Accounting Standards Board (ASB) has been constituted by Government of Nepal on 26 Falgun 2059 corresponding to 10 March, 2003 under Nepal Chartered Accountants Act, 1997 (first amendment 2002). The Accounting Standards Board (ASB) is an independent statutory body with the responsibility to set and issue accounting standards for preparation and presentation of financials statements in Nepal. The ASB was formed in March 2003 with an amendment to the Institute of Chartered Accountants of Nepal Act 1997 incorporating the provision for its establishment and operation by the Government of Nepal. The ASB is primarily responsible for setting accounting and financial reporting standards for business enterprises in line with the International Financial Reporting Standards (IFRSs). Since 2007, ASB has also been entrusted by Nepal Government with the responsibility to develop accounting standards for public sector in line with the International Public Sector Accounting Standards (IPSASs).
The ASB consists of 13 members comprising a Chairman nominated by the Government of Nepal from Fellow Chartered Accountants (FCA) and other members are representative of Ministry of Finance, representative of Office of the Auditor General, representative of Financial Comptroller General Office, Company Registrar of Office of Company Registrar, Director General of Inland Revenue Department, Chairman of Securities Board of Nepal & Five Chartered Accountants (CA) & One Registered Auditor (RA) nominated by Government of Nepal on recommendation of Institute of Chartered Accountants of Nepal's Council.