Nagamine & Mishima Consulting

Accounting practice since 1989

  • English
  • 日本語 (Japanese)
  • About
    • Message from the Managing Partner
    • Leadership
    • Advantage
  • Services
    • Startup Support
    • Expansion Support
    • Crisis Support
    • Cloud Support
  • Resources
    • Seminars
    • Newsletters
    • Monthly Checklists
    • Japanese Business Guide
  • Blog
  • Clients
  • Contact

52nd, exchange rate, Zeimu Tsushin Magazine, FOWERS NEVER BEND WITH RAINFALL

October 7, 2011

1. Accounting (Source: “Keiei Zaimu Magazine”)

According to the survey by Tokyo Shoko Research, leading manufacturers are for the most part assuming an exchange rate in the 80-yen range. The survey further revealed that 244 of 433 leading manufacturers (56.3%) in the first and second sections of the TSE booked foreign exchange losses in Q1 of the fiscal year ending March 2012. The total amount of the foreign exchange losses recorded was 63.77 billion yen for the 203 companies in the first section and 3.3 billion yen for the 41 companies in the second section of the TSE. Nissan Motor’s loss of 6.01 billion yen was the highest foreign exchange loss amongst the 244 companies. The industry’s exposure to foreign exchange risk was reflected by the fact that three of the five highest foreign exchange losses belonged to car manufacturers.

In comparison to the foreign exchange losses seen in the same period last year (208.8 billion yen), a period which saw rapid appreciation of the Japanese yen, the total of foreign exchange loss has decreased. However, if the current situation continues, companies may increasingly consider moving operations overseas for cost savings (in addition to concerns about risks related to deindustrialization and the worsening employment situation in Japan). On the other hand, domestic companies planning overseas acquisition have very much appreciated the strength of the yen.

2. Taxation (Source: “Zeimu Tsushin Magazine”)

The Tokyo District Court ordered that Limited Partnerships (LPS) established in Delaware, U.S.A. do not equate to a “corporation” according to the Japanese Tax Laws Act. As such, real estate related losses in this case should be included in the member’s income calculation.

The District Court’s opinion is based on whether or not the entity is granted corporate status under foreign laws. In this case, according to the Delaware LPS laws, the LPS is not considered a “corporation” and therefore the LPS does not receive corporate status under domestic tax law.

This case is pending in the Tokyo High Court.

3. This Week’s Words of Wisdom

“FLOWERS NEVER BEND WITH THE RAINFALL”
(Lyrics by PAUL SIMON)

It’s no matter if you’re born
To play the King or pawn
For the line is thinly drawn ‘tween joy and sorrow,
So my fantasy
Becomes reality,
And I must be what I must be and face tomorrow.

So I’ll continue to continue to pretend
My life will never end,
And flowers never bend
With the rainfall.

When I heard that Paul Simon performed “Sound of Silence” at the 9/11 memorial ceremony, I remembered this song.

I think the lyrics to this song have a very touching sensitivity.

Blog Categories

  • Blog
  • Facts about Tax
  • Newsletter

Need support for your business in Japan?


With over 25 years experience, our team is here to help. Fill out our simple contact form and we will be in touch very shortly.

People are Talking

  • “YOOX’s business partnership with Nagamine & Mishima Office started in 2004, when the Italian company landed in the Japanese market.

    Nagamine & Mishima Office worked very closely on helping YOOX to set up the corporate, accounting and tax procedures according with the local requirements.

    In the these 10 years of operations in Japan, Nagamine & Mishima Office has always supported YOOX to reach its goal, with a very professional and proactive approach and a unique working way: efficient, kind, timely and careful to details. We would recommend them to anybody! “

    Paolo Bedodi, Financial Controller

    YOOX GROUP