Japanese Business Glossary

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.

仕組債 (shikumisai) refers to structured bonds in Japanese. These are complex financial instruments that combine traditional bonds with derivatives to offer customized investment solutions.

Structured bonds are designed to meet specific investment goals, such as enhancing returns, reducing risk, or providing exposure to particular assets or markets. They often have features like variable interest rates, payments linked to the performance of an underlying asset (such as stocks, commodities, or indexes), or built-in options for the issuer or holder.

Investors in shikumisai can benefit from tailored financial strategies, but they also face higher risks due to the complexity and potential volatility of these products. Therefore, thorough understanding and careful consideration are crucial before investing in structured bonds.

公共機関 (kokyo kikan) refers to public institutions or public agencies in Japan. These are organizations that provide essential services to the public, such as government offices, utilities, and public transportation systems. Public institutions in Japan play a crucial role in maintaining societal infrastructure, ensuring the well-being and safety of the community, and supporting economic and social activities. They are responsible for various functions, including administrative services, law enforcement, healthcare, education, and welfare services. The aim of these institutions is to serve the public interest and provide services that are accessible to all citizens.

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.

小売業 (kourigyo) in Japanese refers to the retail industry. This sector involves the sale of goods and services directly to consumers for their personal or household use. Retail businesses operate through various formats, including physical stores, online platforms, and direct sales. Common examples include supermarkets, department stores, convenience stores, and specialty shops. The retail industry plays a crucial role in the economy by connecting producers with consumers, facilitating the distribution of goods, and contributing to economic growth through job creation and consumer spending. Successful retailers focus on understanding consumer needs, managing inventory effectively, and providing excellent customer service to maintain competitiveness in the market.