Japanese Business Glossary

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.

供託 (kyoutaku) is a Japanese term that translates to "deposit" or "escrow" in English. It refers to the act of depositing money, securities, or other valuables with a government office or a designated entity to fulfill a legal obligation or to ensure the performance of a contract.

In Japan, 供託 is commonly used in various legal and financial contexts. For example, it can be used to settle disputes, provide security for a loan, or ensure the payment of rent or other obligations. The deposited assets are held in trust by the government office or entity until the conditions of the deposit are met or resolved. This system helps to protect the interests of all parties involved and ensures that legal and contractual obligations are fulfilled.

賦課 (fuka) is a Japanese term that translates to "levy" or "imposition" in English. It refers to the act of imposing or assessing a tax, fee, or charge on individuals or entities. This term is commonly used in the context of taxation, where a government or authority assigns a financial obligation to taxpayers based on certain criteria, such as income, property, or transactions.

In a broader sense, 賦課 can also refer to the imposition of duties or responsibilities, not just limited to financial charges. The goal of 賦課 is to generate revenue for public services, infrastructure, or other governmental needs.

固定資産 (kotei shisan) is a Japanese term that translates to "fixed assets" in English. It refers to long-term tangible assets that a company owns and uses in its operations to generate income. These assets are not intended for sale in the regular course of business and have a useful life of more than one year.

Examples of 固定資産 include land, buildings, machinery, equipment, and vehicles. These assets are recorded on a company's balance sheet and are subject to depreciation over their useful life, except for land, which typically does not depreciate. The management and valuation of 固定資産 are important for accurate financial reporting and business operations.