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The Institute of Chartered

Accountants of Nepal (ICAN)


(Established under the Nepal Chartered Accountants Act, 1997)

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. Madhu Bir Pande


President (2012/13)

CA. Mahesh Kumar Guragain


Vice President (2012/13)

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


(1997-1998)

CA. Tirtha Raj Upadhyay


(1998-1999)

CA. Kaushalendra Kumar Singh


(1999-2000)

CA. Gopal Prasad Rajbahak


(2000-2001)

CA. Prabhu Ram Bhandary


(2001-2002)

CA. Bijay Kumar Agrawal


(2002-2003)

CA. Pradeep Kumar Shrestha


(2003-2004)

CA. Pushpa Lall Shrestha


(2004-2005)

CA. Narayan Bajaj


(2005-2006)

Late. CA. Binod B. Rajbhandary


(2006-2007)

CA. Ratna Raj Bajracharya


(2007-2008)

CA. Tanka Prasad Paneru


(2008-2009)

CA. Suvod Kumar Karn


(2009-2010)

CA. Sunir Kumar Dhungel


(2010-2011)

CA. Sudarshan Raj Pandey


(2011-2012)

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 ..

Literally, k'gGt' dg;f lwoM means:


Purity of mind and clarity of wisdom.
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.
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.

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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 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 disclosure in
financial reporting practices.

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Table of Contents

Report of the President

Brief outline of the Institute of Chartered Accountants of Nepal

10

Facts about ICAN

11

International Participation and co-operation

12

Events and Activities

14

Seminar, workshop and Training

18

Members Affairs

21

Students Affairs

23

Staff Affairs

27

Financial Statement

29

Annexure
Standing and Non Standing Committees

41

Organizational Chart of the Institute

44

Accounting/Auditing Standards

45

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The Institute of Chartered Accountants of Nepal

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Fundamental Principles of Professional Ethics

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Professional Competencies and Due care


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The Institute of Chartered Accountants of Nepal


(Established under the Nepal Chartered Accountants Act, 1997)

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Report of the President


Dear Colleagues,
I would like to extend my warm welcome to all of you
on the occasion of the 16th anniversary of the Institute
of Chartered Accountants of Nepal. I on behalf of my
predecessor CA. Sudarshan Raj Pandey take pride and
honour to present before you the annual report for the
fiscal year 2068/069. The preceding year for the Institute
was filled with remarkable milestone and exponential
growth as significant plans and programmes and some
major decisions were taken for the development of the
accounting profession.
Amongst others the election for the 6th council was held in
Jestha 2069 (June 2012) and an overwhelming response
was received from members to exercise their votes.
I express my gratitude to all member of the institute for
having given me an opportunity to serve the institute
as the first President of 6th council and 16th President of
the Institute of Chartered Accountants of Nepal. I feel
honoured to assume this responsibility and express my
commitment to give my best effort to uplift the accounting
profession in Nepal. I am confident that I will get support
and cooperation from past presidents, vice president,
council members and all the members of the Institute for
our endeavour to make ICAN finest professional Institute
in the country.
I am also confident that I will get due support from all
stakeholders of the economy so that our objective to
optimize our contribution to economic development of
the country is achieved.
I would like to present some of the major achievements
that took place during 2011-2012.
Building Construction
The significant progress was made on the construction of
ICAN building at Satdobato, Lalitpur on the land received
on lease from the Government of Nepal. The structure
part of the construction has already been completed and
it is expected that the building will be fully completed by
the end of this year.

Branch Expansion
In order to expand facilities to members and students
outside the capital, it was decided to open a branch
in Pokhara. Accordingly, all arrangement to operate a
branch at Pokhara has been completed and branch will
be operative very soon.
During the year as part of ICANs commitment for
continuous institutional development, amendment in
the Nepal Chartered Accountants Regulation, 2061 was
made. It was third amendment in the regulations. This
amendment will pave way for smooth implementation of
the plan and policies of the Institute.
SAFA Board and Committee Meetings
The Institute hosted the 17th SAFA Board Meeting in
Kathmandu which was attended by board member and
head of accounting bodies of SAFA. Similarly a number
of SAFA committee meetings were also held coinciding
with the Board Meeting.
Membership
During the year a total of 60s were granted new CA
membership and a total of 3 CA members were granted
Fellow Chartered Accountant (FCA). Similarly 29 CA
members were granted COP during the same year.
The number of qualified CA members reached 596 at
the end of the year as compared to 538 in the previous
year, out of them 524 were holding certificate of practice
as compared to 497 in the previous year. Out of that 124
were qualified from ICAN.
A total of 4669 RA members renewed their membership
this year as compared to 4874 in the previous year, out
of them 3784 were holding certificate of practice as
compared to 4013 in the previous year.
Similarly, a total of 5 C Class Registered Auditor
Members were upgraded to B Class and 37 D Class
Registered Auditor Members were upgraded to C Class.
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Continuing Professional Development


The Institute has given highest priority to the capacity
building of its members and has been conducting CPE
programs along with workshops/seminars in joint venture
with other regulatory and professional organisations.
Training with structured curriculum covering Accounting
and Auditing Standards, Taxations and other relevant
subjects concerning accounting profession were
conducted in different part of the country to enhance
the capacity and skill of members. Similarly, various
interaction programmes were also conducted in different
parts of the country. Such interaction programmes
provided platform to understand members need
and concerns and also the issues in the accounting
profession requiring attentions and actions.
During the year a total of 31 CPE trainings were
conducted in and outside Kathmandu, out of which 21
trainings were outsourced to the registered outsourcing
units. Altogether around 3500 members benefitted from
the CPE trainings.
I would like to express my sincere thanks to the CPE
Committee Chairman and its members and ICAN staffs,
resource persons and volunteers for the successful
conduct of CPE programmes during the year.
Seminar, Workshop and Training
Enhancing the capacity of our members and keeping
them abreast of the current changes in our profession
is one of the main responsibilities of the Institute.
Keeping this in mind, different interaction programmes
with entities like Nepal Rastra Bank, Insurance Board
(Beema Samiti), Bankers Association, Nepal Insurers
Association and others were organized to discuss and
resolve current issues in banking and insurance sector
concerning regulators, operators and the auditors. These
interaction programmes not only provided our members
opportunities to discuss the recent developments in
financial sectors and but also assisted the Institute in
development long term collaboration with these entities.
On the occasion of 15th anniversary of the Institute a one
day conference in association with Bankers Association
was conducted on the topic Contemporary Issues on
Banking from the Perspective of Regulator, Auditors and
Bankers The Institute also conducted a one day seminar
on the contemporary issues of Insurance in association
with Nepal Insurers Association and Beema Samiti.

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With a view to keep abreast with the Information


Technology related to accounting and auditing profession,
the Institute organized an ISA Course with the technical
assistance from ICAI. Altogether 27 participated in the
course.
During the year eight national seminar/workshop and
one International seminar was conducted. Similarly the
Institute conducted four training on members capacity
building for its members in different parts of the country
on the topics pertaining to accounting, auditing and
taxation.
In order to enhance the role and quality of our members
more plan has been designed to conduct more capacity
building programs. I would like to reassure our members
that we are committed to bring more capacity building
programs for our members.
Code of Ethics
In order to maintain professional integrity and highest
ethical standard the Institute has full enforcement of
disciplinary mechanism. During the preceding year
disciplinary actions against 3 members were taken. I
sincerely urge all members to works towards making
our profession more effective, independent and more
responsible towards the profession and nation and
to further enhance the reputation of this profession
by carrying out the professional conduct with utmost
honesty and sincerity.
The Institute has also published a handbook of the
code of ethics for professional accountants, which is a
summarized version of the IFAC code of Ethics 2010.
This is a easy reference and quick understanding of the
IFAC code of ethics.
International Relations
ICAN always has given high priority to international
membership and relation. We believe that in this era
of global networking its very important to maintain
relationship with various accounting bodies across the
globe to share the national and international experience
and to upgrade our skill and knowledge.
ICAN has shown strong presence in various international
forums like IFAC, CAPA and SAFA. The Institute
participated in the various board meeting, assembly
and committee meeting of these accounting bodies and
put forward issues and ideas and has accomplished

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task assigned with capability. The Institute effective


participation provided platforms to present itself which
has assisted in enhancing the recognition of the Institute.
Due to our professional commitment and strong presence
in international forum, we have been nominated as a
member of newly established Public Sector Financial
Management (PSFM) Committee of CAPA. I am also
pleased to inform that ICAN will be hosting third PSFM
committee meeting along with CAPA conference on
PSFM on March 7 and 8, 2013. The CAPA meeting
and conference will be a step forward towards ICANs
international recognition.

Students Activities

Education
During the year, a good response was received from
the students interested in pursuing CA education. This
is reflected in the enrolment status of students pursuing
CA Course and during the year altogether 1244 students
enrolled for different level of the CA Course. I believe
this development is a trust and confidence bestowed in
accountancy profession by the young talents. However
we need to work further and make sure that more and
more students are attracted towards CA education,
especially in light of number of students studying abroad.
We are working hard to take the measures to overcome
whatever deficiencies we have as regards to enrolment
and facilities to the students. During the year, in order
to improve the quality of professional CA Course, and to
make compatible with the courses of other accounting
bodies in the region, revision of the curriculum and the
syllabus of CAP-I Level were made. This came with
effect from 1st of June 2012. A new syllabus of CAP-I
level is made of 300 marks instead of 600 marks without
changing fundamental subjects.
CAP-I level will now have both objective and subjective
questions. Further the duration for appearing examination
of CAP-I level has been reduced to 8 months from the
existing 12 months as amended in the Nepal Chartered
Accountants Regulation (Third Amendment) 2004. This
change at entry level will definitely have positive impact in
the CA education. With the objective of providing quality
materials to the students to facilitate the understanding
of their subjects and preparing for the examination, the
Institute during the year published study materials for
Strategic Management, MICS for CAP-III level, Taxation

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and Accounting Technician manual for Accounting


Manual.
Similarly questions banks and suggested answers of
past examinations of various level were published. During
the year Revision Test Paper (RTP) of certain subject
were also published.
In order to provide short guidance and technical details
crash courses were conducted on various subjects
for CAP-II and CAP-III level as per need basis of the
students. The Institute has been providing scholarship
to the outstanding and underprivileged students for
pursuing chartered accountancy education. During
the year full and partial scholarship was awarded
to 30 students pursuing different level of chartered
accountancy course.
Students are our assets and future as well. As the
flag bearer of accounting profession in Nepal it is the
responsibility of ICAN to ensure more and more students
study CA courses in Nepal. During the year to raise
awareness about CA education and to enrol as much
as student, the Institute organized career counselling
program on chartered accountancy education in different
part of the country which included college visits, free
seminar, TV and Radio promotional program. The
Institute also participated in career fair in different part
of the country. The program helped students solved their
queries on various aspect of CA course. The participants
showed keen interest on chartered accountancy and
accounting technician course and expressed their
enthusiasm to join the course.
As a part of its commitment to continuous upgrading of
quality, the Institute made GMCS (General Management
and Communication Skill) compulsory for all students
passing the Chartered Accountancy exams on or after
December 2011.
Accordingly, GMCS training was conducted for the first
time by the Institute. Altogether 11 students participated
in the training. I personally congratulate the first batch
GMCS-participants and also thank everyone who made
this program a success.
Similarly, IT training for CAP-II, CAP-III and Accounting
Technician students has been made mandatory. I believe
that such trainings will enhance the skill of our students.
In a bid to provide quality service to our students, the
Institute has introduced an IT System that will enable the
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student to register themselves electronically for the hall


tests and postal test. Now they do not have to visit the
Institute personally. This will save their precious time and
can focus more on their education and training.
Accounting Technician Course
In order to develop the middle level accounting
professional, the Institute has launched the Accounting
Technician Course under the Accounting Technician
Board. Currently 152 students are pursuing this course.
Examination
The number of students appearing in the examination
has risen sharply. A total of 3639 candidates appeared
in different level of CA examination and 131 candidates
appeared for the CA membership examination. There has
been some satisfying result of late as pass percentage
is on increasing trend. During the year out of 325
candidates, 18 students qualified in the CAP-III/Final
level examination. Similarly, 35 candidates passed the
CA membership examination.
To facilitate the students, the examination centres will
be expanded to the branches at Biratnagar, Butwal and
Birgunj and also at upcoming Pokhara branch.
Publications
As a regular process, four issues of the Nepal Chartered
Accountant Journal along with one special issue of SAFA
Conference and four issues of newsletter were published.
Similarly, CAP-I and CAP-II level study materials has
also been published and CAP-III level study material is
in the publishing stage.
Accounting and Auditing Standards
The Institute has pronounced 26 Accounting Standards
and 34 Auditing Standards out which 19 Accounting
Standards are for mandatory compliances. All auditing
standards are for mandatory compliance.
The Accounting and Auditing standards Boards have
closely worked with the Institute in pronouncing
Accounting and Auditing Standards.
My sincere appreciation goes to the chairman and board
members of the Accounting and Auditing Standards for
their effort in formulating the standards.
Human Recourse Development
During the year, staffs were promoted on the basis

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of performance appraisal as per the Nepal Chartered


Accountants Administrative Bye-Laws 2066, Based
on this, two Deputy Director were promoted to Joint
Director. Similarly, two Senior Officer has been promoted
to Assistant Director and two Senior Assistant has been
promoted to Officer. Similarly, one Senior Officer, and
one Senior Assistant resigned from their respective post.
For the human resource development, employees
were given training on accounting package, business
communication, report writing and English proficiency
on need basis.
A one day in-house training was organized for all level of
staff, the training focused on the skill development, time
management and motivational process.
Financial Result Highlights
Financial statement for the year 2068/069 has shown
a decrease in income from education activities by 26%
to Rs. 38.75 million as against Rs. 52.17 million in the
previous year. Likewise, income from membership
increased by 4%. Similarly, income from professional
development activities during the year decreased by
30% and publication activities decreased by 52% as
compared to previous year. Income from examination
activities increased by 34%. The overall core activities
income has decreased by 16%. The office overhead
and employee expenses increased by 22% and 35%
respectively as compared to previous year. Overall the
institutes income for 2068/069 decreased by 13% to
Rs. 78.74 million (last year Rs. 90.85 million).
The retained surplus for the year was Rs. 19.52 million
against Rs. 36 million in previous year.
The size of balance sheet as on this year-end was
Rs. 129.49 million against Rs. 105.51 million in previous
year and net cash outflow for the year was Rs. 34.66
million against Rs. 21.86 million of the previous year.
Way Forward
As we all know accounting profession all around the world
is facing new challenges vis--vis value addition and its
contribution to society and economy. We professional
accountants need to rise above our level to achieve the
competency and show our commitment by adhering to
appropriate practices in order to meet the expectation
of society and country.

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ICAN aspires to stand on equal alongside all other


international accounting bodies and therefore committed
to adopt a robust education and training module as well
as strong working standards and ethics for its members.
With the introduction of uniform global accounting
language such as IFRS has thrown a big challenge to
us to upgrade and keep pace with rapid development in
accounting profession.
I also believe that Government has to accommodate
ICAN and its members at all relevant national policy
making levels so that thoughts and values of ICAN are
represented and skills and knowledge of our members
along with their independence and expertise are used
to the fullest extent for the interest of the nation. I urge
the government to consider this with highest priority and
make us an avid partner in nation building.
Acknowledgement
ICAN has been working hard on enhancing the
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,
Government Officials, Members of the various standing
and non standing committee, Board and various task
forces, Members of the Institute, stakeholders, without
their support and co-operation would not have achieved

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the desired results. We should continue focusing the


development of the profession in more effective manner
and always look for role in contributing the process
of nation building. ICAN as a regulatory body in the
profession of accountancy in Nepal focuses its role in
formulating and implementing financial/corporate laws,
fiscal policies, investment policies, maintaining financial
transparency, etc. I look forward for the support and
contribution from all our members and stakeholders
to make this institute a professional institute of highest
standard.
I cannot conclude without giving thanks to the employees
of the Institute led by CA. Binay Prakash Shrestha,
Executive Director who have put on tiring effort to drive
the institute to this level and look forward to their even
bigger role in the days ahead.

Best Wishes

CA. Madhu Bir Pande


President
30 January 2013

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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 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.

Regulations and Bye- Laws

The activities of the Institute are administered under the Nepal Chartered Accountants Act, 2053 and
Nepal Chartered Accountants Regulation, 2061. In addition the Council has approved various procedures
for conducting its day to day activities:

The Executive Director

An Executive Director appointed by the Council for the term of four year is the Chief Executive Officer of
the Institute and executes the decision of the Council.

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.

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Facts about ICAN

Act
Amendment
Regulation
Amendment
Amendment
Amendment

:
:
:
:
:
:

Nepal Chartered Accountants Act, 1997


Nepal Chartered Accountants Act, First Amendment 2002
Nepal Chartered Accountants Regulation, 2004
Nepal Chartered Accountants Regulation, First Amendment, 2006
Nepal Chartered Accountants Regulation, Second Amendment 2010
Nepal Chartered Accountants Regulation, Third Amendment 2011

Past Presidents
First President
Second president
Third President
Fourth President
Fifth President
Sixth President
Seventh President
Eight President
Ninth President
Tenth President
Eleventh President
Twelfth President
Thirteenth President
Fourteenth President
Fifteenth President

:
:
:
:
:
:
:
:
:
:
:
:
:
:
:

CA. Komal Bahadur Chitracar (1997-1998)


CA. Tirtha Raj Upadhaya (1998-1999)
CA. Kaushalendra Kumar Singh (1999-2000)
CA. Gopal Prasad Rajbahak (2000-2001)
CA. Prabhu Ram Bhandary (2001-2002)
CA. Bijay Kumar Agrawal (2002-2003)
CA. Pradeep Kumar Shrestha (2003-2004)
CA. Puspha Lall Shrestha (2004-2005)
CA. Narayan Bajaj (2005-2006)
Late CA. Binod B. Rajbhandary (2006-2007)
CA. Ratna Raj Bajracharya (2007-2008)
CA. Tanka Prasad Paneru (2008-2009)
CA. Suvod Kumar Karn (2009-2010)
CA. Sunir Kumar Dhungel (2010-2011)
CA. Sudarshan Raj Pandey (2011-2012)

Recognition and Achievement


= First Council formed on August 1, 1997
= ICAN became Member of SAFA in 1998
= ICAN signed MOU with ICAI in May 1998
= ICAN became Member of CAPA in 1999
= ICAN first CA Examination held in November 2000
= ICAN became Associate Member of IFAC in 2003
= ICAN signed supplementary MOU with ICAI in July 2004
= ICAN became Member of IFAC in November 2008
= Total member (July 15, 2012): Chartered Accountants: 596 (FCA-215, CA-381) Registered Auditor: 7279
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International Participation
and Co-operation
73rd SAFA Assembly Meeting - Karachi
Pakistan

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
included CA. Madhu Bir Pande, Vice President, CA.
Suvod Kumar Karn, Past President, Council Members
CA. Mahesh Khanal, RA. Krishna Prasad Poudel, Mr.
Suresh Pradhan and RA. Bhuwan Prasad Acharya. The
delegation also attended the Golden Jubilee Celebration
Program of the Institute of Chartered Accountants of
Pakistan.

18th CAPA Conference and CAPA


Extraordinary General Meeting Brisbane, Australia

Suvod Kumar Karn, Past President, CA. Krishna Prasad


Acharya, Council Member and CA. Binay Prakash
Shrestha, Executive Director.

CAPA Public Sector Financial


Management Committee Meeting
(PSFM) - Dhaka, Bangladesh
CA. Sudarshan Raj Pandey, President and CA. Madhu Bir
Pande, Vice President ICAN attended the first meeting
of Public Sector Financial Management (PSFM) held at
Dhaka, Bangladesh on 24th February, 2012.

IFAC meeting and Seminar, Germany


CA. Sudarshan Raj Pandey- President and CA. Madhu
Bir Pande- Vice President participated in the 34th IFAC
Ordinary Council Meeting and Seminar on Accounting
for Crisis: Public and Private Sector Perspectives held
on 15th to 17th November, 2011 at Berlin, Germany.

SAFA ITAG Committee Meeting held at


Colombo, Sri Lanka

Delegates from ICAN at the 18th CAPA Conference

Delegation led by CA. Madhu Bir Pande, Vice President


ICAN attended the 18 th CAPA Conference and
Extraordinary General Meeting held on 6th to 10 th
September, 2011 at Brisbane, Australia hosted by CPA
Australia and the Institute of Chartered Accountant of
Australia (ICAA). Over 1200 attendees from 30 countries
participated in the conference. Around 80 speakers were
involved across a wide range of plenary and concurrent
session. Mr. Sejeewa Mudalige from ICASL was elected
as a new Deputy President. During the meeting, the
Korean Institute of Certified Public Accountants (KICPA)
was selected to host the 19th Conference at Seoul,
Korea in 2015. Other delegation from ICAN included CA.
Sunir Kumar Dhungel, Immediate Past President, CA.

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The Institute of Chartered Accountants of Nepal

A preview of SAFA ITAG Committee Meeting

The SAFA Committee for Improvement in Transparency,


Accountability and Governance (ITAG) organized
meetings for the marking session and to finalize the
winner of SAFA BPA and CG Awards 2010 on 2 nd
and 3rd November 2011 at Cinnamon Lakeside Hotel,
Colombo, Sri Lanka. The marking session finalized the

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winners under ten different categories. The meeting was


represented by participants from SAFA Member bodies.
The meeting also held a comprehensive discussion
on selection criteria to adjudge the SAFA BPA & CG
winners. CA. Paramananda Adhikari, Technical Director
represented the meeting.

Acc o u n t a n t s

o f

N e p a l

President, CA. Madhu Bir Pande, Vice President, CA.


Suvod Kumar Karn, Past President and CA. Narayan
Bajaj, Past President participated in the meeting.

21st SAFA Board and Committee


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.
Karja Suchana Kendra Ltd. (Credit Information Center
Ltd.) from Nepal was awarded the third position (2nd
Runner Up) in the category of Public Sector Entities for
the first time from Nepal. Apart from this NABIL Bank
Ltd., Standard Chartered Bank Nepal Ltd., NIC Bank
Ltd., Karja Suchana Kendra Ltd and Butwal Power Co.
Ltd. were listed for merit certificates.
During the occasion a SAFA Conference on the
theme Best Practices and Reporting for Sustainable
Development was also organized by the Institute of
Chartered Accountants of Bangladesh on 27th to 30th
November, 2011.
Delegates from SAFA region India, Pakistan, Sri Lanka
along with the representatives from European Union
attended the conference. CA. Sudarshan Raj Pandey,
President, CA. Madhu Bir Pande, Vice President,
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
behalf of ICAN. During the occasion CA. Sudarshan
Raj Pandey shared his experience on perspective of
Nepalese Public Private Partnership (PPP) and also
highlighted IFRS Convergence in Nepalese perspective.

20th SAFA Board and Committee


Meeting - New Delhi, India
The 20th SAFA Board Meeting and various committee
meetings were held in New Delhi, India on March
12th to 14th, 2012 hosted by the Institute of Chartered
Accountants of India (ICAI). During the occasion a
joint meeting was also held between SAFA Board and
Professional Accountant in Business Committee of
IFAC. Delegates from ICAN, CA. Sudarshan Raj Pandey,

Delegates at the 21st SAFA Board Meeting

The 21st SAFA Board and various committee meetings


were held on 2nd to 4th May, 2012 at Dhaka, Bangladesh
hosted by the Institute of Chartered Accountants
of Bangladesh (ICMAB). During the occasion an
International Conference on the theme Enterprise
Governance: Best Practice in SAFA Region was also
organized by ICMAB.
The conference dealt with role of management
accountants and other professionals to improve both
enterprise and economic governance for the sustainable
growth of financial sector as well as stock market .
Delegates from ICAN CA. Madhu Bir Pande, Vice
President, CA. Suvod Kumar Karn, Past President, and
CA. Suresh Devkota, Council Member attended the
meeting.

CAPA Board Meeting and Committee


Meeting - China, Beijing

The CAPA Board Meeting, PSFM Committee and AGM


Meeting hosted by the Chinese Institute of Certified
Public Accountants (CICPA) was held at Beijing,China on
31st May to 2nd June, 2012. CA. Sudarshan Raj Pandey,
President, ICAN participated in the program. The CAPA
PSFM Committee Meeting prefers the accounting body
should work in e-coordination with Civil Administration
and Supreme Audit Institution of their respective
country. The meeting also suggested that CPD/CPE is
the backbone of the capacity building of members and
to take initiation of such program for its members. The
meeting also decided that the next PSFM events and
CAPA PFSM committee meeting will be held in Nepal
on 8th and 9th March, 2013.
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Events and Activities

Newly Elected President and VicePresident Takes Oath of Offices

Newly elected President CA. Sudarshan Raj Pandey taking Oath of Office
from Acting Officiating Auditor General.

On Shrawan 6, 2068, (July 22, 2011) newly elected


President CA. Sudarshan Raj Pandey was administered
oath of Office by the Chief Guest Officiating Auditor General
Mr. Khem Prasad Dahal, as the 15th President of ICAN.
Likewise, newly elected Vice President CA. Madhu Bir
Pande was administered oath of office by newly elected
President CA. Sudarshan Raj Pandey.
Speaking on the occasion the outgoing President CA. Sunir
Kumar Dhungel gave brief outline of the achievements and
initiation taken during his tenure. Newly elected President
CA. Sudarshan Raj Pandey expressed his appreciation
on being elected as the President and seek cooperation
from all concerned for the implementation of plans and
program that will be launched during his tenure.
Similarly, Chief Guest Mr. Khem Prasad Dahal
congratulated the newly elected President and Vice
President and wished them for their successful tenure.
During the ceremony a token of appreciation was
presented to the outgoing President CA. Sunir Kumar
Dhungel by ICAN family. The program concluded with
a vote of thanks from newly elected Vice President CA.
Madhu Bir Pande.

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The Institute of Chartered Accountants of Nepal

National BPA Award-2010

Acting Officiating Auditor General presenting BPA Award to the winning


organization

Amidst a ceremony held on Shrawan 6, 2068 the


National BPA Award 2010 was awarded to organization
for their adequate disclosures in the financial statement.
The criteria for evaluation for the BPA awards is as per
criteria laid down by the SAFA. Chief Guest, Officiating
Auditor General Mr. Khem Prasad Dahal distributed the
award to the winning organizations and certificates to
the participant organizations. The winner of the national
BPA will be nominated for the SAFA BPA Awards - 2010.
Following organizations were awarded the National BPA
awards-2010.
S.N

Sector

Winner

1st Runner up

2nd Runner up

Banking Sector
(Subject to Prudential
Supervision)

Nabil Bank Ltd

Standard
Chartered
Bank Nepal Ltd

Nepal Industrial
and Commercial
Bank Ltd

Non-Banking Sector
(Subject to Prudential
Supervision)

Ace
Development
Bank Ltd

Sanima Bikas
Bank Ltd

Siddartha
Development
Bank Ltd

Manufacturing Sector

Butwal Power
Co. Ltd

Unilever Co.
Ltd

Communication
and Information
Technology Sector

Nepal Telecom
Ltd

Hospitality, Health,
Transport and
Shipping Sector

Oriental Hotels
Ltd

Public Sector Entities

Karja Suchana
Kendra Ltd

Non Banking
Financial Sector
(Subject to Prudential
Supervision)

Prime Life
Insurance
Co. Ltd

Prudential
Insurance
Co. Ltd

Life Insurance
Corporation
(Nepal) Ltd

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15th Anniversary of the Institute

Acc o u n t a n t s

o f

N e p a l

concerned for their endless support and effort to develop


ICAN as a mature and strong institution with in the short
span of time.
On the occasion Chief Guest Honorable State Minister
for Finance Mr. Hari Khewa Limbu felicitated the students
securing highest mark at various levels of chartered
accountancy examination with medals and certificate.
Similarly, staff for their outstanding contribution to the
Institute were awarded with appreciation certificate as
best staff of the year. The program concluded with a vote
of thanks from CA. Madhu Bir Pande, Vice President.

Chief Guest Honorable State Finance Minister inaugurating the program

The Institute celebrated its 15th Anniversary amidst a


function held on Magh 17, 2068. Chief Guest honorable
Mr. Hari Khewa Limbu state minister for finance
inaugurated the function. CA. Sudarshan Raj PandeyPresident in his welcome speech apprised about the
development activities initiated and achieved by ICAN
in the past 15 years. Addressing the gathering, Chief
Guest Honorable State Minister for Finance Mr. Hari
Khewa Limbu applauded the Institute for its endeavor
in developing and regulating the accounting profession
in the country. The Chief Guest also stressed that the
auditors should comply with the code of ethics and
disciplinary mechanism while discharging their duties.
Similarly, Guest of honor Officiating Auditor General,
Mr. Khem Prasad Dahal stressed on the important role
played by accounting professionals in nation building.
Likewise,Guest of honor Deputy Governor of Nepal
Rastra Bank, CA. Maha Prasad Adhikari applauded
the institute for its achievement and thanked all the

Conference on Contemporary Issues


on Banking from the Perspective of
Regulators, Auditors & Bankers

A preview of Banking Conference

On the occasion of the 15th Inception Day of The


Institute of Chartered Accountants of Nepal, the
Institute organized a one day conference on the theme
Contemporary Issues on Banking from the Perspective
of Regulators, Auditors & Bankers on 31st January 2012
(Magh 17, 2068), jointly with Nepal Bankers Association
(NBA).
The Conference focused on the contemporary and
immerging issues on Nepalese Banking sector.
The conference addressed the issues related to
mergers and acquisitions, IFRS requirement, Audit of
Financial Statements of Banks in light with the practice
statement prepared by Auditing Standard Board, Nepal,
Relationship between Banking Supervisors and External
Auditors.

Chief Guest Honorable State Finance Minister awarding to the merit


holder student

Besides this, the attraction of the conference was a


Key Note speech on Corporate Governance in Banking
Sector it was very well delivered by the renowned and
expert person CA. Shailesh Haribhakti (India). Eminent
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The Institute of Chartered Accountants of Nepal

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personalities and experts having vast knowledge of


the subject from Nepal presented and commented
on technical papers namely Merger & Acquisition in
Banking Sector, Obligation of IFRS in Banking Sector,
Audit of Financial Statement of Bank, (Appendix 1-5).
The conference provided the participants with an unique
learning opportunity. CA. Maha Prasad Adhikari, Deputy
Governor of Nepal Rastra Bank, gave away the opening
remarks. The program was divided into 4 technical
sessions. The first technical session on the topic
Relationship between Banking Supervisors & External
Auditors was chaired by CA. Tirtha Raj Upadhyay,
Past President ICAN and presented by CA. Shiva Nath
Pandey, Director Nepal Rastra Bank.
Similarly, CA Prahbu Ram Bhandary, Past President
ICAN chaired the second session and CA. Sudarshan
Raj Pandey, President ICAN presented paper on the
topic Merger & Acquisition in Banking Sector. The
third session on the topic Audit of Financial Statement
of Bank Appendix 1-5 was chaired by Mr Lok
Bahadur Khadka, Executive Director, Bank Supervision
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.

Acc o u n t a n t s

o f

N e p a l

6th Council Election Conducted


Election for the 6th Council was conducted on Jestha
26, 2069 on scheduled time and date. All together 5156
members among them 551 Chartered Accountants and
4605 Registered Auditors exercised their voting right .
10 Chartered Accountants out of 19 candidates and 4
Registered Auditors out of 10 candidates were elected
for the 6th Council.
Name list of the 6th Council Members.
Chartered Accountant

Registered Auditor

1
2

CA. Achyut Raj Joshi


CA. Mahesh Kumar Guragain

1
2

RA. Badri Prasad Bhattarai


RA. Dol Prasad Dahal

CA. Prakash Lamsal

RA. Mohan Kumar Parajuli

4
5
6
7
8
9
10

CA. Jitendra Kumar Mishra


CA. Madhu Bir Pande
CA. Bhaskar Singh Lala
CA. Nirajan Simkhada
CA. Narendra Bhattarai
CA. Suresh Devkota
CA. Tek Nath Acharya

RA. Mohan Kumar Subedi

Government Nominee
1
2
3

Mr. Sukdev Khatry


Mr. Mahesh Prasad Dahal
Mr. Jaya Dev Shrestha

Interaction program on criteria for


Best Presented Accounts (BPA) Awards
An interaction program was organized by ICAN on the
theme Criteria for Best Presented Accounts (BPA)
Award at Hotel Del Annapurna, Kathmandu on Bhadra
5, 2068. CA. Sudarshan Raj Pandey, President of ICAN
gave a key note welcome address.
CA. Sunir Kumar Dhungel, Immediate Past President
presented the working paper regarding the weakness
and the evaluation criteria of BPA awards set by South
Asian Federation of Accountants(SAFA).
Altogether 40 participants from different sectors of
various organizations participated in the programme.

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The Institute of Chartered Accountants of Nepal

Elected members of 6th Council along with ICAN President, Past Presidents
and Election Officer

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17th SAFA Board Meeting

Delegates at the 17th SAFA Board Meeting

The 17 th SAFA Board Meeting was held on 25 th


September 2011 at hotel Radisson, Kathmandu under
the chairmanship of Mr. A.N. Raman, President SAFA.
Delegation from SAFA member bodies attended the
Board Meeting.

the Accountancy groupings of IFAC with their individual


focus in the respective regions they operate. The signing
of MoU will take place coinciding with the joint SAFAEFAA seminar planned on 2nd and 3rd November 2011
at New Delhi, India.

The meeting inter alia decided to endorse the


memorandum of understanding (MoU) between
South Asian Federation of Accountants (SAFA) and
European Federation of Accountants (EFAA), both of

Likewise, as per action plan of Kathmandu Declaration


on the issue of sustainable development in SAARC
region, SAFA proposed an MoU to be signed at the end
of November 2011 at Dhaka, Bangladesh.

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Acc o u n t a n t s

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Seminar, Workshop and Training

Refresher Course on Peer Review System


The Institute of Chartered Accountants of Nepal (ICAN)
organized a one day refresher course on Peer Review
System on Shrawan 4, 2068 in Kathmandu. The course
apprised the member about the peer review system . This
program mainly focused on the procedure of auditing,
planning and documentation. Altogether 33 professional
members from ICAN participated in the program.

Workshop on Issue on Tax

CA. Sudarshan Raj Pandey addressing the participants

Workshop on Issue on tax was jointly organized by the


ICAN and South Asia Enterprise Development Facility
(SEDF) on Bhadra 2068, at Kathmandu. CA. Sudarshan
Raj Pandey, President ICAN, inaugurated the program
with a welcome speech.
The workshop dealt with issues related to tax and was
divided into three technical sessions. The first and

second session dealt with the issue on tax auditing


and current issues on tax which was presented by
CA. Mahesh Khanal.
The program concluded with a vote of thanks from
CA. Madhu Bir Pande, Vice President ICAN.

Interaction program on Accrual


Accounting System
CA. Paramananda Adhikari, Technical Director of the
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.

Workshop on Challenges of Audit


Professions, E-Governance and Tax
Compliance
The Birgunj branch of The Institute of Chartered
Accountants of Nepal, organized a one day workshop
program on challenges of Audit Professions,
E-Governance and Tax Compliance on Kartik 25, 2068.
The workshop dealt with topics on income Tax and VAT,
challenges of Audit Profession, E-Governance and Tax
Compliance. Altogether 15 participants participated in
the programme.

Workshop on Nepal Accounting


Standard

A preview of Workshop on Tax Issue

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The Institute of Chartered Accountants of Nepal

The Institute of Chartered Accountants of Nepal (ICAN)


organized a one day workshop program on Nepal
Accounting Standard on Kartik 26, 2068 at Hotel Del
Annapurna, Kathmandu. CA. Sudarshan Raj Pandey,
President, ICAN welcomed the participants from different
organizations with a welcome speech. The workshop

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N e p a l

CA. Madhu Bir Pande, Vice President attended the


workshop.

IFRS Workshop

A preview of Workshop on Nepal Accounting Standards

dealt with various topics related to Nepal Accounting


Standards. Panel discussion was also conducted with
case studies about the effect after implementing the
IFRS. During the Panel discussion CA. Sudarshan Raj
Pandey, President and CA. Madhu Bir Pande, VicePresident answered queries raised by the participants.

Workshop on Accrual Accounting


Manual and Auditing Guideline

CA Suvod Kumar Karn, Past-President, ICAN delivering the Opening


Remarks

The Biratnagar branch of The Institute of Chartered


Accountants of Nepal (ICAN) organized a day Workshop
on IFRS on Asar 22, 2069 under the chairmanship of
CA. Pawan Kumar Rathi in Biratnagar. RA. Mohan Kumar
Subedi welcomed the participants. RA. Tul Bahadur
Shrestha, Mr Shiva Shankar Agrawal, Acting Chairman
of Industrial Association Morang and Mr. Dirgha Raj
Mainali, Head of Inland Revenue Office presented
paper at the workshop. The program dealt with topics on
Introduction of IFRS and First Time Adoption of IFRS,
General Introduction of IFRS for SMEs and Merger and
Acquisition of Banking Sector in Nepal . Altogether 73
Participants participated in the workshop.

Workshop on Peer Review System


A preview of the Workshop on Accrual Accounting Manual and Auditing
Guideline from ICAN

The Institute of Chartered Accountants of Nepal (ICAN)


organized a one day workshop on Accrual Accounting
Manual and Auditing Guidelines on Mangsir 15, 2068
at ICANs Meeting hall Kathmandu. The workshop
focused mainly on the evaluation of Accrual Accounting
Manual developed by the Ministry of Local Development.
CA. Sudarshan Raj Pandey, President highlighted
the objectives of the workshop. The representatives
appreciated the ICANs effort for the publication
of manual on Auditing of Municipalities and District
Development committee in a book form.
Representative from Ministry of Local Development,
Office of the Auditor General and Stakeholders along
with CA. Sudarshan Raj Pandey, President and

The Institute of Chartered Accountants of Nepal (ICAN)


organized a day workshop on Peer Review System on
Mangsir 1, 2068. The workshop aimed to enhance the
capacity building on Peer Review System. The workshop
dealt with topics related to peer review concept, process
and quality control, audit planning, preparation of audit
program and audit completion procedure.

Conference on Insurance
The Institute of Chartered Accountants of Nepal (ICAN) in
association with Nepal Insurers Association and Beema
Samiti organized a one day conference on Insurance on
Chaitra 24, 2068 at hotel Del Annapurna, Kathmandu.
The conference focused on the contemporary and
emerging issues of the insurance sector. CA. Sudarshan
Raj Pandey, President ICAN inaugurated the program
with a welcome speech. The program was conducted
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Acc o u n t a n t s

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N e p a l

During the year a total of 31 CPE trainings were


conducted. The Institute conducted 10 CPE trainings
out of them 5 trainings in Kathmandu Valley and 5
trainings outside the valley. 21 CPE trainings were out
sourced, out of which 6 trainings were conducted inside
Kathmandu valley and 15 trainings outside Kathmandu
valley. Around 3500 members participated in the training.
A preview of Workshop on Insurance

in four technical sessions. During the Session both life


and non life insurance sector were covered. In the first
session Mr. Santosh Prasain, representative from Beema
Samiti presented paper on Long Form Audit Report
and its Expectation from Regulators Perspectives. The
second and third session dealt with topics on Vulnerable
Area of Insurance Business in Nepal and was presented
by Mr. Restha Jha, CEO, Prime Life Insurance and
Mr. P. R. Mishra, CEO Life Insurance Corporation of
Nepal.
Similarly, from non life insurance sector Mr. Dip Prakash
Pandey, CEO, Shikhar Insurance Co. Ltd and Mr. Pranab
Sen, CEO, National Insurance Co. Ltd presented papers
on Status of Insurance Sector in Nepal (Perspective,
Product etc. on International Experiences). The last
session dealt with topic on Directive of Financial
Statement vis-a-vis NAS and presented by CA. Jagadish
Agrawal.
The program concluded with a panel discussion.
Altogether 65 participants attended the program .

Continuing Professional Education


Training
To enhance the capacity and skill of the members the
Institute has been imparting Continuing Professional
Education CPE training to its members. The Institute
along with the outsourcing units have organized CPE
training in different parts of the country . Various topic
relating to accounting, auditing, taxation and others
topics relating to auditing profession were included in
the training program.

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The Institute of Chartered Accountants of Nepal

Members Capacity Building Training


With a view to impart practical knowledge of accounting
and auditing to the members the Institute organized
a two days members capacity building training in
Butwal on Baishak 22 and 23, 2069. CA. Parakram
Nath Sharma, CA. Rupesh Maheswori and Mr. Binod
Neupane, Joint Director of ICAN were the resource
persons for the training.
Similarly, members capacity building training was also
conducted in Hetauda on Ashad 8 and 9, 2069. CA.
Umesh Prasad Dhakal and Mr. Binod Prasad Neupane,
Joint Director of ICAN were the resource persons of the
training. Similarly, members capacity building training
was organized in Biratnagar on Ashad 23 and 24, 2069.
CA. Mahesh Kumar Guragain (elected CA member for
6th council) and Mr. Binod Neupane, Joint Director were
the resource persons of the training.

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Member Affairs

Upgradation of COP of Registered


Auditor Members

Member Affairs
During the year altogether 60 Chartered Accountants
have been enrolled as chartered accountant members of
the institute. With this addition, the total no of chartered
accountant members as on 15th July, 2012 has reached
596 and the total registered auditor members as on 15th
July, 2012 is 7279.

As per the provision of upgradation as laid down in the


Nepal Chartered Accountants Act, registered auditors
members upgraded from their respective class in the
fiscal year 2011/12 is as follows:
From C to B: 5
From D to C: 37

FCA Conferred

Disciplinary Action Taken

The Institute conferred fellow chartered accountant


(FCA) Member to its 3 chartered accountant members
upon the completion of necessary requirements as per
the Nepal Chartered Accountants Act.

In pursuance of section 14 (5) (c) of the Nepal Chartered


Accountants Act, 1997, the council of the Institute has
debarred the following members from practicing auditing
profession as they were found guilty of professional
misconduct and non compliance with code of ethics.

Certificate of Practice
During the year, the Institute has granted certificate of
practice (COP) to 29 chartered accountant members.
The number of chartered accountant member holding
COP has thus reached 524 as on 15th July, 2012.

1. CA. Janak Kumar Baral, Membership No. 398, COP


No. 366 debarred from Practising for one Year.
2. RA. Rabi Prakash Karki, Membership No. 2864, COP
No. 3060 debarred from Practising for 9 months.

Similarly, the Institute has granted certificate of practice


(COP) to 58 registered auditor members. With this the
number of registered auditor members holding COP
has thus reached 6683 including upgradation as on 15th
July, 2012.

3. Krishna Prasad Poudel, Membership No. 1056, COP


No. 122, debarred from Practising for 3 months.

Data of Members as on Ashadh 31, 2069


Membership
Total

COP

Renewed

Total

Firms
Renewed

Total

FCA

215

199

92.56

FCA

185

103

55.68

CA

381

363

95.28

CA

339

112

33.04

Sub Total

596

562

94.30

Sub Total

524

215

41.03

RA-B

3366

2211

65.69

RA-B

3114

1682

RA-C

1608

961

59.76

RA-C

1468

RA-D

2305

1497

64.95

RA-D

Sub Total

7279

4669

64.14

Grand Total

7875

5231

66.43

Renewed

FCA/CA

429

195

45.45

54.01

RA-B

883

678

76.67

778

52.99

RA-C

309

201

65.05

2101

1324

63.02

RA-D

207

154

74.40

Sub Total

6683

3784

56.62

Sub Total

1399

1033

73.84

Grand Total

7207

3999

55.49

Grand Total

1828

1228

67.18

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Acc o u n t a n t s

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Member & Renewal Status (2068/69)

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:

CA Membership Examination held in November


2011
Total Applicants : 46
Total Appeared Candidates : 43
Qualified : 17

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The Institute of Chartered Accountants of Nepal

CA Membership Examination held in May 2012


Total Applicants : 90
Total Appeared Candidates : 88
Qualified : 18

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Student Affairs

Students Enrolment
Overwhelmed response has been received from students
interested in pursuing chartered accountancy education.
During the year altogether 1244 students have enrolled
for different level of chartered accountancy course and
23 students have enrolled for the accounting technician
course. This development is a trust and confidence
bestowed in accountancy profession by young talents.
The status of students enrolment for various levels
of chartered accountancy course and accounting
technician course during the year is as follows:

Course
CAP I
CAP II
CAP III
AT

No of Students
569
567
108
23

Scholarship Distribution

A program was organized to announce the partial and full


scholarship to the CA students studying at different levels
of chartered accountancy course. Altogether 30 students
studying at different levels of chartered accountancy
course received the scholarship. CA. Sudarshan Raj
Pandey, President ICAN, distributed the scholarship
amount to the deserving students.

Revision in syllabus of CAP I


With a view to make the chartered accountancy syllabus
in compatible with other professional institutes, the CAP-I
syllabus has been revised with effective from 1st June,
2012. Accordingly, the revised syllabus of CAP-I level
is of 300 marks .
Paper
Paper -1
Paper-2

Paper-3

Subject

Weight

Fundamentals of Accounting

100

Part A: Mercantile Law

50

Part B: Fundamentals of Economics

50

Part A: Fundamentals of
Management

50

Part B: Commercial mathematics


and Statistics

50

Total Weight

Total
weight
100
100

100
300

300

Further, the duration of CAP-I level has been reduced


to 8 months from the existing 12 months as amended
in the Nepal Chartered Accountants Regulation (third
amendment) 2004. This is indeed a major change at
the entry level in our professional education system,
examination and duration of the course.

CA. Sudarshan Raj Pandey, President distributing scholarship to the


student

The Institute in its endeavour to provide CA education to


the underprivileged and needy students and academic
excellence has been providing partial and full scholarship
every year to student pursuing chartered accountancy
course. The scholarship amount has been provided
to the students on the basis of need cum merit basis
selected by the scholarship selection committee.

Career Counselling Programme


With a view to raise awareness about chartered
accountancy education, the Institute organized career
counselling program on char tered accountancy
education which included college visit, free seminars,
participation in career fair and so on in different part of the
country. The program highlighted a detailed deliberation
on the eligibility criteria for enrolment in CA and AT
course, future prospects, international recognition, and
membership criteria of the institute. This kind of program
Annual Report 2011 - 12
The Institute of Chartered Accountants of Nepal

27

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helped students to solve their queries on various aspect


of CA course. The participants showed keen interest on
CA and AT education and expressed their enthusiasm
to join CA and AT course.

Crash course
The Institute in its endeavour to provide quality education
to the students, conducted crash course on various
subjects based on the specific need of the students. The
course aimed at providing technical details and guidance
with a special focus on clarifying the students queries
on the course matters. The subject covered accounting,
auditing, law, finance, cost account and tax. A total of
45 students attended the course.

General Management and


Communication Skill (GMCS) Training

Acc o u n t a n t s

o f

N e p a l

Study Material Published


The Institute has published the study material of CAP-II
and CAP-III level. The study materials are distributed
free of cost to the students registered and are also
available on sale at the Institute.

CHARTERED ACCOUNTANCY
EXAMINATION:
The Chartered Accountancy Examinations of December
2011 and June 2012 have been conducted successfully.
In December 2011 CA examination, altogether
774 students of CAP-I/Foundation, 927 students of
CAP-II/ Intermediate and 137 students of CAP-III/
Final level students appeared for the examination.
Similarly, in June 2012 CA examination, altogether 683
students of CAP-I and Foundation, 930 students of
CAP-II/Intermediate and 188 students of CAP-III/Final
level students appeared for the examination.
Altogether 285 students of CAP-I/Foundation, 51
students of CAP-II/Intermediate and 7 students of
CAP-III/Final level students qualified in December 2011
CA examination. Similarly, altogether 347 students of
CAP-I/Foundation, 96 students of CAP-II/Intermediate
and 11 students of CAP-III/Final level students qualified
in June 2012 CA examination.

Participants of GMCS Training with ICAN Officials

As a part of the Chartered Accountancy Course


the Institute conducted General Management and
communication Skill (GMCS) Training to the students
who have successfully completed their Chartered
Accountancy (CAP-III/Final) examination of ICAN
and those who have attempted both groups of CAPIII/Final examination. This training has been made
mandatory from December 2011. Altogether 11 students
participated in the training. The training was conducted
for 15 days from 25th March to 10th April 2012.

28

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The details of the result of the chartered Accountancy Examinations are as Follows:

Details of the Result of December 2011:

Foundation

Group
I

Group
II

Applicants

Appeared
Passed

Intermediate
Both

Group
I

Group
II

Qualified

Final
Both

Group
I

Group
II

10

23

CAP I
Both

Group
I

Group
II

14

72

21

11

CAP II
Both

Group
I

Group
II

77

663

144

64

73

629

61

107

223

CAP III
Both

Group
I

Group
II

Both

203

633

21

25

56

122

171

613

20

23

55

60

35

19

21

285

49

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.

Details of the Result of June 2012:

Foundation

Group
I

Group
II

Applicants

Intermediate
Both

Group
I

Group
II

Final
Both

Group
I

Group
II

20

CAP I
Both

Group
I

Group
II

13

107

CAP II
Both

Group
I

Group
II

65

552

193

CAP III
Both

Group
I

Group
II

Both

203

583

44

41

71

Appeared

19

12

97

60

521

166

183

574

43

38

70

Passed

108

139

243

93

65

33

17

Qualified

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.

Recipients of Awards for the CA Examination, December 2011


S.No

Medal fund

Regd.No

Name of recipients

1.

K.B. Chitracar Gold Medal

Standing Rank First in CAP-III (CA Final level) examination

FN 00257

Ms. Anjana Pokharel

2.

Shiva Man Singh & Chandra


Bhandari Silver Medal

Standing Rank Second in CAP-III ( CA Final Level ) examination

FN00242

Mr. Prem Bahadur Singh

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)


examination

KI 2057

Ms. Nabina Thapa

5.

Prakash Jung Thapa Gold Medal

Securing Highest marks in Advanced Financial Reporting


(Advanced Accounting ) in CAP-III(CA Final level ) examination

FN 00249

Mr. Lekha Nath Pokhrel

6.

Dr. Govind Ram Agrawal Gold


Medal

Securing Highest marks in Strategic Management and


Decision Making Analysis in CAP-III(Final Level) examination

FN 00257

Ms. Anjana Pokharel

Ms. Sarita Duwal (Regd.No.KF 005199) Scoring 433 marks stood First Rank in CAP-I (Foundation Level) Examination in December 2011.

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Recipients of Awards for the CA Examination, June 2012


S.No

Regd.No

Name of recipients

1.

Medal fund
K.B. Chitracar Gold Medal

Standing Rank First in CAP-III( Final Level) examination

FN 00210

Mr. Saurav Rajbhandari

2.

Shiva Man Singh & Chandra


Bhandari Silver Medal

Standing Rank Second in CAP-III ( CA Final Level ) examination

FN00296

Mr. Sajan Dhakal

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


Accounting) in CAP-III (Final Level) examination

FN 00210

Mr. Saurav Rajbhandari

6.

Dr. Govind Ram Agrawal Gold


Medal

Securing Highest marks in Strategic Management and Decision


Making Analysis in CAP-III (Final Level) examination

FN 00296

Mr. Sajan Dhakal

Ms. Aarati Parajuli (Regd No.KF 005834) Scoring 444 marks stood First Rank in CAP-I (Foundation Level) Examination in

30

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Staff Affairs

Staff Promotion
As per the staff administrative bye laws, 2066, following
staff has been promoted during the year.
Ms. Goma Raut and Mr. Shyam Mani Dahal has been
promoted to Joint Director. Similarly, Mrs. Samjhana
U Tuladhar and Mr. Mahesh Chitrakar has been
promoted to Assistant Director and Mr. Madhav Narayan
Kachhyapati and Mrs. Sita Adhikari has been promoted
to Officer.

Staff Resignation

Staff Felicitation
On the occasion of the 15th Anniversary of the Institute,
Chief Guest Honorable state Minister of Finance Hari
Khewa Limbu felicitated with appreciation certificates
and cash amount to Mr. Bhakta Bahadur Karki, Senior
assistant and Mr. Khor Nath Lamichhane, Junior
Assistant as best staff of the year for their outstanding
Contribution to the Institute.

Blood Donation Program and other


activities

During the year following staff have resigned from their


respective posts .
1. Mr Om Prakash Bhattarai- Senior Assistant
2. Mr. Chudamani Acharya- Senior Officer

In house training for ICAN Staffs

A preview of blood donation program

A preview of in-house Training

The Institute organized a two days management


development training for its staff members on 29th and
30th June, 2012 at Nagarkot, Bhaktapur. The aim of the
training was to empower the management capacity of
staff members of ICAN. Mr. Ram Bhakta Shrestha and
Mr. Binod Bista from Staff College were the resource
persons. Altogether 23 staff members were present
during the training.

Nepal Chartered Accountants Employees Union (NEON)


and Nepal Chartered Accountant student Association
(NCASA) jointly organized a blood donation program
on Magh 9, 2068 on the occasion of 15th anniversary of
the Institute. The donation program started with blood
donation by CA. Sudarshan Raj Pandey, President
and CA. Madhu Bir Pande, Vice President. During the
program 99 donors donated blood. Nepal Red Cross
facilitate the program.
Similarly, Nepal Chartered Accountants Employee Union
in association with the institute organized various indoor
games like Chess Tournament, Quiz Contest, etc.

Annual Report 2011 - 12


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C h a rt e r e d

Acc o u n t a n t s

o f

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Staff members of ICAN

T h e

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C h a rt e r e d

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o f

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Acc o u n t a n t s

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o f

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C h a rt e r e d

Acc o u n t a n t s

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T h e

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C h a rt e r e d

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o f

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Acc o u n t a n t s

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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 committees /board and members for 2011-2012 are as follows:

Standing Committees
4. Examination Committee

1. Executive Committee
S.N

Name

Position

S.N

Name

Position

CA. Sudarshan Raj Pandey

President

CA. Sudarshan Raj Pandey

Chairman

CA. Madhu Bir Pande

Vice President

CA. Madhu Bir Pande

Chairman

CA. Narendra Bhattarai

Member

CA. Sujan Kumar Kafle

Member

RA. Krishna Prasad Paudel

Member

RA. Bhuwan Prasad Acharya

Member

Member Secretary

Mr. Suresh Pradhan

Member

CA. Prabin Dhoj Joshi

Member

CA. Bhaskar Singh Lala

Member

Mr. Shyam Mani Dahal

Secretary

CA. Binay Prakash Shrestha

2. Professional Development Committee


S.N

Name

Position

CA. Sudarshan Raj Pandey

Chairman

CA. Madhu Bir Pande

Vice Chairman

CA. Krishna Prasad Acharya

Member

RA. Laxman Prasad Khanal

Member

Mr. Dev Bahadur Bohora

Member

CA. Jagadish Agrawal

Member

RA. Badri Prasad Bhattarai

Member

Mr. Binod Prasad Neupane

Secretary

3. Disciplinary Committee

Non Standing Committees


1. Editorial Committee
S.N

Name

Position

CA. Sudarshan Raj Pandey

Chairman

S.N

Name

Position

CA. Madhu Bir Pande

Member

CA. Mahesh Khanal

Chairman

CA. Jaganath Upadhyay

Member

CA. Gopal Prasad Pokharel

Member

CA. Ashish Garg

Member

CA. Suresh Devkota

Member

CA. Bishnu Prasad Bhandari

Member

RA. Mohan Raj Regmi

Member

CA.Mukunda Subedi

Member

CA. Kumud Tripathy

Member

CA. Sewa Pathak

Member

RA. Dol Prasad Dahal

Member

CA. Suresh Khakurel

Member

Mr. Gunraj Shrestha

Member

RA. Dhruba Prasad Poudel

Member

Ms. Goma Raut

Secretary

10

Mr. Binod Prasad Neupane

Secretary

Annual Report 2011 - 12


The Institute of Chartered Accountants of Nepal

45

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o f

2. Education Committee
S.N

Name

Position

CA. Narendra Bhattarai

Chairman

CA. Suresh Devkota

Member

RA. Krishna Prasad Paudel

Member

CA. Dr. Govind Ram Agrawal

Member

CA. Parakram Nath Sharma

Member

CA. Hari Silwal

Member

CA. Achyut Raj Joshi

Member

CA. Dhiraj Shrestha

Member

RA. Prem Bahadur Shrestha

Member

10

CA. Paramananda Adhikari

Secretary

3. Ethics Committee
S.N

Name

Position

CA. Kaushalendra Kumar Singh

Chairman

CA. Krishna Prasad Acharya

Member

RA. Bhuwan Prasad Acharya

Member

CA. Sushant Shrestha

Member

CA. Prakriti Tuladhar

Member

RA. Tara Prasad Ghimire

Member

RA. Nava Raj Sapkota

Member

Ms. Goma Raut

Secretary

4. CPE Committee
S.N

Name

Position

CA. Suvod Kumar Karn

Chairman

CA. Gopal Prasad Pokharel

Member

CA. Sudhir Sharma

Member

CA. Shyam Kumar Mahato

Member

CA, Bhava Nath Dahal

Member

CA. Peeyush Anand

Member

CA. Umesh Paneru

Member

CA. Nalini Bajracharya

Member

RA. Mira Shrestha

Member

10

RA. Tul Bahadur Shrestha

Member

11

Mr. Binod Prasad Neupane

Secretary

5. IFRS Implementation Committee

46

S.N

Name

Position

CA. Sudarshan Raj Pandey

Chairman

CA. Madhu Bir Pande

Member

Mr. Dev Bahadur Bohara

Member

CA. Anup Kumar Shrestha

Member

Annual Report 2011 - 12


The Institute of Chartered Accountants of Nepal

C h a rt e r e d

Acc o u n t a n t s

o f

N e p a l

CA. Rajesh Poudel

Member

CA. Surya Bhakt Pokharel

Member

CA. Roshan Shakya

Member

MOF

Member

Hom Prasad Luitel

Member

10

Hari Sharan K.C

Member

11

SEBON

Member

12

Prakash Khanal

Member

13

RA. Kedar Nath Poudel

Member

14

CA. Paramananda Adhikari

Secretary

6.

Audit Committee

S.N

Name

Position

CA. Narendra Bhattarai

Chairman

RA. Laxman Prasad Khanal

Member

Mr. Suresh Pradhan

Member

Ms. Goma Raut

Secretary

7. Scholarship Selection Committee


S.N

Name

Position

CA. Sudarshan Raj Pandey

Chairman

CA. Madhu Bir Pande

Member

CA. Narendra Bhattarai

Member

CA. Dr. Govind Ram Agrawal

Member

CA. Bhuban Kandel

Member

CA. Chhetra Gopal Pradhan

Member

Mr. Yadav Prasad Neupane

Member

CA. Paramananda Adhikari

Secretary

8.

Law Reform Committee

S.N

Name

Position

CA. Madhu Bir Pande

Chairman

CA. Kabi Raj Adhikari

Member

CA. Bhoj Raj Pandey

Member

CA. Bikram Khadka

Member

RA. Dinkar Man Singh Pradhan

Member

RA. Murari Bhattarai

Member

CA. Pushpendra Singh

Secretary

9. Expert Advisory Committee


S.N

Name

Position

CA. Madhu Bir Pande

Chairman

CA. Suresh Pradhan

Member

CA. Bijay Raj Ghimire

Member

CA. Shiva Nath Pandey

Member

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CA. Gopal Kumar Agrawal

Member

14. Building Committee

RA. Dharanidhar Adhikari

Member

S.N

Name

Position

RA. Parbat Acharya

Member

CA. Suvod Kumar Karn

Chairman

CA. Binay Prakash Shrestha

Secretary

CA. Mahesh Khanal

Member

10. Information Technology Committee

RA. Mohan Raj Regmi

Member

Mr. Dev Bahadur Bohara

Member

S.N

Name

Position

CA. Subash Kumar Jhunjhunwala

Member

CA. Madhu Bir Pande

Chairman

CA. Umesh Dhakal

Member

CA. Pramod Nath Pyakurel

Member

RA. Dilip Dhungana

Member

CA. Narayan Krishna Joshi

Member

RA. Ganesh Raj Rai

Member

CA. Mukunda Pokharel

Member

RA. Rajendra Shrestha

Member

RA. Mohan Dhakal

Member

10

CA. Binay Prakash Shrestha

Secretary

CA. Pushpendra Singh

Secretary

11. Small and Medium Practice (SMP)


Committee
S.N

Name

15. Accounting Technician Board

Position

S.N

Name

Position

CA. Suvod Kumar Karn

Chairman

CA. Sunir Kumar Dhungel

Chairman

CA. Sujan Kumar Kafle

Member

CA. Mahesh Khanal

Member

CA. Gyanendra Bahadur Bhari

Member

CA. Pramod Kumar Swarnakar

Member

Mr. Suresh Pradhan

Member

CA. Prakash Lamsal

Member

CA. Navaraj Thapaliya

Member

RA. Tanka Prasad Pandey

Member

Mr. Ram Chandra Poudel, (R.C Bimal)

Member

CA. Paramananda Adhikari

Secretary

RA. Ram Prasad Bidari

Member

RA. Rajan Regmi

Member

CA. Binay Prakash Shrestha

Secretary

16. Peer Review Board

12. Monitoring Committee

S.N

Name

Position

S.N

Name

Position

CA. Pushpa Lall Shrestha

Chairman

CA. Narayan Bajaj

Chairman

CA. Satish Chandra Lal

Member

CA. Jagadish Bhattarai

Member

CA. Sashi Satyal

Member

CA. Mahesh Kumar Guragain

Member

CA. Jeeban Prasad Paudel

Member

CA. Ranjit Kumar Yadav

Member

RA. Kamal Kharel

Member

CA. Binay Prakash Shrestha

Secretary

CA. Biswo Raj Basaula

Member

CA. Sudhir Mool

Member

RA. Mohan Kumar Parajuli

Member

Mr. Binod Prasad Neupane

Secretary

13. Recruitment Committee


S.N

Name

Position

CA. Madhu Bir Pande

Chairman

CA. Suresh Devkota

Member

RA. Mohan Raj Regmi

Member

CA. Binay Prakash Shrestha

Secretary

Annual Report 2011 - 12


The Institute of Chartered Accountants of Nepal

47

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Annual Report 2011 - 12


The Institute of Chartered Accountants of Nepal

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48

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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

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

Accounting and Auditing Standards


The Institute has pronounced the following Accounting/Auditing Standards for mandatory/voluntary compliances
with effective from the date as mentioned below.

1. Nepal Accounting Standards (NASs)


As per the decision of the Council, the following Nepal Accounting Standards have been made Mandatory for
Compliances.
S.No. NASs IASs

Effective Date
(Original)

Name
Framework for the Preparation and Presentation of Financial Statements

Revised Date

Presentation of Financial Statements

1 Shrawan 2061
(16 July 2004)

1 Shrawan 2065
(16 July 2008)

Accounting Policies, Changes Accounting Estimates & Errors

1 Shrawan 2061
(16 July 2004)

1 Shrawan 2065
(16 July 2008)

Cash Flow Statements

1 Shrawan 2061
(16 July 2004)

1 Shrawan 2065
(16 July 2008)

Inventories

1 Shrawan 2061
(16 July 2004)

1 Shrawan 2065
(16 July 2008)

10

Events After the Balance Sheet Date

1 Shrawan 2061
(16 July 2004)

1 Shrawan 2065
(16 July 2008)

16

Property, Plant and Equipment

1 Shrawan 2061
(16 July 2004)

1 Shrawan 2065
(16 July 2008)

18

Revenue

1 Shrawan 2062
(16 July 2005)

1 Shrawan 2065
(16 July 2008)

23

Borrowing Costs

1 Shrawan 2062
(16 July 2005)

1 Shrawan 2065
(16 July 2008)

12

Income Taxes

1 Shrawan 2064
(16 July 2007)

10

10

20

Accounting for Government Grants and Disclosure of Government


Assistance

1 Shrawan 2063
(16 July 2006)

1 Shrawan 2065
(16 July 2008)

11

11

21

The Effects of Changes in Foreign Exchange Rates

1 Shrawan 2063
(16 July 2006)

1 Shrawan 2065
(16 July 2008)

12

12

37

Provisions, Contingent Liabilities and Contingent Assets

1 Shrawan 2063
(16 July 2006)

1 Shrawan 2065
(16 July 2008)

13

13

11

Construction Contract

1 Shrawan 2063
(16 July 2006)

1 Shrawan 2065
(16 July 2008)

14

15

17

Leases

1 Shrawan 2064
(17 July 2007)

1 Shrawan 2065
(16 July 2008)

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The Institute of Chartered Accountants of Nepal

49

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

15

16

24

Related Party Disclosures

1 Shrawan 2064
(17 July 2007)

1 Shrawan 2065
(16 July 2008)

16

17

34

Interim Financial Reporting

1 Shrawan 2064
(17 July 2007)

1 Shrawan 2065
(16 July 2008)

17

18

36

Impairment of Assets

1 Shrawan 2064
(17 July 2007)

6 Shrawan 2064
(22 July 2007)

18

19

40

Investment Property

1 Shrawan 2064
(17 July 2007)

6 Shrawan 2064
(22 July 2007)

19

20

1 Shrawan 2064
(17 July 2007)

6 Shrawan 2064
(22 July 2007)

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

The following Nepal Accounting Standards are for voluntary compliances:


S.No. NASs IASs

Effective Date
(Original)

Name

Effective Date

1 Shrawan 2064
(17 July 2007)

6 Shrawan 2064
(22 July 2007)

1 Shrawan 2064
(17 July 2007)

6 Shrawan 2064
(22 July 2007)

Segment Reporting

1 Shrawan 2064
(17 July 2007)

6 Shrawan 2064
(22 July 2007)

26

Accounting and Reporting by Retirement Benefit Plans

24 Magh, 2064
(7February 2008)

24 Magh, 2064
(7February 2008)

25

28

Investment in Associates

1 Shrawan 2064
(17 July 2007)

6 Shrawan 2064
(22 July 2007)

26

33

Earning per Share

1 Shrawan 2064
(17 July 2007)

6 Shrawan 2064
(22 July 2007)

27

38

Intangible Assets

1 Shrawan 2064
(17 July 2007)

6 Shrawan 2064
(22 July 2007)

14

19

21

23

14

24

Employee Benefits

IFRS
Business Combinations
3

2. Nepal Standards on Auditing (NSAs)


Nepal Standards on Auditing (NSAs) for Mandatory Compliances:

Standards on Quality Control.


S. No.

50

Existing
NSAs

NSAs Revised
Serial
Number

Effective Date
(Original)

Name

Revised Date

01

NSQC 1

Nepal Standards on Quality Control (NSQC)1: Quality control


for firm's that perform audits and review of historical Financial
Information and other. Assurance and related Service
Engagement

02

Preface to the Nepal Standards on Quality Control, Auditing,


Review, and other Assurance and related Service.

1 Shrawan 2065
(16 July 2008)

03

Nepal Framework for Assurance Engagements

1 Shrawan 2062
(16 July 2005)

1 Shrawan 2065
(16 July 2008)

Annual Report 2011 - 12


The Institute of Chartered Accountants of Nepal

1 Shrawan 2065
(16 July 2008)

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

04

01

200

Objectives and General Principles Governing an Audit of Financial 1 Shrawan 2060


Statements
(17 July 2003)

1 Shrawan 2065
(16 July 2008)

05

02

210

Terms of Audit Engagements

1 Shrawan 2060
(17 July 2003)

1 Shrawan 2065
(16 July 2008)

06

03

230

Audit Documentation

1 Magh 2060
1 Shrawan 2065
(15 January 2004) (16 July 2008)

07

04

500

Audit Evidence

1 Magh 2060

(15 January 2004)

08

05

240

The Auditor's Responsibility to Consider Fraud and Error in an


Audit of Financial Statements

1 Shrawan 2061
(16 July 2004)

1 Shrawan 2065
(16 July 2008)

09

06

320

Audit Materiality

1 Shrawan 2061
(16 July 2004)

1 Shrawan 2065
(16 July 2008)

10

07

300

Planning an Audit of Financial Statements

1 Shrawan 2061
(16 July 2004)

1 Shrawan 2065
(16 July 2008)

11

08

700

The Independent Auditors Report on a Complete Set of General


Purpose Financial Statement

1 Shrawan 2061
(16 July 2004)

12

09

530

Audit Sampling and other Selective Testing Procedures

1 Shrawan 2061
(16 July 2004)

13

10

570

Going Concern

1 Shrawan 2061
(16 July 2004)

14

11

580

Management Representation

1 Shrawan 2061
(16 July 2004)

15

13

260

Communication of Audit Matters with Those Charged with


Governance

1 Magh 2061(14
January 2005)

1 Shrawan 2065
(16 July 2008)

16

15

250

Consideration of Laws and Regulations in an Audit of Financial


Statements

1 Magh 2061(14
January 2005)

1 Shrawan 2065
(16 July 2008)

17

16

560

Subsequent Events

1 Magh 2061(14
January 2005)

18

17

505

External Confirmations

1 Magh 2061(14
January 2005)

19

18

600

Using the work of Another Auditor

1 Magh 2061(14
January 2005)

20

19

610

Considering the Work of Internal Auditor

1 Magh 2061(14
January 2005)

21

20

620

Using the Work of an Expert

1 Magh 2061(14
January 2005)

22

21

510

Initial Engagements- Opening Balances

1 Magh 2061(14
January 2005)

23

22

720

Other Information in Documents Containing Audited Financial


Statements

1 Magh 2061(14
January 2005)

24

23

540

Audit of Accounting Estimates

1 Shrawan 2062
(16 July 2005

25

24

710

Comparatives

1 Shrawan 2062
(16 July 2005

26

25

550

Related Parties

1 Shrawan 2062
(16 July 2005

27

26

800

The Auditor's Report on Special Purpose Audit Engagements

1 Shrawan 2062
(16 July 2005

28

220

Quality Control for Audit of Historical Financial Information

1 Magh 2067 (15


January 2011)

Annual Report 2011 - 12


The Institute of Chartered Accountants of Nepal

51

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

29

315

Understanding the entity and its Environment and Assessing the


Risks or Material Misstatement

1 Magh 2067 (15


January 2011)

30

330

The Auditor's Procedures in Response to Assessed Risks

1 Magh 2067 (15


January 2011)

31

520

Analytical Procedures

1 Magh 2067 (15


January 2011)

32

701

Modifications to the Independent Auditor's Report

1 Magh 2067 (15


January 2011)

Nepal Standards on Related Services (NSREs):


S.
No.

Existing
NSAs

Revised Serial
Number

01

27

4400

Engagements to perform Agreed upon Procedures


Regarding Financial Information

1 Shrawan 2062
(16 July 2005

02

28

2400

Engagements to Review Financial Statements

1 Shrawan 2062
(16 July 2005

03

29

4410

Engagements to Compile Financial Information

1 Shrawan 2062
(16 July 2005)

Name

Effective Date

Guidance Notes:

52

S.
No.

G.N.

01

201

Guidance Notes on independence of auditors

02

202

Guidance Notes on preparation of financial statements on letter heads and stationery of auditors

Name

Annual Report 2011 - 12


The Institute of Chartered Accountants of Nepal

Effective From