|Budget Amount *help
¥1,100,000 (Direct Cost : ¥1,100,000)
Fiscal Year 1995 : ¥300,000 (Direct Cost : ¥300,000)
Fiscal Year 1994 : ¥800,000 (Direct Cost : ¥800,000)
The objectives of this study are to clarify the mechanism of recording the "assets" and "liabilities" in the balance sheet, and to pinpoint the problems of international harmonization.
By being shifted from the Static Accounting which shows proprietor's net worth to the Dynamic Accounting which focuses on income determination, the balance sheet has been interpreted to contain the differences between Receipts and Payments Accounting and Revenues and Expenses Accounting, or the suspended items. Therefore, the debits in the balance sheet are not limited to the properties that are convertible into money as the solvency, but are expanded to cover the properties that are not convertible into money. The result is deferred assets. The credits are not limited to the obligations to bear the legal claim against the assets, but are expanded to cover the obligations without legal claim. The result is allowances.
However, the balance sheet which accommodates the suspended items is, in an extreme way, only the by-product of the income statement. Therefore, the items recorded in the balance sheet may endlessly expand, depending on the recording of revenues and expenses. Because of this, the items to be recorded in the balance sheet must be purified by establishing the definitions of assets and liabilities. First of all, consideration must be given from the viewpoint of periodic income determination. Furthermore, in order to meet the diversifying needs of the users of the balance sheet, the balance sheet must be reformed from the by-product of the income statement to provide useful information. As the transactions or events become diversified and complicated, such as the transferal of economic ownership without the transferal of legal ownership in lease contracts and land trusts, the items to be recorded in the balance, sheet have the tendency to require expansion. Therefore, the balance sheet must also be considered from the viewpoint of disclosure.