Kathmandu. The Institute of Chartered Accountants of Nepal (ICAN) has been recognized as the ‘Principal National Peer’ in the Report on the Observation of Standards and Codes (RoSC) Accounting and Auditing (A&A) evaluation for Nepal. At the request of the Government of Nepal, the World Bank Group and the Asian Development Bank are conducting the evaluation in collaboration with ICAN.

The objective of the assessment is to assess Nepal’s accounting and auditing environment, identify existing weaknesses and challenges, and recommend improvements to strengthen transparency, accountability and investor confidence. This initiative comes at a critical time as Nepal strives to strengthen financial governance, attract sustainable private investment, and expand access to financial resources for businesses of all sizes.

The Report on the Observations of Standards and Codes (ROSC) Accounting and Auditing (A&A) assessment will review applicable accounting and auditing standards, regulatory and institutional structures, vocational education and training systems, compliance and implementation mechanisms, and actual practices. Its findings and recommendations, aligned with international best practices, will help Nepal strengthen its institutional capacity and financial reporting system.

The previous ROSC A&A evaluation for Nepal was conducted in 2015. Since then, Nepal has made remarkable progress in compliant with international good practices. The major reforms include a fully compliant practice with International Financial Reporting Standards (IFRS) through the implementation of the Nepal Financial Reporting Standards (NFRS) in listed companies, banks, insurance companies and government-owned institutions; Adoption of International Audit Standards (IFRS) by issuing Nepal Audit Standards (NFRS); Implementation of Nepal Quality Control Standards (NSQC-1) and scholarly review mechanism to enhance audit quality; and the strengthening of vocational education and continuing professional development in line with the duties of the International Education Standards (IES) and IFAC.

These reforms have significantly enhanced transparency, accountability, and reliability in Nepal’s financial reporting framework. The ROSC A&A assessment will evaluate the state of compliance with international standards, highlight Nepal’s progress and make strategic recommendations to further strengthen market confidence and support sustainable economic growth.

“This valuation is a milestone for the financial sector in Nepal. It recognises a decade of reforms and positions Nepal as a reliable and trusted destination for global investment. ICAN is fully committed to promoting excellence in accounting and auditing practices in line with international standards,” said Mr. Nil Bahadur Saru Magar, Chairman of ICAN.

ICANN reiterates its commitment to this national priority and calls on all stakeholders, including regulatory bodies, business entities, academia, and the private sector, to actively collaborate for a successful evaluation and further strengthen Nepal’s financial governance framework.