The classification of accounting standards involves categorizing these standards based on different criteria such as the scope of application, the nature of financial transactions, or the types of entities.
Here are common classifications of accounting standards:
- Nepal Accounting Standards (NASs)
- International Accounting Standards (IASs)
- Nepal Financial Reporting Standards (NFRSs)
- International Financial reporting Standards (IFRSs)
Nepal Accounting Standards (NASs):
Nepal Accounting Standards (NASs) are specific accounting standards developed by the regulatory authorities in Nepal.
• They are designed to provide a framework for the preparation and presentation of financial statements by entities operating in Nepal.
• NASs incorporate local considerations and modifications, aligning with the country’s legal and economic environment.
• These standards are meant to ensure consistency and transparency in financial reporting within the Nepalese context.
International Accounting Standards (IASs):
International Accounting Standards (IASs) were a set of accounting standards developed by the International Accounting Standards Committee (IASC).
• The IASC was the predecessor to the International Accounting Standards Board (IASB).
• IASs were issued before the adoption of the IFRS and served as the foundation for the development of the International Financial Reporting Standards (IFRS). Over time, many IASs have been superseded by corresponding IFRS.
Nepal Financial Reporting Standards (NFRSs):
Nepal Financial Reporting Standards (NFRSs) represent the adoption and implementation of International Financial Reporting Standards (IFRS) in Nepal.
• NFRSs align with IFRS but may include specific modifications or adaptations to suit the Nepalese regulatory and business environment.
• NFRSs aim to bring uniformity and international comparability to financial reporting in Nepal, providing a common set of guidelines for entities to follow.
International Financial reporting Standards (IFRSs):
International Financial Reporting Standards (IFRSs) are a set of global accounting standards developed and maintained by the International Accounting Standards Board (IASB).
• IFRSs provide a common language for financial reporting that is intended to be consistent, transparent, and comparable across different jurisdictions.
• These standards are widely adopted in many countries around the world, contributing to the global harmonization of financial reporting practices.
