1. Accounting (Source: “Keiei Zaimu Magazine”)
According to a questionnaire conducted by the Business Society of Zeimu Kenkyukai Inc., 101 companies, or nearly half of those companies which answered the questionnaire, state they will alter the target period for application of the IFRS. 16% of responding companies indicated that they have already suspended all actions for the application, which show to no small extent the effects recent comments by the Minister of Financial Services have had. Speaking on June 21st, 2011 the Minister said that companies would not be enforced to apply the IFRS for the term ending March 2015, and that a preparation period from five to seven years will be set in the case companies are enforced to apply the IFRS. Furthermore, the Minister stated that US GAAP will be continuously applied after the term ending March 2016. However, of the 70 companies which indicated they had already put together IFRS application project teams, less than 30% of the companies have decided to discontinue such projects. The majority of the companies noted a concern about setbacks that would result from such suspension, while others voiced hope for voluntary application.
2. Taxation (Source: “Zeimu Tsushin Magazine” and “Monthly Zeiri Magazine)
Presently, general taxation is applied (at a maximum tax rate of 50%) to the profit borne through over-the-counter transactions as miscellaneous income. However, from January 1, 2012, self-assessed separated taxation at a 20% flat tax rate will be applied to the profit from derivative transactions initiated by an individual regardless of whether via market or over the counter. At the same time, it will also become possible to aggregate profit and loss derived from both marketing transactions and over-the-counter transactions. The remaining loss through the aggregation is able to be carried over for three years.
For transfer of gold bullion done on and after January 1, 2012, businesses that sell gold bullion to permanent and other residents have to file a payment record to the competent tax office by the end of the month following the month when the amount of the payment is determined.
3. This Week’s Words of Wisdom
“Character is like a tree and reputation is its shadow.
The shadow is what we think of it; the tree is the real thing.”
While one should not worry about their reputation more than necessary. I wonder if we shouldn’t take care of it in its own way, since a “shadow” can’t exist without the “tree”. I’m often inclined to cover my ears intentionally to rumors that are not flattering.