1. Accounting(Toshiba Scandal)
On September 7th, the Japanese conglomerate Toshiba released a Restatement of Past Financial Results, an Outline of FY2014 Consolidated Business Results, a Submission of 176th Annual Securities Report and an Outline of Recurrence Prevention Measures, etc.
As a result of the Restatement of Past Financial Results, income before income taxes (Cumulative 2008-14/3Q) decreased to JPY358.2 billion from JPY583.0 billion, a deduction of JPY224.8 billion.
Here is a breakdown of this amount: Items delegated to the Independent Investigation Committee, JPY151.8 billion. Self-check, JPY4.4 billion. Effects incidental to restatement, etc., JPY68.6 billion. Also, broken down by the type of correction: percentage-of-completion methods, JPY47.9 billion. Component transactions, etc. in the PC business, JPY57.8 billion. Valuation of inventory in the semiconductor business, JPY37.1 billion.
2. Tax (Decision of the Supreme Court about eligibility of corporations for U.S. LPS)
On July 17th, 2015, the Supreme Court adjudged that Limited Partnerships (LPS) established by Delaware state law in the U.S. should count as corporations for Japanese tax purposes. Since there is no specification by Japanese corporate tax law for U.S. LPSs counting as corporations for Japanese tax purposes, the Supreme Court indicated that it would be necessary （1） to examine whether bodies established in accordance with foreign Acts., non-doubtfully, specifically, have comparable legal status as corporations for Japanese tax purposes. When this is not the case, it will be necessary （2） to examine whether bodies are subjects to which rights and obligations are attributable.
Providing such a two-stage criteria, the Supreme Court adjudged on this specific case that Delaware LPSs can be bodies which such rights and obligations can be attributed and account as corporations for Japanese tax purposes, according to above （2）.
Additionally, this specific case is a winning lawsuit for the Taxation Bureau in that the Supreme Court rejected decisions of the Nagoya District Court and the Nagoya High Court in favor of the taxpayer. Therefore, it is worth paying attention to if the Supreme Court will provide the same judgment on the similar pending court proceedings.
3. Labor Management(Enactment of Act to Promote Women’s Active Participation in Working Life)
In recent years, the Japanese government has been strengthening various efforts to encourage companies to provide more opportunities to female employees. To further enhance these efforts, the government has enacted a new act to promote women’s active participation in working life, under which large companies are required to set numerical targets for the number of female employees to be hired or promoted to managerial positions.
From April 1, 2016, large companies with 301 or more employees will be required to draw up, file and publicize action plans to promote women’s active involvement, and if such efforts are certified to be “excellent”, the Minister of Health, Labor and Welfare will provide a mark of certification which can be attached to their products, etc. The target is non-binding for medium and small sized companies with 300 or fewer employees.
It is expected that companies will take advantage of the certification mark as proof that female employees are taking active roles. This will improve their corporate image and help them secure human resources.(Source: Ministry of Health, Labor and Welfare special website for women’s active participation act)
4. This Week’s Words of Wisdom(Source: 100 words in the world)
“Nearly always people believe willingly that which they wish.”
(Julius Caesar / Roman religious, military, and political leader)
Face up to issues which we do not wish to believe, do not run away from them. Following that, begin a successful action.I believe that repetition of these steps will be lead us to success.
The referring page is Nagamine & Mishima JC Accounting K.K.