1. Accounting(Proposals for footnotes on Revenue Recognition Accounting.)
The ASBJ is currently working on footnotes regarding revenue recognition matters, and the following matters have so far been suggested as significant accounting policies:
1)Details of the performance obligations of major corporations
2)The point at which an entity satisfies its performance obligations under normal
In addition to the above, any information considered to fall under the category of significant accounting policies when contrasted with general principles has been put forward for consideration to be recognized as significant accounting policies. Furthermore, it also has been suggested that entities are encouraged to adopt what they consider to be suitable for disclosure on income statement, such as, but not limited to, sales, sales revenues, and operating revenues.
2. Tax(FY 2020 Tax Reform Requests (International Tax Matters))
Tax reform requests for FY2020 were received from each ministry at the end of September. For international-related taxation amendments, the Ministry of Economy, Trade and Industry has made the following statement regarding digital economy taxation: “Making allowances for international discourse trends resulted from the OECD or the like and the current operations of Japanese corporations in overseas markets, those amendments are to help not overburden corporations, securing an equal footing with overseas entities.”
To date, the OECD hasn’t yet come to any conclusions. Therefore, the requests are still in the abstract, and the chance for any requests to be included in legislation for FY2020 is very slim. Additionally, the BEPS Action 12: Mandatory Disclosure Rules hasn’t shown any movement towards becoming enacted. As such, any adjustments to international tax matters are likely to be trivial.
3. Labor Management (Regional Minimum Wage)
Under the minimum wage system, the government stipulates the minimum amount of hourly wage that must be paid to a worker. An employer must pay at least the minimum wage or more to a worker.
Japan has two types of minimum wage; “Industrial minimum wage” which applies to workers in specific industries and “Regional minimum wage” which applies to all workers regardless of the age or type of employment (part-timer, student part-timer, etc.).
According to the first report in Reiwa era which was recently submitted by the Local Minimum Wages Council, the Regional minimum wage exceeded 1,000 JPY for the first time in Tokyo and Kanagawa, and the amount of increase exceeded the aimed standard in 19 prefectures nation-wide, mainly in Tohoku and Kyushu area. The national weighted average amount of increase was 27 JPY, which was the highest since the start of the target standard system in 1978.
The revised minimum wage amounts will come into effect in each prefecture from October 1, by early October at the latest.(Resource: Ministry of Health, Labor and Welfare, press releases “Report on regional minimum wages for all prefectures”)
4. This Month’s Words of Wisdom
The world is a dangerous place, not because of those who do evil, but because of those who look on and do nothing.(Albert Einstein)
Whether rumors around him are true or not, I know of no other American president ever elected as contentious as the current one. When confronted with an absolute dictatorship, making protests is one thing, but whether any change is made is another matter.
For more details, please refer to Nagamine & Mishima JC Accounting K.K.