keep pace with rapid development in fiscal policies, investment policies, maintaining financial
accounting profession. transparency, etc. I look forward for the support and
contribution from all our members and stakeholders
I also believe that Government has to accommodate to make this institute a professional institute of highest
ICAN and its members at all relevant national policy standard.
making levels so that thoughts and values of ICAN are
represented and skills and knowledge of our members I cannot conclude without giving thanks to the employees
along with their independence and expertise are used of the Institute led by CA. Binay Prakash Shrestha,
to the fullest extent for the interest of the nation. I urge Executive Director who have put on tiring effort to drive
the government to consider this with highest priority and the institute to this level and look forward to their even
make us an avid partner in nation building. bigger role in the days ahead.
Acknowledgement
ICAN has been working hard on enhancing the Best Wishes
professional capabilities of its members. I would like to
mention that all these developments and achievements
is the outcome of hard-work, perseverance and valuable
support and guidance received from the Council
Members, Past Presidents, Regulating Authorities, CA. Madhu Bir Pande
Government Officials, Members of the various standing President
and non standing committee, Board and various task 30 January 2013
forces, Members of the Institute, stakeholders, without
their support and co-operation would not have achieved
Council
The council as constituted under the act 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
Council is elected every three years. The president and vice president are elected from the fellow chartered
accountants members of the Council for the 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 act.
Committees
The act provides for four standing committees to advice and facilitates the council in taking its decisions,
except the Disciplinary Committee, the President and Vice- president of the Council are ex officio Chairman
and Vice- chairman respectively of all standing committee. The Council has constituted various non-standing
committees. The name of committees and its member is exhibited in the Annexure 1.
Organization Structure
The organization structure of ICAN comprises of the Council and five departments namely Members
and Professional Development, Management, Education, Examination and Information Technology. The
structure is exhibited in the Annexure 2.
Past Presidents
International Participation
and Co-operation
73rd SAFA Assembly Meeting - Karachi Suvod Kumar Karn, Past President, CA. Krishna Prasad
Acharya, Council Member and CA. Binay Prakash
Pakistan Shrestha, Executive Director.
CA. Sudarshan Raj Pandey, President ICAN led a
delegation to attend the 73rd SAFA Assembly meeting
on 25th July, 2011 at Karachi, Pakistan. Other delegation CAPA Public Sector Financial
included CA. Madhu Bir Pande, Vice President, CA. Management Committee Meeting
Suvod Kumar Karn, Past President, Council Members
CA. Mahesh Khanal, RA. Krishna Prasad Poudel, Mr.
(PSFM) - Dhaka, Bangladesh
CA. Sudarshan Raj Pandey, President and CA. Madhu Bir
Suresh Pradhan and RA. Bhuwan Prasad Acharya. The
Pande, Vice President ICAN attended the first meeting
delegation also attended the Golden Jubilee Celebration
Program of the Institute of Chartered Accountants of of Public Sector Financial Management (PSFM) held at
Pakistan. Dhaka, Bangladesh on 24th February, 2012.
18th CAPA Conference and CAPA IFAC meeting and Seminar, Germany
CA. Sudarshan Raj Pandey- President and CA. Madhu
Extraordinary General Meeting - Bir Pande- Vice President participated in the 34th IFAC
Brisbane, Australia Ordinary Council Meeting and Seminar on “Accounting
for Crisis: Public and Private Sector Perspectives” held
on 15th to 17th November, 2011 at Berlin, Germany.
winners under ten different categories. The meeting was President, CA. Madhu Bir Pande, Vice President, CA.
represented by participants from SAFA Member bodies. Suvod Kumar Karn, Past President and CA. Narayan
The meeting also held a comprehensive discussion Bajaj, Past President participated in the meeting.
on selection criteria to adjudge the SAFA BPA & CG
winners. CA. Paramananda Adhikari, Technical Director 21st SAFA Board and Committee
represented the meeting.
Meeting - Dhaka, Bangladesh
SAFA BPA Award 2010 and SAFA
Conference, Bangladesh
The SAFA BPA Awards 2010 was held on November 29th
at Celebrity Hall, Bangabandhu International Conference
Center. The SAFA BPA Award is awarded to organization
from SAFA countries who have best disclosure,
Transparency, Accountability and Governance in their
financial reporting.
Delegates at the 21st SAFA Board Meeting
Karja Suchana Kendra Ltd. (Credit Information Center
Ltd.) from Nepal was awarded the third position (2nd The 21st SAFA Board and various committee meetings
Runner Up) in the category of Public Sector Entities for were held on 2nd to 4th May, 2012 at Dhaka, Bangladesh
the first time from Nepal. Apart from this NABIL Bank hosted by the Institute of Chartered Accountants
Ltd., Standard Chartered Bank Nepal Ltd., NIC Bank of Bangladesh (ICMAB). During the occasion an
Ltd., Karja Suchana Kendra Ltd and Butwal Power Co. International Conference on the theme “Enterprise
Ltd. were listed for merit certificates. Governance: Best Practice in SAFA Region” was also
organized by ICMAB.
During the occasion a SAFA Conference on the
theme “Best Practices and Reporting for Sustainable The conference dealt with role of management
Development” was also organized by the Institute of accountants and other professionals to improve both
Chartered Accountants of Bangladesh on 27th to 30th enterprise and economic governance for the sustainable
November, 2011. growth of financial sector as well as stock market .
Delegates from SAFA region India, Pakistan, Sri Lanka Delegates from ICAN CA. Madhu Bir Pande, Vice
along with the representatives from European Union President, CA. Suvod Kumar Karn, Past President, and
attended the conference. CA. Sudarshan Raj Pandey, CA. Suresh Devkota, Council Member attended the
President, CA. Madhu Bir Pande, Vice President, meeting.
CA. Suvod Kumar Karn, Past President and Council
Members CA. Sujan Kumar Kafle, CA. Mahesh Khanal
and RA Mohan Raj Regmi attended the conference on CAPA Board Meeting and Committee
behalf of ICAN. During the occasion CA. Sudarshan Meeting - China, Beijing
Raj Pandey shared his experience on perspective of The CAPA Board Meeting, PSFM Committee and AGM
Nepalese Public Private Partnership (PPP) and also Meeting hosted by the Chinese Institute of Certified
highlighted IFRS Convergence in Nepalese perspective. Public Accountants (CICPA) was held at Beijing,China on
31st May to 2nd June, 2012. CA. Sudarshan Raj Pandey,
20th SAFA Board and Committee President, ICAN participated in the program. The CAPA
PSFM Committee Meeting prefers the accounting body
Meeting - New Delhi, India should work in e-coordination with Civil Administration
The 20th SAFA Board Meeting and various committee
and Supreme Audit Institution of their respective
meetings were held in New Delhi, India on March
country. The meeting also suggested that CPD/CPE is
12th to 14th, 2012 hosted by the Institute of Chartered
the backbone of the capacity building of members and
Accountants of India (ICAI). During the occasion a to take initiation of such program for its members. The
joint meeting was also held between SAFA Board and meeting also decided that the next PSFM events and
Professional Accountant in Business Committee of CAPA PFSM committee meeting will be held in Nepal
IFAC. Delegates from ICAN, CA. Sudarshan Raj Pandey, on 8th and 9th March, 2013.
Newly elected President CA. Sudarshan Raj Pandey taking Oath of Office
from Acting Officiating Auditor General.
Acting Officiating Auditor General presenting BPA Award to the winning
organization
On Shrawan 6, 2068, (July 22, 2011) newly elected
President CA. Sudarshan Raj Pandey was administered Amidst a ceremony held on Shrawan 6, 2068 the
oath of Office by the Chief Guest Officiating Auditor General National BPA Award 2010 was awarded to organization
Mr. Khem Prasad Dahal, as the 15th President of ICAN. for their adequate disclosures in the financial statement.
Likewise, newly elected Vice President CA. Madhu Bir The criteria for evaluation for the BPA awards is as per
Pande was administered oath of office by newly elected criteria laid down by the SAFA. Chief Guest, Officiating
President CA. Sudarshan Raj Pandey. Auditor General Mr. Khem Prasad Dahal distributed the
award to the winning organizations and certificates to
Speaking on the occasion the outgoing President CA. Sunir the participant organizations. The winner of the national
Kumar Dhungel gave brief outline of the achievements and BPA will be nominated for the SAFA BPA Awards - 2010.
initiation taken during his tenure. Newly elected President Following organizations were awarded the National BPA
CA. Sudarshan Raj Pandey expressed his appreciation awards-2010.
on being elected as the President and seek cooperation S.N Sector Winner 1st Runner up 2nd Runner up
1 Banking Sector Nabil Bank Ltd Standard Nepal Industrial
from all concerned for the implementation of plans and (Subject to Prudential Chartered and Commercial
program that will be launched during his tenure. Supervision) Bank Nepal Ltd Bank Ltd
2 Non-Banking Sector Ace Sanima Bikas Siddartha
(Subject to Prudential Development Bank Ltd Development
Similarly, Chief Guest Mr. Khem Prasad Dahal Supervision) Bank Ltd Bank Ltd
3 Manufacturing Sector Butwal Power Unilever Co.
congratulated the newly elected President and Vice Co. Ltd Ltd
President and wished them for their successful tenure. 4 Communication Nepal Telecom
During the ceremony a token of appreciation was and Information Ltd
Technology Sector
presented to the outgoing President CA. Sunir Kumar 5 Hospitality, Health, Oriental Hotels
Dhungel by ICAN family. The program concluded with Transport and Ltd
Shipping Sector
a vote of thanks from newly elected Vice President CA. 6 Public Sector Entities Karja Suchana
Madhu Bir Pande. Kendra Ltd
7 Non Banking Prime Life Prudential Life Insurance
Financial Sector Insurance Insurance Corporation
(Subject to Prudential Co. Ltd Co. Ltd (Nepal) Ltd
Supervision)
15th Anniversary of the Institute concerned for their endless support and effort to develop
ICAN as a mature and strong institution with in the short
span of time.
personalities and experts having vast knowledge of 6th Council Election Conducted
the subject from Nepal presented and commented Election for the 6th Council was conducted on Jestha
on technical papers namely Merger & Acquisition in 26, 2069 on scheduled time and date. All together 5156
Banking Sector, Obligation of IFRS in Banking Sector, members among them 551 Chartered Accountants and
Audit of Financial Statement of Bank, (Appendix 1-5). 4605 Registered Auditors exercised their voting right .
The conference provided the participants with an unique
learning opportunity. CA. Maha Prasad Adhikari, Deputy 10 Chartered Accountants out of 19 candidates and 4
Governor of Nepal Rastra Bank, gave away the opening Registered Auditors out of 10 candidates were elected
remarks. The program was divided into 4 technical for the 6th Council.
sessions. The first technical session on the topic
“Relationship between Banking Supervisors & External Name list of the 6th Council Members.
Auditors” was chaired by CA. Tirtha Raj Upadhyay,
Chartered Accountant Registered Auditor
Past President ICAN and presented by CA. Shiva Nath
1 CA. Achyut Raj Joshi 1 RA. Badri Prasad Bhattarai
Pandey, Director Nepal Rastra Bank.
2 CA. Mahesh Kumar Guragain 2 RA. Dol Prasad Dahal
3 CA. Prakash Lamsal 3 RA. Mohan Kumar Parajuli
Similarly, CA Prahbu Ram Bhandary, Past President
4 CA. Jitendra Kumar Mishra 4 RA. Mohan Kumar Subedi
ICAN chaired the second session and CA. Sudarshan 5 CA. Madhu Bir Pande Government Nominee
Raj Pandey, President ICAN presented paper on the 6 CA. Bhaskar Singh Lala 1 Mr. Sukdev Khatry
topic “Merger & Acquisition in Banking Sector”. The 7 CA. Nirajan Simkhada 2 Mr. Mahesh Prasad Dahal
third session on the topic “Audit of Financial Statement 8 CA. Narendra Bhattarai 3 Mr. Jaya Dev Shrestha
of Bank Appendix 1-5” was chaired by Mr Lok 9 CA. Suresh Devkota
Bahadur Khadka, Executive Director, Bank Supervision 10 CA. Tek Nath Acharya
Department, Nepal Rastra Bank and presented by CA.
Sunir Kumar Dhungel, Immediate Past President ICAN.
The last session on the topic “Obligation of IFRS in
Banking Sector” was chaired by CA. Pradeep Kumar
Shrestha, Past President ICAN and presented by CA.
Jagdish Bhattarai.
The 17 th SAFA Board Meeting was held on 25 th the Accountancy groupings of IFAC with their individual
September 2011 at hotel Radisson, Kathmandu under focus in the respective regions they operate. The signing
the chairmanship of Mr. A.N. Raman, President SAFA. of MoU will take place coinciding with the joint SAFA-
Delegation from SAFA member bodies attended the EFAA seminar planned on 2nd and 3rd November 2011
Board Meeting. at New Delhi, India.
The meeting inter alia decided to endorse the Likewise, as per action plan of Kathmandu Declaration
memorandum of understanding (MoU) between on the issue of sustainable development in SAARC
South Asian Federation of Accountants (SAFA) and region, SAFA proposed an MoU to be signed at the end
European Federation of Accountants (EFAA), both of of November 2011 at Dhaka, Bangladesh.
Refresher Course on Peer Review System second session dealt with the issue on tax auditing
and current issues on tax which was presented by
The Institute of Chartered Accountants of Nepal (ICAN) CA. Mahesh Khanal.
organized a one day refresher course on Peer Review
System on Shrawan 4, 2068 in Kathmandu. The course The program concluded with a vote of thanks from
apprised the member about the peer review system . This CA. Madhu Bir Pande, Vice President ICAN.
program mainly focused on the procedure of auditing,
planning and documentation. Altogether 33 professional Interaction program on Accrual
members from ICAN participated in the program. Accounting System
CA. Paramananda Adhikari, Technical Director of the
Workshop on Issue on Tax Institute participated in an interaction program on
Accrual Accounting System Manual (Draft) on 11th July
2011 (Ashad 27, 2068) organized by Ministry of Local
Development, Government of Nepal in Association with
GIZ/UDLE in Kathmandu. The interaction program dealt
with issue on NPSAS (Nepal Public Sector Accounting
Standard) and to establish Accrual Accounting Manual
for public sector Entities like Municipalities.
IFRS Workshop
Member Affairs
FCA 215 199 92.56 FCA 185 103 55.68 FCA/CA 429 195 45.45
Sub Total 596 562 94.30 Sub Total 524 215 41.03
RA-B 3366 2211 65.69 RA-B 3114 1682 54.01 RA-B 883 678 76.67
RA-C 1608 961 59.76 RA-C 1468 778 52.99 RA-C 309 201 65.05
RA-D 2305 1497 64.95 RA-D 2101 1324 63.02 RA-D 207 154 74.40
Sub Total 7279 4669 64.14 Sub Total 6683 3784 56.62 Sub Total 1399 1033 73.84
Grand Total 7875 5231 66.43 Grand Total 7207 3999 55.49 Grand Total 1828 1228 67.18
COP & Renewal Status (2068/69) Audit Firm & Renewal Status (2068/69)
CA Membership Examination
The result of the CA membership examination held on November 2011 and May 2012 is as follows:
Student Affairs
Student’s Enrolment A program was organized to announce the partial and full
Overwhelmed response has been received from students scholarship to the CA students studying at different levels
interested in pursuing chartered accountancy education. of chartered accountancy course. Altogether 30 students
During the year altogether 1244 students have enrolled studying at different levels of chartered accountancy
for different level of chartered accountancy course and course received the scholarship. CA. Sudarshan Raj
23 students have enrolled for the accounting technician Pandey, President ICAN, distributed the scholarship
course. This development is a trust and confidence amount to the deserving students.
bestowed in accountancy profession by young talents.
Revision in syllabus of CAP I
The status of students enrolment for various levels With a view to make the chartered accountancy syllabus
of chartered accountancy course and accounting in compatible with other professional institutes, the CAP-I
technician course during the year is as follows: syllabus has been revised with effective from 1st June,
2012. Accordingly, the revised syllabus of CAP-I level
Course No of Students is of 300 marks .
CAP I 569 Total
Paper Subject Weight
weight
CAP II 567
Paper -1 Fundamentals of Accounting 100 100
CAP III 108
Part A: Mercantile Law 50
AT 23 Paper-2 100
Part B: Fundamentals of Economics 50
Part A: Fundamentals of
Scholarship Distribution Management
50
Paper-3 100
Part B: Commercial mathematics
50
and Statistics
Total Weight 300 300
helped students to solve their queries on various aspect Study Material Published
of CA course. The participants showed keen interest on The Institute has published the study material of CAP-II
CA and AT education and expressed their enthusiasm and CAP-III level. The study materials are distributed
to join CA and AT course. free of cost to the students registered and are also
available on sale at the Institute.
Crash course
The Institute in its endeavour to provide quality education CHARTERED ACCOUNTANCY
to the students, conducted crash course on various
subjects based on the specific need of the students. The
EXAMINATION:
The Chartered Accountancy Examinations of December
course aimed at providing technical details and guidance
2011 and June 2012 have been conducted successfully.
with a special focus on clarifying the students queries
In December 2011 CA examination, altogether
on the course matters. The subject covered accounting,
774 students of CAP-I/Foundation, 927 students of
auditing, law, finance, cost account and tax. A total of
CAP-II/ Intermediate and 137 students of CAP-III/
45 students attended the course.
Final level students appeared for the examination.
Similarly, in June 2012 CA examination, altogether 683
General Management and students of CAP-I and Foundation, 930 students of
Communication Skill (GMCS) Training CAP-II/Intermediate and 188 students of CAP-III/Final
level students appeared for the examination.
The details of the result of the chartered Accountancy Examinations are as Follows:
Qualified 0 2 1 285 49 6
Note: The figures of students who passed a single group (Group I or Group II) also include those students who appeared for both group but were
successful in single group only.
Qualified 1 0 1 346 96 10
Note: The figures of students who passed a single group (Group I or Group II) also include those students who appeared for both group but
were successful in single group only.
Recipients of Awards for the CA Examination, December 2011 and June 2012
The institute has been awarding merit holder students with various medals incepted by the members. Following are
the recipient of the medal for the December 2011 and June 2012 examination.
3. B.K. Agrawal Gold Medal Standing Rank First in CAP-II (Intermediate Level) examination KI 2295 Ms. Prabisha Poudel
4. Narayan Bajaj Silver Medal Standing Rank Second in CAP-II (Intermediate Level) KI 2057 Ms. Nabina Thapa
examination
5. Prakash Jung Thapa Gold Medal Securing Highest marks in Advanced Financial Reporting FN 00249 Mr. Lekha Nath Pokhrel
(Advanced Accounting ) in CAP-III(CA Final level ) examination
6. Dr. Govind Ram Agrawal Gold Securing Highest marks in Strategic Management and FN 00257 Ms. Anjana Pokharel
Medal Decision Making Analysis in CAP-III(Final Level) examination
Ms. Sarita Duwal (Regd.No.KF 005199) Scoring 433 marks stood First Rank in CAP-I (Foundation Level) Examination in December 2011.
2. Shiva Man Singh & Chandra Standing Rank Second in CAP-III ( CA Final Level ) examination FN00296 Mr. Sajan Dhakal
Bhandari Silver Medal
3. B.K. Agrawal Gold Medal Standing Rank First in CAP-II (Intermediate level) examination KI 2519 Mr. Prawin Karki
4. Narayan Bajaj Silver Medal Standing Rank Second in CAP-II (Intermediate Level) examination KI 2618 Mr. Sunil Kumar Das
5. Prakash Jung Thapa Gold Medal Securing Highest marks in Advanced Financial Reporting (Advanced FN 00210 Mr. Saurav Rajbhandari
Accounting) in CAP-III (Final Level) examination
6. Dr. Govind Ram Agrawal Gold Securing Highest marks in Strategic Management and Decision FN 00296 Mr. Sajan Dhakal
Medal Making Analysis in CAP-III (Final Level) examination
Ms. Aarati Parajuli (Regd No.KF 005834) Scoring 444 marks stood First Rank in CAP-I (Foundation Level) Examination in
Staff Affairs
Annexure - 1
Standing and Non Standing Committees and Member for the year 2011-2012
As per the Nepal Chartered Accountant Act, four standing committee, 14 non standing committee, Peer Review
Board and Accounting Technician Board were formed to advise and facilitate the Council in its decisions. The name
of committee’s /board and members for 2011-2012 are as follows:
Standing Committees
11. Small and Medium Practice (SMP) 15. Accounting Technician Board
Committee
S.N Name Position S.N Name Position
1 CA. Sunir Kumar Dhungel Chairman 1 CA. Suvod Kumar Karn Chairman
3 CA. Gyanendra Bahadur Bhari Member 3 CA. Pramod Kumar Swarnakar Member
6 RA. Ram Prasad Bidari Member 6 Mr. Ram Chandra Poudel, (R.C Bimal) Member
3 CA. Jeeban Prasad Paudel Member 4 CA. Mahesh Kumar Guragain Member
5 CA. Biswo Raj Basaula Member 6 CA. Binay Prakash Shrestha Secretary
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N e p a l o f Acc o u n t a n t s C h a rt e r e d o f I n s tit u t e T h e
T h e I n s tit u t e o f C h a rt e r e d Acc o u n t a n t s o f N e p a l
Annexure - 3
As per the decision of the Council, the following Nepal Accounting Standards have been made Mandatory for
Compliances.
Effective Date
S.No. NASs IASs Name Revised Date
(Original)
Framework for the Preparation and Presentation of Financial Statements
1 Shrawan 2061 1 Shrawan 2065
1 1 1 Presentation of Financial Statements
(16 July 2004) (16 July 2008)
1 Shrawan 2061 1 Shrawan 2065
2 2 8 Accounting Policies, Changes Accounting Estimates & Errors
(16 July 2004) (16 July 2008)
1 Shrawan 2061 1 Shrawan 2065
3 3 7 Cash Flow Statements
(16 July 2004) (16 July 2008)
1 Shrawan 2061 1 Shrawan 2065
4 4 2 Inventories
(16 July 2004) (16 July 2008)
1 Shrawan 2061 1 Shrawan 2065
5 5 10 Events After the Balance Sheet Date
(16 July 2004) (16 July 2008)
1 Shrawan 2061 1 Shrawan 2065
6 6 16 Property, Plant and Equipment
(16 July 2004) (16 July 2008)
1 Shrawan 2062 1 Shrawan 2065
7 7 18 Revenue
(16 July 2005) (16 July 2008)
1 Shrawan 2062 1 Shrawan 2065
8 8 23 Borrowing Costs
(16 July 2005) (16 July 2008)
1 Shrawan 2064
9 9 12 Income Taxes
(16 July 2007)
Accounting for Government Grants and Disclosure of Government 1 Shrawan 2063 1 Shrawan 2065
10 10 20
Assistance (16 July 2006) (16 July 2008)
1 Shrawan 2063 1 Shrawan 2065
11 11 21 The Effects of Changes in Foreign Exchange Rates
(16 July 2006) (16 July 2008)
1 Shrawan 2063 1 Shrawan 2065
12 12 37 Provisions, Contingent Liabilities and Contingent Assets
(16 July 2006) (16 July 2008)
1 Shrawan 2063 1 Shrawan 2065
13 13 11 Construction Contract
(16 July 2006) (16 July 2008)
1 Shrawan 2064 1 Shrawan 2065
14 15 17 Leases
(17 July 2007) (16 July 2008)
Effective Date
S.No. NASs IASs Name Effective Date
(Original)
1 Shrawan 2064 6 Shrawan 2064
1 14 19 Employee Benefits
(17 July 2007) (22 July 2007)
IFRS 1 Shrawan 2064 6 Shrawan 2064
2 21 Business Combinations
3 (17 July 2007) (22 July 2007)
1 Shrawan 2064 6 Shrawan 2064
3 23 14 Segment Reporting
(17 July 2007) (22 July 2007)
24 Magh, 2064 24 Magh, 2064
4 24 26 Accounting and Reporting by Retirement Benefit Plans
(7February 2008) (7February 2008)
1 Shrawan 2064 6 Shrawan 2064
5 25 28 Investment in Associates
(17 July 2007) (22 July 2007)
1 Shrawan 2064 6 Shrawan 2064
6 26 33 Earning per Share
(17 July 2007) (22 July 2007)
1 Shrawan 2064 6 Shrawan 2064
7 27 38 Intangible Assets
(17 July 2007) (22 July 2007)
NSAs Revised
Existing Effective Date
S. No. Serial Name Revised Date
NSAs (Original)
Number
Nepal Standards on Quality Control (NSQC)1: Quality control
for firm's that perform audits and review of historical Financial 1 Shrawan 2065
01 NSQC 1
Information and other. Assurance and related Service (16 July 2008)
Engagement
Preface to the Nepal Standards on Quality Control, Auditing, 1 Shrawan 2065
02
Review, and other Assurance and related Service. (16 July 2008)
1 Shrawan 2062 1 Shrawan 2065
03 Nepal Framework for Assurance Engagements
(16 July 2005) (16 July 2008)
Objectives and General Principles Governing an Audit of Financial 1 Shrawan 2060 1 Shrawan 2065
04 01 200
Statements (17 July 2003) (16 July 2008)
1 Shrawan 2060 1 Shrawan 2065
05 02 210 Terms of Audit Engagements
(17 July 2003) (16 July 2008)
1 Magh 2060 1 Shrawan 2065
06 03 230 Audit Documentation
(15 January 2004) (16 July 2008)
1 Magh 2060
07 04 500 Audit Evidence
(15 January 2004)
The Auditor's Responsibility to Consider Fraud and Error in an 1 Shrawan 2061 1 Shrawan 2065
08 05 240
Audit of Financial Statements (16 July 2004) (16 July 2008)
1 Shrawan 2061 1 Shrawan 2065
09 06 320 Audit Materiality
(16 July 2004) (16 July 2008)
1 Shrawan 2061 1 Shrawan 2065
10 07 300 Planning an Audit of Financial Statements
(16 July 2004) (16 July 2008)
The Independent Auditors Report on a Complete Set of General 1 Shrawan 2061
11 08 700
Purpose Financial Statement (16 July 2004)
1 Shrawan 2061
12 09 530 Audit Sampling and other Selective Testing Procedures
(16 July 2004)
1 Shrawan 2061
13 10 570 Going Concern
(16 July 2004)
1 Shrawan 2061
14 11 580 Management Representation
(16 July 2004)
Communication of Audit Matters with Those Charged with 1 Magh 2061(14 1 Shrawan 2065
15 13 260
Governance January 2005) (16 July 2008)
Consideration of Laws and Regulations in an Audit of Financial 1 Magh 2061(14 1 Shrawan 2065
16 15 250
Statements January 2005) (16 July 2008)
1 Magh 2061(14
17 16 560 Subsequent Events
January 2005)
1 Magh 2061(14
18 17 505 External Confirmations
January 2005)
1 Magh 2061(14
19 18 600 Using the work of Another Auditor
January 2005)
1 Magh 2061(14
20 19 610 Considering the Work of Internal Auditor
January 2005)
1 Magh 2061(14
21 20 620 Using the Work of an Expert
January 2005)
1 Magh 2061(14
22 21 510 Initial Engagements- Opening Balances
January 2005)
Other Information in Documents Containing Audited Financial 1 Magh 2061(14
23 22 720
Statements January 2005)
1 Shrawan 2062
24 23 540 Audit of Accounting Estimates
(16 July 2005
1 Shrawan 2062
25 24 710 Comparatives
(16 July 2005
1 Shrawan 2062
26 25 550 Related Parties
(16 July 2005
1 Shrawan 2062
27 26 800 The Auditor's Report on Special Purpose Audit Engagements
(16 July 2005
1 Magh 2067 (15
28 220 Quality Control for Audit of Historical Financial Information
January 2011)
Understanding the entity and its Environment and Assessing the 1 Magh 2067 (15
29 315
Risks or Material Misstatement January 2011)
1 Magh 2067 (15
30 330 The Auditor's Procedures in Response to Assessed Risks
January 2011)
1 Magh 2067 (15
31 520 Analytical Procedures
January 2011)
1 Magh 2067 (15
32 701 Modifications to the Independent Auditor's Report
January 2011)
Guidance Notes:
S.
G.N. Name
No.
01 201 Guidance Notes on independence of auditors
02 202 Guidance Notes on preparation of financial statements on letter heads and stationery of auditors