Accounting Processes for serving  foreign-owned  Japan subsidiary in construction industry

#JapaneseConstructionIndustryAccounting #IFRS #JapaneseAccountingStandards #EvershineJapan #EngineeringIndustryAccounting What are the solutions for foreign subsidiaries in Japan that need to adopt IFRS? What are the characteristics of constructive accounting in Japan?

Email: tyo4ww@evershinecpa.com
Contact : Andrea Kyu, speak both Japanese and Mandarin
Onarimon Yusen Building 7F,Nishi-Shinbashi 3-23-5,Minato-ku, Tokyo 105-0003, Japan

JP-CAS-010
What are the two service scenarios that Evershine provides to foreign investors in Japanese engineering projects?

Answer:
There are 2 service scenarios
The first service situation:
1-10 Evershine BIZ+AIS (IFRS) Authorization and Compliance Check>>
1-20 Duplicated Evershine AIS (from IFRS to Japanese Standard) >>
1-25 Yayoi format Excel (Japanese standard) >>
1-30 Upload into Yayoi (Japan Standard) >> Japan Tax Certified Public Accountant and Taxation Bureau
The second service situation:
2-10 Authorization and Compliance Checks (IFRS) in Customer ERP>>
2-15 FTP to obtain data files from customer ERP to Evershine AIS (IFRS)>>
2-20 Copy Evershine AIS (from IFRS to Japanese Standard)>>
2-25 Yayoi format Excel (Japanese standard) >>
2-30 Uploading into to Yayoi (Japan Standard) >> Japan Tax Certified Public Accountant and Taxation Bureau

JP-CAS-020
What are the characteristics of constructive accounting in Japan?

answer:
1.
There is a constructive accounting industry in Japan, which includes the following 29 sub-industries, as shown in the linking address below, and the 29 industries licensed by the construction industry, such as the industry in which TSMC’s subcontracted engineering project company in Kumamoto is located, in Item 8 Electrical Engineering Item 9 pipe construction (heating and cooling room equipment construction, refrigeration and cooling equipment construction, air conditioning and air conditioning equipment construction, etc.) Water supply and drainage and soup supply equipment construction, kitchen equipment construction, sanitary equipment construction, johkasou construction, toilet installation construction, pipe piping construction, ダクト construction, etc.). Different from Taiwan’s industry classification, these are called project engineering industries in Taiwan, which are parallel industries to the construction industry.
2.
IFRS is not implemented in Japan, but the subsidiaries established in Japan by TSMC’s downstream Taiwan listed companies must adopt IFRS and submit reports within 5 days of each month.
Therefore, IFRS must first be adopted to meet the needs of Taiwan listed companies, and then proceed.
Consider converting to Japanese accounting and tax treatment standards.
3.
IFRS accounting standards are adjusted to Japanese accounting standards, such as the above-mentioned JP-CAS-010, the first service scenario, 1-20 Duplicated Evershine AIS (From IFRS to Japan Standard), the differences are actually not many, but it is still necessary Adjustment.

JP-CAS-030
What is Evershine’s solution for foreign subsidiaries in Japan that need to adopt IFRS?

answer:
Evershine provides two service scenarios for foreign investors in Japanese engineering projects, such as the above JP-CAS-010.
The following is an explanation of the first service scenario:
1.
Evershine provides a project financial control and approval system (1-10 Evershine BIZ+AIS).
Your company signs on it, and Evershine personnel do a compliance check on it, and then post it to the accounting information system immediately.
Provide IFRS statements within 5 days of every other month.
2.
At the same time, in order to adjust to Japan’s accounting and tax treatment standards, Evershine can copy another company’s accounting information system (1-20 Duplicated Evershine AIS), transfer the data in the above 1. (1-10 Evershine AIS), and make adjustments. . Usually manual adjustments are made in the early stages. When the rules are familiar and found, Evershine’s information staff are asked to write programs to assist in automatic adjustments.
3.
The adjusted vouchers data file that complies with Japanese accounting standards can be directly generated into an Excel file that can be imported into YaoYi (1-25 Yayoi-format Excel).
4.
Yaoyi (1-30 Yayoi) is for use by Japanese tax accountants and tax bureaus.

JP-CAS-040
When the Japanese tax department or tax bureau audits accounts in the future, which system will they look at?

answer:
Look at the vouchers in Yaoyi.
There are three ways to view attached certificates:
1.
The first method: If Yaoyi can have the attached certificates function, the attached certificates can be imported into Yaoyi.
2.
The second method: We can export an attached certificate, and attached certificates name can be the YaoyYi voucher number to facilitate search.
3.
The third method: We pass the voucher number in Yaoyi to BPO, so that we can use Yaoyi’s vouche number to find attached certificates.

JP-CAS-050
When setting up accounting accounts on Evershine AIS , should I use the local tax public version or the client’s parent company version?

Answer:
It will be both right
The selection of accounting account codes and names will not affect IFRS Japanese Accounting Standards.
In other words, whether it complies with IFRS or Japanese accounting and tax treatment standards has nothing to do with the selected accounting account code.
If the BPO chooses the accounting accounts of the parent company, when copying another set of AIS, it must be converted into the Japanese public accounting code, and then manually adjusted.
Then, after finding out the rules, ask the IT staff to write a program to automatically convert.
If you choose the Japanese tax public version, you will also use the copied data to make adjustments.
After you are familiar with it, you can ask IT to write a program for automation.

Contact Us

Tokyo Evershine BPO Service Limited Corp.

E-mail: tyo4ww@evershinecpa.com
Contact : Andrea Kyu, speak both Japanese and Mandarin
Onarimon Yusen Building 7F,Nishi-Shinbashi 3-23-5,Minato-ku, Tokyo 105-0003, Japan

or
For investment structure relevant with multi-national tax planning and Financial & Legal Due Diligence for M&A (Merge and Acquisition), send an email to HQ4tyo@evershinecpa.com
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Email address:dalechen@evershinecpa.com
Linkedin address: Dale Chen

Additional Information
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Evershine Potential Serviceable City (2 months preparatory period):
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Besides, Evershine is Taiwan local Partner of ADP Streamline ®.
(version: 2024/07)

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