Japanese Business Glossary

減価償却累計額 (genka shokyaku ruikeigaku) is a Japanese term that translates to "accumulated depreciation" in English. It refers to the total amount of depreciation expense that has been recorded for an asset over its useful life up to a specific point in time.

Accumulated depreciation represents the cumulative wear and tear, usage, or obsolescence that has reduced the value of the asset since it was acquired. It is a contra-asset account on the balance sheet, meaning it offsets the gross value of the asset to reflect its net book value.

In accounting, the process of recording depreciation helps allocate the cost of a tangible asset over its useful life. For example, if a piece of equipment is expected to be used for ten years, its cost is gradually expensed over that period through depreciation. The accumulated depreciation account keeps track of these expenses, providing a clear picture of the asset's decreasing value over time.

戻入 (reinyu or modoriire) is a Japanese term that translates to "reversal" or "reinstatement" in English. It refers to the act of returning something to its original state or position. In financial and accounting contexts, reinyu specifically means reversing a previously recorded entry or reinstating a previously deducted amount back into the accounts.

For example, if an expense was mistakenly recorded, a reinyu entry would be made to correct the mistake by reversing the initial entry. Similarly, if a provision or reserve was set aside for a specific purpose but is no longer needed, the funds can be reinyu, or returned, to the general account. This term is important for ensuring accuracy and transparency in financial records.

預金 (yokin) refers to a deposit or savings in a bank or financial institution. It is money that an individual or business places into an account for safekeeping and to earn interest.

There are different types of yokin, including ordinary savings accounts that allow easy access to funds for daily transactions and time deposits or fixed-term deposits, where money is deposited for a set period, often with higher interest rates than ordinary savings accounts.

簿価 (boka) refers to the book value of an asset in Japanese. It is the value of an asset as recorded on a company's balance sheet, representing the original cost of the asset minus any accumulated depreciation, amortization, or impairment costs.

Book value is an important accounting measure used to assess the net value of a company's assets and is often used in financial analysis and reporting. It provides insight into the actual value of an asset from an accounting perspective, which can differ from its current market value.

社内預金 (shanai yokin) refers to an in-house savings system offered by some companies in Japan to their employees. It allows employees to deposit a portion of their salary directly with the company, which then pays interest on these deposits.

This system is similar to a bank savings account but is managed internally by the company. The interest rates offered on shanai yokin are often higher than those provided by traditional banks, making it an attractive option for employees.

Shanai yokin serves as a benefit for employees, encouraging savings and providing them with a secure place to grow their funds. For companies, it can also enhance employee loyalty and retention by offering this additional financial service.

決算期 (kessanki) refers to the fiscal period or accounting period in Japanese. It is the specific time frame at the end of which a company or organization prepares its financial statements and reports its financial performance. This period can be annually, semi-annually, quarterly, or monthly, depending on the company's reporting requirements and practices.

The kessanki typically culminates in the preparation of key financial documents such as the balance sheet, income statement, and cash flow statement. These documents provide insights into the company's financial health, profitability, and operational efficiency. The end of the kessanki is a critical time for companies, as they must ensure accurate financial reporting, compliance with regulatory requirements, and assessment of their financial position for stakeholders, including investors, creditors, and regulatory authorities.