NFRS Impairment Vs. Loan Loss Provisioning in Current Pandemic Scenario

Training Category: Operations

In consideration to the directives issued by Nepal Rastra Bank (NRB), Commercial banks are required to prepare their financial statements of 2017/18 , and going forward, based on NFRS.   The NFRS is principle based- a high quality standard which is divergent to local GAAP and it is designed to apply to the general purpose financial statements.

The adoption of NFRs has greater impact on the areas such as financial reporting and loan loss provisioning requirements.  The Local GAAP consist of rules on loan loss provisions prescribed by NRB, whereas NFRS prescribes principles to recognize impairment loss on loan and advances based on incurred loss model.

In this regard, this comprehensive training program will be focused on understanding NFRS norms and its impact with regards to Impairment and Loan Loss Provisioning in current COVID -19 environment.