Section 40: Computation of net profit and loss

*1) The Bank shall prepare the account for its profit and loss in each fiscal year.

2) While preparing the account of profit and loss as per sub-section (1), it shall be prepared in accordance with the Nepal Accounting Standard.

3) Notwithstanding whatever has been written in sub-section (2), in connection with the sectors which have not been included in the Nepal accounting standard, the international accounting standard shall have to be taken as a basis.

4) While preparing the account of profit and loss, net profit shall have to be ensured by deducting bad or doubtful debts and cutting depreciation of property upon making adjustments of the profit made by the Bank, loss sustained or yet to be sustained and net valuation profit or loss.

* Amended by the Second Amendment.