Institute of Chartered Accountants of Nepal

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Institute of Chartered Accountants of Nepal
नेपाल चार्टर्ड एकाउन्टेन्ट्स संस्था
AbbreviationICAN
FormationJanuary 30, 1997; 27 years ago (1997-01-30)
Legal statusBody corporate established by the Nepal Chartered Accountants Act, 1997 passed by the Parliament of Nepal
HeadquartersLalitpur, Nepal
Region
Nepal
Membership
9052 (2022/2023)
Official language
Nepali, English
President
CA. Sujan Kumar Kafle
Vice President
CA. Prabin Kumar Jha
Immediate Past President
CA. Bhaskar Singh Lala
Students
11227 (2022/2023)
Websiteen.ican.org.np/en/

The Institute of Chartered Accountants of Nepal (ICAN) was established under a special act, The Nepal Chartered Accountants Act, 1997 to enhance social recognition and faith of people at large in the accounting profession by raising public awareness towards the importance of accounting profession as well as towards economic and social responsibility of the accountants, and to contribute towards economic development of the country. The Institute is an autonomous body and the Council is fully authorized by the Act to undertake accountancy profession in Nepal.[1][2][3][4]

History[edit]

1934 The first ever Companies Act in Nepal legislated
1956 New Companies Act enacted.

Books of accounts to be maintained specified. Accounts to be audited by an auditor licensed by the Dept of Industries

1974 Auditors' Act legislated, which entrusted the Office of Auditor General (OAG) to issue auditor's license and set qualification of auditors in four different classes of Registered Auditors.

Chartered Accountants with five years experience given Class A license with unlimited authority to audit any organization. Others are given license of Class B, C, and D depending upon the education and experience as specified in the Auditors' Act. Disciplinary powers vested upon the Auditor General who was to receive recommendation from a Disciplinary Committee.

1978 Formation of the Association of Chartered Accountants of Nepal (ACAN) as a voluntary social organization with an initial membership of 15 Nepali chartered accountants.

ACAN applied for registration under the Societies Registration Act

1979 New Companies Act enacted.
1982 ACAN registered under the Societies Registration Act

ACAN formally inaugurated by the Minister of Finance

1984 ACAN invited to participate in the South Asian Federation of Accountants (SAFA) as an Observer.
1985 SAFA formed a Committee to assist ACAN in recommending to the Government for the formation of an accounting body in Nepal.SAFA committee submitted a report.
1988 HMG formed a high level study group to recommend on the formation of an autonomous self-regulatory accounting body in Nepal.
1990 ACAN held a SAFA international seminar, which was inaugurated by the Prime Minister who committed the formation of an accounting body in Nepal

Accounting profession's image was uplifted.

1997 Nepal Chartered Accountants Act, 1997 received the royal seal on 30 January 1997.

The Institute of Chartered Accountants of Nepal (ICAN) established. ICAN to have two classes of members: Chartered Accountants and Registered Auditors. Auditors' Act to be repealed upon the notification in the Official Gazette. All Registered Auditors holding audit license invited to apply for the membership of ICAN. First Council of ICAN formed on 1 August 1997. Membership of the South Asian Federation of Accountants (SAFA) New Companies Act enacted with revised provision on accounting and auditing

1998 MOU on technical cooperation signed with the Institute of Chartered Accountants of India.

Membership of the Confederation of Asian and Pacific Accountants (CAPA)

1999 Nepal Chartered Accountants Regulation 1999 came into effect on 29 September 1999

Launching of ICAN along with an international seminar HMG signed technical assistance agreement with ADB for capacity building of ICAN for a project of 12 months period.

2000 First CA Examination held in November 2000
2002 First Amendment of Nepal Chartered Accountants Act, 1997

ICAN was made the only regulating authority in accounting profession when the Act was amended.

2003 ICAN became Associate Member of IFAC in 2003
2004 ICAN signed second MOU with ICAI in July 2004
2008 ICAN became full Member of International Federation of Accountants (IFAC) in November 2008
2009 Government of Nepal provided land to ICAN on 9 November 2009
2013 ICAN signed MOU with Malaysian Institute of Accountants (MIA) on 10 May 2013
2014 Building Inauguration by Rt. Hon'ble president of Nepal on 13 July 2014[1]
2015 ICAN signed MoU with ADB in April 2015 for piloting Audit Quality Assurance Systems Road Map.
2016 ICAN signed Membership Pathways Agreement with CPA Australia in March 2016

ICAN signed Mutual Recognization Agreement with ICAEW in october 2016.

2017 ICAN signed Technical Cooperation MoU with ICAI in August 2017.
2018 ICAN signed MoU with CIPFA in January 2018 for advancement of High Quality Public Financial Management

ICAN signed Mutual Recognization Agreement with CA ANZ in March 2018, ICAN opened its First abroad Chapter in Australia in March 2018.

2019 Signed Mutual Collaboration Agreement with ACCA,

Signed MOU with AICPA

2020 Signed Mutual Recognition Agreement with ICAI
2021 Signed Memorandum of Understanding with The Institute of Internal Auditors, India (IIA, India)
2022 Signed Memorandum of Understanding with The Institute of Chartered Accountants of Sir Lanka

Constitution of Council[edit]

Section 7 of the Nepal Chartered Accountants Act 1997, provides for the constitution of the Council of the Institute as follows:[1]

  1. There shall be a Council of the Institute for the management of the affairs of the Institute and for discharging the functions assigned to it under this act.
  2. The Council shall be composed of the following persons, namely:
    • Ten persons elected by chartered accountant members of the Institute from amongst the chartered accountant members of the Institute
    • Four persons elected by registered auditor members of the Institute from amongst the registered auditor members of the Institute
    • Three persons nominated by the Government of Nepal.

Present Council Members[edit]

CA. Sujan Kumar Kafle President
CA. Prabin Kumar Jha Vice President
CA. Bhaskar Singh Lala Past President
CA. Santosh Kafle Council Member
CA. Chhetra Gopal Pradhan Council Member
CA. Sujan Kumar Kafle Council Member
CA. Surendra Shrestha Council Member
CA. Ram Chandra Khanal Council Member
CA. Sujan Shrestha Council Member
CA. Peeyush Anand Council Member
CA. Prabin Kumar Jha Council Member
RA. Posh Raj Nepal Council Member
RA. Bhola Nath Pathak Council Member
RA. Shankar Gyawali Council Member
RA. Kesh Bahadur K.C. Council Member
Mr. Baikuntha Bahadur Adhikari Council Member
Mr. Baburam Subedi Council Member
Mr. Umakanta Acharya Council Member

1st Council Members (1997 - 2000)[edit]

Komal Bahadur Chitracar
Tirtha Raj Upadhyay
Kausalendra Kumar Singh
Gopal Prasad Rajbahak
Pushpa Lall Shrestha
Nem Lal Amatya
Pratap Prasad Pradhan
Bijay Kumar Agrawal
Aek Bahadur Kshatry
Pramod Kaushik
Umesh Prasad Dhakal
Ganga Prasad Ghorsaine
Netra Kumar Khatri
Dr. Bihari Binod Pokharel
Surendra Nath Shrestha
Krishna Prasad Neupane
Shankar Prasad Pandey

2nd Council Members (2000 - 2003)[edit]

Gopal Prasad Rajbahak
Prabhu Ram Bhandary
Bijay Kumar Agrawal
Pradeep Kumar Shrestha
Jitendra Bahadur Rajbhandary
Kishore Banskota
Madan Krishna Sharma
Ratna Raj Bajracharya
Satish Chandra Lal
Sudarshan Raj Pandey
Umesh Prasad Dhakal
Ganga Prasad Ghorsaine
Netra Kumar Khatry
Jeeb Narayan Barall
Surendra Nath Shrestha
Dilip Dhungana
Krishna Prasad Neupane
Surendra Nath Shrestha
Durga Nidhi Sharma

3rd Council Members (2003 - 2006)[edit]

Pradeep Kumar Shrestha
Pushpa Lall Shrestha
Narayan Bajaj
Binod Bahadur Rajbhandary
Prakash Jung Thapa
Rajan Singh Bhandary
Tanka Prasad Paneru
Krishna Prasad Dahal
Satish Chandra Lal
Late Nirmal Das Shrestha
Anup Kumar Shrestha
Tanka Prasad Pandey
Kamal Kharel
Tulsi Ram Sedhai
Jeeb Narayan Baral
Ramesh Raj Satyal
Rameshore Prasad Khanal
Padma Raj Bhatta

4th Council Members (2006 - 2009)[edit]

Binod Bahadur Rajbhandary
Ratna Raj Bajracharya
Tanka Prasad Paneru
Suvod Kumar Karn
Sunir Kumar Dhungel
Bhaskar Singh Lala
Bharat Rijal
Mahesh Kumar Guragain
Gyanendra Prasad Dhungana
Maha Prasad Adhikari
Tanka Prasad Pandey
Bal Krishna Ghimire
Dilip Kumar Dhungana
Tul Bahadur Shrestha
Khem Prasad Dahal
Suresh Pradhan
Rana Bahadur Shrestha

5th Council Members (2009 - 2012)[edit]

CA. Suvod Kumar Karn
CA. Sunir Kumar Dhungel
CA. Sudarshan Raj Pandey
CA. Madhu Bir Pande
CA. Gopal Prasad Pokharel
CA. Krishna Prasad Acharya
CA. Mahesh Khanal
CA. Sujan Kumar Kafle
CA. Narendra Bhattarai
CA. Suresh Devkota
RA. Mohan Raj Regmi
RA. Laxman Prasad Khanal
RA. Bhuvan Prasad Acharya
RA. Krishana Prasad Paudel
Mr. Bharat Prasad Paudel
Mr. Dev Bahadur Bohara
Mr. Suresh Pradhan

6th Council Members (2012 - 2015)[edit]

CA. Madhu Bir Pande
CA. Mahesh Kumar Guragain
CA. Narendra Bhattarai
CA. Achyut Raj Joshi
CA. Prakash Lamsal
CA. Jitendra Kumar Mishra
CA. Bhaska Singh Lala
CA. Nirajan Simkhada
CA. Suresh Devkota
CA. Teknath Acharya
RA. Badri Prasad Bhattarai
RA. Dol Prasad Dahal
RA. Mohan Kumar Subedi
RA. Mohan Kumar Parajuli
Mr. Gun Raj shrestha
Mr. Krishna Prasad Devkota
Mr. Jaya Dev Shrestha

7th Council Members (2015 - 2018)[edit]

CA. Prakash Lamsal
CA. Mahesh Khanal
CA. Prakash Jung Thapa
CA. Jagannath Upadhyay (Niraula)
CA. Bharat Rijal
CA. Suresh Devkota
CA. Ram Prabodh Shah
CA. Sunil Jakibanja
CA. Bhaskar singh Lala
CA. Bhava Nath Dahal
RA. Yadav Prasad Nyaupane
RA. Surya Prasad Adhikari
RA. Ganesh Raj Rai
RA. Dhurba Prasad Paudel
Mr. Baburam Gautam
Mr. Mukunda Raj Panthi
Mr. Jagannath Devkota

8th Council Members (2018 - 2021)[edit]

CA. Jagannath Upadhyay (Niraula)
CA. Krishna Prasad Acharya
CA. Madan Krishna Sharma
CA. Yuddha Raj Oli
CA. Surendra Shrestha
CA. Bishnu Prasad Bhandari
CA. Bidhyabaridhi Sigdel
CA. Kiran Dongol
CA. Mahesh Sharma Dhakal
CA. Peeyush Anand
RA. Kedar Nath Poudel
RA. Abdul Karim Khan
RA. Abdul Karim Khan
RA. Bahadur Singh Bista
Mr. Bamdev Sharma Adhikari
Ms. Chandrakala Paudel
Mr. Badri Raj Aryal

Total members (2022/23)[edit]

Member Total[1]
Chartered Accountants 20220
Registered Auditors - B 3423
Registered Auditors - C 1560
Registered Auditors - D 2251

Controversies[edit]

Tax exemption controversy[edit]

Two practising chartered accountants, Lumba Dhwaj Mahat and Umesh Prasad Dhakal, were involved in misappropriating state tax revenue through dubious tax settlements as Chairman and Member of Tax Settlement Commission involving Chudamani Sharma, Director General of Inland Revenue Department (Nepal).[5] The corruption scam was considered as one of the biggest in the Nepalese history.[6] ICAN disciplinary committee failed to take any action against the two accused CAs. Vice-Chairman Jagannath Upadhyay Niraula said that "the disciplinary committee can take action only after receiving information or the complaint is lodged against any chartered accountant. We have not received any complaint against the duo."[7] The fraud amounted to NRs. 21 billion. Both the CAs have fled from the incident and were declared fugitive by Commission for the Investigation of Abuse of Authority.[8]

Bharatpur Listing controversy[edit]

46 Nepalese audit firms, including the firm of former President of ICAN CA Prakash Jung Thapa (i.e. PJ Thapa & Company), were listed in the Bharatpur Municipality against the legal regulations of ICAN. On 18 October 2019, ICAN President Krishna Prasad Acharya has declared to punish the audit firms for conducting such illegal listing.[9][10][11]

References[edit]

  1. ^ a b c d "The Institute of Charted Accountants of Nepatl". ican.org.np. Retrieved 2017-04-24.
  2. ^ "Indian CA graduates to be barred from practicing". kathmandupost.ekantipur.com. Retrieved 1 January 2019.
  3. ^ "Nepali chartered accountants graduating from India won't be allowed to practice back home". Outlook (India). Retrieved 1 January 2019.
  4. ^ "Chartered Accountant". The Himalayan Times. Retrieved 1 January 2019.
  5. ^ "CIAA summons TSC chairman, member". kathmandupost.ekantipur.com. Retrieved 1 January 2019.
  6. ^ "Arrest warrant likely against Mahat, Dhakal". ekantipur.com. Retrieved 13 July 2018.
  7. ^ "ICAN silence on two accused CAs". nagariknetwork.com. Retrieved 13 July 2018.
  8. ^ "CIAA appeals for public help to nab TSC officials - Transparency International Nepal". Archived from the original on 2018-07-13. Retrieved 2018-07-13.
  9. ^ "पूर्वअध्यक्षको फर्मसहित ४६ अडिटरले मिचे आइक्यानको निर्देशन, प्रकाश थापा भन्छन्, 'आजै सच्याउँछु' (प्रमाणसहित)".
  10. ^ "पूर्वअध्यक्षको फर्मसहित ४६ अडिटरले मिचे आइक्यानको निर्देशन, प्रकाश थापा भन्छन्, 'आजै सच्याउँछु' (प्रमाणसहित)".
  11. ^ "सिए सरोकारको समाचारपछि भरतपुर महानगरपालिकालाई पिजे थापाको पत्र, 'हामीलाई सूचीकरणबाट हटाईयोस्'".

External links[edit]