Overview of Accounting and Auditing in Myanmar
The government of Myanmar has made quick progress since the start of substantial economic reforms in reorganizing the institutional and policy framework of the finance sector. Myanmar, also referred to as Burma, is a Southeast Asian country. Its neighbors include Bangladesh, India, China, Laos, and Thailand. Myanmar is noted for its rich cultural legacy, various ethnic groups, and natural beauty, with a population of about 54 million people. Myanmar has experienced considerable political and economic reforms in recent years, opening up its economy to the global market. Myanmar's economy has grown significantly in recent years, owing to economic liberalization and international investment. Agriculture, manufacturing, mining, construction, tourism, and services are all important sectors of the economy. Natural resources like natural gas, minerals, and lumber are abundant in the nation, contributing to its economic potential.
Meaning of Auditing and Accounting Services
In order to ensure that financial information is accurate, comprehensive, and in conformity with all relevant rules and regulations, auditing is a systematic method of assessing and confirming financial information. It entails the analysis and evaluation of an organization's internal controls, financial records, and financial statements. The main goal of auditing is to offer a neutral assessment of the fairness and dependability of financial accounts in order to boost stakeholder confidence, including that of lenders, regulators, and investors.
Accounting is the process of compiling, deriving conclusions from, and evaluating a company's financial activities. It entails the creation of accounting systems and practices, management reports, and financial statement production. Accounting services offered by accounting companies aid businesses in precisely and successfully managing their financial information. Accounting services included bookkeeping and financial recordkeeping, financial statement preparation and analysis of the same, tax compliance and its planning, budgeting and forecasting etc.
Financial Year of Myanmar
Beginning on October 1st, 2019, the tax assessment period for all taxpayers in Myanmar runs from October 1st to September 30th. All companies doing business in Myanmar are required to follow this financial year schedule. This obligation includes the annual, error-free submission of audited financial accounts to the tax authorities, which also contain any corporate income tax.
Assessments System in Myanmar
Myanmar follows two methods of assessment:
- Self-Assessment System (SAS)
- Official Assessment System (OAS)
Accounting Standards in Myanmar
The Myanmar Accountancy Council (MAC) was created on January 12th, 1972, with the passage of Union of Myanmar Revolution Council Law No. 2, also known as the Myanmar Accountancy Council Law of 1972. The Myanmar Companies Law (MCL) and the Myanmar Accountancy Council Law 2015, which have been amended over time, are the major legislations controlling corporate compliance and audit standards for enterprises operating in Myanmar.
The Myanmar Accounting Standards (MAS) and the Myanmar Financial Reporting Standards (MFRS) imposed by the MAC govern the compilation of financial statements in Myanmar. These guidelines establish a framework for maintaining uniformity and accuracy in financial reporting practices across the country. Notably, the MAC has also created the MFRS for SMEs, which is based on the IFRS for SMEs.
There are a few restrictions to the MFRS's alignment with the International Financial Reporting Standards (IFRS). These exclusions show that Myanmar's MFRS has not completely accepted certain IFRS standards. It is crucial to highlight, however, that publicly traded corporations must strictly conform to the MFRS rules.
Overall, the MAC is critical in defining and implementing accounting and financial reporting standards in Myanmar, as well as guaranteeing compliance with applicable rules and encouraging openness and dependability in financial statements for enterprises operating in the nation.
MFRS has adopted all International Financial Reporting Standards (IFRS) standards except the following:
- IFRS 9: Financial Instruments
- IFRS 11: Joint Arrangements
- IFRS 10: Consolidated Financial Statements
- IFRS 13: Fair Value Measurement
- IFRS 12: Disclosure of Interests in the Other Entities
Auditing Standards in Myanmar
Companies must appoint one or more auditors in Myanmar; the initial auditor is frequently decided by the board of directors of the company. Strict requirements established by the Myanmar Accountancy Council (MAC) must be met in order to qualify as an auditor. The MAC mandates that auditors either hold the Certified Public Accountant (CPA) accreditation or a degree or certificate in accountancy from a recognized foreign country. Furthermore, in order to receive a Certificate of Practice, the auditors must be a Myanmar citizens and should also be registered with Myanmar Accountancy Council.
The firm directors are in charge of distributing the audited financial statements to the shareholders at each Annual General Meeting (AGM). This guarantees the company's financial reporting will be transparent and accountable.
Services offered by Enterslice
- Bookkeeping Services: We provide complete bookkeeping services that include the meticulous maintenance of different accounting records. Maintaining accurate and organized financial paperwork, such as cash books, general ledgers, fixed asset registers, and sub-ledgers for accounts receivable and payable, is one of them.
- Management Services: We assist in the compilation of management reports, which include periodic accounts, cash flow statements, budgets, and forecast that suit management's informational needs.
- Financial Report Services: Our services also include assistance with the development of yearly statutory financial reports, guaranteeing regulatory compliance, and supporting efficient filing processes. Furthermore, we provide crucial audit support by serving as a liaison between the firm and external auditors throughout the review of the financial records. This teamwork guarantees that the audit process runs smoothly and efficiently.
- Treasury Services: We provide treasury services to our clients in order to provide assistance and streamline payment processing, resulting in a seamless and effective financial management process.
- Other Services:
- Our controlling services include a thorough evaluation of cost claims and payment applications while accounting, tax, and control regulations are taken into account. This comprehensive methodology assures regulatory compliance and adherence while optimizing financial procedures.
- Providing in-house accountants with training to help them improve their skills and expertise.
- Establishing control procedures and accounting policies for the customer's accounting department.
- Supplying qualified managers and accountants on a contract or freelance basis.
- Assessing accounts for suitability and making recommendations for development.
Our experts are committed to offering dependable and efficient accounting services that are customized to meet unique needs of each customer. We strive to deliver accurate financial reporting, regulatory compliance, and well-informed decision-making for the operational success of our clients.