Business Report

Business reports are reports about the overview of business created by stock companies every fiscal year.

Overview of Business Report
Business reports are annual reports that stock companies are obliged to create for each fiscal year by Article 435 of Companies Act (enforced in May, 2006) in place of "sales reports" that were used in the past. The content of the reports is "overview of business," including details of business, status of fund, information about executive officers in each year, etc. In addition, although sales reports were one of Financial Statements under Old Commercial Law, business reports under Companies Act is not included in Financial Statements and thereby not subject to audit by accounting auditors. However, they are still important for companies as media to provide external entities with information. Especially in public companies, they are used as the basis of decision making regarding investments by general investors. Therefore, like Financial Statements, they are supposed to be created strictly.

Detail
Article 118 and Article 119 of Companies Act Enforcement Regulations require the following matters to be included in business reports.


 * Important matters concerning the status of the company
 * Resolution matters regarding Internal Control (systems to ensure that the execution of the duties complies with the laws and regulations)
 * (The followings are applied to public companies.)
 * Matters concerning the current situation
 * Matters concerning executive officers of the company
 * Matters concerning the corporate stock
 * Matters concerning new share subscription rights, etc.

In addition, Article 128 of Companies Act Enforcement Regulations requires the following matters to be written in annexed detailed statements of business reports.
 * (The followings are applied to public companies.)
 * Combination of offices of executive officers
 * Details regarding the conflict of interest etc.

Related Articles

 * Statements of Account
 * Internal Control
 * Internal Control Reporting System
 * SOX Act