NFRS vs IFRS: Key Differences Every CFO Should Know

Introduction

Nepal adopted NFRS in 2013, closely aligned with IFRS but with specific local adaptations. Understanding these differences is essential for CFOs managing both local compliance and international reporting.

Top 5 Differences

1. Revenue Recognition — NFRS has a simplified approach for SMEs
2. Lease Accounting — NFRS 16 implementation timeline differs
3. Financial Instruments — Reduced disclosure requirements under NFRS
4. Functional Currency — NPR requirements for local entities
5. Related Party Disclosures — Additional local regulatory requirements