Japanese Business Glossary

日当 (nikko) refers to per diem given to employees or workers to cover expenses incurred while performing work-related activities, such as travel, meals, and lodging. Per diem payments are often provided when employees are on business trips or working away from their usual place of employment. The amount and conditions for per diem allowances can vary depending on company policies or agreements.

充当予定金額 (jūto yotei kingaku) is the planned allocation amount or intended allocation amount. This Japanese term refers to the amount of money that is designated or planned to be allocated for a specific purpose or expense. It indicates the amount set aside in financial planning or budgeting to cover particular costs or obligations.

償却 (shokyaku) refers to amortization or depreciation in Japan. This accounting process involves systematically reducing the book value of an asset over its useful life. It is used to allocate the cost of tangible and intangible assets, such as buildings, machinery, equipment, and patents, over the periods during which they generate economic benefits.

Shokyaku is essential for accurate financial reporting and tax compliance. It reflects the wear and tear, usage, or obsolescence of an asset. For tangible assets, this process is called depreciation, while for intangible assets, it is referred to as amortization. The amount of depreciation or amortization expense is recorded in the financial statements annually, reducing the asset's book value and impacting the company's net income.

Different methods can be used to calculate depreciation, such as the straight-line method, which spreads the cost evenly over the asset's useful life, or accelerated methods, which allocate higher expenses in the earlier years. The chosen method must comply with Japanese accounting standards and tax regulations.

Properly managing shokyaku ensures that a company's financial statements accurately represent the value of its assets and helps in planning for future capital expenditures and investments.

除却 (jokyaku) refers to the removal or disposal of an asset in Japan. In an accounting and tax context, it means writing off or eliminating an asset from the company's books. This process is undertaken when an asset is no longer usable, has been sold, or has become obsolete.

When a business decides to dispose of an asset, it must adjust its financial records to reflect the asset's removal. This typically involves recognizing any remaining book value of the asset as a loss or gain, depending on the circumstances of its disposal. For example, if the asset is sold, the proceeds from the sale will be compared to its book value to determine the financial impact. If the asset is scrapped, the book value is usually recorded as a loss.

Proper documentation and reporting of asset disposal are crucial for maintaining accurate financial statements and ensuring compliance with tax regulations. It helps businesses keep their financial records up to date and provides a clear picture of the company's asset management and financial health.

借用証書 (shakuyo shosho) refers to an IOU or promissory note in Japan. This document is a written acknowledgment of debt, indicating that one party (the borrower) promises to repay a certain amount of money to another party (the lender) under specified terms and conditions. The shakuyo shosho typically includes details such as the amount borrowed, the repayment schedule, the interest rate (if any), the date of the agreement, and the signatures of both parties.

Having a promissory note is important for both the lender and the borrower as it serves as a formal and legally binding record of the loan agreement. It provides clarity on the terms of repayment and helps prevent misunderstandings or disputes. In the event of a disagreement or legal issue, a shakuyo shosho can be used as evidence in court to enforce the terms of the loan.

Maintaining accurate and comprehensive records of such agreements is essential for financial accountability and legal protection. Both parties should keep a copy of the shakuyo shosho and adhere to the agreed-upon terms to ensure a smooth and transparent lending process.

債権譲渡 (saiken joto) refers to the transfer or assignment of a claim or receivable in Japan. This legal process involves one party (the assignor) transferring their right to collect a debt or claim to another party (the assignee). The debt or claim in question is usually a financial obligation owed by a debtor to the assignor.

In a saiken joto, the assignor gives up their right to receive payment from the debtor, and the assignee gains the right to collect the debt. This can be done for various reasons, such as improving liquidity, managing credit risk, or raising funds. The process typically involves a written agreement specifying the terms of the transfer, including the details of the claim and the obligations of each party.

To make the transfer legally effective and enforceable, it is often necessary to notify the debtor about the assignment. This ensures that the debtor knows to make future payments to the assignee instead of the assignor. Proper documentation and adherence to legal requirements are crucial in a saiken joto to protect the rights of all parties involved and to ensure the smooth transfer of the claim.