Deferred Assets

Deferred Assets

Deferred assets under the Japanese Tax Code consists of 2 categories. One is deferred assets recognized in generally accepted accounting principle such as

1. Inaugural Expense
2. Business Commencement Expense
3. Research & Development Expenditures
4. Share Issuing Expense
5. Bond Issue Cost

Another is deferred tax uniquely defined under the Japanese Tax Code. The Deferred Tax uniquely defined under the Japan tax code are expenditures which benefit is expected to extend more than 1 year on certain conditions. Examples are giveaways of promotional usage equipment and lease repayments. Deductible amount varies depending on certain criteria for this Japan tax code unique deferred tax. Some royalties fees fall into deferred assets so we advise you work closely with the accounting office.