The Day where you get to take a sneak peek into the future

We’ll be speaking at the upcoming BlockChainJam 2018 conference.

The event, whose theme is centered around the future of blockchains, will take place on October 21, 2018, at Roppongi Hills, Tokyo.

We’ll be talking about recent developments on crypto related tax topics and are also hoping to perform a live demonstration of the CryptoGain web app that we are currently developing.

Please come and join the fun!

If you are interested in the event or have any questions, there is an inquiry form towards the bottom of the event website, or you can reach out to us directly!

About BlockChainJam 2018

BlockChainJam 2018 is a one-day event where you will get to know the about how the emergence of blockchains is changing the world.

At BlockChainJam, you will get to listen to talks by wonderful speakers such as prominent blockchain researchers and members from the hottest Blockchain projects.

They will walk you through the basics of Blockchains, what it is capable of, and how it will change our lives.

They will do this in an easy-to-understand manner.

It will be a day where you take a sneak peek into next-generation technology and what the future will look like.

Don’t worry if you don’t know anything about accounting!

See our Recruit Page for details.

On September 29, 2017, 11 Cryptocurrency Exchanges were registered with the Financial Services Agency (FSA).

As part of new regulations that went into effect as of April 1, 2017, firms involved with the exchange of virtual currencies (virtual currency exchangers) (the term virtual currency is often used in Japan and is synonymous with cryptocurrency) in Japan are required to register with the FSA.

Once registered with the FSA, virtual currency exchangers will be subject to two types of audits:

1. Audit over the segregation of funds
2. Audit over the financial statements

What is the Audit over the Segregation of Funds?

Virtual Currency Exchangers are required to segregate its funds and cryptocurrencies from the funds and cryptocurrencies of its users (Payment Servies Act Article 63-11, Paragraph 1).

The condition of the segregation of funds requires an audit by a CPA or an Audit Firm (Payment Servies Act Article 63-11, Paragraph 2).

In summary, the new regulations require that:

1. the cryptocurrency exchanges segregate its funds from those of its customers
2. and the condition of the segregation of funds to be subject to audit

The segregation of funds are already required for stock brokerage firms and FX exchanges so 1. expands that requirement to virtual currency exchangers.

With 2., the condition of the segregation of funds is required to be audited by a CPA, but by reading the guidance issued by the Japanese Institute of Certified Public Accountants (JICPA), what is required is basically an AUP (Agreed Upon Procedures) rather than an audit.

The biggest difference between an “audit” and an “AUP” is that a CPA will issue an opinion under an “audit”, whereas no opinion is issued under an “AUP”.

Under an audit, a CPA will issue an opinion that is unqualified, qualified or adverse, based on the results of the audit procedures that the CPA has performed.

In contrast, under an AUP, a CPA will simply list the results of the procedures performed and will not issue an opinion based on the results.

Because of this difference, generally speaking, an audit involves a wider range of procedures and is said to offer a higher level of assurance (no assurance is given under an AUP).

On the other hand, an AUP will generally have fewer procedures and require less cost compared to an audit.

What is the Audit over the Financial Statements?

In Japan, the financial statements of public companies require an audit by a CPA.

In addition, financial statements of private companies exceeding a certain size (500 million JPY in equity or 20 billion JPY in liabilities) also require an audit by a CPA.

Generally, if a company does not fall under either category, a financial statement audit is not required, but for virtual currency exchangers, a financial statement audit is required regardless of size or whether the company is public.

It’s more efficient to perform the two types of audit together! We now offer Blockchain audit services

Due to overlapping elements, the audit over the segregation of funds and financial statements should be performed by the same CPA to achieve efficiencies.

Furthermore,  we believe that the audits should be performed by a CPA that understands cryptocurrencies.

At Kimura Certified Public Accountants, we offer a range of Blockchain Audit services including:

• Audit over segregation of funds
• Audit over financial statements
• Implementation of processes and controls to prepare for blockchain audits

A CPA that understands cryptocurrencies will be there to help you throughout the entire audit process.

Feel free to contact us if you have any questions!

Click here to reach out to us

Quantum Accounting Inc. is a consulting firm that specializes in global accounting standards such as IFRS, US GAAP, and J GAAP.

They also are actively providing accounting and tax advisory services in the cryptocurrency community.

My goal at Quantum Accounting is to provide them with my skill set related to accounting/finance/cryptocurrency and also to learn from the other talented members that make up the management team.

Really excited to be on board!

spent a few months:

• reading the books that I had bought but never read that were stacked as high as the Tower of Babel
• learning how to build a website, which was something I always wanted to do
• spending time with family

That was when a friend called to ask me about accounting.

Specifically, he wanted to know about the accounting treatment for shared based compensation involving stock options.

I hadn’t put on my accounting thinking cap for months.
Under USGAAP that’s FAS123R (ASC718), under IFRS that’s IFRS2。
I guess those things stick.

Stock options are one of the rather tricky areas in accounting.
How should I explain it so that its understandable?
I don’t want to use accounting jargon and I don’t want to fall for the “curse of knowledge”.

When I was learning accounting, a teacher once said:

“Explain accounting like you’re explaining it to your grandmother”

That was probably one of the best advice I ever got.

I can’t be so confident that my friend understood 100% of what I told him.
But I realized one thing; I liked helping people out with their accounting challenges.

I don’t know if that was the turning point, but around the same time, I got invited to work on a few projects and before I could realize, it was already nearing the end of 2016.
Thinking about 2017 maybe too early at this point, but I know that this is what I want to do next year and the years to come.

Kimura Certified Public Accounts

Focus on one project at a time to achieve best results.
I decided to start this firm with this work philosophy in mind.

Please take a look at “Services” in the Menu Bar towards the upper right hand side of our website for a list of services that we provide.
These are all areas that I specialized in during my years at KPMG.

Accounting, Finance, English, Japanese.
We can add value under circumstances where these factors are involved.

We will start providing services in 2017 but we are always accepting inquiries so please feel free to contact us.
We look forward to hearing from you!