Institute of Chartered Accountants of Nepal

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Institute of Chartered Accountants of Nepal
नेपाल चार्टर्ड एकाउन्टेन्ट्स संस्था
Emblem of ICAN
Emblem of ICAN
AbbreviationICAN
FormationJanuary 30, 1997; 24 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
4600 (June 2020)
Official language
Nepali, English
President
CA. Krishna Prasad Acharya
Vice President
CA. Madan Krishna Sharma
Immediate Past President
CA. Jagannath Upadhyay (Niraula)
Students
5000
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]

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.

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

CA. Madan Krishna Sharma President
CA. Yuddha Raj Oli Vice President
CA. Krishna Prasad Acharya Immediate Past President
CA. Jagannath Upadhyay (Niraula) Past President
CA. Bishnu Prasad Bhandari Council Member
CA. Surendra Shrestha Council Member
CA. Bidhya Baridhi Sigdel Council Member
CA. Kiran Dangol Council Member
CA. Mahesh Sharma Dhakal Council Member
CA. Peeyush Anand Council Member
RA. Kedar Nath Poudel Council Member
RA. Abdul Karim Khan Council Member
RA. Meera Shrestha Council Member
RA. Bahadur Singh Bista Council Member
Mr. Bamdev Sharma Adhikari Council Member
Mr. Chandrakala Poudel Council Member
Mr. Badri Raj Aryal Council Member

Total members[edit]

Member Total[1]
Chartered Accountants 2200
Registered Auditors - B 1500
Registered Auditors - C 600
Registered Auditors - D 1100

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. ^ http://www.tinepal.org/ciaa-appeals-for-public-help-to-nab-tsc-officials/
  9. ^ https://www.casarokar.com/2019/10/Listing-.html
  10. ^ https://www.arthasarokar.com/2019/10/Listing_18.html?m=1
  11. ^ https://www.casarokar.com/2019/10/PJ-Thapa-.html?m=1

External links[edit]