1. Accounting (Consolidated subsidiaries)
On March 29th the Accounting Standards Board of Japan (ASBJ) issued PITF No.18 Practical Solutions on the Unification of Accounting Policies Applied to Foreign Subsidiaries, etc. for Consolidated Financial Statements and PITF No.24 Practical Solutions on the Unification of Accounting Policies Applied to Associates Accounted for Using the Equity Method.
This revision enables, for the time being, domestic subsidiaries and domestic affiliated companies to utilize financial statements complied with Designated International Accounting Standards or Japan’s Modified International Standard (JMIS) for consolidated settlements.
For each year starting from April 1st, 2016 for ultimate parent companies of multinational enterprise groups (MNE groups), if the consolidated revenue of the MNE group for the prior year of the ultimate parent is more than 100 billion JPY, its domestic companies must submit a notification about the ultimate parent company with all the required items filled in to the National Tax Agency via e-tax by the end of each year.
In cases where the ultimate parent is a foreign company, its domestic companies must ascertain the consolidated revenue in the prior year of the MNE group to decide if the notification needs be submitted.
3. Labor Management(Temporary revision of the employment insurance premium rate for 3 years, effective as of April 1st, 2017.)
The Labor Standards Inspection Office introduced a bill to the Diet reviewing the employment insurance premium rates for years 2017 and after, and it has been enacted into law. This bill is related to the employment insurance system, whose aim is to provide unemployment benefits to unemployed people to ensure the stability of life and employment, and also the promotion of employment. Due to the signs of stability in the job market and the reserved fund at the end of 2015 for unemployment benefits had reached an all-time high of JPY 6.426 billion, it came into force.
Upon this change, the rates for both employee contribution and employer contribution in each year from April 1st, 2017 to March 31st, 2020 will decline by 1/1,000. Accordingly, the government contribution will be reduced as well.(Source: The Ministry of Health, Labor and Welfare website)
4. This Week’s Words of Wisdom
“Although it gives an advantage, lying ruins reputation. In the long run, losing credit leaves much more loss of profit than profits gained by deception That is diplomacy, honesty is the best policy in diplomatic business.” (Harold Nicolson, British diplomat) From “Maxims to Motivate”, Masaru Sato
It is a danger to assess by reporting from only the Japanese mass media though, I feel like giving those words to neighboring countries who don’t get along.
The referring page is Nagamine & Mishima JC Accounting K.K.