July featured business affairs

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1. Accounting (Accounting practice for PFI facility operators)

In 2011, the “Act on Promotion of PFI (Private Finance Initiative)“ was amended and the PFI system was newly introduced. In response to the amendment, the ASBJ announced “Accounting practice for PFI facility operators” after their discussion on the accounting treatments for PFI facility operators in order to clarify the accounting method on practical operations.

The PFI system, indicated in the accounting practice, is a system that a private sector possesses the right of the facility operation while a public body has the ownership right of the facility itself.

2. Tax

In the FY2017 tax reform, the provision of filing due dates of corporate tax returns has been amended. It allows for a one-month extension to the filing due date to be applicable even to small and medium-sized enterprises with no accounting auditors in cases where the annual meeting of shareholders is stated in the articles of incorporation to be held within 3 months from the fiscal year end.

In addition to that, enterprises with accounting auditors will be allowed to extend filing due dates by a certain period (up to 4 months) designated by the chief of the tax office in cases where it can be considered that the annual meeting of shareholders is unable to be held within 3 months from the next day of the fiscal year end every year in accordance with the articles of incorporation. These extensions of filing require the articles of incorporation to be attached to the application form describing prescribed items.

3. Labor Management (Amendment to Childcare/Family Care Leave Act (effective Oct. 1, 2017))

The Childcare/Family Care Leave Act will be amended with the aim of preventing employees from leaving employment to care for their children because they cannot find a nursery, etc.

Currently, childcare leave can be extended until the child is 18 months old if an employee cannot find a nursery. As a major amendment, childcare leave can be extended for an additional 6 months, until the child reaches 2 years old. In addition, the employee will be able to apply for the childcare leave benefit until the child reaches 2 years old.
Other amendments include the employers’ obligation to ensure that employees expecting a baby are informed of their rights relating to childcare leave, as well as the obligation to make every effort to implement childcare-related leave to support employees raising children under school age (e.g. leave for a spouse to attend a birth, family-friendly leave, leave for attending school events, etc.).(Source: Leaflet No. 5, May 2017, the Ministry of Health, Labor and Welfare)

4. This Week’s Words of Wisdom

The English Gentleman (Source: Illustration around 17th century)

“Spes in Caelis, Pes in Terris” (in Latin) / “Hope in heaven, foot on earth” (in English)
A Gentleman should consider following morality:
Youth, Disposition, Education, Vocation, Recreation, Acquaintance, Moderation, Perfection

I have learned that the words above expressed the nature of “Gentry”, which was a major stratum of society in England during the Elizabethan age in the 16th century. Transcending time and distance, it can also be a theorem that would be universally valid for Japanese leaders supporting society.

The referring page is Nagamine & Mishima JC Accounting K.K.

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