August featured business affairs

Labor market, Salary, business, business solutions, law, accounting, visa, set up, incorporate

1. Accounting(Revenue recognition basis – Disclosure)

As for the ASBJ Statement No.29 Accounting Standard for Revenue Recognition, the Accounting Standards Board of Japan (“ASBJ”), is reportedly discussing the relevant issues with disclosure and presentation, aiming for its effective date – the beginning day of the corporation’s first fiscal year no earlier than April 1st, 2021.

Looking at each issue in this standard, the ASBJ currently recommends classifying the disclosure method under IFRS No.15 as below;

(1)Information of revenue analysis

(2)Essential information to understand the sense of revenue
(a)Contracts and performance obligation (step 1 and step 2)
(b)Determining the transaction price (step 3)
(c)Transaction price allocated to the performance obligations (step 4)
(d)Timing when performance obligations are satisfied (step 5)
(e)Significant judgements of application of this accounting standard

(3)Information for figuring out the revenue amount of current and further years.
(a)Amount of contract balance outstanding
Transaction price allocated to the remaining performance obligations

2. Tax(No.7: Taxation on non-residents involved in the Tokyo-Olympics & Paralympics)

The outline of Tax Revisions for 2019 was released on December 14th, 2018. Continuing from the previous issue, we would like to share an overview related to international taxation issues.

Incomes indicated below earned in Japan by non-resident individuals who have taken part in the Tokyo-Olympics and Paralympics (hereinafter collectively referred to as “Olympics”), such as athletes, persons related to Olympic teams, judges, administrators and other specified persons, between April 1st 2019 and December 31st 2020, shall not be subject to income tax in Japan.

Compensation and other income generated from participating in the Olympics Games and granted for the result of competition

(2)Persons related to Olympic teams
Compensation generated by coaching and supporting above athletes in Japan

Compensation and other income generated by judging activities at the games.

(4)Persons who earn compensation from foreign corporations
Compensation and other income granted by foreign corporations generated from preparation or administrative services for the Olympics.

Topics for foreign corporations engaged in the Olympics activities will appear in the next issue.

3. Labor Management (Employers Need to Support Employees in Balancing Work and Family)

In Japan, the population of senior citizens is increasing, and the post-war baby boomers who were born between 1947 and 1949 have reached their 70s.Due to these circumstances, the number of workers leaving employment to take care of family members reached 99,000 in 2017.

The growing number of workers leaving employment causes a human capital outflow, and there are concerns over labor shortages and increased overtime work. On the other hand, people who are working and taking care of family members at the same time are at risk of exhaustion.

About 70% of the workers taking care of family members are managers/supervisors in their 40s to 50s, who play key roles in their organizations.

In order to reduce the workers leaving employment to take care of family members and retain those valuable human resources, employers should pay close attention to the trends in work style reform and the latest technology so that they can support their staff in balancing work and family.

(Source: 2016 Basic Survey on Employment Structure by the Statistics Bureau (MIC), “Promotion of Balancing Work and Family” by the Ministry of Health, Labor and Welfare)

4. This Month’s Words of Wisdom

A man is not finished when he is defeated. He is finished when he quits.
Richard Nixon(1913-1994)

In other words, every competition might result in competing with yourself.

For more details, please refer to Nagamine & Mishima JC Accounting K.K.

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