(1)s Government of Nepal shall form an Accounting Standards Board in order to systematize and regulate the accountancy and financial reports.
(2) The Accounting Standards Board shall consist of the following members:
(a) One person nominated by Government of Nepal from amongst the fellow chartered accountants -Chairperson
(b) Representative, Ministry of Finance -Member
(c) Representative, Office of Auditor General -Member
(d) Representative, Office of Financial Comptroller General -Member
(e) Registrar, Office of Company Registrar -Member
(f) Director General, Department of Tax -Member
(g) Chairperson, Securities Board -Member
(h) Five persons nominated by Government of Nepal from amongst the chartered accountants, upon the recommendation of the Council  -Member
(i) One person nominated by Government  of Nepal from amongst the registered auditors, upon the recommendation of the Council -Member
(3) The Accounting Standards Board may, if it deems so necessary, invite any concerned expert to attend its meeting as an observer.
(4) The term of office of the members mentioned in Clauses (a), (h) and (i) of Sub-section (2) shall be Three years, and they may, on the expiry
of their term, be re-appointed or nominated.
(5) The Rules of procedures relating to the meeting of the Accounting Standards Board shall be as determined by the Board itself.
(6) The secretariat of the Accounting Standards Board shall be situated in the Head Office of the Institute.