December 2008
Bureau of Accounting

“Œ‹ž“s‚ΜŒˆŽZξ•ρ

Japanese

Japanese local governments generally use cash-basis accounting. In order to provide more detailed information about its finances, however, the Tokyo Metropolitan Government (TMG) additionally began disclosing account settlement information based on accrual-basis accounting practices from the 2006 fiscal year closing.

‚P@Account Settlement Information based on Government Accounting (Cash-basis)

Japanese local government account settlements contrast actual revenues earned and expenses incurred during a fiscal year (April to March) against budgets prepared on estimated revenues and expenses for the same fiscal year. These documents allow judgments to be made regarding the efficiency and effectiveness of the budgetfs use, and also provide a reference for making the following fiscal yearfs budget.

Preparing account settlements based on governmental accounting procedures is obligated under the Local Autonomy Law, and the settlements are also a subject of deliberation in the assembly.

¨Summary of the TMG annual accounts for fiscal year 2007 based on governmental accounting (cash-basis) pdficon(0.2MB)

‚Q@Account Settlement Information based on Financial Statements (Accrual-basi‚“j

In fiscal year 2006 the TMG independently introduced a new public accounting system that added double-entry bookkeeping and accrual-basis accounting concepts to traditional governmental accounting procedures. This endeavor is the first of its kind for a Japanese local government. Based on this new system, from the fiscal year 2006 closing, the TMG began releasing financial statements consisting of (1) a Balance Sheet; (2) a Statement of Operating Cost; (3) a Cash Flow Statement; and (4) a Statement of Changes in Net Assets. These financial statements are prepared based on the accounting standard independently formulated by the Tokyo Metropolitan Government, which, while conforming with generally accepted accounting principles of the private sector, also gives consideration to the special characteristic of governmental administration.

The financial statements for fiscal year 2007 have now been prepared for the second year under this new pubic accounting system.

This year, a prior-year comparison has been made with the financial statements for fiscal year 2006. These two years of financial statements allow a more transparent presentation of the fiscal condition of the TMG by clarifying the changes in TMG-owned assets, liabilities, and operating costs.

TheTMG will make further efforts in fulfilling its obligations to provide clear explanations of its activities to the citizens of Tokyo, and to utilize these financial statements for developing more efficient and effective governmental operations.

¨Reference Material for Annual Accounts of the Tokyo Metropolitan Government: Financial Statements for Fiscal Year 2007. pdficon(8.7MB)


Inquiries to:

Accounting Planning Section, Management Division, Bureau of Accounting

Tokyo Metropolitan Government

ƒ[ƒ‹S0000535@section.metro.tokyo.jp

2-8-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-8001JAPAN