1. Accounting (Source: “Keieizaimu Magazine”)
ASBJ released “Discussion Paper on Revenue Recognition”(the DP) following the discussion paper of IASB and FASB. In the DP, ASBJ introduces the international trend of revenue recognition and invites comments on Japanese standards for revenue recognition.
Among the issues dealt in the DP, the following two bases may affect Japanese business practices.
1) The Percentage of Completion Method
Based on IFRS’ framework, revenues should be recognized when the control of goods and services is transferred to customers. Accordingly, the percentage of completion method in accounting for construction contracts will not be permitted since the transfer of control over buildings is recognized only after the completion of construction activities and the delivery of subject matter based on the current method.
2) The Shipping Basis
The revenue recognition on the shipping basis will not be permitted as well, because the shipping of goods by itself does not mean that customers get control of using the goods and getting the benefit from them.
2. Taxation (Source: “Zeimutsushin Magazine”)
Under the 2009 Tax Reform, the corporation tax rate for Small and Medium-sized Enterprises (defined as a company capitalized at JPY 100 million or less, and so on) is lowered from 22% to 18 % for the fiscal years ending from April 1, 2009 to March 31, 2011 on its first JPY 8 million of taxable income.
3. This Week’s Words of Wisdom
“The longer man lives, the more shame he endures.”
(Buddhist Priest Kenkō)
For me, “Essays in idleness”, The Tsurezuregusa written by Kenkō is one of my favorite books. Two years ago, I had a chance to visit the remains where there was a house of Kenkō. I believe the location is in the area of Omuro in Kyoto. In fact, there is a temple or something built on the remains, so we can’t enter the place.
As I think he is a great essayist representing Japan, I feel disappointed when I compare the remains with the museum of Victor Hugo in Paris.
You could put this all down to cultural differences and that would be a Japanese style. However, I strongly hope that the Japanese government would allocate more of the budget for historical and cultural issues, aside from the creation of the National Media Art Center criticized as a “national manga cafes”.