1. GAAP & IFAS Generally Accepted Accounting Principle & International Financial Accounting Standards.
Group 1

2. GAAP(Generally Accepted Accounting Principles)
Rules and standards
Creation of uniform financial reports
Private U.S. businesses are not required
Consistency, fairness, honesty and accuracy

3. HISTORY SEC proposed, switch to IFRS from U.S. GAAP by 2014
SEC replaced CAP with the Financial Accounting Standards Board (FASB)
AIA created Committee on Accounting Procedure
Concept of GAAP introduced for the 1st time
SEC asked for assistance from the American Institute of Accountants (AIA)
Securities and Exchange Commission (SEC) was created.
Stock Market Crash (a.k.a. The Great Depression )

4. GAAP VS IFRS Basis GAAP IFRS Balance Sheet
Current and noncurrent asset and liability categories are separated
categories are required to be separated
Intangible Assets
Recognizes intangible assets at fair value
Only examines intangible assets if they can be associated with a future benefit
Documentations
Statement of Comprehensive Income is required
Statement of Comprehensive Income is not required
Inventory Write Downs (IWD)
IWD reversals are not permitted
IWD reversals are possible under some conditions
Extraordinary Items
Listed separately under new income
Included with other items on the income statement

5. PRINCIPLES Regularity Consistency Sincerity Permanence of Methods
Non-Compensation
Prudence
Continuity
Periodicity
Materiality / Good Faith
Utmost Good Faith

6. IFRS(International Financial Reporting Standards)
Set of accounting standards
Known as International Accounting Standards (IAS)
Developed by International Accounting Standard Board (IASB)
IFRS is a global language
Understandability and making comparisons easier.

7. IFRS Modified form of IAS.
Principles-based standards establishing broad rules.
Rules while accounting for transaction and events in Financial Statements.
Developed by International Accounting Standards Board (IASB)

8. HISTORY
Now more than 100 countries uses the completed IFRS or synchronized form
More than 70 countries were using it
The IAS was implemented in countries European Union
Replaced by International Accounting Standards Board (IASB) in1st April, 2001
International Accounting Standard were issued by International Accounting Standards Committee (IASC

9. REGULATORY BODIES Trustee The Board Standing Advisory Council(SAC)
IFRIC (International Financial Reporting Interpretation Committee)

10. NAS(Nepal Accounting Standards)
Written policy documents
Recognition, measurement, presentation and disclosure
Issued its own NAS in 2001 A.D. to localize them properly
NASs are the standards issued by Accounting Standards Board (ASB)
27 issued Nepalese accounting standards.

11. NFRS(Nepal Financial Reporting Standards)
Designed as a common language for business
Issued by Nepal Accounting Standard Board in 2013
Rules to be followed by accountants
Comprised of
Nepal Financial Reporting Standards;
Nepal Accounting Standards;
IFRIC Interpretations issued by the International Accounting Standards Board (IASB);
Application Guidance and SIC interpretations issued by IASB

12. DEVELOPMENT OF NFRS
Identification and review of issues to be considered
Exchange of views with national regulators
Consultation with ASB members and Advisory grounds
Publishing exposure draft and letting it for public comments
Final draft of standards (approval of at least 7 members of ASB essential)

13. GENERAL FEATURES OF NFRS
Fair presentation and compliance with NFRS
Going Concern
Accrual basis
Materiality and Aggression
Frequency of Reporting
Comparative Information
Consistency of presentation

14. FOR WHOM ? Investors Multinational Companies Regulators
Securities Industry and Stock Exchanges
Developing Countries

15. APPLICABILITY TYPES Category A - from FY 2014-15
Listed Multinational Manufacturing Companies
Listed State Owned Enterprises (SOEs
Category B - from FY
Commercial Banks, including State Owned Commercial Banks;
All other Listed State Owned Enterprises (SOEs)

16. APPLICABILITY TYPES Category C - from FY 2016-17
All other Financial Institutions not covered under A & B above
All other SOEs
Insurance Companies
All other Listed Companies
All other Corporate Bodies
Category D - from FY
SMEs as defined and classified by ASB

17. ?????