遅延/早期計上

English translation: postponed/accelerated posting

04:40 Mar 18, 2015
Japanese to English translations [PRO]
Bus/Financial - Accounting
Japanese term or phrase: 遅延/早期計上
仕入(加工)・売上処理の 遅延/早期計上

This is a heading in a table of categories of accounting risks. Is "delaying/accelerating bookkeeping entries" an accurate translation?
hbrockman
United States
English translation:postponed/accelerated posting
Explanation:
The source refers to "window-dressing" accounting - purchase is posted (recorded) in a future accounting period while sales from a future accounting period is posted in the current accounting period so that the profit (which is sales minus cost) appears larger than the actual.



--------------------------------------------------
Note added at 2 hrs (2015-03-18 07:25:45 GMT)
--------------------------------------------------

I mean "purchase from the current accounting period is posted (recorded) in a future accounting period". Hence, the postponement.
Selected response from:

Port City
New Zealand
Grading comment
4 KudoZ points were awarded for this answer



Summary of answers provided
3 +1Deferred / accrued entries
tulip bubble
3deferral /cash basis accounting treatment of [ ]
Marc Brunet
3postponed/accelerated posting
Port City
3Delayed/Early calculation
torarin


Discussion entries: 3





  

Answers


1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5
Delayed/Early calculation


Explanation:
遅延 means the process is delayed.
早期計上 means calculating something in advance.
For example, 利益の早期計上 is an early gain
So I would say "delayed/early calculation" of purchase [processing] and sales

torarin
Japan
Native speaker of: Native in JapaneseJapanese
Login to enter a peer comment (or grade)

2 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5
postponed/accelerated posting


Explanation:
The source refers to "window-dressing" accounting - purchase is posted (recorded) in a future accounting period while sales from a future accounting period is posted in the current accounting period so that the profit (which is sales minus cost) appears larger than the actual.



--------------------------------------------------
Note added at 2 hrs (2015-03-18 07:25:45 GMT)
--------------------------------------------------

I mean "purchase from the current accounting period is posted (recorded) in a future accounting period". Hence, the postponement.

Port City
New Zealand
Specializes in field
Native speaker of: Native in JapaneseJapanese
PRO pts in category: 12
Notes to answerer
Asker: Thank you for your answer and I also like the term you used "window dressing." I was using "cooking the books" but thought it felt too informal for this document.

Login to enter a peer comment (or grade)

3 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5
deferral /cash basis accounting treatment of [ ]


Explanation:
'accrual basis accounting' is actually the main alternative to the 'cash basis accounting' method. 'Deferral accounting' is one special case of that accrual system when it spreads across 2 or more of the account reporting period used. The reason: the matching principle states that expenses must be recorded during the period in which they are incurred, regardless of when the transfer of cash occurs.

ex:
For example, a company receives an annual software license fee paid out by a customer upfront on the January 1. However the company's fiscal year ends on May 31. So, the company using accrual accounting adds only five months worth (5/12) of the fee to its revenues in profit and loss for the fiscal year the fee was received. The rest is added to deferred income (liability) on the balance sheet for that year.


On the other hand,'cash basis accounting' calls for the recognition of an expense when the cash is paid, regardless of when the expense was actually incurred. A priori this might suggest that the purchase amount is recorded as 'earned' as soon as the transaction has closed, but it does not always works out that way.
The key difference with the accrual method is that the vendor records the whole amount received for the sale, but not before the full amount for it has been transferred/ (or pledged? I am not sure), so there is the hitch: if the buyer delays payment for some pretext or other, the revenue from that transaction cannot be immediately recorded.

Large enterprises engaging in longer term service contracts need the accrual method, so as to sharply pin down their I/O profitability at any point of a long period spanning months if not years.
Small businesses do not need such an involved system and often settle for the cash basis accounting method.
The link selection I found useful, looking into this includes:
http://uk.ask.com/wiki/Revenue_recognition?qsrc=3044&lang=en
http://www.accaglobal.com/uk/en/technical-activities/technic...


--------------------------------------------------
Note added at 4 hrs (2015-03-18 08:53:00 GMT)
--------------------------------------------------

PS: if some lighter expression is required to suit the style of your document, would then go for : deferred / brought forward


    Reference: http://uk.ask.com/wiki/Deferral?lang=en
    Reference: http://uk.ask.com/web?q=accrual+accounting+rules&qsrc=2352&q...
Marc Brunet
Australia
Native speaker of: French

Peer comments on this answer (and responses from the answerer)
neutral  tulip bubble: I agree with you on "deferral part." But I don't think your explanation of the matching principle is accurate. Also, cash basis accounting will not be an issue here. I have posted my take on this question, where you will find how I see it.
8 hrs
  -> You did a very good job of explaining this. My own attempt definitely needed a 2nd draft. You gave us a clear 'final'.Thank you.
Login to enter a peer comment (or grade)

11 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
Deferred / accrued entries


Explanation:
The term might have something to do with three accounting principles/concepts. These include accrual basis of accounting, revenue recognition principle, and matching principle. Japanese accounting practices are in line with them.

Under "accrual basis of accounting," business transactions are recorded when they occur, not when the related payments are received or made.

When applying the accrual concept to revenue recognition, an entity needs to record revenue only when a revenue generation process has been substantially completed. This is called "revenue recognition principle."

"Matching principle" requires that revenues and any related expenses be recognized together in the same period in order to reach accurate net income figure.

For example, generating revenue by selling goods is a type of business transaction. So it will be recorded when sales are made but remained unfilled (= accrued entries = 早期計上). When a customer pays monthly subscription fees for membership in advance, revenue is generally deemed to occur (= recognized) when the customer enjoy membership benefits every month. The service provider will report the payment as part of its revenues in January through December (= deferred revenues = 売上処理の遅延). A company will report a payment for purchasing raw materials (仕入れ) made in one period as an expense in a later period to recognize together with related revenue.

http://www.accountingtools.com/accrual-principle
http://www.accountingtools.com/revenue-recognition-principle
http://www.accountingtools.com/matching-principle
http://financereading.com/types_of_accounting_adjustments.ht...

tulip bubble
United States
Local time: 22:47
Works in field
Native speaker of: Native in JapaneseJapanese
PRO pts in category: 8

Peer comments on this answer (and responses from the answerer)
agree  Yasutomo Kanazawa
2 days 12 hrs
  -> Thank you!
Login to enter a peer comment (or grade)



Login or register (free and only takes a few minutes) to participate in this question.

You will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them). Participation is free and the site has a strict confidentiality policy.

KudoZ™ translation help

The KudoZ network provides a framework for translators and others to assist each other with translations or explanations of terms and short phrases.


See also:

Your current localization setting

English

Select a language

Term search
  • All of ProZ.com
  • Term search
  • Jobs
  • Forums
  • Multiple search