Ending the tendency for insurance companies to keep financial statements and audit audits, the Insurance Committee has adopted the same standard accounting method for all insurance companies.
The Insurance Committee has concluded that data collection and analysis work is complicated as international insurance companies have adopted accounting method as per IFRS standard but no criteria have been prepared for Nepali insurance companies so far. According to the committee, all will now be brought under the same accounting method.
Insurance companies will be required to compute the NFRS criteria. However, when the criteria of NFRS are not with the insurance committee, then the constitution will be created by hiring a constitution. Tender calls have recently been made for the construction of standards. The Nirmal Adhikari, the information officer of the committee, informed that the insurance committee is planning to appoint a specialist through tender and formulate certain criteria and apply it to all.
The Insurance Committee has already called on consultants with knowledge of insurance accounting to come through the e-bidding process. The consultant must submit the plan at the time of bidding. The insurance committee said plans to submit appropriate criteria would be approved. The Insurance Committee is planning to implement NFRS from 2020 if it cannot be completed by 2019.
Due to lack of insurance accounting standards, different insurance companies have kept the details in different styles.
