Fujitsu Builds IFRS-Compliant Accounting System For The Central Bank Of Myanmar

157

Categories:

TOKYO, Jun 29 – Fujitsu today announced that it has built an accounting system that complies with International Financial Reporting Standards (IFRS) for the Central Bank of the Republic of the Union of Myanmar. This construction, and subsequent launch of operations in April 2016, was based on a contract with the Japan International Cooperation Agency (JICA).

By systematizing journal entry and including functions for automatically generating accounting entries and all sorts of forms, the new system improves the efficiency of accounting tasks that were previously done manually. This has greatly reduced the burden on bank employees, such as by enabling them to finish inputting forms on the same day, which, during busy times, had previously taken until the next day.

In addition, by revising accounting policies, chart of accounts, and processes, the system implements accounting work in compliance with IFRS. It also greatly improves the robustness and reliability of the accounting system through the deployment of such mechanisms as the use of a thin client OA environment, system redundancy, and operations monitoring. Going forward, Fujitsu will continue its efforts to help modernize financial systems in Myanmar and other growing nations in Asia.

Background

Under the banner of building a market economy and promoting investment, with the goal of developing its economy, the government of Myanmar is proceeding with preparations for the rapid modernization of its financial sector, such as by bolstering its financial system and establishing a securities exchange.

In addition, in accordance with rapid economic growth and the accompanying rise in the funding needs of domestic corporations, the expansion of foreign investment activity, and higher use of banking services by individuals, Myanmar expects to see a surge in the amount of funds and data being handled by the Central Bank of Myanmar and other financial institutions.

Accordingly, in modernizing the country’s financial sector, converting the Central Bank of Myanmar’s accounting system to bring it into compliance with IFRS, and building an environment for promoting smooth central bank operations and maintenance management all became pressing issues.

System Overview

This accounting system was built by expanding the cloud platform that was implemented for the Central Bank of Myanmar under the leadership of Daiwa Institute of Research Ltd. in 2012, with Fujitsu’s assistance, and by building an application environment on this cloud platform using Oracle E-Business Suite, an integrated ERP package from US-based Oracle Corporation, with the goal of effectively using the existing assets of the Central Bank of Myanmar.

Consultants with experience in financial accounting participated in defining the specifications, and by considering chart of accounts in collaboration with JICA, the Central Bank of Myanmar, and the International Monetary Fund (IMF), Fujitsu was able to design functions that were well-suited for actual operations.

In addition, through cooperation with ACE Data Systems Co., Ltd., a local systems vendor, Fujitsu is carrying out training, explaining the system’s functions in the local language (the Myanmar language), and building an organization to promote end-user understanding of the accounting system.

Future Plans

Expanding business in Asia is an important priority in Fujitsu’s global strategy. In October 2015, as part of its One Asia structure, Fujitsu unified its Asia region with its sales organization in Japan, which has experience in a variety of industries and strong delivery capabilities.

This was done with the aim of establishing a platform for promoting its solutions business, while also formulating and advancing detailed strategies in every country in Asia for each sector, including finance, communications, government and the public sector, manufacturing, retailing and distribution, and health care.

In Myanmar, Fujitsu plans to expand the new accounting system to private banks, and to continue building the various maintenance systems that support it, further contributing to the modernization of the financial system in Myanmar.

Leave Comments

This site uses Akismet to reduce spam. Learn how your comment data is processed.