1. Accounting (Source: “Keiei Zaimu Magazine”)
～Partial Revision to the Listing Rules in response to the Great East Japan Earthquake～
Since April 15, the Tokyo Stock Exchange (TSE) has been working to modify its listing rules as a measure to “support the operations of listed companies and initial listing candidates that were affected by the earthquake”. Specifically, the TSE has eased one of its delisting criteria “Liabilities in Excess of Assets” by granting a grace period of two years for recovery (normally one year) on condition that the excess liability condition was caused by extraordinary losses resulting from the Great East Japan Earthquake. Further, the TSE announced that “Suspension of Business Activities” would not be considered a delisting event as long as it is a temporary suspension caused by the earthquake. Special provisions have also been introduced for initial listing candidates such as waiving listing examination fees upon future reapplication provided that certain conditions are met. These revisions have entered into force on June 1, 2011.
2. Taxation (Source: “Zeimu Tsushin Magazine”)
In 2006, a trust holding five million dollars’ worth of U.S. treasury bonds kept in Switzerland was created with the U.S. trust company as trustee, the grandfather (a Japanese national) as trustor and his grandson (a U.S. national) as beneficiary.
With respect to this trust agreement, an administrative order was issued alleging that a gift from grandfather to grandchild had been made when the trust was created. The beneficiary filed suit to seek cancellation of this order, and the Nagoya District court subsequently made a ruling in favor of the beneficiary.
The district court ruling stated that the beneficiary was not in a position to benefit from the trust upon establishment because the trust is non-cancellable and the trustee is granted discretion over the trust. The government has made an appeal against this ruling.
3. This Week’s Words of Wisdom (Edited from: NHK “GIFT-The World of Famous E-Quotes－“)
“There are no shortcuts to any place worth going.”
（Beverly Sills, American opera singer）
Recently, I find myself selecting quotes that are similar in nature. This is probably a reflection that words engraved in people’s mind are the same regardless of the country or era we live in.