1. Accounting (Source: “Keiei Zaimu Magazine”)
According to a recent survey conducted by magazine “Keiei Zaimu”, many companies have reconciled fiscal year-ends in their group companies to cope with the upcoming application of IFRS in Japan.
The survey, conducted in early February 2012, revealed that three companies in 2010, eight companies in 2011, and one company in 2012 have announced changes to their fiscal year-ends.
Six out of the twelve companies changed their fiscal year-ends from March to December to coincide with those of their overseas subsidiaries. The changes to fiscal year-ends can be seen to be a result of companies recognizing the need to have timely and appropriate disclosure of company information, budget and performance control, and more efficient project operation.
Earlier settlement of accounts resulting from changes to these fiscal year-ends and the linked accounting systems will require some degree of investment in systems.
However, it can be surmised that the advantage of reconciling the fiscal year-end and more efficient performance control over investment is sufficiently worthwhile.
2. Taxation (Source: “Kokusai Zeimu Magazine”)
The tax treaty between Japan and Saudi Arabia has been newly entered into force in September 2011. This applies to income subject to withholding tax on or after January 1st 2012.
Regarding income which is not withheld, this treaty applies to fiscal years starting on or after January 1st 2012.
Limited tax rates on investment income are as follows:
a) Between parent and subsidiary companies
(requirements of share holding rate) 5%(10% or more)
b) Other 10%
a) In case beneficiary is a government Exempted
b) Other 10%
a) Facility use 5%
b) Other 10%
3. This Week’s Words of Wisdom (Source: English Words of Wisdom to Enrich Life)
“I can think of nothing less pleasurable than a life devoted to pleasure.”
(John D. Rockefeller)
Boldly speaking, the aged can be classified into two categories – those who always make a strong effort to achieve a certain goal and those who live their daily life within the knowledge and habits they have experienced, oftentimes prioritizing their need for pleasure.
For me, I would not object to the abolition of either the House of Councillors or the authoritarian system.
People have deferred making difficult decisions in the past and now the young have to pay for it. If today’s system in Japan is preserved with past experiences, it will end up being the outcome of the past and nothing will change tomorrow from today.