除却 (jokyaku) refers to the removal or disposal of an asset in Japan. In an accounting and tax context, it means writing off or eliminating an asset from the company's books. This process is undertaken when an asset is no longer usable, has been sold, or has become obsolete.
When a business decides to dispose of an asset, it must adjust its financial records to reflect the asset's removal. This typically involves recognizing any remaining book value of the asset as a loss or gain, depending on the circumstances of its disposal. For example, if the asset is sold, the proceeds from the sale will be compared to its book value to determine the financial impact. If the asset is scrapped, the book value is usually recorded as a loss.
Proper documentation and reporting of asset disposal are crucial for maintaining accurate financial statements and ensuring compliance with tax regulations. It helps businesses keep their financial records up to date and provides a clear picture of the company's asset management and financial health.
See Also
減価償却費 (genkashoukyakuhi) means depreciation expense in Japanese.
Depreciation expense is the accounting process of allocating the cost of tangible assets over their useful lives. This method recognizes that assets like machinery, vehicles, and buildings lose value over time due to wear and tear, usage, or obsolescence.
In Japan, depreciation expense is a significant component of financial statements, helping businesses reflect the declining value of their fixed assets accurately. The amount and method of depreciation can affect a company's taxable income, making it crucial for tax reporting and financial planning.
The two common methods of depreciation in Japan are the straight-line method, where the asset's cost is spread evenly over its useful life, and the declining balance method, where higher depreciation expenses are recorded in the earlier years of the asset's life, decreasing over time.
Understanding and correctly applying depreciation expense is essential for accurate financial reporting and tax compliance in Japan.
In Japanese, the term 経費 (keihi) refers to "expenses" or "business expenses." These are the costs incurred in the process of running a business. Keihi can include a wide range of expenditures such as rent for office space, utilities like electricity, water, and internet, employee salaries and wages, office supplies, travel expenses, marketing and advertising costs, and depreciation of assets. Properly tracking and managing keihi is essential for maintaining accurate financial records, budgeting, and ensuring compliance with tax regulations. In Japan, businesses must be meticulous in documenting and categorizing their expenses to maximize tax deductions and maintain transparency with the tax authorities.
償却資産 (shoukyaku shisan) is a Japanese term that translates to "depreciable assets" or "amortizable assets" in English. It refers to tangible fixed assets that are subject to depreciation over time due to wear and tear, obsolescence, or usage.
Examples of 償却資産 include machinery, equipment, buildings, and vehicles. These assets are capitalized on a company's balance sheet and their cost is gradually expensed through depreciation over their useful life. This accounting practice helps in matching the cost of the asset with the revenue it generates, providing a more accurate picture of a company's financial performance.
Frequently Asked Questions
除却 (jokyaku) refers to the removal or disposal of an asset in Japan. In an accounting and tax context, it means writing off or eliminating an asset from the company's books. This process is undertaken when an asset is no longer usable, has been sold, or has become obsolete.
Removal or disposal of an asset is 除却 (jokyaku) in Japanese.
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