2001 Fiscal Year Final Research Report Summary
PERSPECTIVE OF CAPITAL MAINTENANCE PRINCIPLE
| Project/Area Number |
12620051
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Civil law
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| Research Institution | HIROSHIMA UNIVERSITY |
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Principal Investigator |
KATAGI Haruhiko HIROSHIMA UNIVERSITY, FACULTY OF LAW, PROFESSOR, 法学部, 教授 (70177393)
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| Project Period (FY) |
2000 – 2001
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| Keywords | Legal Capital / Legal Reserve / 2001 Commercial Code Revision / International Accounting Standards / Consolidated Financial Statements |
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| Research Abstract |
(1) June 2001 Revision of Japanese Commercial Code
One main content of the June 2001 revision of Japanese Commercial Code is freeing the use of legal reserve (capital reserve and mandatory reserve of earning). The revision will enable returning unefficiently used assets within the company to shareholders, yet the fear of retreat of capital maintenance principle exists.
(2) The Influence of Convergence towards the IAS
Japanese accounting standards are, just as other countries, influenced by the movement towards convergence to the IAS. As the IAS emphasize its function to supplying financial information to the participant of capital market, there may be discrepancy between the IAS and Japanese or German accounting principles, which emphasize the purpose of regulating dividends, as well as supplying information.
(3) Comparative Review of Legal Capital System
In the United States, legal capital system is formally abolished in more than half of the states. On the other hand, the system is substantially maintained in the European countries. Yet the European countries are also seeking to harmonize their traditional creditor protection through the legal capital with the movement towards integration to the IAS. The German system tries to accomplish this harmonization by limiting the IAS oriented accounting to consolidated financial statements. But whether this scheme prevails is yet to be known.
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