Japanese Business Glossary

特別損失 (tokubetsu sonshitsu) refers to extraordinary losses in Japanese. This term is used in accounting and financial reporting to describe significant, non-recurring losses that do not arise from the normal operations of a business. These losses are considered exceptional and are typically reported separately from regular operating expenses to provide a clearer picture of a company's financial performance.

Examples of tokubetsu sonshitsu might include losses from natural disasters, significant asset write-downs, restructuring costs, litigation settlements, or losses from the sale of a subsidiary or major asset. By categorizing these losses as tokubetsu sonshitsu, companies can help investors and stakeholders understand the impact of unusual or infrequent events on their financial results.

The reporting of tokubetsu sonshitsu is important for transparency and accurate financial analysis, as it distinguishes between the ongoing operational performance of a company and the effects of extraordinary events. This separation allows for a more accurate assessment of a company's profitability and financial health.

証拠金 (shoukokin) refers to the margin or collateral required in financial transactions, particularly in trading and investing. This term is commonly used in the context of futures, options, and foreign exchange (Forex) markets. When a trader wishes to open a position, they must deposit a certain amount of money, known as the margin, to cover potential losses. This margin acts as a security measure for the broker or financial institution, ensuring that the trader can fulfill their obligations. The amount of shoukokin required can vary depending on the type of asset being traded, the size of the position, and the risk involved. It is a critical component in risk management and leverage trading, helping to protect both parties involved in the transaction.

連結 (renketsu) refers to the concept of consolidation or connection in Japanese. In a business context, it often pertains to the consolidation of financial statements. This process involves combining the financial statements of a parent company with those of its subsidiaries into a single set of financial statements.

The purpose of renketsu is to provide a comprehensive view of the financial position and performance of the entire corporate group, rather than just the parent company alone. This consolidated financial statement reflects the total assets, liabilities, equity, income, expenses, and cash flows of the combined entities, giving stakeholders a clearer understanding of the group's overall financial health.

決算報告書 (kessan hokokusho) is a financial statement report in Japan. It is a comprehensive document that summarizes a company's financial performance over a specific accounting period, usually a fiscal year. This report includes essential financial information such as the balance sheet, income statement, cash flow statement, and notes to the financial statements.

The kessan hokokusho provides insights into the company’s revenue, expenses, profits, and overall financial health. It is used by various stakeholders, including management, investors, creditors, and regulatory authorities, to assess the company's performance, make informed decisions, and ensure compliance with financial regulations. Preparing an accurate and detailed kessan hokokusho is crucial for maintaining transparency and trust in the company's financial practices.

繰越利益剰余金 (kurikoshi rieki jouyokin) refers to retained earnings carried forward in Japanese accounting. This term represents the portion of a company's profits that has been retained and accumulated over time, rather than being distributed as dividends to shareholders.

Retained earnings are used to reinvest in the business, pay off debt, or save for future needs and projects. The kurikoshi rieki jouyokin is reported on the company's balance sheet under shareholders' equity. It is a critical measure of a company's financial health, indicating its ability to generate profits and manage them effectively for growth and stability.

資本 (Shihon) in Japanese refers to "capital" in the context of finance and economics. It encompasses the financial resources and assets that individuals, businesses, or organizations use to fund their operations and growth. Capital can take various forms, including money, equipment, buildings, and other assets that have value. In business, shihon is essential for starting and expanding operations, investing in new projects, and sustaining overall economic activity. It can be raised through different means, such as investments, loans, or reinvested profits.