CONTRIBUTION OF ACCOUNTING INFORMATION SYSTEM SOFTWARE TO THE PERFORMANCE OF TELECOMMUNICATION INDUSTRIES! CASE STUDY: MTN Rwanda-cell Plc (Headquarters)

Abstract

Mobile telecommunication companies have emerged as an important economic sector in present time, and it is adding a lot in boosting up the economy of Rwanda. The mobile telecommunication companies in Rwanda are aiming at providing cost effective and quality services to the customer as customer satisfaction is most important for the survival and success of any company. For this purpose, the mobile telecommunication companies need an efficient AIS for providing necessary information to its various users. The user group includes creditors, investors, lenders, regulators, trade union and management and many others who take their necessary decisions based on the information by the annual reports of the companies. Appropriate and efficient AIS is needed by the companies to provide relevant and reliable information to the interested users in time. The appropriate AIS depends on the relevant accounting policies, principles and most importantly the standards set by both national and international bodies. Legal framework of a country gives clues to framing appropriate AIS for an organization. The objectives of the study are to know the major characteristics of AIS, analyze the opinions of the respondents regarding the application of legal framework and compliance with accounting standards, judge the efficiency of AIS through selected indicators, identify the factors influencing the efficiency of AIS and analyze the opinions of the respondents regarding the qualitative characteristics of accounting information produced by AIS. There are three mobile telecommunication companies in Rwanda and I have selected one mobile telecommunication company MTN Rwandacell PLC. The AIS of the selected company is fully computerized and accounting software are used for recording transactions, processing of transactions and preparing the financial statements to the interested users. The financial statements are prepared on going concern basis under the historical cost convention using Generally Accepted Accounting Principles (GAAP) in accordance with accounting standards. The accountants who are responsible for performing the various activities of AIS should be trained properly so that AIS can deliver relevant information for all concerned. Accounting information should be timelier, and well-structured for various interested users so that they can make effective, dynamic decisions. Internal control activities, functions of audit committee, management control activities and corporate governance etc. should be coordinated. ICPAR may try to organize more seminars for developing AIS, MIS, Decision Support System softwares, Executive Information System software and Expert System software