Big firms to cover 60% of retirement reserve shortfalls+.TOKYO, Dec. 1 Kyodo A total of 726 leading Japanese companies This is a list of companies from Japan. Note that 株式会社 can be (and frequently is) read both kabushiki kaisha and kabushiki gaisha (with or without a hyphen). See that article for more details. plan to cover in fiscal 2000 some 5.28 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. yen, or 60%, of their combined 8.81 trillion yen reserve shortages for paying out employee retirement benefits, a think tank reported Friday. Most of the firms are planning to make up for the shortage using profits earned during the six-month period through Sept. 30, said the Shinko Research Institute, an arm of Shinko Securities Co. The 726 were among the 1,442 firms listed on the Tokyo Stock Exchange's First Section that reported midterm mid·term n. 1. The middle of an academic term or a political term of office. 2. a. An examination given at the middle of a school or college term. b. midterms A series of such examinations. results by the Nov. 24 deadline for the poll. The institute did not include a total of 145 banks and other financial companies listed on the First Section. The money funneled by these firms into the retirement allowance reserves accounted for 63.5% of their combined pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern profits earned during the April-September period, the institute said. These figures attest To solemnly declare verbally or in writing that a particular document or testimony about an event is a true and accurate representation of the facts; to bear witness to. To formally certify by a signature that the signer has been present at the execution of a particular writing so as that the profitability of Japanese companies is under strong downward pressure due to a rush to cover the shortages, it said. Businesses are scrambling See scramble. to plug the shortfalls because the government is to mandate that they book them as liabilities starting from fiscal 2001. Although the accounting rules allow companies to write down shortfalls over the next 15 years, companies are rushing to cover their shortfalls to avoid reporting them as liabilities on their balance sheets. If the companies not covered not covered Health care adjective Referring to a procedure, test or other health service to which a policy holder or insurance beneficiary is not entitled under the terms of the policy or payment system–eg, Medicare. Cf Covered. by the survey are taken into account, the combined sum of reserve shortfalls is estimated at 10 trillion yen, it said, adding they appear to have covered more than 6 trillion yen of it. The poll also showed a total of 370 companies plan to conduct a lump-sum write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of all of their respective shortages in closing their books on March 31 next year. Yamato Transport Yamato Transport Co., Ltd. (ヤマト運輸株式会社 Co. was one of the quickest in this regard. The company wrote down its 67.1 billion yen shortage in single stroke in closing its midterm books. But the huge write-down sent its parent-only net balance into the red. However, 107 companies, or more than 10% of leading nonfinancial firms listed on the First Section, said it will take them more than 10 years to completely write down their shortfalls. Major construction companies channeled an average of 4.0 times their midterm pretax profits into their retirement benefit reserves during the first half, it said. The corresponding ratio was 2.1 times for makers of rubber products such as tires. Steelmakers, textile makers, transport companies and warehousing companies generally funneled an amount eclipsing their midterm pretax profits into their retirement reserves, it found. Many companies reported that their net balances for the first half fell into the red because of the huge cost of covering the shortfalls, regardless of how long they will take to write them down. |
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