Japanese Business Glossary

Input Japanese kanji, Japanese phrase, romaji reading, or the English definition.

DEFINITIONS:

連結子会社 (renketsu kojigai) translates to "consolidated subsidiary" in English.

A consolidated subsidiary is a company that is controlled by a parent company, with the parent company owning more than 50% of the subsidiary's voting stock. The financial statements of the subsidiary are combined with those of the parent company to present a single set of financial statements. This consolidation provides a comprehensive view of the financial health of the entire group of companies under the parent company.

In Japan, consolidated subsidiaries are important for understanding the overall financial performance and condition of business groups. The consolidation process involves combining all assets, liabilities, income, and expenses of the subsidiary with those of the parent company, eliminating any intercompany transactions to avoid double-counting.

This practice ensures transparency and a clearer picture of the financial situation of the parent company and its subsidiaries, helping investors and stakeholders make informed decisions.

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仕入高 (shiire-daka) translates to "purchasing amount" or "cost of goods purchased" in English.

In business and accounting, shiire-daka refers to the total cost of goods that a company purchases for resale or for use in production during a specific period. This figure is crucial for calculating the cost of goods sold (COGS), which is an essential component of a company's financial statements.

Accurately tracking the purchasing amount helps businesses manage their inventory, control expenses, and determine profitability. It also plays a vital role in budgeting and financial planning, providing insight into how much the company spends on acquiring inventory or raw materials.

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会計年度 (kaikei nendo) translates to "fiscal year" in English.

A fiscal year is a one-year period that companies and governments use for accounting and financial reporting purposes. It may not align with the calendar year. For example, in Japan, the fiscal year typically starts on April 1 and ends on March 31 of the following year.

During this period, organizations track and report their financial performance, including revenues, expenses, profits, and losses. The fiscal year is essential for budgeting, tax reporting, and preparing annual financial statements.

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特許権 (tokkyo-ken) translates to "patent right" in English.

A patent right is a form of intellectual property protection granted to an inventor or their assignee by the government. It provides the patent holder with the exclusive right to make, use, sell, and distribute the patented invention for a specified period, typically 20 years from the filing date.

This exclusive right prevents others from commercially exploiting the invention without permission from the patent holder. In exchange for this protection, the inventor must publicly disclose the details of the invention, contributing to the advancement of knowledge and technology. Patents cover a wide range of inventions, including new products, processes, machines, and improvements to existing technologies.

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社債 (shasai) translates to "corporate bond" in English.

A corporate bond is a type of debt security issued by a corporation to raise capital. When an investor purchases a corporate bond, they are essentially lending money to the issuing corporation. In return, the corporation promises to pay the investor regular interest payments (coupons) over the life of the bond and to repay the principal amount (face value) when the bond matures.

Corporate bonds are used by companies to finance various activities such as expanding operations, funding new projects, or refinancing existing debt. They are considered a relatively safe investment, though the level of risk can vary depending on the financial stability and creditworthiness of the issuing corporation. Higher-risk bonds typically offer higher interest rates to attract investors.

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相場 (soba) refers to the market price or prevailing rate of a particular good or service in Japan. It is commonly used to describe the current price level or rate in various contexts, such as the stock market, real estate, or commodities. For instance, in the stock market, soba indicates the current trading price of stocks. In real estate, it signifies the prevailing property prices in a particular area.

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