1. Accounting (Source: “Keiei Zaimu Magazine”)
1) Following the release of “Accounting Standard for Presentation of Comprehensive Income”, the Ministry of Justice published on July 30,
a proposed amendment to the Ordinance on Accounting of Companies. This amendment is scheduled to enter into force beginning September 30, 2010.
2) Financial Services Agency (FSA) to introduce a new national qualification in the accounting profession, tentatively called “Financial Accountant”
This is a “pre-accountant “ qualification formed in a rush to cope with the rapid increase of CPA exam passers in recent years.
A holder of this qualification is not authorized to perform audits. It will probably take several years to see whether this qualification succeeds
in gaining social recognition, but in the meantime, who will take responsibility for those who will start their careers as “pre-accountants”,
if for example this new system ends in a failure and is consequently abolished? The lack of transparency in this new system is also exemplified
by the fact that accountants are not playing a central role in the decision making process of this issue.
3) As of June 2010, the number of Japanese companies that accepted capital contributions from Chinese companies amounted to 611.
This is a 2.5-fold increase compared to the same month 5 years ago. Major transactions include home appliance retailer Laox Co.,
apparel maker Renown Inc., and golf equipment manufacturer/retailer Honma Golf Co.
２. Taxation (Source: “Zeimu Tsushin Magazine”)
The Japanese Tax Authorities are requesting companies to strongly restrict the attendance of professionals other than licensed tax accountants in transfer pricing audits.
This is presumably a warning to the current situation where professionals such as economists and analysts with no tax accountant qualification are often present during audits.
３. This Week’s Words of Wisdom (Source: 100 Selected World Famous Quotes)
“Do your work with your whole heart, and you will succeed.
There’s so little competition.” Elbert Hubbard