現物出資 (genbutsu shusshi) refers to capital contribution in kind, where assets other than cash are used as investment in a company. This can include tangible assets such as real estate, machinery, equipment, or vehicles, as well as intangible assets like intellectual property, patents, or trademarks.
In Japan, the process of genbutsu shusshi involves evaluating the value of the contributed assets to determine their equivalent monetary worth. This valuation must be fair and accurate to ensure that the capital structure of the company reflects the true value of the contributions. Often, a certified public accountant or a professional appraiser may be required to assess the value of these assets to ensure compliance with legal standards and to protect the interests of all stakeholders involved.
Genbutsu shusshi is commonly used in situations where the contributing party may have valuable assets but lacks sufficient cash. It allows companies to acquire necessary resources without immediate cash expenditure and can be a strategic way to leverage existing assets for business growth and development. This method of capital contribution helps diversify the company's asset base and can provide significant operational advantages depending on the nature of the contributed assets.
See Also
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.
Frequently Asked Questions
現物出資 (genbutsu shusshi) refers to capital contribution in kind, where assets other than cash are used as investment in a company. This can include tangible assets such as real estate, machinery, equipment, or vehicles, as well as intangible assets like intellectual property, patents, or trademarks.
Capital contribution in kind, where assets other than cash are used as investment in a company is 現物出資 (genbutsu shusshi) in Japanese.
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