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
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
Section 7 of the Nepal Chartered Accountants Act 1997, provides for the constitution of the Council of the Institute as follows:[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.
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.
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).[6] The corruption scam was considered as one of the biggest in the Nepalese history.[7] 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."[8] 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.[9]
Bharatpur Listing controversy
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.[10][11][12]
Chartered Accountancy Course
The course is divided into: CAP - I - Six Months. CAP - II - Nine Months. CAP -III - Three Years (including practical training). Which is trained in every authorized colleges in Nepal.
