Need for Financial Accounting Standards for NPOs in Nepal

To date, comprehensive guidelines on accounting issues unique to Not for Profit Organizations have yet to be developed at the international level. Some pronouncements made by standards-setting bodies covering NPOs have been developed in the United States and China. In India, the Technical Guide on Accounting and Auditing on NPOs has been issued by the ICAI. However, many other countries are either practicing de-facto standards for NPOs or implementing the current pronouncements in their respective countries to NPOs which may or may not be totally apt for use in these types of organizations. Although all accounting applications are based on the same set of principles, integrating the specifications and particularities of the NPO community into the practice of accounting is vital to a uniform interpretation and analysis of financial reports across the sector. (Source: Non-Profit Sector Accounting: Issues and Recommendations from Asia Pacific Societies, 2006)

What about Nepal? My observation of the NPOs accounting shows that most of the organization follow generally accepted accounting principles or those policies laid down by the funding agency/donor organizations. There is no set standard.