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Accounting and Taxation

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Accounting and Taxation

Our Certified Public Accountants and Certified Public Tax Accountants offer our clients professional advices on the core of their business management such as accounting and taxation issues.

Consulting on accounting treatment/disclosure

Accounting treatments must be appropriate in order for the top management to grasp the current state of the corporation.? Also, appropriate disclosure of corporate information is an effective method to increase the corporation’s creditability toward financial institutions as well as outside shareholders.
We provide supervision on accounting treatments based on accounting standards, such as accounting for business combinations, financial instruments accounting, fixed asset-impairment accounting, lease accounting, employee retirement benefit accounting, etc. ?We also assist and supervise our clients to design the structure for required disclosure complying with Companies Act and Financial Instruments and Exchange Law.

Consulting on group management

As a corporation expands in size, and the number of its group companies increases through incorporation of new companies, M&A, etc., it would be difficult for the parent company to control the subsidiaries, and catch up with the actual condition. ?This is especially crucial for companies with many oversea offices and subsidiaries. We assist clients in designing group management, consolidated accounting, consolidated cash management, and budget control structure.

Consulting on profit management system

Accounting figures used in management must be aggregated as promptly and as accurately as possible, and it is essential to design and enforce profit management structure for that purpose. “Promptly”, as mentioned above, means a structure where a monthly account is closed within ten business days, and preliminary reports can be prepared within five business days. “Accurately” means a structure that is free from employee malpractice and where accounting figures are processed in accordance to certain rules and procedures.

Consulting on J-SOX

We supervise our clients to improve their profit management structure to grasp the accounting figures for their corporate management purpose, and assist to design transparent structure where accounting figures are prepared promptly and accurately.

It requires considerable time to review and document business operations in order to comply with evaluation and audit of internal controls (so-called J-SOX).

The compliance requires the following steps:

  1. Confirm the actual flows of the operation, and review them in order to improve the internal controls.
  2. Prepare necessary documents such as operation flowcharts, Risk Control Matrix, etc.
  3. Implement the internal controls, and continuously evaluate its effectiveness

In order to conduct these steps, it is necessary to organize an internal control project team selected from employees, and the company-wide awareness toward the necessity of building internal control structure must be enhanced at the same time. Considering that the assessment of internal controls is going to be a crucial and continuing practice for listed companies, it would be the best for the companies to eventually establish a system which is practicable among the selected employees.? In order to train the selected employees to be capable of practicing internal controls in short period, utilizing external specialists is a very efficient and effective method.

Our Certified Public Accountants with J-SOX knowledge and assisting experience play a central role to help our clients to design internal controls.

Consulting on incorporated foundation

For business owners, establishment of an incorporated foundation can be very effective for the purpose of social contribution, maintaining long-term shareholders and smooth business succession.

We identify every problem which should be solved in order to establish an incorporated foundation, and propose an optimum scheme for owners. We also provide services such as drafting business plans and prospectuses, preparing lists of assets, and assisting in preparation of financial documents in compliance with the latest Accounting Standards for Public Interest Corporations.

Voluntary audit

Some companies, who are exempt from statutory audit, request external specialists to provide evaluation on the adequacy of financial statements prepared by the companies themselves in order to improve creditability toward financial institutions and their stakeholders. ?Also, a voluntary audit is an effective step to be taken prior to statutory audit for companies planning to go public in the near future.

We not only audit to assure credibility on financial statements, but we also assess and give advice on the status of internal controls and effectiveness of management during the audit process.


Simulated tax inspection

In order to comply with tax inspections smoothly and appropriately, books and ledger sheets must be organized and stored appropriately in daily transactions.

Shimokawa Accounting Office conducts simulated tax inspections by former Taxation Bureau officers, and accurately identifies the clients’ possible tax issues.? Moreover, we assist them to design the structure which is able to deal with the issues before the actual inspect.

Consulting on business succession and inheritance

When private companies go public, owners of the companies would acquire an enormous amount of assets. In Japan, the inheritance tax rate is very high if the value of hereditary property exceeds 300,000,000 yen. ?Generally owners of listed companies are expected to acquire property exceeding more than this value, and therefore, planning countermeasures for inheritance are extremely important. Shimokawa Accounting Office considers various measures before and after IPO from different aspects in order to propose corporations’ optimum capital structure and business succession measures for owners (establishing incorporated foundations, establishing overseas asset management companies, global fund management), as well as legitimate tax measures.

Account settlement service, bookkeeping service, and income tax return service

We provide outsourcing services for listed companies regarding account settlements, as well as preparation of itemized accounts, and tax returns.