This article is an outline of the taxation of Japanese corporate reorganizations, focusing on mergers and looking at the key criteria that will determine how Ceasing KK in the merger will be taxed.
Please also see this article for diagrams with an outline of Japanese merger transactions and this article with an overview of the accounting treatment of Japanese enterprise combinations.
This article Read More
The articles looks at which accounting standards apply, the different categories of enterprise combinations defined in those standards and finally how purchase accounting Read More
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