Ican Annual Report 2006 07

(Established under the Nepal Chartered Accountants Act, 1997)
The Institute of Chartered Accountants of Nepal

4th Council Members (2006-2009)
Ratna Raj Bajracharya

President (2007/08)
Binod B. Rajbhandary
Immediate Past President
Suvod Kumar Karn
Tanka Prasad Pandey
Sunir Kumar Dhungel
Mahesh Kumar Guragain
Balkrishna Ghimire
Khem Prasad Dahal
Tanka Prasad Paneru

Vice President (2007/08)
Bhaskar Singh Lala
Bharat Rijal
Gyanendra Prasad Dhungana
Maha Prasad Adhikari
Dilip Kumar Dhungana
Tul Bahadur Shrestha
Keshav Prasad Bhattarai
Nanda Kishore Sharma

Executive Director, ICAN
Diwakar Prasad Rimal
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 Yajur Veda. 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 ..
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 TA N T S
O F
N E PA L
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 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 understand the responsibility towards the importance
of the accounting profession and the accountancy.
To provide quality professional education to accounting professionals in consonance

with international norms and practice so as to make the accounting profession
respectable and reliable.
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 discloses in financial reporting practices.
ii
Annual Report 2006-07 The Institute of Chartered Accountants of Nepal
Joj;flos cfr/)fsf
cfwf/e"t l;$fGtx?
Fundamental Principles
of Professional Ethics
;+:yfsf ;b:ox?n] Joj;flos sfo{ ubf{ b]xfosf cfwf/
e"t l;4fGtx?sf] clgjfo{ kfngf ug'{ kb{5M
Independence -:jtGqtf_
Integrity -st{Jo lgi7tf_
Objectivity -j:t'lgi7tf_
Professional Competencies and Due care

-Joj;flos Ifdtf / plrt ;ts{tf_
Confidentiality -uf]klgotf_
Professional Behaviour -Joj;flos Jojxf/_
Technical Standards -k|fljlws dfg_
g]kfn rf^{*{ PsfpG^]G^\; ;+:yf

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NEPAL
iii
iv
T H E
I N S T I T U T E
O F
C H A R T E R E D
O F
N E PA L
Table of Contents
Report of the President
vii
Brief Outline of the Institute of Chartered Accountants of Nepal
Facts about ICAN
Events and Activities
International Participation and Co-operation
Seminars, Workshops, Trainings and Interactions
11
Member Affairs
14
Student Affairs
16
Staff Development
18
Accounting Standards and Auditing Standards
20
Auditor's Report
23
Annexure 1- Standing and Non Standing Committees
35
Annexure 2 - Organisational Chart of the Instituute
37
vi
T H E
I N S T I T U T E
O F
C H A R T E R E D
O F
N E PA L
Report of the President

Dear Members,
It is my pleasure to welcome you to the 11th Anniversary of the Institute of Chartered Accountants of Nepal and
to present the Annual Report and Financial Statements for the year 2063/64 (2006/7). During the year, Mr. Binod
B. Rajbhandary, IPP (2006-2007) was at the helm of Institute affairs and accordingly this report pertains to the
works done by the Institute under his commandment
This annual report describes the progress we are making towards achieving our goals. Much of what we are doing
is work in progress but there is a renewed sense of energy and purpose within the Institute. The business environment
is changing. As an organization we need to keep pace if we are to maintain our position as a regulator of accounting
profession in this country. We have to plan for taking challenges ahead posed by WTO agreement and convergence
of Nepalese accounting and auditing standards to international standards.
The year 2006-07 has been a remarkable year for the Institute and the accounting professionals as well. Many
plans and programs for the development of the accounting profession in the country have been initiated and
implemented. Our Institute has completed 10 years of service to the nation and within this ten years it has
provided remarkable services and has gain creditability as the regulator of accounting profession in Nepal. I would
like to place in record our high appreciation for the support received from the Government of Nepal, Office of the
Auditor General, Donor Agencies, the business community, Council Member and members of the Institute.
I present before you some of the achievements made by the Institute during the year 2006-2007.
Membership
The membership of the Institute as of 16 July 2007 was 324 Chartered Accountants (CA) and 7,294 Registered
Auditors (RA). Among them, 294 CA and 6,691 RA hold certificate of practice (COP). Total membership includes
37 CA members qualified from our own Institute, 23 of them have qualified during the year under review. It is a
remarkable result and a milestone achieved. All of these young professionals are placed amicably and highly
regarded. It has given us all a sense of belongingness and pride when the employers of these talents praise about
their work quality and ability.
The number of professionally qualified CA members is increasing. It has reached 373 as of today. 343 of them are
holding COP.
vii
Education and Examination

In the education front, I am overwhelmed by the response received from the students towards pursuing the
Chartered Accountancy course. With limited resources, Institute has endeavored to provide quality education to
students.
The Institute conducted various career counseling programs in the major cities and the response from the students
was remarkable. ICAN has participated in two education fairs, both of which have been a great success in attaining
the objective.
During the year, a total of 866 students have enrolled in different levels of CA Education as compared to 358 the
previous year. The number is increasing and has already reached 627 during the first half of the current year (2007/
8). We consider this development as a trust and confidence bestowed in accountancy profession by the young
talents.
At ICAN, we believe that we must be able to provide a medium where all aspiring young talents are encouraged
and accommodated. Though CA education is considered the cheapest, yet we have established a Scholarship
Fund to help the needy and brilliant students to pursue the CA education. The fund is flexible enough to
accommodate all types of contributions. I humbly request all members to contribute generously in the fund.
On this occasion I wish to appreciate and place on record all contributors who have generously contributed to this
fund so far. As of today, the highest contributions of Rs. 50,000 each have come from Sri Binod Bahadur Rajbhandari,
our IPP and Sri Ram Babu Nepal, currently residing in the Netherlands.
As the CEO of NCC Bank, I am taking advantage of this opportunity to announce the bank's commitment to
provide two scholarships for Foundation course for next three years.
Improvement in Education Standard
A new syllabus in line with International Standards on Education pronounced by the International Federation of
Accountants has been approved by the council. The new syllabus is effective from December 2007 enrollment.
In the examination front, the trend of passing rate has been increasing and this year the pass percentages were 48,
19 & 39 percent respectively in Foundation, Intermediate and Final level Examinations. We are committed to
provide quality education and has conducted crash course on various subjects during the year to improve in results.
ICAN will explore the possibilities to provide class room instructions as well to the students on regular basis.
Our students visited Pakistan and India to participate in the Student Exchange Programs and presented technical
papers in the programs. Also, we received students from Sri Lanka during the year. The exercise is found to be
significantly contributing to enhance the level of knowledge and confidence among the students. The Institute
will, as in the past, continue support in the students exchange program in cooperation with Nepalese CA Students
Association
Quality Control Review

The Institute has laid special emphasis that its members in practice provide high quality of services to meet
current challenges and expectations of users of the financial information. To accomplish its mission, the Institute
has started the peer reviewing process by adopting Statement on Peer Review and Peer Review Manuals. Two days'
training program was held to impart thorough perspective on peer review process, how it is done and what are
expected from the members in practice. The response is overwhelming and the peer review process is due for
formalization soon among the practicing members.
Continuing Professional Education
We have formulated a policy of outsourcing of CPE training from the year under review, which I believe will
improve the quality of CPE Training and will focus on more relevant topics related to members and will reach to
more members in all the districts as well as relieve the administrative force of the Institute. Six outside institutions
were engaged in providing CPE training to the members of the Institute. The quest for partners will continue
along with necessary supervisory activities to ensure quality in the training imparted.
Despite constraints the CPE Committee has successfully organized 52 CPE training programs during the year, out
of which 15 trainings were conducted through outsourcing in all parts of the country, participated by around 5,000
members. I am thankful to all the CPE Committee members for painstakingly organizing the programs and who
have volunteer as resource persons and conduct of the trainings.
A thinking process has already begun to accommodate various professional programs conducted by other
organizations into the ambit of CPE program. The CPE Committee is expected to come up with the policy
framework soon.
Professional Standards
ICAN has been closely working with the Accounting and Auditing Standards Boards in pronouncing the Accounting
and Auditing Standards. Till date the Institute has declared 20 Accounting Standards and 30 Auditing Standards
as mandatory for compliances and 6 Accounting Standards and 10 Auditing Standards as voluntary, as recommended
by the respective Boards.
I am thankful to all the members of Accounting Standards and Auditing Standards Board for their valuable
contributions.
International Relations
We have equally demonstrated our professional capability in International frontiers. We have applied for full
membership of IFAC, and the process has been further consolidated during the first half of my tenure. We are
hopeful that this will be materialized within current year 2007/8.
Our Institute is fully dedicated and committed towards the development of professions in South Asia Region and
has participated in number of SAFA Assemblies, Board Meetings and Conference and has accomplished various
tasks assigned.
Similarly, our relation with CAPA is growing steadily and we have participated in various CAPA Board/Ex-Com/
Annual General meetings and put forward our issues. With great pleasure I would like to inform all that the next
CAPA Exe-com meeting is scheduled to be held in Nepal on May 2008.
All these developments and achievements is the result of the invaluable support and contributions received from
the Council Members, Past Presidents, Government Officials, Members of the Institute, and all concerned
individuals and staffs. Without their support we would not have achieved the desire results. We have several goals
yet to accomplish and have set in motion many new initiatives. I look forward with expectation to the continued
contribution of all our stakeholders in achieving our shared goals for the profession.
Lastly, I would like to thank the dedicated staff team led by Mr. Nanda Kishore Sharma, FCA Executive Director
of the Institute for their endeavor to drive the Institute to a new height of progress.
With best wishes to all!

Ratna Raj Bajracharya, FCA
President
31st January 2008
T H E
I N S T I T U T E
O F
C H A R T E R E D
O F
N E PA L
Brief Outline of the Institute of

Chartered Accountants of Nepal
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 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-Laws

The activities of the Institute are administered under
the Nepal Chartered Accountants Regulation, 2004
and Nepal Chartered Accountants (Finance and
Administration) Bye-Laws, 2001. In addition the
Council has approved the following procedures for
conducting its activities :
(a) Election Procedures, 2004
(b) Committee Operation Procedure, 2005
(c) COP Upgrading Procedure, 2005
(d) Recruitment and Promotion Procedure, 2005

(e) Registered Auditor Member Upgradation
Procedure. 2005
(f) Scholarship Fund Procedure, 2006
The Executive Director

An Executive Director appointed by the Council for a
term of four years is the Chief Executive Officer of the
Institute and executes the decisions of the Council.
Committees
The Act provides for four standing committees to
advise and facilitate 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 committees. The Council has constituted
various non-standing committees. The name of
committees and members is exhibited in the Annex 1.
Organization Structure
The Organization Structure of ICAN comprises of the
Council and five departments namely Professional
Development, Members, Management, Education and
Examination. The Structure is exhibited in the Annex 2.
T H E
I N S T I T U T E
O F
C H A R T E R E D
Facts about ICAN

Establishment
: 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
Past Presidents of ICAN

First President
: Mr. Komal Bahadur Chitracar, FCA ( 1997 - 1998)
Second President
: Mr. Tirtha Raj Upadhyay, FCA (1998 - 1999)
Third President
: Mr. Kaushalendra Kumar Singh, FCA (1999 - 2000)
Fourth President
: Mr. Gopal Prasad Rajbahak, FCA (2000 - 2001)
Fifth President
: Mr. Prabhu Ram Bhandary, FCA (2001 - 2002)
Sixth President
: Mr. Bijay Kumar Agrawal, FCA (2002 - 2003)
Seventh President
: Mr. Pradeep Kumar Shrestha, FCA (2003- 2004)
Eighth President
: Mr. Pushpa Lall Shrestha, FCA (2004 - 2005)
Ninth President
: Mr. Narayan Bajaj, FCA (2005 - 2006)
Tenth President
: Mr. Binod B. Rajbhandary, FCA (2006 - 2007)
Recognition and Achievement

ICAN became Member of SAFA in 1998
ICAN became Member of CAPA in 1999
ICAN became Associate Member of IFAC in 2003
ICAN first CA Examination held in November 2000
ICAN signed MOU with ICAI in May 1998
ICAN signed second MOU with ICAI in July 2004
Total Members (January 14, 2008): Chartered Accountants : 373 (FCA 153, CA 220)
Registered Auditors : 7292
O F
N E PA L
T H E
I N S T I T U T E
O F
C H A R T E R E D
O F
N E PA L
Year 2006/07 in Review

Events and Activities
63rd SAFA Assembly Concludes in
Kathmandu
Delegation at the 63rd SAFA Assembly
The 63rd SAFA Assembly was held from 17th to 19th

December 2006 at Soaltee Hotel, Kathmandu with
the participants from the National Chartered
Accountancy and Cost Accounting bodies of
Bangladesh, India, Nepal, Pakistan and Sri Lanka.
Maldives and Bhutan, which do not have accounting
bodies, participated as observers. During the Assembly,
various meetings of working groups and task forces were
held. On 17th December 2006 the meetings of the
Centres of Excellence/Working Groups/Task Forces
were held. SAFA constituted these Centres of
Excellence for the institutionalization of the
accounting profession. Apart from fostering mutual
cooperation in the areas of education, training to
members as well as students, some of the important
works under taken by these Centres include comparison
of the framework of Accounting Standards and Quality
control measures, ethical standards in SAFA region and
bench marking with IFAC's Standards and implication
of GATS in the accounting services. Similarly, SAFA
Assembly was organized on 18th December, 2006 and
various issues like education, training, CPD, Standard
and Quality control, Mutual Recognition Agreement,

Restructuring of SAFA and so on were discussed in the
Assembly among heads of SAFA member bodies. The
assembly was followed by press conference.
The SAFA Assembly also elected Mr. Indrajith
Fernando as President and Mr. Syed Md. Shabbar Zaidi
as Vice President of SAFA for the year 2007. In a
nutshell the 63rd SAFA Assembly in Kathmandu proved
to be the forum committed to positioning, maintaining
and developing the accounting profession in the
SAARC region and ensuring its continued eminence
in the world of accountancy as enshrined in its mission.
ICAN Celebrates its 10th Anniversary
Rt. Honourable Speaker of the Interim Legislature Parliament

Mr. Subash Chandra Nembang inaugurating the function.
To mark the 10th anniversary of Institute, a function

was organized on January 31, 2007 at Hotel Hyatt
Regency, Bouddha, Kathmandu. Rt. Honourable
Speaker of the Interim Legislature Parliament Mr.
Subash Chandra Nembang was the Chief Guest at the
function. The guest of honour on the occasion were
Officiating Auditor General Mr. Bachchu Ram Dahal
and Member of National Planning Commission Dr.

Pushpa Raj Rajkarnikar. Delivering the welcome
speech, President Mr. Binod B. Rajbhandary, FCA
expressed his views on the achievement and
development made by the Institute on accounting
profession. After the speech, Executive Director Mr.
Nanda Kishore Sharma, FCA presented a synopsis of
the achievements made by the Institute in the last
year. Inaugurating the Ceremony, Chief Guest Mr.
Nembang shared his experience while drafting the
Nepal Chartered Accountants Act and extended full
co-operation on Institute development.
Similarly, Mr. Dahal expressed full support from the
Office of the Auditor General to help the Institute in
every possible manner. Likewise Mr. Rajkarnikar
expressed his views on the role of Professional
Accountants in the context of planned development
of the country.
On the occasion Mr. Nembang felicitated the merit
holder students in the Intermediate and Foundation
Level CA examinations held in December 2005 and
June 2006. Ms. Prakriti Tuladhar and Mr. Surakshit
Sharma were awarded BK Agrawal Gold Medal along
with Certificates for securing the first position
respectively in December 2005 and June 2006
Intermediate Level examinations. Ms. Silpy Kedia
and Ms. Sujita Gyawali were awarded Certificate of
Merit for securing the first position respectively in
December 2005 and June 2006 Foundation Level
examinations. On the occasion, Mr. Nembang handed
over letters of appreciation to staff members Mr. Binod
Neupane, Deputy Director and Mr. Bhola Nath
Ghimire, Assistant for their outstanding job
performance. Similarly, Mr. Purushottam Lal Shrestha
and Mr. Niraj Thapa were also felicitated by the
Institute for the services rendered by them.
Mr. Shrestha had served the Institute as the Executive
Director for eight years. He also served the Institute as
the Secretary for one year. Mr. Thapa served as the
Executive Director for the last nine months. The
function ended with the vote of thanks by Vice

President Mr. Ratna Raj Bajracharya, FCA.
ICAN Announces National BPA

Awards
On 1st August, 2006, Rt. Honorable Auditor General
Mr. Gehendra Nath Adhikary presented the National
Level Best Presented Accounts (BPA) Award 2005 to
the winners. The evaluation for BPA awards is as per
the "norms" set by South Asian Federation of
Accountants (SAFA), an apex body of SAARC. The
award winning Annual Reports will represent Nepal
for the SAFA BPA award competition.
The winners of BPA Awards 2005 are as follows :
Category - Banking Sector
Laxmi Bank Ltd Winner
Standard Chartered Bank Nepal Ltd. Runner up
Category - Non Banking F
inancial Sector
Financial
(Financial
(F
inancial Institution)
Ace Finance Company Ltd.
Winner
Development Credit Bank Ltd.
Runner up
Category - Banking F
inancial Sector
Financial
(Insurance Company)
Everest Insurance Company Ltd.
Winner
Sagarmatha Insurance Company Ltd. Runner up
Category Manufacturing Sector
Butwal Power Company Ltd.
Winner
Unilever Nepal Ltd
Runner up
Category - Hospitality and
Entertainment Sector
Soaltee Hotel Ltd
Oriental Hotel Ltd. (Radisson)
Winner
Runner up
Newly Elected President and Vice

President take Oath of Offices
On 1st August 2006 , admist a grand function Mr.
Binod B. Rajbhandari, FCA took the oath of office as
the 10th president of ICAN in the presence of Chief

Guest Rt. Honorable Auditor General Mr. Gehendra
Nath Adhikary. Speaking on the occasion, outgoing
President Mr. Narayan Bajaj, FCA gave a short account
of the achievements made by ICAN during the nine
years and expressed his happiness to entrust and
handover the presidential responsibility to an
appropriate person like Mr. Rajbhandary. After wishing
his best to all newly elected Council Members handed
over the President Medallion to Mr. Rajbhandary.
Delivering his acceptance speech, newly elected
President Mr. Binod B. Rajbhandary thanked all
professional members and his colleagues in the Fourth
Council who have found faith on him to be the
President. On his part, he solemnly pledged his
commitments to dedicate his best time and effort in
the development of the accountancy profession and
enable the Institute to deliver best services to the
society and the nation with support of all the Council
members.
Peer Review System to be

established in Nepal
In a bid to hasten the process of establishing the Peer
Review System in Nepal, the chairman of the Peer
Review Board (PRB) Mr. Pushpa Lall Shrestha, FCA
made a visit to India from 2 to 6 April, 2007. Mr.
Shrestha held discussions with Mr. Sunil H. Talati,
President of ICAI, Dr. Ashok Haldia, Secretary of ICAI
and two officials of PRB of ICAI- Mr. Vijay Kapur and
Mr. K. Tulsiani. President, Mr. Binod B. Rajbhandary,
FCA, Executive Director, of ICAN Mr. Nanda Kishore
Sharma, FCA were also present during the discussions.
During the discussion Mr. Tulsiani informed that the
Peer Review Board of ICAI has already taken decision
to provide all technical support in connection with
the establishment of Peer Review System in Nepal.
As per the request made by Mr. Shrestha, a draft action
plan was developed jointly by Mr. Shrestha, his
counterpart Mr. Kapur and Mr. Tulsiani, secretary of
Peer Review Board, ICAI. A meeting with Dr. Haldia
was also held to apprise him of the action plan and
nominate experts from ICAI to assist. After the
discussion, a schedule of implementation of Peer
Review by ICAN was agreed upon.
Establishment of ICAN Scholarship

Fund
Council Member of the fourth Council taking oath.
The newly elected President administered the oath of

office to the newly elected Vice President Mr. Ratna
Raj Bajracharya, FCA.
The Chief Guest administered oath of office to all 17
Council Members of Fourth Council.
Mr. Niraj Thapa, Executive Director, ICAN, delivered
the vote of thanks.
Amidst a program organised on May 4, 2007 at Everest

Hotel, Kathmandu, Scholarship Fund of the Institute
of Chartered Accountants of Nepal was launched by
President Mr. Binod B. Rajbhandary, FCA. The program
began with the welcome speech from Mr. Rajbhandary.
The speech was followed by a PowerPoint presentation
by the Executive Director Mr. Nanda Kishore Sharma,
FCA,Which shed light on the objectives of the
Institute and the activities undertaken to achieve
them. Mr. Sharma expressed that to attract the brighter
section of students to the Chartered Accountancy
Education, who would otherwise choose other nonprofessional fields of study due to their poor economic
condition, for this purpose, a scholarship procedure has
already been in place.
As per the procedure, the Institute shall constitute a

scholarship selection committee to oversee scholarship
activities. The scholarship shall be awarded to the
unprivileged but intelligent students on the basis of
examination conducted by the Institute for the
purpose. Two types of scholarship shall be provided.
First, full scholarship which consists of complete
waiver in respect of registration fee, examination fee
and application fee. Second, partial scholarship which
consists of fifty percent waiver on total fees to be
charged for Chartered Accountancy Education. The
scholarships may also comprise additional facilities
such as text materials, participation in preparatory
classes, etc. A scholarship fund can also be established
by an individual or organisation in their name by
depositing the sum of Rs. 3 lakh and Rs. 5 lakh
respectively. The program was attended by council
members and past presidents of ICAN, journalists and
representatives from financial institutions. The
program ended with the vote of thanks from vice
president Mr. Ratna Raj Bajracharya, FCA.
Peer Review Expert from ICAI Visits

ICAN
As per the action plan agreed between ICAI and ICAN,
Mr. Vijay Kapur, Director of ICAI made a visit to ICAN
on May 9, 2007. Mr. Kapur held a meeting with Mr.
Pushpa Lall Shrestha , FCA, Chairman of the Peer
Review Board, Past President, Council Members of
ICAN, other prominent Chartered Accountants,
representatives from ACAN and auditors' associations
to discuss Peer Review System. The visit is the first of
the action plan for the establishment of Peer Review
System in Nepal as a part of technical support from
ICAI.
Career Counseling Programs

As the regular feature of the educational activities of
the Institute, Nineteen career counseling programs
were organized in different parts of the country with a
view to make awareness about the chartered
Accountancy Education and facilities available in
Nepal.
Similarly, it has also participated in two Career Fairs,

one organized by Education and Career Expo/ Asia
Pacific Communication Association (APCA) and other
organized by Global Exposition and Management
Services Pvt. Ltd.
2nd CISA Examination held in

Kathmandu
On the initiation of the Institute of Chartered
Accountants of Nepal (ICAN), the Certified
Information Systems Auditor (CISA) examination was
held in Kathmandu on December 9, 2006. This is the
second time that such examination was held in Nepal.
This prestigious IT related professional course is
offered by the Information Systems Audit and Control
Association (ISACA) and the examination is
conducted by Professional Examination Service, USA.
CISA is getting popular among Nepalese Chartered
Accountants. Altogether eight IT Professionals
attended the examination.
Second Batch of DISA Course

Conducted
The IT committee of the Institute of Chartered
Accountants of Nepal with the assistance of the
Institute of Chartered of India conducted second batch
of Diploma in Information System Audit (DISA) course
for Chartered Accountants holding ICAI membership
from December 12 to December 27, 2006 at the ICAN
premises. The resource persons from the ICAI, Mr.
Tarun Manchanda, Mr. I. P. Singh and Mr. A.K.Jain
delivered the lecture during the program. A total of 24
Chartered Accountants had attended the course.
Liaison Office at Biratnagar

Amidst a ceremony held on Paush 27, 2063, the Chief
Guest Honourable Mr. Bhimendra Bahadur Karki,
Acting Chief Justice of the Appellate Court Biratnagar
inaugurated the Biratnagar Liaison Office of the
Institute.
President Mr. Binod B. Rajbhandary, FCA, Council
Member Mr. Tul Bahadur Shrestha and Deputy Director
Mr. Rabindra Ghimire were also present on the occasion.

Chartered Accountants and Registered Auditor
members of the Institute and invitees from government
and non-government offices attended the function.
The chief guest Mr. Karki expressed his joy over the
opening of ICAN Liaison Office at Biratnagar. He also
wished for the further progress of the Institute. On the
occasion, President Mr. Rajbhandary highlighted on
recent and future activities of ICAN in guiding,
educating and regulating the Chartered Accountancy
students and ICAN members throughout the country.
This way, opening of ICAN Liaison Office in Biratnagar
is the maiden venture in this regard.
Among the speakers, Mr. Ashok Murarka, President of
Chamber of Industries, Morang expressed the desire of
industrial community to cooperate with ICAN. He
also stressed that ICAN should turn out more CAs
every year so that the industry gets efficient manpower
in the accountancy field. Similarly, President of
Federation of Nepalese Journalists Morang District
also expressed his views.
Officials from ICAI and ICAP visited

ICAN
On August 24, 2006. G Somashekhar (Joint Secretary
Exams) of the Institute of Chartered Accountants of
India (ICAI) met President Mr. Binod B. Rajbhandary,
FCA in the Institute's Office. Similarly, on September
4, 2006 Past President and Council Member of the
Institute of Chartered Accountants of Pakistan (ICAP),
Mr. M.H. Ashif met President Binod B. Rajbhandary,

FCA and Vice President Mr. Ratna Raj Bajracharya,
FCA. In the meeting, they discussed about the
development of accounting profession of both
countries.
CA Students from Sri Lanka visit

Nepal
As part of the student exchange program among SAFA
member bodies, a student delegation was invited from
Sri Lanka on the occasion of the 10th anniversary of
the Institute. The 5- member delegation arrived
Kathmandu on January 29, 2007. The students visited
the Institute's office at Babar Mahal and various CA
Firms. They discussed various issues of Chartered
Accountancy Education such as articleship training,
statutory period to complete Final Level etc. An
interaction program between the visiting students and
Nepalese CA students was held in ICAN premises on
February 1, 2007. They also attended the joint seminar
and cocktail dinner organized to commemorate the
Institute's 10th anniversary. They visited various CA
audit firms, industries and historical places of
Kathmandu Valley. They departed to Sri Lanka on
February 2, 2007.
President and Vice President of the

Fourth Council elected
Mr. Ratna Raj Bajracharya, FCA and Mr. Tanka Prasad
Paneru, FCA has been elected as President and Vice
President respectively for the year 2006/07 of the
second year of the fourth Council.
T H E
I N S T I T U T E
O F
C H A R T E R E D
O F
N E PA L
International Participation and

Co-operation
President Attends the First SAFA
Board Meeting
President Mr. Binod B. Rajbhandary FCA visited New
Delhi, India from 2 to 7 April, 2007 to attend the first
SAFA Board meeting. Mr. Rajbhandary was
accompanied by the Executive Director of the Institute
Mr. Nanda Kishore Sharma, FCA. During the Board
meeting, various issues discussed in the previous
assembly were first taken up. The president of SAFA
presented proposals and drafts for some important
issues. He presented a draft paper on Asia Focus Group,
the group established by the IFAC to facilitate and
organize the Asia Regional Workshop and related
meetings. He also presented a draft MOU between
branches/chapters/associations of SAFA member
bodies in UK, which was later adopted. He also briefed
about the meeting of the IFAC developing nations
committee. The Board meeting finalized the action
plan for different committees of SAFA for 2007 and
the schedule of future events as well. Moreover, the
meeting also decided to change the name of Centres
of Excellence to Committees, thus a new centre of
excellence on Management Accounting was renamed
as Committee on Professional Accountants in Business.
The meeting also adopted the finalisation of SAFA
Accounts for 2006 with a view that SAFA should
consider expending the fund for newer projects. It was
further agreed that SAFA member bodies would identify
the projects for the benefit of society at large that SAFA
can undertake and that they would disseminate
information about the work done by SAFA through
various means such as website, journal, newsletter, etc.
ICA India and ICA Pakistan were chosen to do the
necessary works regarding IAASB Financial Reporting
8
Standards for SMEs; and SAFA Standards and

Guidelines for Micro Financial Entities and the IFAC
benchmark for Developing uniform Chartered
Accountancy Qualification Framework respectively. It
was also decided that SAFA would issue standards only
in rare situations considering the specific requirements
of SAFA countries and for which international
accounting standards are not available. In other cases
SAFA would issue only guidelines for the member
bodies to help them in framing the standards.
Accordingly, it was decided to publish the SAFA
Standard and Guideline on Not for Profit Organisations
(Including Non- Governmental Organisations). During
the visit, Mr. Rajbhandary and Mr. Sharma also
participated in a round table conference on the theme
"Making SAFA a Centre of Excellence of IFAC and
SAARC - Issues and Perspectives". In the conference
the speakers opined that the focus should be given to
members at services, focus should be given to
implementation of decisions to increase the reliability
of the profession. It was also expressed that the users
of accounting services should be educated about the
services being provided by the professional
accountants. During the conference it was agreed that
the issues related to SAFA region should be addressed
with priority rather than falling prey to complying with
IFAC publications/standards which may not fit the
conditions of SAFA countries.
ICAN President leads delegation to

SAFA Assembly
ICAN President, Mr. Binod B. Rajbhandary, FCA and
Council Member, Mr. Maha Prasad Adhikari, FCA
attended the 62nd South Asian Federation of
Accountants (SAFA) Assembly/Meeting of Centre of

Excellence and Working Group/ SAFA Conference held
in Chennai, India from 29th September 2006 to 1st
October 2006. Nepalese delegates participated in
various meetings related to the center of Excellence
and working groups a SIRC building of ICAI, Chennai.
SAFA Assembly was inaugurated by the Union Minister
for overseas affairs Mr. Vayalar Ravi and Chaired by the
President of SAFA, Mr. Sunil Goyal. Recommendations
of all Centre of Excellence were discussed during the
assembly decided to conduct next SAFA Assembly in
Kathmandu, Nepal from 17-19 December, 2006.
On the same occasion the SAFA Conference was
organized on the theme "Accounting Profession in
South Asian Region - Values and Perspectives".
ICAN Delegates attend World

Congress of Accountants and CAPA
(EXCOM) meeting
ICAN delegates led by President Mr. Binod B.
Rajbhandary, FCA attended 17th World Congress of
Accountants held in Istanbul, Turkey from 13th to
16th November, 2006. On 11th November 2006, the
delegation attended the CAPA Executive Committee
(EXCOM) meeting and CAPA AGM. Other members
in the delegation were Vice President Mr. Ratna Raj
Bajryacharya, FCA Council Members Mr. Gyanendra
Prasad Dhungana, FCA and Mr. Dilip Kumar
Dhungana. During the visit, ICAN delegates held
discussion with Chief Executive Mr. Eric Anstee and
other officers of ICAEW on the matters of bilateral
relationship. On the occasion, President Mr. Binod B.
Rajbhandary met the Chief Executive Allen Blewitt
of ACCA on November 16, 2006 and discussed on the
matters of mutual recognition and other issues.
President Attends 64th SAFA

Assembly Held in Sri Lanka and
meets AAT Officials
President Mr. Binod B. Rajbhandary, FCA visited Sri
Lanka from January 13 to 16, 2007 to attend the 64th
SAFA Assembly held in Colombo. The Assembly, which

was held on January 15, discussed many relevant issues
including the newly proposed Centre of Excellence on
Increasing Transparency, Accountability and
Governance (ITAG) and uniform curricula of CA
education and CMA education in South Asian Region
among others. The recognition of SAFA as the IFAC's
regional body was the one of the major issues during
the Assembly.
In the backdrop of the Assembly, President Mr.
Rajbhandary met with Mr. Sunil H. Talati, Vice
President of ICAI. The meeting focused on mutual
recognition agreement and peer review process. During
the visit, Mr. Rajbhandary got acquainted with the
AAT Sri Lanka's activities. He met with three
dignitaries President of AAT Sri Lanka Mr. Lal
Nanayakara, Founder President of AAT Mr. Laxman
Watawala and AAT's CEO Mr. Tishanga Kumarasinghe
on January 14th, 2007 and collected useful information
regarding accounting technician education. AAT Sri
Lanka owes to it two decade long experience in
operating AAT course in that country. Thus President's
visit has been expected to be a great boost to the
promotion of Nepal Accounting Technician Institute
(NATI).
ICAN President leads Delegation to

CAPA Board Meeting
ICAN President Mr. Binod B. Rajbhandary, FCA,
Council Member Mr. Tanka Prasad Pandey and
Executive Director Mr. Nanda Kishore Sharma, FCA
attended the 12th CAPA Board Meeting during 27 28 May, 2007 organized by CAPA Secretariat at
Bangkok, Thailand.
In CAPA Board Meeting, Mr. Rajbhandary apprised
the meeting of the recent developments that have
taken place within ICAN, establishment of peer review
system, promulgation of new Accounting Standards
and exposure drafts of Nepal Standards on Quality
Control (NSQC 1) in line with ISQC 1.
The CAPA Board considered various reports from the

President, Chief Executive, Strategic Committees, and
held discussion on ISAB's SME Exposure Draft,
Convergence Workshop in Response to IFAC's Part 2
Self Assessment Questionnaire and future
requirement.
ICAN President attends 65th SAFA

Assembly
ICAN President Mr. Binod B. Rajbhandary, FCA,
Council Member Mr. Tanka Prasad Pandey and
Executive Director Mr. Nanda Kishore Sharma, FCA
attended the 65th Assembly Meeting on 29 May, 2007
organized by SAFA Secretariat at Bangkok, Thailand.
10
This meeting was unique in the sense that it was held

for the first time outside the region.
In the meeting, minutes of earlier Assembly held in
Kathmandu and Colombo were adopted and review of
the status of action in respect of decisions taken earlier
was made. Reconstitution of the Committees of SAFA
and also the change of their nomenclature were
approved. New Committee on Professional
Accountants in business has been approved. It was
informed that certificates of renewal of SAFA as an
apex Body of SAARC for next five years has been
received from SAARC Secretariat.
T H E
I N S T I T U T E
O F
C H A R T E R E D
O F
N E PA L
Seminar, Workshops, Trainings

and Interactions
ICAN & ICAI Jointly Organize
Conference on "New Horizon for the
Profession: A Way Forward"
Likewise, in the third session, Past President of ICAN,

Mr. K.K. Singh, FCA presented a paper on "Corporate
Governance - A regulatory Imposition or a Business
Imperative", which was chaired by Past President of
ICAN Mr. Komal B. Chitracar, FCA. The conference
was attended by members in practice, corporate
officials and scholars. The conference ended with a
vote of thanks from Mr. Satish Chandra Lal, FCA.
ICAN - ICAI Joint Seminar

Organised
Participants at the Conference.
On the occasion of ICAN's tenth anniversary, the

Institute of Chartered Accountants of Nepal (ICAN)
& the Institute of Chartered Accountants of India
(ICAI) jointly organized a one-day conference on "New
Horizon for the Profession: A way Forward" on January
31, 2007 in Kathmandu. The conference was divided
into three technical sessions. Welcoming the guests,
Past President of ICAN, Mr. Prabhu Ram Bhandary,
FCA highlighted the major issues to be discussed in
the conference. In the first session, chaired by Past
President of ICAN, Mr. Gopal Prasad Rajbahak, FCA,
a paper on "New Investment Strategies" was presented
by Mr. J.N. Shah, Central Council Member of ICAI.
The second session expounded various strategies to be
adopted to cope with the risks associated with
investment. Similarly, Mr. U.P. Agrawal, Central
Council Member of ICAI presented a paper on
"Valuation of Enterprise- methods used and its relative
importance", which dealt with the importance of
valuation and the methods used. Past President of
ICAN, Mr. Narayan Bajaj, FCA chaired the session.
To mark the auspicious day of oath taking ceremony of

newly elected President and newly elected Vice
President a joint seminar with ICAI was organized on
"Treasury Management of Banks & Financial Institute"
on 1st August 2006. The objectives of the seminar
were to impart the knowledge and skills on the Treasury
Management on the financial institution and highlight
the main aspects of money market, government
securities, foreign exchange and derivatives.
Chief Guest of the seminar Mr. Krishna Bahadur
Manandhar Senior Deputy Governor, Nepal Rastra Bank
inaugurated the seminar. Speaking on the occasion Mr.
Manandhar said that the new monetary policy recently
pronounced b Nepal Rastra Bank ahs decentralized a
great deal of authority regarding the management of
treasury to the management of banks and financial
institution. He hoped that this seminar would help the
participant to impart knowledge and skill on managing
the treasury as envisaged by new monetary policy.
The Sessions were divided into three technical
sessions, which were chaired by Mr. Krishna Bahadur
11
Manandhar, Senior Deputy Governor, Nepal Rastra

Bank, Mr. Bruce Henderson, CEO, Rastriya Banijya
Bank and Mr. Satyendra Pyara Shrestha, Former
Governor, Nepal Rastra Bank. The resource persons
were Mr. Shyam Ramadhayani, FCA, India and Mr.
Resta Jha, Representative, Standard Chartered Bank.
Mr. Ratna Raj Bajracharya, FCA, Vice-President,
ICAN, delivered his closing remarks by stressing
importance on Treasury Management.
Senior accounting professionals, stockbrokers and
executives from banks, finance companies, insurance
companies and other corporate sectors attended the
seminar. The participants were awarded 5 CPE credit
hours, which was equally applicable for the members
of ICAI.
International Conference organised

On 19th December 2006, an International Conference
Dignataries at the conference
on the theme "Accounting Profession for Economic

Growth" was organized. The conference was
inaugurated by the chief guest Honorable Finance
Minister, Dr. Ram Sharan Mahat. The other dignitaries
at the function were Rt. Hon. Auditor General, Mr.
Gehendra Nath Adhikari, Governor of Nepal Rastra
Bank, Mr. Bijaya Nath Bhattrai, SAFA President, Mr.
Sunil Goyal, SAFA Vice President, Mr. Indrajith
Fernando, SAFA Advisor, Mr. Md. Nurul Hassan.
President of ICAN, Mr. Binod B. Rajbhandary, FCA
delivered his welcome speech. The conference
12
comprised of two technical sessions. The theme

for the first session was "Generating Economic
Growth and Stability through the Accounting
Profession in Developing Nations". The first session
comprised of three technical papers. Mr. T. N.
Manoharan, President of ICAI presented various
perspectives on the Accounting Profession, Ms.
Suraiya Zannath Khan, FCA from ICAB presented
paper on "Enabling Public Confidence in Financial
Reporting". Similarly, Vice Vresident of ICASL Mr.
Nishan Fernando presented futuristic paper on
Business Reporting Model. The session was chaired
by Mr. Dhananjay V. Joshi, President of ICWAI and
Mr. Komal Bahadur Chitracar, Past President of
ICAN.
The theme for the second session was
"Opportunities and Challenges for Accounting
Profession", The second session comprised of three
technical papers. Mr. Maheshwar Prakash
Shrestha, FCA, from ICAN, presented a
comprehensive picture of Nepalese Banking
Service through his paper, Mr. Mujahid Eshai, FCA
from ICAP, a regular participant at SAFA
conferences shared his invaluable expertise on
Trade in Services in the context of Globalization
and Mr. M.H. Asif, Past President of ICMAP
presented paper dealing with Assurance for Digital
Reporting. The second session was held under the
chairmanship of Mr. Mohammed Mohiuddin,
FCMA from ICMAB. The conference concluded
with vote of thanks by Vice President of ICAN,
Mr. Ratna Raj Bajracharya, FCA.
CPE Trainings Conducted

As the part of continuing professional education
program for the members, the Institute conducted
53 CPE trainings in various parts of the country.
Around 5000 members participated in the training.
As per the process of the outsourcing of the CPE
training altogether six Institutions were approved
to conduct CPE training.
Workshop on Income Tax Act, 2058

(ICAN) organized a workshop on Income Tax Act, 2058
at Hotel Shanker, Lazimpat, Kathmandu on September
18, 2006. The objective of the workshop was to discuss
on the provisions of the Income Tax Act, 2058 and
amendments made thereon.
Mr. Rana Bahadur Shrestha, Director General of the

Inland Revenue Department and Council Member Mr.
Keshav Bhattarai, Director General of Revenue
Investigation Department were also present during the
floor discussion session of the programme.
The program concluded with a vote of thanks from Mr.
Ratna Raj Bajracharya, FCA.
Training on Peer Review held
President Mr. Binod B. Rajbhandary, FCA addressing at the

workshop.
Peer Review Board of ICAN has conducted a two day

training program on 13th and 14th July, 2007. On the
first day, a program on Peer Reviewers Training was
held and on the second day, the training on "Enhancing
Quality Process in Attestation Engagement" was held,
Mr. Vijay Kapur, Direcor, ICAI apprises the participants
regarding peer review.
The participants on the workshop were Chartered

Accountants, Bankers, Registered Auditors, Legal
Experts, Government Officials and Other
Professionals. The programme began up with a welcome
speech by the ICAN President Mr. Binod B.
Rajbhandary, FCA.
Mr. K.K. Singh, FCA, Mr. Sudarshan Raj Pandey, FCA
and Mr. Shiva Nath Pandey, FCA presented papers on
the various issues related to Income Tax Act, 2058.
Mr. Vijay Kapur apprising the participants during the training.
13
T H E
I N S T I T U T E
O F
C H A R T E R E D
O F
N E PA L
Member Affairs
New Members
Altogether 32 New Chartered Accountants have been
enrolled as Chartered Accountant members of the
Institute. With this addition, the total number of
Chartered Accountant members of the Institute has
reached 324.
Certificate of Practice (COP)
Foreign CAs Obtain Membership of

ICAN
During the year, the Institute has granted Certificate

of Practice (COP) to 33 Chartered Accountant
members. The number of Chartered Accountant
members holding COP has thus reached 294.
FCA Conferred
The Institute conferred Fellow Chartered Accountant
membership to 9 Chartered Accountant members upon
completion of necessary requirements.
Members Achievements
Mr. Ratna Raj Bajracharya, FCA, Vice President

of ICAN has been nominated as member in the
Securities Board Nepal (SEBO/N).
Vice President Mr. Ratna Raj Bajracharya, FCA

has been appointed the Chief Executive Officer
(CEO) of Nepal Credit and Commerce Bank Ltd.
Mr. Shekhar Ghimire, a CA Member of the ICAN

has been awarded the "Certified Fraud
Examiner"(CFE) designation by the Association
of Certified Fraud Examiners (ACFE), the world's
leading provider of training and education for fraud
detection and deterrence. The ACFE's Board of
Regents awards this designation only to select
14
professionals who meet a stringent set of criteria,

including character, experience and education.
Mr. Narayan Prasad Poudel, RA 'B', membership
number 3076, awarded Ph.D. from T.U. in Finance.

(ICAN) has granted membership to 8 Chartered
Accountants qualified from ICAI. They passed the CA
Membership Examination held in the month of
November 2006. To obtain the membership of ICAN.
Chartered Accountants qualifying from foreign
institution/bodies are required to pass the membership
examination as per the regulations.
Disciplinary Action Taken

In pursuance of section 14(5)(c) OF The Nepal
Chartered Accountants Act, 1997, the Council of the
Institute has debarred the following Registered Auditor
members from practicing accounting profession for a
period of 1 year with effect form Bhadra 24, 2064 as
they were found guilty of professional misconduct and
non-compliance with Code of Ethics.
Mr. Mohan Kumar Chalise Membership No. 6115,
COP No. 1034 'C'
Mr. Keshab Prasad Koirala Membership No. 859, COP
No. 723 'B'
Mr. Ramesh Prasad Upadhyaya (Aryal) Membership
No. 4262, COP No. 725 'D'
Membership Status
CA Membership Examination
The membership status as on July 16, 2007 stands as

follows:
CA Membership Examination held on

November, 2006
Total Chartered Accountants Members

FCAs
CA
Total Registered Auditors Members
RA B
RA C
RA D
Total CA COP Holders
Total RA COP Holders
B Class
C Class
D Class
Total CA Firms
Total RA Firms
Total Candidate : 12
Appeared
:9
Pass
:8
324
142
182
7294
3296
1623
2375
294
6691
3069
1469
2153
249
1159
CA Membership Examination held on May, 2007

Appeared
: 62
Pass
: 45
CA Membership Examination held on

November, 2007
Appeared
: 26
Pass
:3
Registered Auditor Member Upgraded to 'B'
Class (June 2006)
Total Candidate
Appeared
Pass
Both Group
Group I
Group II
17
6
3
2
2
2
3
2
Registered Auditor Member Upgraded to 'C'

Class (June 2006)
Total Candidate
Appeared
Pass
Both Group
Group I
Group II
3
-
3
3
3
3
-
Registered Auditor Member Upgraded to 'B'

Class (June 2007)
Total Candidate
Appeared
Both Group
Group I
Group II
12
4
2
2
3
2
Registered Auditor Member Upgraded to 'C'

Class (June 2007)
Total Candidate
Appeared
Both Group
Group I
Group II
4
3
15
T H E
I N S T I T U T E
O F
C H A R T E R E D
O F
N E PA L
Students Affairs
Nepalese CA Students Visit India
A delegation of 8 ICAN students participated in the
20th All India CA Students Conference held on 23rd
and 24th June 2007 at Ahmedabad, India organized
by the Ahemedabad Branch of WIRC of ICAI &
Ahemdabad Branch of WICASA. The theme of
conference was 'Working With World (WWW)'. Mr.
Nirmal Bartaula from ICAN presented technical Paper
on the topic "Professional Ethics"
Similarly, a delegation of Ten ICAN Students
participated in the 4th National Convention for CA
Students organized by the Board of Studies of The
Institute of Chartered Accountants of India. The theme
of the convention was "Creating Global VisionAchieving Global Standards'. Mr. Ramesh Neupane
from ICAN presented technical papers on 'Value Added
Tax'(VAT) : Principles, issues and Emerging Scenario'.
During the visit the students visited various industries,

chartered accountancy firms and historical places.
Nepalese CA Students Visit Pakistan

A delegation of three CA Final Level students visited
Pakistan on March 15 to 22, 2007, on the occasion of
All Pakistan CA Students Conference 2007 organized
by the Directorate of Education and Training of the
Institute of Chartered Accountants of Pakistan (ICAP)
on the theme "Chartered Accountancy Making its Own
Borders". Ms. Prakriti Tuladhar presented a paper on
International Accounting Standard 12: "Income Taxes".
Similarly, Mr. Binod Raj Paudel participated in the
panel discussion on the theme IES 8 "Competence
Requirements for Audit Professionals". During the
visit, the students visited various auditing firms and
various industries and historical places.
Student Registration
Following Table depicts the number of students joining the CA Course in the last 5 years:
Level
Foundation
Intermediate
Final
16
059/60
060/61
061/62
062/63
063/64
194
99
7
360
109
20
361
123
21
185
152
21
672
147
47
The details of the result of the December 2006 and June 2007 are as follows :
December 2006 Examination (Result)

Foundation
Intermediate
Standing Committees
Appeared
Passed
Old course
28
9
Group I
17
19
Group II
7
12
Both Group
80
45
Group I
64
24
Group II
70
21
Final
Both Group
89
26
Group I
13
8
Group II
17
11
Group I
18
7
Group II
18
7
Both Group
11
4
June/July 2007 Examination (Result)

Foundation
Appeared
Passed
Group I
7
14
Group II
7
11
Intermediate
Standing Committees
Both Group
79
32
Group I
45
26
Group II
53
22
Final
Both Group
115
9
Both Group
16
7
Recipients of Awards for the December 2006 and June 2007 CA

Examinations
December 2006 CA Examination
S.No.
Medal Fund
1.
KB Chitracar Gold Medal
2.
BK Agrawal Gold Medal
3.
Prakash Jung Thapa Gold

Medal
Narayan Bajaj Silver Medal
4.
5.
Shiva Man Singh & Chandra

Bhandari Silver Medal
Regd.No/Roll
Standing Committees
Standing Rank First in CA Final
Examination
Standing Rank First in CA
Intermediate Examination
Securing Highest Marks in Advanced
Accounting in CA Final Examination
Standing Rank Second in CA
Standing Rank Second in CA Final
Examination
No.
Eligible Name for Medal Fund
FN0016
Mr. Bishwa Raj Basaula 0061
KI 441
Mr. Arun Raut
FN0038
Mr. Janak Raj Kalakheti
KI 430/
Mr. Raj Kumar Basnet
FN0050
Mr. Pradip Pokharel
Mr. Bipin Chapagain (Roll No.111/ Reg.No. KF 001231) is awarded merit of certificate for scoring highest marks
in December 2006 Foundation Level Examinatiion.
June/July 2007 CA Examination

S.No.
Medal Fund
1.
KB Chitracar Gold Medal
2.
BK Agrawal Gold Medal
3.
Prakash Jung Thapa Gold

Medal
Narayan Bajaj Silver Medal
4.
5.
Shiva Man Singh & Chandra

Bhandari Silver Medal
Regd.No/Roll
Standing Committees
Standing Rank First in CA Final
Examination
Standing Rank First in CA
Securing Highest Marks in Advanced
Accounting in CA Final Examination
Standing Rank Second in CA
Standing Rank Second in CA Final
Examination
No.
Eligible Name for

Medal Fund
FN0065
Ms. Pramila Shrestha
KI 608
Ms. Silpy Kedia
FN0065
Ms. Pramila Shrestha
KI 589
Ms. Sujita Adhikari
FN 0056
Ms. Bonisha Pandey
Mr. Suraj Rajbahak, Reg.No. KF001317 is awarded the merit of certificate for scoring highest marks with distinction
in July 07 Examination Foundation Level Examination.
17
T H E
I N S T I T U T E
O F
C H A R T E R E D
O F
N E PA L
Staff Developments
Staff Felicitation
On the occasion of the 10th Anniversary of ICAN Rt.
Honourable Speaker of the Interim Legislature
Parliament Mr. Subash Chandra Nembang awarded
the best staff Award to Mr. Binod Prasasd Neupane,
Deputy Director and to Mr. Bhola Ghimire, Assistant
for their outstanding performance and contribution to
the Institute.
Executive Director Appointed

The Council has appointed Mr. Nanda Kishore
Sharma, FCA as the Executive Director of the Institute
for a four year term with effect from January 15, 2006
(Magh 1, 2063). He has been associated with the
Institute's activities as a member of Education
Committee and resource person for various training
conducted by ICAN since last 2 years. Mr. Sharma is a
fellow member of the Institute. Mr. Sharma qualified
from ICAI in 1995 and is gold medallist in B.Com.
Examination held by Tribhuvan University. Mr.
Sharma had undergone 3 years' Articleship training with
Price Waterhouse, India under the regulation of ICAI.
Mr. Sharma has been in the accounting profession for
the last 12 years. Before he joined the Institute, he was
practicing under his own firm, N. K. Sharma & Co. Mr.
Sharma was one of the partners in an associated firm of
Price Waterhouse Coopers before he established his own
firm in January, 2006. Mr Sharma is a member of the
Auditing Standards Board, appointed by the
Government of Nepal in August, 2006.
Joint Director Appointed

The Council has appointed Mr. Paramananda Adhikari,
CA as the Joint Director of the Institute with effect
18
from 22 February 2007 (Falgun 10, 2063). He has been

associated with the Institute's various activities and
resource person for CPE training conducted by
Institute since last 3 years. Mr. Adhikari qualified as
Chartered Accountant in 2002 from the Institute of
Chartered Accountants of India (ICAI) and qualified
as Company Secretary in 1998 from the Institute of
Company Secretaries of India (ICSI). Mr. Adhikari has
been in the accounting profession since last 5 years.
Prior to joining the Institute, he was the financial
consultant of the Commission for the Investigation of
Abuse of Authority (CIAA), the anti-corruption
constitutional body of Nepal.
Staff Appointed
The following new staff's have been recruited
Mr. Manoj Pokharel - Officer
Ms. Reshma Shakya - Assistant
Staff Resignation
The following staffs have resigned from their Post
Mr. Niraj Thapa - Executive Director
Mr. Nayan Krishna Joshi - Officer
Mrs. Samjhana Baral - Assistant
Farewell to Mr. PL Sherestha

A farewell was granted to Mr. Purusottam Lal Shrestha,
Secretary of ICAN who was retired from the Institute's
service on August 31, 2006. The programme was
organized in Hotel Shanker, Kathmandu in the
presence of President, Vice President, Council Member
and Staff's of the Institute. Cheers and best wishes to
Ram Bhakta Shrestha and Mr. Binod Bista the

training dealt with development of skills and
knowledge and interpersonal behaviour within
the staff.
Mr. Shrestha on successful completion of tenure after

serving the Institute for a period of nine years.
Staff Training
In order to develop the organizational skill and

behaviour of the staff of ICAN, an in-house
training was organized. Altogether 26 staffs
attended the programme. The entire session were
led by two experienced management trainers Mr.
With the aim of upgrading skills of the Institute

staff members, Mr. Rajendra Lamichhane,
Assistant and Mr. Tanka Upreti, Assistant
attended various professional skill based training.
First Row:
L-R : Mrs. Samjhana U. Tuladhar, Miss Goma Raut, Mr. Binod Neupane, Mr. Nanda Kishore Sharma, Mr. Paramananda Adhikari,
Mr. Shyam Mani Dahal, Mr. Rabindra Ghimire
Second Row:
L-R : Mr. Madhav Kachhipati, Ms. Reshma Shakya, Ms. Ganga Chaudhary, Ms. Poonam Bajracharya, Mr. Monaj Poudel,
Mr. Khornath Lamichhane, Mr. Satyendra Sharma Satyam, Mr. Ram Prasad Nepal, Mrs. Sita Adhikari
Third Row:
L-R : Mr. Manoj Giri, Mr. Sunil Adhikari, Mr. Tank Prasad Upreti, Mr. Sanoj Bhattarai, Mr. Rajendra Lamichhane, Mr. Rishi Ram
Neupane, Mr. Purushottam Sharma, Mr. Pramod Nepal, Mr. Bhola Ghimire, Mr. Mahesh Chitrakar,
Mr. Bishnu Prasad Subedi
19
T H E
I N S T I T U T E
O F
C H A R T E R E D
O F
N E PA L
Accounting Standards and

Auditing Standards
The Institute has adopted the following Accounting Standards pronounced by respective Boards.
Accounting Standards
S.No.
NASs
Name
IASs/
IFRSs
Effective Date
Mandatory Compliance
Framework For the Preparation and presentation of Financial tatements
1
Presentation of Financial Statements
1 Shrawan 2065 (17 July 2008)
Accounting Policies, Changes in Accounting Estimates and Errors
1 Shrawan 2065 (17 July 2008)
Cash Flow Statements
1 Shrawan 2065 (17 July 2008)
Inventories
1 Shrawan 2065 (17 July 2008)
10
Events After the Balance Sheet Date
1 Shrawan 2065 (17 July 2008)
16
Property, Plant and Equipment
1 Shrawan 2065 (17 July 2008)
18
Revenue
1 Shrawan 2065 (17 July 2008)
23
Borrowing Costs
1 Shrawan 2065 (17 July 2008)
10
20
Accounting for Government Grants and Disclosure of Government Assistance
1 Shrawan 2065 (17 July 2008)
10
11
21
The Effects of Changes in Foreign Exchange Rates
1 Shrawan 2065 (17 July 2008)
11
12
37
Provisions, Contingent Liabilities and Contingent Assets
1 Shrawan 2065 (17 July 2008)
12
13
11
Construction Contract
1 Shrawan 2065 (17 July 2008)
13
12
Income Taxes
1 Shrawan 2064 (17 July 2007)
14
15
17
Leases
1 Shrawan 2065 (17 July 2008)
15
16
24
Related Party Disclosures
1 Shrawan 2065 (17 July 2008)
16
17
34
Interim Financial Reporting
1 Shrawan 2065 (17 July 2008)
17
18
36
Impairment of Assets
1 Shrawan 2064 (17 July 2007
18
19
40
Investment Property
1 Shrawan 2064 (17 July 2007)
19
20
IFRS 5
Non-current Assets Held for Sale and Discontinued Operations
1 Shrawan 2064 (17 July 2007)
Employee Benefits
1 Sharawan 2064 (17 july 2007)
Business Combinations
Voluntary Compliance
20
20
14
19
21
21
IFRS 3
22
23
14
Segment Reporting (2006)
23
24
26
Accounting and Reporting by Retirement Benefit Plans
24
25
28
Investment in Associates
25
26
33
Earning Per Share
26
27
38
Intangible Assets
Auditing Standards
Name
Existing NSAs Revised Serial

NSAs Number (June 2007)
Effective Date
Mandatory Compliance
1
200
Objectives and General Principles Governing an Audit of Financial

Statements - Revised
1 Shrawan 2065 (17 July 2008)
210
Terms of Audit Engagements - Revised
1 Shrawan 2065 (17 July 2008)
230
Audit Documentation - Revised
1 Shrawan 2065 (17 July 2008)
500
Audit Evidence
1 Magh 2060 (15 January 2004)
240
The Auditor's Responsibility to Consider Fraud in an Audit of financial

Statements - Revised
1 Shrawan 2065 (17 July 2008)
320
Audit Materiality - Revised
1 Shrawan 2065 (17 July 2008)
300
Planning and Audit of Financial Statements - Revised
1 Shrawan 2065 (17 July 2008)
700
The Auditor's Report on a complete Set of General purpose Financial

Statements
1 Shrawan 2061 (16 July 2004)
530
Audit Sampling and Other Means of Testing
1 Shrawan 2061 (16 July 2004)
10
570
Going Concern
1 Shrawan 2061 (16 July 2004)
11
580
Management Representations
1 Shrawan 2061 (16 July 2004)
12
400
Risk Assessments and Internal Control
1 Shrawan 2061 (16 July 2004)
13
260
Communication of Audit Matters with Those Charged with Governance Revised
1 Shrawan 2065 (17 July 2008)

1 Magh 2061 (14 January 2005)
14
310
Knowledge of the Business
15
250
Consideration of Laws and Regulations in an Audit of Financial Statements

- Revised
1 Shrawan 2065 (17 July 2008)
16
560
Subsequent Events
1 Magh 2061 (14 January 2005)
17
505
External Confirmations
1 Magh 2061 (14 January 2005)
18
600
Using the Work of Another Auditor
1 Magh 2061 (14 January 2005)
19
610
Considering the Work of Internal Auditing
1 Magh 2061 (14 January 2005)
20
620
Using the Work of an Expert
1 Magh 2061 (14 January 2005)
21
510
Initial Engagements-Opening Balances
1 Magh 2061 (14 January 2005)
22
720
Other Information in Documents Containing Audited Financial Statements
1 Magh 2061 (14 January 2005)
23
540
Audit of Accounting Estimates
1 Shrawan 2062 (16 July 2005)
24
710
Comparatives
1 Shrawan 2062 (16 July 2005)
25
550
Related Parties
1 Shrawan 2062 (16 July 2005)
26
800
The Independent Auditor's Report on Special Purpose Audit

Engagements
1 Shrawan 2062 (16 July 2005)
Engagements to Perform Agreed-Upon Procedures Regarding Financial

Information
1 Shrawan 2062 (16 July 2005)
27
NSRs 4400
28
NSREs 2400
Engagements to Review Financial Statements
1 Shrawan 2062 (16 July 2005)
29
NSREs 4410
Engagements to Compile Financial Information
1 Shrawan 2062 (16 July 2005)
30
Framework of Nepal Standards on Auditing

Glossary
NAPS 101
IAPS 1006
Audits of the Financial Statements of Banks
1 Shrawan 2063 (15 July 2006)
21
Guidance Notes (Developed)
Name
S.No.
GN
201
Guidance Notes on Independence of Auditors
202
Guidance Notes on Preparation of Financial Statements on Letter-Heads and Stationery of Auditors
Appendix 3: Future Plan

A) Identified Auditing Standards
Name
EDs
ISAs
NAPS 102
1005
The Special Considerations in the Audit of Small Entities
NAPS 103
1000
Inter-Bank Confirmation Procedures
NAPS 104
1004
The Relationship between Banking Supervisors and Bank's External Auditor
31
315
Environment And Assessing The Risks of Material Misstatement
B) Guidance Notes (Under Consideration)
Name
Guidance Note on Members' Duties Regarding Engagements Involving Compilation of Financial Statements
Guidance Note on Revision of the Audit Report
22
23
24
25
26
27
28
29
30
31
32
33
34
Annexure 1
Standing and non Standing Committees and Members for the year
2006-2007
The Act provides for four standing committees to advise and facilitate the Council in taking its decisions. Except
the Disciplinary Committee, the President and Vice President of the Council are ex officio Chairman and ViceChairman respectively of all standing committees. The standing committees and member list (for 2006-07) are
as follows:
1. Executive Committee
Mr. Binod Bahadur Rajbhandary
Mr. Ratna Raj Bajracharya
Mr. Maha Prasad Adhikari
Mr. Diwakar Prasad Rimal
Mr. Tanka Prasad Pande
Executive Director
Chairman
Vice-Chairman
Member
Member
Permanent Invitee
Member Secretary
2. Professional Development
Committee
Mr. Sunir Kumar Dhungel
Mr. Tanka Prasad Paneru
Mr. Gyanendra Prasad Dhungana
Mr. Sudarshan Raj Pandey
Dr. Chandra Mani Adhikari
Chairman
Vice-Chairman
Member
Member
Member
Member
Member
3. Disciplinary Committee
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Suvod Kumar Karna

Bhaskar Singh Lala
Bharat Rijal
Bal Krishna Ghimire
Sundar Man Shrestha
U K Jha
Somraj Pokharel
Chairman
Member
Member
Member
Member
Member
Member
4. Examination Committee
Mr. Mahesh Guragain
Mr. Khem Prasad Dahal
Mr. Dilip Dhungana
Dr. Govinda Ram Agrawal
Mr. Lumb Dhoj Mahat
Chairman
Vice-Chairman
Member
Member
Member
Member
Member
The Council has constituted various non-standing

committees. The existing non-standing committees
and member list (for 2006-07) are as follows
1. Editorial Committee
Mr. Bal Krishna Sharma
Mr. Rajesh Acharya
Mrs Bandana Khetan
Mr. Hari Prasad Adhikari
Chairman
Member
Member
Member
Member
Member
2. Education Committee
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Tirtha Raj Upadhyaya

Sunir Kumar Dhungel
Tanka Prasad Pandey
Jagdish Agrawal
Nanda Kishore Sharma
Anal Bhattarai
Hari Kumar Silwal
Padam Raj Bhatta
Chairman
Member
Member
Member
Member
Member
Member
3. Career Counseling Committee

Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Pradip Kumar Shrestha

Bhava Nath Dahal
Surendra Poudel
Achyut Raj Joshi
Mohan Regmi
Laxman Khanal
Chairman
Member
Member
Member
Member
Member
Member
35
4. Ethics Committee
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Komal Bahadur Chitracar

Keshab Bhattarai
Prabin Dhoj Joshi
ManMohan Kafle
Jeev Narayan Baral
Niranjan Neupane
Ram Kumar Upreti
Chairman
Member
Member
Member
Member
Member
Member
5. C.P.E. Committee
Mr.
Mr.
Mr.
Mr.
Mr.
36
K K Singh
Bhaskar Singh Lala
Suvod Kumar Karna
Sashi Satyal
6. Mutual Recognition Agreement

Committee
Mr. Prabhu Ram Bhandari
Mr.Tanka Prasad Paneru
Mr. Gyanendra Dhungana
Mr. Jitendra Bahadur Rajbhandary
Mr. Satish Chandra Lal
Mr. Prem Prasad Dhungana
Chairman
Member
Member
Member
Member
Member
Subcommittee and Task Force

Chairman
Member
Member
Member
Member
Mr. Shiva Nath Pandey
Member
Mr. Mahesh Khanal

Mrs. Nutan Bajracharya
Mr. Chiranjibi Dwa
Member
Member
Member
1. Examination Procedures
Preparation Task Force
Mr. Khem Prasad Dahal
Mr. Mahesh Guragain
Dr. Govind Ram Agrawal
Co-Ordinator
Member
Member
Annexure 2
Organization Chart of The Institute of Chartered Accountants of Nepal
(Approved by the Council on August 6, 2005)
Council
President
President's Office
Committees
Executive Director
Professional
Office of Executive
Director
Development Department
Members
Department
Management
Department
Education
Department
Examination
Department
Professional
Development Division
Members Service
Division
Management
Division
Education
Division
Examination
Division
Research & Professional International Members Service

Publication Development
Affairs
Section
Section
Section
Section
Research &
Development Sub
Section
Professional
Development Sub
Section
International
Affairs Sub
Section
CPE Sub
Section
Members
Administration
Sub Section
Management
Section
Education
Section
Members
Regulation
Sub Section
Education
Management
Sub Section
Internal Management
Sub Section
Financial
Management
Sub Section
Examination
Section
Student
Affairs Sub
Section
37
38
Past Presidents
Komal Bahadur Chitracar, FCA

(1997-1998)
Tirtha Raj Upadhyay, FCA

(1998-1999)
Kaushalendra Kumar Singh, FCA

(1999-2000)
Gopal Prasad Rajbahak, FCA

(2000-2001)
Prabhu Ram Bhandary, FCA

(2001-2002)
Bijay Kumar Agrawal, FCA

2002-2003
Pradeep Kumar Shrestha, FCA

(2003-2004)
Pushpa Lall Shrestha, FCA

(2004-2005)
Narayan Bajaj, FCA

(2005-2006)
Binod B. Rajbhandary
(2006-2007)

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

Ican Annual Report 2006 07

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Ican Annual Report 2006 07

Hochgeladen von

Copyright:

Verfügbare Formate

(Established under the Nepal Chartered Accountants Act, 1997)

The Institute of Chartered Accountants of Nepal

Ratna Raj Bajracharya

Suvod Kumar Karn

Tanka Prasad Pandey

Sunir Kumar Dhungel

Mahesh Kumar Guragain

Khem Prasad Dahal

Tanka Prasad Paneru

Bhaskar Singh Lala

Gyanendra Prasad Dhungana

Maha Prasad Adhikari

Dilip Kumar Dhungana

Tul Bahadur Shrestha

Keshav Prasad Bhattarai

Nanda Kishore Sharma

Diwakar Prasad Rimal

The logo of The Institute of Chartered Accountants of Nepal (ICAN) bears a

k'gGt' dg;f lwoM means:

Purity of mind and clarity of wisdom.

To provide quality professional education to accounting professionals in consonance

To support the economic development process by increasing the confidence among

Annual Report 2006-07 The Institute of Chartered Accountants of Nepal

Integrity -st{Jo lgi7tf_

Professional Competencies and Due care

Professional Behaviour -Joj;flos Jojxf/_

Technical Standards -k|fljlws dfg_

g]kfn rf^{*{ PsfpG^]G^\; ;+:yf

Annual Report 2006-07 The Institute of Chartered Accountants of Nepal

Brief Outline of the Institute of Chartered Accountants of Nepal

Facts about ICAN

Events and Activities

International Participation and Co-operation

Seminars, Workshops, Trainings and Interactions

Accounting Standards and Auditing Standards

Annexure 1- Standing and Non Standing Committees

Annexure 2 - Organisational Chart of the Instituute

Annual Report 2006-07 The Institute of Chartered Accountants of Nepal

Annual Report 2006-07 The Institute of Chartered Accountants of Nepal

Report of the President

Annual Report 2006-07 The Institute of Chartered Accountants of Nepal

Education and Examination

Quality Control Review

With best wishes to all!

Annual Report 2006-07 The Institute of Chartered Accountants of Nepal

Brief Outline of the Institute of

Regulations and Bye-Laws

(d) Recruitment and Promotion Procedure, 2005

The Executive Director

Annual Report 2006-07 The Institute of Chartered Accountants of Nepal

Facts about ICAN

: Nepal Chartered Accountants Act, 1997

: Nepal Chartered Accountants Act, First Amendment 2002

: Nepal Chartered Accountants Regulation, 2004

: Nepal Chartered Accountants Regulation, First Amendment 2006

Past Presidents of ICAN

: Mr. Komal Bahadur Chitracar, FCA ( 1997 - 1998)

: Mr. Tirtha Raj Upadhyay, FCA (1998 - 1999)

: Mr. Kaushalendra Kumar Singh, FCA (1999 - 2000)

: Mr. Gopal Prasad Rajbahak, FCA (2000 - 2001)

: Mr. Prabhu Ram Bhandary, FCA (2001 - 2002)

: Mr. Bijay Kumar Agrawal, FCA (2002 - 2003)

: Mr. Pradeep Kumar Shrestha, FCA (2003- 2004)

: Mr. Pushpa Lall Shrestha, FCA (2004 - 2005)