1. Accounting (Source: “Keiei Zaimu Magazine”)
On June 30, 2010, the Accounting Standards Board of Japan (ASBJ) published the “Accounting Standard for Presentation of Comprehensive Income”.
According to this standard, listed companies will be required to disclose comprehensive income in their consolidated financial statements for fiscal years ending on or after March 31, 2011.
Companies can elect to present its profit & loss statement and components of comprehensive income in a single combined statement or in two separate statements.
The new standard does not require disclosure of comprehensive income in the separate financial statements.
In the first year of application, companies are required to disclose in their notes to the financial statements the comprehensive income of the immediately preceding year.
2. Taxation (Source: “Zeimu Tsushin Magazine”)
Under the Foreign Dividend Exclusion System, foreign withholding taxes on qualifying distributions are treated as non-deductible expense.
Foreign withholding tax in this context includes foreign corporate taxes attributable to domestic companies.
In the case of a US LLC which elects to be taxed as a pass-through entity under the US check-the-box provisions,
foreign withholding tax imposed on the portion of LLC income attributable to a domestic corporate member will be considered as non-deductible expense
because a US LLC is regarded as a foreign company for Japanese tax purposes.
3. This Week’s Words of Wisdom (Source: “English words of wisdom to enrich life”)
“You can only protect your liberties in this world by protecting the other man’s freedom. You can only be free if I am free” (Clarence Darrow).
The United States was able to exert its influence as a world leader up until the Lehman crisis presumably
because this kind of mentality was still prevalent among the American people.