Accounting, Recording and Reporting Sundar Shrestha Gobinda Bhandari Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

Accounting, Recording and Reporting Session Outline Concept Branches of Accounting Importance of Accounting Accounting Information System Accounting Practices in the World and in the context of Nepal NPSAS SUTRA Reporting Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

Accounting, Recording and Reporting Accounting is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It discloses profit or loss/surplus or deficit for a given period, and value and nature of a firm’s assets, liabilities and owner’s equity. n]vf eGgfn] sf/f]jf/ ePsf] Joxf]/f b]lvg] u/L k|rlnt sfg"g adf]lhd /flvg] clen]v, vftf, lstfa cflb / sf/f]jf/nfO{ k|dfl0ft ug]{ cGo sfuhft ;d]tnfO{ hgfpF5 . -n]vfk/LIf0f P]g @)$*, sf] bkmf @_ cfly{s sf/f]jf/ tyf cfly{s 36gfsf] clen]v /fVg' dfq n]vfsf] p4]Zo xf]O{g sL Joj;;fox?sf] cfly{s cj:yfsf] ;;DjlGwt lgsfox?nfO{ /fd|/L hfgsf/L lbg'klg]{ xf]. Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

Branches of Accounting Financial Accounting: Financial Accounting involves recording and classifying any transactions, and preparing and presenting financial statements to be used by internal and external users, the management. Management Accounting: Managerial or management accounting focuses on providing information for use by internal users, the management. This branch deals with the needs of the management rather than strict compliance with the generally accepted accounting principles. Cost Accounting: Sometimes considered accountings a subset of Management accounting, cost accounting refers to the recording, and analysis of cost. Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

Importance of Accounting ( n]vfs]f dxTj _ Institutional Memory Documentation Evidence Transparent Risk Management Financial Position and Performance Financial Discipline Financial Accountability Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

Accounting Information System Accounting Information System Input -- Process -- Output Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

n]vfs]f l;4fGt Joj;flos cl:tTjsf] l;4fGt (Business Entity Concept) Df}lb|s dfkb08sf] l;4fGt (Money Measurement Concept) g/Gt/tfsf] l;4fGt (Going Concern Concept) k/n d'Nosf l;4fGt (Cost Concept) cfly{s jif{sf] l;4fGt (Accounting Period Concept) K|ffKtLsf] l;4fGt (Realization Concept) lx;fj ldnfgsf] l;4fGt (Matching Concept) bf]xf]/f] n]vfsf] l;4fGt (Double Entry System) Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

Basis of accounting (n]vf k|0ffnL_ Cash Basis Accounting gub n]vf k|0ffnLM Under the cash basis accounting, revenues and expenses are recognized as follows: Revenue : Revenue is recognized when cash is received. Expense : Expense is recognized when cash is paid. ;+:yfn] u/]sf] s'n sf/f]jf/ dWo] gub k|fKt ePsf cfDbfgL tyf gub e"QmfgL ePsf vr{ dfq n]vf+sg ul/g] tyf pwf/f] sf/f]jf/nfO{ cfDbfgL tyf vr{ n]vf+sg gul/g] k4tLnfO{ gub n]vf k|0ffnL elgG5 . o;n] ljlQo ;+:yfsf] cfly{s cj:yfnfO{ lrq0f ub{5 Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

Accrual Basis ( k|f]befjL n]vfk|0ffnL _ Accrual method recognizes income when it is earned and expenses when they are incurred    Accrued Revenue: Revenue is recognized before cash is received Accrued Expense: Expense is recognized before cash is paid. ;+:yfn] u/]sf cfDbfgL P+j vr{df k|fKtL jf e"QmfgL ePsf] /sdsf] cltl/Qm k|fKtL jf e"QmfgL x'g jfsL /sd ;d]tsf] cfDbfgL tyf vr{ n]vf+sg ul/g] k4tLnfO{ k|f]befjL n]vf k|0ffnL elgG5 . s'g}klg ;+:yfsf] n]vf /fVg'sf] p2]Zo ;f] ;+:yfsf] / ljQLo l:ylt (Financial Position ) / ljQLo pknAwL (Financial Performance) sf] hfgsf/L kfpg' /x]s]f 5 . pwf/f] sf/f]jf/sf] n]vf g/fvL gubsf] dfq n]vf+sg ubf{ Joj;fosf] ljQLo pknAwLsf] k"0f{ hfgsf/L gkfOg] x'gfn] ;fdGotof k|f]befjL n]vf k|0ffnL ckgfOG5 Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

Hybrid ( ldl>t n]vfk|0ffnL _ Those methods that are neither strictly cash nor strictly accrual but combine elements of both ;+:yfsf] cfonfO{ gub n]vf k|0ffnLdf / vr{nfO{ k|f]befjL n]vfk|0ffnLdf n]vf /fVg' nfO{ ldl>t n]vf k|0ffnL elgG5 . Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

Process Procedures Transactions Identification ,measurement and documentation Recording: (Putting the information into the accounting system) Journal and subsidiary books Classification: Grouping all the same activities (e.g., all purchase) together. Posting in to ledger and balancing of ledger Summarizing: Totaling the results Trial balance, Trading account, P/L account or I/E and balance sheet Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

Procedure Interpretation and Evaluation: Examination the statements to determine how the various pieces of information they contain relate to each other Balance sheet are analyzed to draw conclusions about the financial positions of the organization. Communication: Providing the reports and financial statements to people who are interested in the information such as business’s decision makers, investors ,creditors, and governmental agencies. Conclusions are communicated to the concerned parties Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

Output Financial Statement Balance Sheet Income Statement Cash Flow Statement Statement of Changes in Equity Notes, comprising a summary of significant accounting policies and other explanatory notes. Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

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Accounting Process in the context of Nepal g]kfn ;/sf/sf] n]vf k4tL uf]Zjf/f ef}r/ - d=n]=k= kmf/fd g+=!) _ vftfx? - d=n]=k= kmf/fd g+=@@ _ e'QmfgL cfb]zsf] - cg';'rL !$ _ a}+s gubL lstfa - d=n]=k= kmf/fd g+=% _ ah]6 lx;fa - d=n]=k= kmf/fd g+= * _ j}s lx;fj ;dfof]hg ljj/0f - d=n]=k= kmf/fd g+=!% _ vr{sf] kmfF6jf/L - d=n]=k= kmf/fd g+=!# _ cfly{s ljj/0f - d=n]=k= kmf/fd g+=!& _ Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

Convert into NPSAS accrual basis NPSAS Cash Basis Trial Balance ( Integrated of B.E., Revenues, Deposit and Bank Balance ) Receipt and Payment Account Recording of Inter Entity Transactions Comparison of Budget and actual Expenditures Accounting policies and notes to accounts Provide detail information to stakeholders about FSDA(Financial Statement discuss and Analysis) Convert into NPSAS accrual basis Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

1. Budget and program formulation 2. Accounting 3. Reporting 4. DTOs स्थानीय सञ्चित कोष ब्यवस्थापनप्रणाली Sub-national Treasury Regulatory Application-SUTRA 1. Budget and program formulation 2. Accounting 3. Reporting 4. DTOs 5. Monitoring 1, 2 and 3 for Local level and 4 & 5 for DTOs, FCGO and MoF and others entities for reporting Deposit and Revenue Models are being Prepared Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

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dGqfnoaf6 u/Lg] k|ltj]bg dGqfnon] dftxtsf sfof{nosf] jflif{s cfly{s ljj/0fx?nfO{ Plss[t u/L /fhZj, w/f}6L ljlgof]hg / cGo cfly{s sf/f]sf/sf] Plss[t cfly{s ljj/0f tof/ u/L d=n]=lg=sf= / d=n]=k= sfo{nodf k]zug'{ kg]{ x'G5 . d=Nf]=lg=sf= ljleGg dGqfnoaf6 k|fKt Plss[t cf=lj= / lhNnf l:yt sf]=n]=lg=sf= af6 k|fKt ljj/0fx? Ps cfk;df le8fg u/L g]kfn ;/sf/sf] /fhZj, ljlgof]hg, w/f}6L / cGo sf/f]sf/sf] s]Gb|Lo cfly{s ljj/0f tof/ u/L d=n]=k= sfof{nodf k]z ug{' kg]{ x'G5 . Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

-!_ df:s]jf/L Office, Unit or Project ! w/f}6Lsf] df:s]jf/L -d=n]=k= kmf/fd g !( _ @ /fhZj df:s]jf/L - d=n]=k= kmf/fd g ( _ # vr{sf] kmfF6jf/L j}b]lzs ;xfos -d=n]=k= kmf/fd g+= @!#_ $ vr{sf] kmfF6jf/L -d=n]=k= kmf/fd g+=!#_ % j}s lx;fj ;dfof]hg ljj/0f -d=n]=k= kmf/fd g+=!%_ ^ k]ZsL{sf ljj/0f -d=n]=k= kmf/fd g+=!$_ ( M Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

According to Arthik Karyabidhi Niyam 93 Daily - Tomorrow Weekly - With in 3 days of the date of completion Monthly - With in 7 days of the date of completion OAG, CGO, DTOC- Written date on letter Report to other institution- Within 3 days after receiving the letter Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

-!_ jflif{s ( Yearly) Ministry ( dGqfno _ ! /fhZj s]Gb|Lo cfly{s ljj/0f -d=n]=k= kmf/fd !(# _ @ ljlgof]hg s]Gb|Lo cfly{s ljj/0f -d=n]=k= kmf/fd @)( _ # j}b]lzs ;xfos ah]6sf s]Gb|Lo cfly{s ljj/0f -d=n]=k= kmf/fd @!) _ $ w/f}6Lsf] s]Gb|Lo cfly{s ljj/0f -d=n]=k= kmf/fd g !($ _ Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

-Financial Comptroller General Office) d=Nf]=lg=sf -!_ jflif{s ( Yearly) 1. Central Integrated (Financial Statement) Income Statement 2. Loan and Investment Statement 3. Central NR Bank account adjustment 4. Foreign Resource adjustment 2. Office of the Auditor General d=n]=k _ 1. Beruju Clearance, Monitoring and Evaluation 2. Advice on Auditing Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari

Thank You Professional Course on Management and Development: Sundar Shrestha and Gobinda Bhandari