Taxation (Source: “Zeimutsushin”)
1.Accounting(Opinion based on the data of “Keieizaimu Magazine”)
ASBJ held a meeting on January 15, 2010 and discussed amortization of goodwill.
In the meeting, their opinion on amortization of goodwill was split in two between its supporters who stand for “Matching Principle” and its opponents who stand for “Convergence”.
I wonder why opinions of the supporters are still expressed since Japanese GAAP will remain inconsistent with IFRS if goodwill continues to be amortized as ever and the conversion from Japanese GAAP to IFRS is already gaining national consensus.
IFRS is a set of financial reporting standards developed for direct capital market and based on DCF concept of finance. Accordingly, non-amortization of goodwill is theoretically a rational approach and discussing amortization of goodwill seems to be barren in the current conversion process of accounting framework from traditional approach to IFRS. Therefore, their ideas will not be neither heard nor put into effect unless they barge into IASB and persuade them into accept their points.
２．Taxation (Source: “T&A”)
National Tax Agency clarified that foreign corporate tax imposed on the base amount for calculation of dividend amount from surplus includes amount of foreign corporate tax imposed on the amount considered to be attributable to a domestic corporation, a member of LLC at its state. (Corporate tax circular 9-5-5)
３．This Week’s Words of Wisdom (Source: “English words of wisdom to enrich life”)
“Chance favors the prepared mind” (Louis Pasteur)
As I get older, I come to think that it is absolutely true. After all, we have to carve our own path and we get a chance in that process