The company has decided to early adopt IFRS (International Financial Reporting Standards), but compared to the current Japanese GAAP, the accounting treatment of fixed assets required by IFRS is extremely complicated. The company's system must be able to handle certain items such as asset retirement obligations and other IFRS convergence and adoption items. The cost was expected to be almost the same as building a new system.

In addition, the IFRS standards themselves are said to be "moving targets," and there are cases where the standards themselves change, and the existing system may require additional system modifications each time the standards change, which could increase costs.
The company was faced with the need to compare the use of the existing system with modifications and the introduction of a completely different system.

As a result of the comparative study, the company decided to introduce a system different from the existing system, and ultimately selected "HUE Classic," which had already been implemented since 2009 and had a proven track record of successful implementation.
HUE Classic" was also highly evaluated for its unique product concept of providing all customers with the necessary functions free of charge each time, not only for asset retirement obligations, but also for IFRS convergence and adoption that will occur in the future.

HUE Classic" is also attractive to the company because it reduces the cost of unforeseen responses to future revisions of IFRS fixed asset-related matters, since the functions required by IFRS revisions are provided free of charge within the scope of the annual maintenance fee.

Another decisive factor in the adoption of "HUE Classic" was its ability to respond quickly to system changes, as its standard functions cover the requirements of all types of industries and business categories, and only require parameter settings when introduced or when changes to the system occur.

The HUE Classic implementation project was completed in approximately six months with a minimum number of personnel, as originally planned.

As mentioned above, one of the deciding factors in the company's selection of HUE Classic was its flexibility in supporting IFRS, but the expandability of its functions beyond IFRS was also a key factor in the selection process.

The company's November 2013 version upgrade included various functional improvements, particularly in the area of depreciable asset tax reporting, which was significantly streamlined and improved. In addition to managing tangible fixed assets, the company also began managing intangible fixed assets in FY 2014. In addition, the company is expanding the scope of its use of HUE Classic with subsequent projects such as lease asset management.

Looking ahead, the company is considering how to manage the book value of fixed assets of its 354 consolidated companies (as of March 31, 2014) on a consolidated IFRS basis in the future, and has determined that HUE Classic is superior for consolidated book value management from a medium- to long-term perspective.
In addition, the company will participate in the "HUE Classic" User Committee, one of the largest user groups in Japan, and share examples of "HUE Classic" utilization through user newsletters and other means.

Works will continue to further expand functions and improve convenience through its close support system, including @SUPPORT.

This article is based on an interview conducted in June 2014.