Fujitsu Launches Support Services for International Financial Reporting Standards

Fujitsu today announced the launch of a new consulting service solution to support companies that are considering bringing their businesses into line with the International Financial Reporting Standards (IFRS), which became optional in Japan starting in 2010.

Fujitsu's IFRS Transition Support Consulting Services will pinpoint trouble-spots that may emerge in the accounting systems and business processes when companies make the transition to IFRS, and will support businesses in developing and applying solutions. Practical training will also be offered to help companies adapt to IFRS.

These services will help clients quickly take the necessary steps to become comprehensively IFRS-compliant, including transitioning their ICT systems.

IFRS is a set of international accounting standards that Japan is considering adopting domestically. For companies currently employing Japan's existing accounting standards, IFRS adoption has various ramifications for company management, bookkeeping, financial operations, and business processes. While it is difficult to foresee the extent of these ramifications, each company will face a unique set of issues it needs to address.

Fujitsu will be offering IFRS Transition Support Consulting Services to customers in order to help companies reduce the workload involved in the transition process.

In delivering these services, Fujitsu is drawing on its internal expertise, centered on the dedicated IFRS team established within its Marketing Unit in October 2009, and will continue to enhance the team by establishing its links to related departments and affiliated companies.

Services Overview

1. IFRS Transition Support Consulting Services
   This service supports customers during the preliminary stage of transition in pinpointing and analyzing differences between IFRS and their currently employed accounting standards. In addition, it helps them to analyze the impact of the transition on their management, accounting system-related business processes, and ICT systems. Furthermore, it assists customers in laying out a roadmap for IFRS adoption and creating their own transition project team.
   
   Key Benefits
   
   1. Fujitsu will work with the customer and its auditors to build and employ a framework for resolving issues in accordance with the customer's own policies and standards, as well as provide in-house training.
   2. Fujitsu will assist customers in determining a course of action for reconfiguring or upgrading ICT systems, which can be significant challenges in IFRS adoption, by incorporating solutions optimized for enhancing customers' managerial abilities (accounting-system templates and platforms).
   3. Fujitsu's dedicated team of professionals includes CPAs, accounting system engineers, and business consultants will provide support.
   IFRS Preliminary Phase
   
   • Fujitsu will conduct an analysis of differences in accounting procedures and their impact on business and ICT systems through information gathering methods such as interviews with the customer's ICT, accounting and other related departments.
   • Fujitsu will then lay out a basic companywide plan for the transition to IFRS based on the results of these interviews and IFRS standards revisions.
   • Fujitsu will assist with the launch of a companywide IFRS transition project that follows this companywide basic plan.
   IFRS Study Phase
   
   • Fujitsu will conduct a detailed survey to examine the individual differences in accounting standards between the customer's ICT, accounting and other related departments.
   • For each issue, such as methods for evaluating performance, Fujitsu will identify current trends in accounting, business processes, and ICT as they relate to each issue and then assist in developing plans to address these based on Fujitsu's own experience.
   • To ensure smooth communications between all parties involved, Fujitsu will assist with documenting the entire study phase through detailed surveys and plans, as well as help customers to develop accounting rules and coordinate with outside auditors.
   IFRS Application Phase
   
   • Based on Fujitsu's own experience and current trends in accounting, business processes, and ICT, the company will help customers to resolve problems, such as interdepartmental coordination issues, that arise in the implementation of the plan.
   • Fujitsu will assist in training system users to ensure the smooth transition.
   • Fujitsu will help the customer to improve its ability to handle problem areas arising in the operation of new business processes or systems.
2. IFRS Transition Training
   As the basic principles underlying IFRS differ from Japanese and American accounting practices, businesses adopting IFRS will need to develop an accurate understanding of them on a companywide level. Fujitsu has developed unique instructional materials that use its own experiences as a point of reference, and has instructors that can provide on-site training that will teach customers how to interpret the standards and appraise the impact they will have on systems.
   
   This training is designed to cover a broad spectrum of personnel, from company executives to staff in areas such as accounting, sales, and ICT. This training will result in a deeper understanding of IFRS from an accounting perspective and from a general-business perspective.

Future Service Offerings

Fujitsu plans to gradually expand its services to offer a comprehensive solution for customers who deploy new ICT systems after deciding to transition to IFRS. Depending on the customer's existing business systems, this will include designing, building, operating, and maintaining accounting solutions and mission-critical systems.

Pricing and Availability

Sales Target

JPY 2 billion over the next 3 years