Expected useful lives of intangible assets

Part of a print by Japanese artist Kingei Marui

This post includes a table with the useful life of specified Intangible Assets that are recognised as being fixed assets subject to tax deductible amortisation under the Japanese tax code.

This category of intangible assets includes trademarks, patent rights Read More

Introduction to Japanese intangible assets

July 24, 2010  |  Intangible Assets  |  No Comments

A picture by Japanese artist Kingei Marui

This post is an introduction to the Japanese taxation of intangible assets (‘IA’s) and a more detailed review of one particular class of Japanese IA called “Deferred Assets”, or in Japanese 繰延資産/kurinobe shisan. Follow up posts will look at other areas of Japanese intangible asset taxation and please also see this post on accounting recognition of intangibles in acquisitions.

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M&A – allocating price to intangible assets

Entrance to a snow covered shrine in Hirotaka, Northern Japan

This post reviews principles behind allocating cost to intangible assets under Japanese purchase accounting for business combinations.

As part of Japan’s convergence with International Financial Reporting Standards (IFRS) Japanese  merger accounting (持分プーリング in Japanese, best translated as “pooling of interests”) is no longer available from 1 April 2010.  Also the Japanese Accounting Standards Board (‘JASB’) intends examining in Step 2 of its IFRS convergence process whether Japan’s current approach – amortisation of goodwill over a set period – should be brought closer to the IFRS approach (namely separately identifying intangible assets and goodwill and then periodically reviewing the value of such goodwill).  The JASBs request for public comment on accounting for business combinations is here and the related paper here. Read More

Japanese M&A accounting and IFRS convergence

A Buddha viewed past a screen covered with cursive Japanese script

This article includes a summary of the most recent changes to Japanese accounting standards relating to enterprise combinations which were proposed in 2008 as part of Japan’s IFRS convergence process and which came into force at for transactions from 1 April 2010 onwards (although earlier adoption was possible from 1 April 2009). Japanese accounting standards relating to business combinations including mergers and acquisitions, corporate splits and other corporate reorganisation transactions are also listed below. Read More