Myanmar Stock Exchange

Accounting Outline


  1. What is accounting?
    1. Accounting is one of the key elements of capital market. It measures companies’ performance and provides essential information for investors, regulators, and other stakeholders alike enabling an informed decision.
    2. Why accounting is needed in the business? How much is the business’s profit or loss according to an acceptable standard.
    3. Timing is important. Monthly/Quarterly/Yearly
    4. List of standards: IFRS, MFRS and etc.
    5. Other samples of Standards: US GAAP, US SEC and IAS.
    6. Accounting is different from book keeping and auditing. Auditing can be external, internal and regulatory.


  1. What is standard?
    1. For Capital Market, Financial statement should have the same standard so that we can compare between different companies. If companies follow different standards, there wouldn’t be any comparability between one company to another?
    2. Need to know before investing: Through prospectus. What is prospectus? A prospectus is a disclosure document regarding a company with respect to all sort of internal information such as financial statements, management and its board of directors, any material information and etc..
    3. In Myanmar, How many books does a company keep?
    4. Who is required to prepare FS based on the standard? i.e. Fully listed company? Limited company? Best practice?


  1. Why investor (You) needs to know financial statement?
    1. You don’t want to lose money.
    2. You want to invest in good company.
    3. Myanmar does not have good history. Investors lose money, or cheated by companies.
    4. Your understanding would help you make a better decision.
    5. Financial statement elements (BS/IS/CS/Notes) are key components for understanding the PAST performance. But there are more:

                                          i.    Why we need BS? Why we need IS?

                                        ii.    One page with terminology. Go through quickly and let audience know that they will be covered in Intermediate and Advanced class (copy from page 2 or 3).

6. Show sample of financial statements.


  1. Who audited financial statement? Can you trust them? What is their responsibility to You?
    1. Concept of Internal Control
    2. Who are the auditors? Qualification. Responsibility.


  1. Foreign practices. How accounting field helps capital market in foreign countries? Law suit (explain).