Write about the disclosures required for financial statement under Nepal Financial Reporting Standard (NFRS).

A disclosure is the additional information accompanying the financial statements — an explanation for the activities that significantly influenced the financial results — attached as notes or footnotes to communicate relevant information that cannot be fitted into the statements themselves; and NFRS, issued by the Accounting Standards Board of Nepal under the framework of IFRS and effective from 15 July 2014, prescribes both the statements to be presented and what must be disclosed with them, so that company accounts in Nepal remain consistent, transparent, understandable and internationally comparable.

1. Presentation of the five statements: an entity must present a complete set of five statements — the statement of profit or loss, the statement of other comprehensive income, the statement of changes in equity, the statement of financial position, and the statement of cash flows — together with accounting policies and notes, which form an integral part of them.
2. Accounting policies and measurement basis: users must be told the measurement basis used — historical cost, current cost, realizable value, fair value or present value — since this is the basis on which the whole financial statements are prepared, along with any other accounting policies relevant to understanding them. Disclosing accounting policies to shareholders is compulsory by law and by the regulators.
3. Key assumptions and estimation uncertainty: the entity must disclose in the notes the key assumptions about the future and the other sources of estimation uncertainty existing at the balance sheet date that carry a significant risk of causing a material adjustment to carrying amounts within the next year, including their nature and carrying amount.
4. Changes in accounting policy and correction of errors: any change in the accounting system or policy, the correction of prior year errors, and the cumulative effect of such a change must be disclosed, since they are reflected in the restated opening balance of the statement of changes in equity.
5. Method of presenting profit or loss: the statement must be prepared either on the function of expense basis (cost of sales, distribution expenses, administrative expenses — which shows gross profit) or the nature of expense basis (raw materials used, staff costs, depreciation and amortization), and the method chosen must be made clear; both run down through finance costs, profit before tax, income tax expense, profit from continuing operations and profit or loss on discontinued operations.
6. Earnings per share and attribution of profit: basic and diluted EPS must be presented, the number of ordinary shares used for basic EPS being the weighted average number of ordinary shares outstanding during the period, and net income must be shown separately as attributable to the owners of the company and to the non-controlling interests.
7. Other comprehensive income items: the statement of other comprehensive income begins with net income and adds items such as loss on revaluation, available-for-sale investments, cash flow hedges, exchange gain or loss on translation of foreign operations, actuarial gain or loss on defined benefit pension schemes, the share of associates' other comprehensive income, and the tax relating to components of OCI — identifying those that will later be reclassified to profit or loss.
8. Capital management and dividend information: for capital stock, the entity must disclose information enabling users to evaluate its objectives, policies and processes for managing capital; and it must disclose the amount of dividend proposed or declared before the statements were authorized for issue but not recognized as a distribution, the related amount per share, and any cumulative preference dividend not recognized.
9. Changes in equity in detail: the statement of changes in equity must show, across share capital, share premium, capital redemption reserve, treasury share reserve, foreign exchange reserve, revaluation reserve, other reserves, retained earnings and non-controlling interest, every movement from the opening balance at 1 Shrawan to the closing balance at 31 Ashadh — including issue of share capital, profit for the year, revaluation surpluses and deficits, dividends to shareholders, shares issued in a business combination, ESOP shares issued to employees, share-based payments and shares purchased for cancellation.
10. Classified statement of financial position: the balance sheet must be presented in vertical format, with assets classified into non-current (property, plant and equipment, intangible assets, biological assets, investment property, investments in associates, other investments, deferred tax assets, other non-current receivables) and current (inventories, short-term investments, biological assets, income tax receivable, trade and other receivables, cash and cash equivalents, assets held for sale), and equity and liabilities into equity (share capital, reserves, non-controlling interests), non-current liabilities and current liabilities — total equity and liabilities always equalling total assets.
11. Post-balance-sheet information and other notes: if the entity receives information after the balance sheet date about conditions that existed at that date, it must update the disclosures relating to those conditions; other matters requiring notes include inventory changes, investments, asset retirement, insurance contract modifications and noteworthy infrequent events with a significant impact — some disclosures being required by the standard and others made voluntarily by management.