1. Accounting（Climate-Related Disclosures）
These days, climate-related articles are one of the hot topics in newspapers.
This summer, according to newspapers, the new initiative from the Financial Services Agency is expected and the FSA will require companies to make disclosures on annual securities report about climate change risk. It is possible that listed companies will be required to deal with from the first quarter of the fiscal year ending March 2022 at the earliest.
This is not only the matter for listed companies but for all the companies since companies upstream in the supply chain will demand that companies located downstream submit the data necessary for their disclosures. Therefore, almost of all the companies in Japan may have to handle the new requirements.
2. Tax (Corporate Tax Reform for FY2021 – Performance-based executive compensation of investment management corporation)
Performance-based compensation paid to executives can be deductible expenses when listed companies calculate based on the index written on the annual securities report that is defined by the Financial Instruments and Exchange Act.
Due to the corporate tax reform for FY2021, performance-based compensation paid to executives of companies, whose main business is investment management, will be included in deductible expenses under the certain conditions such as the case that calculation method is approved by investors in advance. In this case, the published business reports will be regarded as securities reports.
This rule is applied to each business year starting from April 1, 2021 to March 31, 2026.
3. Labor Management (Employment Insurance System for Multiple Job Holders)
From January 1 2022, “Employment Insurance System for Multiple Job Holders” will start. If the requirements below are met, the person can be exceptionally insured by employment insurance (insured elderly person with multiple jobs) from the day the person applies to a public employment security office.
(1)Workers over 65 and employed by several employers
(2)Total scheduled working hours of two jobs (scheduled working hours of a job in a week is over five hours and less than 20 hours) in a week is over 20 hours
(3)Scheduled employment days of each of the two jobs is over 31 days
(Source: A public employment security office Brochure; For Employers, we start “Employment Insurance System for Multiple Job Holders”)
4. This Month’s Words of Wisdom
A friend to everybody is a friend to nobody.
-Wilhelm Friedrich Philipp Pfeffer
It is hard to define friends.
One has hundreds of “friends” on Facebook, but some say it is enough for you to have several “friends” who can talk about everything with.
For more details, please refer to Nagamine & Mishima JC Accounting K.K.