Japanese Business Glossary

建設仮勘定 (kensetsu kari kanjo) refers to a Construction in Progress (CIP) account in Japan. This accounting term is used to track the costs associated with the construction of fixed assets that are not yet completed.

The CIP account accumulates all the direct and indirect costs incurred during the construction or development phase of a project. These costs can include materials, labor, and overhead. Once the construction is completed and the asset is ready for use, the total costs accumulated in the CIP account are transferred to the appropriate fixed asset account, such as buildings or machinery.

This process ensures accurate tracking and reporting of construction-related expenses, and helps in the proper capitalization of the costs for financial statement purposes. Managing the CIP account is crucial for businesses involved in construction and development to ensure correct financial reporting and compliance with accounting standards.

賦課金 (fukakin) refers to a levy or assessment, typically a financial charge imposed by a government or public authority. This charge can include various types of mandatory payments, such as taxes, fees, or contributions, which are collected to fund public services or specific projects.

In a business context, fukakin might refer to several financial obligations. These include various types of taxes imposed on businesses, such as corporate tax, consumption tax, and local taxes. It also includes public charges, which are fees for services provided by public entities, like environmental levies, infrastructure development fees, or regulatory compliance costs. Additionally, it covers social contributions, which are mandatory payments to social security, health insurance, or pension funds.

Understanding and accurately accounting for fukakin is essential for businesses to ensure compliance with legal and regulatory requirements in Japan.

配当金 (haitokin) refers to dividends in Japan. Dividends are payments made by a corporation to its shareholders, usually in the form of cash or additional shares. These payments represent a portion of the company's profits that is distributed to its shareholders as a return on their investment in the company's stock.

Haitokin can be issued on a regular basis, such as quarterly or annually, depending on the company's dividend policy and financial performance. The amount of the dividend is typically determined by the company's board of directors and approved by the shareholders.

Receiving dividends provides shareholders with a source of income and can be an important factor in the overall return on investment from holding a company's stock. Dividends are often seen as a sign of a company's financial health and profitability.

備品 (bihin) refers to equipment or fixtures in Japan. These are items used in businesses or organizations that are not consumed in day-to-day operations but are necessary for carrying out activities. Examples of bihin include office furniture, computers, printers, machinery, and tools.

Bihin are typically durable goods that have a useful life extending over several years. They are considered fixed assets and are recorded on the balance sheet of a company. Proper management and maintenance of business equipment are crucial for ensuring their longevity and efficiency, as well as for accurate financial reporting and asset management.

By keeping track of bihin, businesses can ensure they have the necessary tools and equipment to operate effectively while also managing their investments in these assets efficiently.

公益法人 (koeki hojin) refers to a Public Interest Corporation in Japan. This type of legal entity is established to operate for the public good and engage in activities that benefit society. These corporations can focus on various fields such as education, social welfare, culture, science, and environmental protection.

Public Interest Corporations are granted special status by the government, which often includes tax benefits and eligibility for public funding or donations. To be recognized as a koseki hojin, an organization must meet specific criteria and demonstrate that its activities serve the public interest. The organization must also operate with transparency and accountability, ensuring that its resources are used effectively for its intended public benefit purposes.

A koseki hojin can take different forms, including a Public Interest Incorporated Association (公益社団法人 = koeki shadan hojin) and Public Interest Incorporated Foundation (公益財団法人 = kōeki zaidan hōjin). These entities play a crucial role in addressing social issues and contributing to the well-being of the community.

福利厚生費 (fukuri koseihi) refers to welfare and benefit expenses in Japan. These expenses are related to the various benefits and services provided by employers to enhance the well-being and quality of life for their employees. They are a part of the overall personnel costs for a company.

Fukurei koseihi can include expenses such as health and safety measures, employee recreational activities, company-sponsored events and social gatherings, subsidies for meals, transportation, and housing, health insurance premiums, and retirement benefits and pension contributions.

These benefits aim to create a supportive and healthy work environment, increase employee satisfaction and motivation, and reduce turnover. By investing in welfare benefits, companies can improve employee relations, foster a positive workplace culture, and ultimately boost productivity and organizational performance.