Nepal Insurance Authority Enforces Uniform Financial Reporting Standards

Kathmandu- The Nepal Insurance Authority has directed insurance companies to adopt a standardized format for preparing and publishing financial statements, aiming to ensure consistency and transparency across the industry.

Susil Dev Subedi, Director of the Nepal Insurance Authority, informed Beemapost represent that the regulatory body has issued instructions to align financial indices and ratios with uniform standards according to NFRS 17 standard. The move addresses discrepancies in the financial indices prepared by insurance companies and includes a detailed calculation method to be uniformly applied.

Under the new guidelines, life and non-life insurance companies are required to calculate and report specific financial metrics, such as net worth per share, net profit, annualized premium scale (APS), book value, dividend per share, market price per share, and the valuation ratio of the company.

Director Subedi confirmed that the new standards will come into effect for financial statements prepared after the fiscal year 2080/81. This initiative is expected to enhance uniformity, ensuring more reliable and comparable financial data across the insurance sector.