Accounting Board, Insurance Authority Discuss NFRS 17 Implementation
Kathmandu — Nepal Accounting Standards Board Chairman Ramesh Kumar Dhital and Nepal Insurance Authority Executive Director Sushil Dev Subedi held a meeting to discuss the implementation of NFRS 17 and other financial reporting issues in the insurance sector.
Subedi congratulated Dhital on his appointment as chairman of the Accounting Standards Board and wished him a successful tenure. The two officials also discussed recent developments in accounting standards and financial reporting in the insurance industry.
During the meeting, Subedi briefed Dhital on the Insurance Authority’s preparations to implement NFRS 17 for insurance companies. The authority approved the NFRS 17 framework for insurers on July 12, 2026, and issued implementation directives the following day.
Under the new arrangement, insurance companies will be required to prepare two balance sheets. One will follow the existing regulatory framework, while the other will be prepared in accordance with NFRS 17.
Subedi said effective implementation of NFRS 17 is necessary to make financial reporting in the insurance sector more transparent, reliable, comparable and consistent with international practices. The NFRS 17 Implementation Directive, 2026 sets out requirements covering governance, allocation of responsibilities, systems and controls, actuarial certification, information technology infrastructure and regulatory oversight.
Dhital said the Accounting Standards Board would support the implementation process and help facilitate solutions if insurers face difficulties during the transition.
The meeting also covered insurers’ overall preparedness, information technology systems, data management, and the technical capacity of appointed actuaries and auditors. Participants discussed the industry’s reliance on foreign consultants and the potential foreign exchange outflow associated with such services, as well as implementation costs.
Other concerns included completing audits and annual general meetings on time and establishing an effective mechanism to resolve technical interpretations and disputes that may arise during implementation.
The meeting was also attended by CA Santosh Karki, Deputy Director at the Insurance Authority.