REGISTERED COMPANY NUMBER: 3371038 (England and Wales)
REGISTERED CHARITY NUMBER: 1063952

THE JAPAN SOCIETYREPORT OF THE TRUSTEES AND
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016

THE JAPAN SOCIETY
CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2016

Page
Reference and Administrative Details

1

Chairman's Report2

Report of the Trustees
Statement of Trustees Responsibilities

3 to 12
13

Report of the Independent Auditor

14 to 15

Statement of Financial Activities

16

Balance Sheet

17 to 18

Notes to the Financial Statements

19 to 28

THE JAPAN SOCIETY
REFERENCE AND ADMINISTRATIVE DETAILSFOR THE YEAR ENDED 31 DECEMBER 2016

Patron

HRH The Duke of Gloucester, KG, GCVO

President

HE The Japanese Ambassador

Vice Presidents

Haruki Hayashi

Atsushi Kume

Daniel Sciamma

Minoru Shinohara

Honorary Vice-Presidents

Sir Hugh Cortazzi, GCMG
Hiroaki Fujii
Sadayuki Hayashi
Prof. Ian Nish, CBE
Masaki Orita
Viscount Trenchard

Shin Ebihara
Haruko Fukuda OBE
Hiroshi Kitamura
Yoshiji Nogami
Christopher Purvis CBE
Ben Thorne, CMG, MBE

Officers and Trustees(as at 25 April 2017)

Sir David Warren KCMG, Chairman
Motohiko Kato, Vice Chairman
Alison Scott, Hon Editor
Satoru Yoshida, Hon Treasurer
Lydia Gomersall
Janet Hunter
Jason JamesMorihiko Okudaira
Yoji Saito
Eiji Wakiwaka

Graham Holman, Vice Chairman
Jenny White, Vice Chairman
Nigel Wellings, Hon Solicitor
Tom Burn
Tetsuro Hama
Shinichi Iida
Mami Mizutori
Sarah Parsons
Akihiro Tsuchiya

Chief Executive andCompany Secretary

Heidi Potter

Charity number

1063952

Company number

3371038

Principal address

13/14 Cornwall Terrace
London NW1 4 QP

Auditors

Richard Place Dobson Services Limited
1-7 Station Road
CrawleyWest Sussex RH10 1HTPage 1

THE JAPAN SOCIETYCHAIRMAN'S REPORT
for the Year Ended 31 December 2016
The Japan Society celebrated its 125th anniversary in 2016. Its founders conceived it as a society 'for theencouragement of Japanese studies and for the purpose of bringing together all those in the United Kingdom interested
in Japanese matters' and these ideals remain central to our activities.
It was appropriate therefore that the Society published in 2016 Japanese Studies in Britain: A Survey and History,
which assesses the state of Japanese studies today and in which its two editors, Sir Hugh Cortazzi and Professor Peter
Kornicki, argue that the language skills base in the UK should be a matter of concern at the highest levels ofgovernment and business. This is particularly relevant at a time when Britain is going through a radical re-evaluation of
its role in the world in the wake of the referendum vote to leave the European Union. The Society's second publicationof 2016, Britain and Japan: Biographical Portraits Vol. X, celebrated some of those whose interest in Japanese mattershas contributed to the bi-lateral relationship. Members now have easy access to the nearly 500 essays in the
Biographical Portraits series via the Society's e-library.
The Society is a charity which continues to encourage Japanese studies. In addition to our publications, and regular
events for members, we accomplish our mission through engagement with a broader audience, including school
children. As outlined in the Trustees' Report to the annual accounts, the Japan Society provides a forum for members
and non-members to meet in a varied programme of London events. Our challenge is always to respond to the needs
and interests of both corporate and individual members, while providing opportunities for others who might beencountering Japan for the first time. Thus the programme includes not only seminars and lectures on specialist
subjects, but also workshops, festivals and family days, and has a strong focus on learning and provision of support forschools. Our major business-facing events - both lunches and lectures - have focused specifically on the implications of
Brexit, a subject of major concern to our corporate members and supporters.
None of our activities would be possible without the generous support of our corporate and individual donors, who arelisted in the Trustees' Report and who share our vision for the UK-Japan relationship. Against a background ofcontinued financial uncertainty, I am pleased to note that our income has remained broadly stable, though slightly down
on 2015. While we have lost a few donors, others have joined and some have increased the level of their support in2016. There is no room for complacency, however, and we face many challenges ahead as companies respond to thechallenges of Brexit and assess their future commitment to the UK.
During 2016, we bade farewell from the board of trustees to Hideki Asari, Anna Dingley, Masahiro Imai and Shinichiro
Masunaga, whom I should like to thank for their contributions to the Society. We welcomed to the board MorihikoOkudaira, Sarah Parsons and Yoji Saito, who were elected at the AGM, as well as Shinichi Iida, the cultural minister at
the Japan Embassy, who arrived in London in July.
At the 2017 Annual General Meeting, Lydia Gomersall and Akihiro Tsuchiya will be standing down having served on
the board for the maximum six year term, and Tom Burn is resigning on being posted overseas as is Motohiko Kato on
his return to Japan. All have made valuable contributions to the Society, and I thank them for their continued
enthusiastic support. In addition, Jenny White will be standing down at the end of a three year term, and Mami Mizutori
will retire by rotation; both are eligible for re-election.
There are therefore five vacancies for ordinary trustees and five candidates standing for election or re-appointment: Sue
Hudson, Mami Mizutori, Yuuichiro Nakajima, Richard Oppenheim, and Jenny White. All are involved in activities
which further the development of stronger UK-Japan relations and, between them, bring a range of skills to the board.
Further details of the candidates, the voting procedure and the arrangements for the meeting will be circulated tomembers. It is important for the Japan Society that the board reflects its membership in representing the diversity of the
UK-Japan community, including Japanese and non-Japanese trustees, those who are long-term residents in the UK, andthose who volunteer their services during shorter postings in this country.
I would also like to express my thanks to our President, Ambassador Tsuruoka, for the great support he has shown to
the Society since his arrival in the UK in June 2016. Over the past year, he and his colleagues at the Embassy of Japan
have been enormously generous with their time and in many other ways.
The annual general meeting is being held this year at 5.00pm on Wednesday 12 July 2017 at the Embassy of Japan,
101-104 Piccadilly. The formal business will be followed by an informal reception, and I look forward to seeing manymembers on that occasion.
David Warren

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THE JAPAN SOCIETYREPORT OF THE TRUSTEES
for the Year Ended 31 December 2016

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report withthe financial statements of the charity for the year ended 31 December 2016. The trustees have adopted the provisionsof Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing theiraccounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)
(effective 1 January 2015).
OBJECTIVES AND ACTIVITIESMissionThe Society's objects are:
a)
b)
c)

to promote learning and advance education in the subject of and with regard to Japan;
to promote the study of Japan and its people in all their aspects, traditional and modern, and to make the resultsof such study more accessible to the general public;
to promote the study of Britain and its culture by Japanese people and to further educational exchanges between
Britain and Japan.

The vision that drives the Society's annual activity is the enhancement of understanding of Japanese life and culture andof links between the UK and Japan. This informs all areas of the programme, whether direct school-focused education
initiatives, lectures and seminars for the general public and business leaders, events introducing aspects of the culture ofboth countries, opportunities for people to meet in more informal settings, the provision of research facilities throughour library, or the programme of small grants made in support of Japan-related projects that are organised by others.
In 2016 the Japan Society celebrated its 125th anniversary; in the years since its establishment the role of the Society
and its scope has evolved considerably in response to social and cultural change over this period. The board regularly
reviews the Society's activity to ensure that its key objectives are being met as well as to confirm their continuing
relevance. In the aftermath of the UK's decision to leave the EU, and with increasing global tendencies for nations tolook inward, the Society's role in creating bridges and fostering professional and personal networks retains its
importance. The trustees are mindful of the Charity Commission guidance on public benefit and consider this whenplanning and evaluating our activities.
The Society encourages any who have an interest in Japan and the broad UK-Japan relationship to become members
and participate in activities. Reduced membership fees for students and those under 25 years of age are set in order tomake membership accessible to the next generation, who will take the relationship forward in the coming years. In
recent years we have noticed a tendency for people to sign up to receive newsletters, or to follow the Society on social
media, without becoming members. Our policy on charging and participation by non-members is outlined below.
ACHIEVEMENT AND PERFORMANCE
The main areas of activity of the Society are: awards, events, the library, publications, schools education and small
grants. The Society is grateful to the companies and individuals who share its belief in the importance of promoting agood mutual understanding between the UK and Japan, and who provide essential financial support. This enables theSociety to include a significant number of low cost or free events to provide opportunities to people from a variety ofbackgrounds regardless of ability to pay. This is an important factor in ensuring that the Society achieves its charitableobjective to promote the study and advance education in regard to Japan. Where charges are levied, these are set at alevel to cover direct costs to the Society, excluding overheads. A significant proportion of events, including the monthly
lecture programme, is also open to non-members. The majority of the Society’s schools education services are provided
free of charge; membership of the Society is not a prerequisite to using these services. In addition up to £30,000 has been
set aside each year for disbursement through the small grants programme in support of events organised by others which
are in furtherance of the Society's objectives and which will provide opportunities to new audiences across the UK.
EventsThe Society in 2016 arranged over 80 different events spanning a wide range of subject and format, both independently
and in partnership with other organisations. The programme is designed to be accessible and strikes a balance between
those activities tailored to particular interests and those designed to provide new opportunities for participation by thegeneral public to learn about Japan.

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THE JAPAN SOCIETYREPORT OF THE TRUSTEES (CONTINUED)
for the Year Ended 31 December 2016

The 2016 general events programme included:
10 Business related events
13 Conversation group events
11 Events aimed at younger members or families
15 Lectures
7 Art & culture events
Two dinners took place during the year, including a special event to celebrate the Japan Society’s 125 th anniversary, withspecial guest Sir John Major. Over 200 members attended the dinner at which the Japanese Ambassador bestowed theForeign Minister’s Commendation on the Society for its role in promoting mutual understanding between Japan and theUnited Kingdom. In his remarks, Ambassador Tsuruoka praised the Japan Society as a major player in the evolution of
the Japan-UK partnership, having striven tirelessly over its long history to foster the warm ties that unite our two
countries. In response, speaking on behalf of the Japan Society, Sir David thanked the Japanese Government forextending its recognition in this way and paid tribute to the many individual and cooperate members whose support had
been crucial to the Society’s success.
2016 saw slightly fewer high level business events than in normal years. This was partly caused by readjustment in staff
roles after the retirement of Robert Guy and partly by difficulties in scheduling in the lead up to the EU referendum, intandem with uncertainties about its implication. Nevertheless, a number of successful events were held including achairman's lunch, hosted by King & Wood Mallesons LLP where Bridget Kendall MBE, Master of Peterhouse,
University of Cambridge, and former BBC diplomatic correspondent, spoke about the state of Russian-EU relations. This
provided senior members of the Society's business community with the opportunity to meet to share ideas andinformation, while being briefed on an issue of particular relevance.
Other larger-scale business lectures and seminars were also generously hosted by corporate members of the Society, ororganised in partnership with others. One such was a seminar by Robert Ward, Editorial Director of the Economist
Intelligence Unit, who introduced the Unit's long-term forecasts for the UK and Japan, looking ahead to 2050. Tadakazu
Kimura, former editor of the Asahi Shimbun joined Japan Society Chairman, David Warren, in conversation about theoccasionally difficult relationship between the media and politics. In the annual lecture by the British Ambassador to
Japan, Tim Hitchens reviewed the previous year and briefed members on the relationship between the British andJapanese governments, and opportunities for cooperation and partnership.
The Society continued to arrange joint lunches in conjunction with the Japanese Chamber of Commerce and Industry in
the UK, which provided opportunities for Japanese and non-Japanese to meet and to hear from guest speakers, who wereduring the year: Sir Edward Lister, Chief of Staff and Deputy Mayor for Policy and Planning, GLA; the Japanese
Ambassador, Mr Keiichi Hayashi; and Lord Mandelson.
The Japan Society values its partnerships with other organisations with similar aims and interests in developing a
programme which is of interest and benefit to the membership. In the current economic climate, the sharing of up to date
information and best practice is particularly important. Two seminars were held in association with JETRO, in which Ken
Koyama, Chief Economist of the Institute of Energy Economics, gave a Japanese perspective on World Energy; and aseminar with Kenichi Kawasaki of the National Graduate Institute for Policy Studies, considered the impact of the EUJapan EPA Free Trade Agreement.
The conversation group continues to play an important role in the Society, providing a valuable opportunity formembers to maintain and develop their language skills. It allows Japanese and non-Japanese, members and non-members,
to talk in a friendly and informal setting. In addition to the regular monthly meetings, the conversation group organises
occasional special events, such as the annual hanami picnic, as well as participating jointly in Society events, such as theannual dinner.
The Society continued to offer a broad general programme of formal and informal events to appeal to people with a wide
range of interests and ages. The monthly book club met regularly at Daiwa Foundation Japan House, where regular andoccasional participants engaged in lively discussions on a wide range of books including literary classics, anthologies andcontemporary fiction.

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for the Year Ended 31 December 2016

Other events included gallery talks and museum visits, cultural workshops, music and theatre, food and drink tastings,
golf tournaments, and social events. One of the most popular events of the year was an evening in conversation withEddie Jones, England rugby's head coach and former coach of the Japanese national team. From his experience working
with top sportsmen in the two countries, Eddie Jones provided cultural insights which in a very practical context fulfilled
our charitable objective to enhance understanding and advance education with regard to Japan and Britain. Other events
celebrating cultural traditions and dialogue included a lecture by Koji Toyoda, one of Shinichi Suzuki's first students,
whospoke about the pioneering Suzuki method of teaching the violin and its international impact, and Hamlet and Japan,
an evening of talks and performances at Shakespeare's Globe.
The Society again partnered with Kew Gardens and the Embassy of Japan in organising a tanabata festival celebration,
appropriately held in Kew's bamboo garden over two days in August. This was followed by the eighth annual Japan
Matsuri, held in Trafalgar Square on 25 September. The Japan Society has a formal role as corporate director of the Japan
Matsuri company, with Heidi Potter its nominated representative on the board. In 2016, the Society was asked to take on
the management of stalls at the event, ensuring their safe operation and compliance with GLA and Westminster Council
regulations. As usual, the event was managed by a production company which reduced the administrative burden and risk
to the four partner organisations: the Japanese Chamber of Commerce and Industry in the UK, the Japan Association, theNippon Club and the Japan Society. In 2016, the event received special support from the Japan Foundation to bring
Aozasa Shishi-Odori Dance Troupe and Tezuma the magician to London.
The lectures programme as usual covered a wide range of subject matter. The monthly academic lecture, held every third
Monday, formed the core of this aspect of our public programming. These lectures are held at Swedenborg Hall, a
convenient, central London venue, easily accessible to students; this is an audience we are particularly keen to encourage
and build. Subjects in 2016 included: the work of anthropologists in Japan; Japan's role in the First World War; media
and religion in contemporary Japan; Treaty port life from 1859-99 and the work of the British consular court; Freedom ofspeech in contemporary Japan; and mental health issues in Japan from the Meiji Period. The seventh annual lecture inmemory of Dr Carmen Blacker took place in London and Norwich, organised jointly with the Sainsbury Institute for the
Study of Japanese Arts and Cultures, with James McMullen speaking on Confucian ceremonies in Tokugawa Japan. A
rare opportunity to view archive film of Japan's Mingei movement, featuring Bernard Leach and Shoji Hamada among
others, proved particularly popular in a presentation by Canadian film maker, Marty Gross.
Japan Society Small Grants
An annual sum of up to £30,000 is set aside for grants in support of small-scale projects and events related to Japan.
These grants provide opportunities for people throughout the UK to participate in education and exchange relating toJapan and thus contribute to raising awareness and understanding of the country and its culture in places where the Japan
Society has no regular contact. Priority is given to applications for grassroots projects and for activities involving schools
and other educational establishments. In 2016, 30 grants were made averaging £700 with funding totalling £21,000 being
awarded in support of grassroots projects in the UK. In line with the objectives of the grants scheme, most of theactivities supported had an educational element, fostered exchange between the UK and Japan, or provided opportunities
to bring Japanese culture to a wide group of people.
As in previous years, the Society supported a number of school-based extended projects, ranging from whole school
Japan days to interdisciplinary learning days and enrichment weeks. With relatively small amounts of additional funding,schools are able to bring in experts to run specialist workshops to complement and enrich curriculum-based studies. The
Japan Club at Fraserburgh Academy ran alternate language and craft weeks, giving participating students an introduction
to Japanese and its cultural context. Other schools organised cross-curricular events over a shorter period, with a day orweek of concentrated activity. The British Cartographic Society continued its Restless Earth workshop series using theGreat East Japan Earthquake and tsunami as a case study to learn about disaster response activities: with authentic
materials and real data, participants gain an understanding of Japanese human and physical geography.
The Society also supported projects involving young people outside the school system. On the Sussex coast, a group of
16 - 25 year olds engaged in a three month programme of workshops exploring different aspects of Japanese culture,
while Fife Scouts welcomed a group from Iwate for ten days of activities and homestay, and in south Wales, manga
workshops formed part of the annual Kotatsu Japanese Animation Festival.

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for the Year Ended 31 December 2016

A collaboration between the Royal Armouries in Leeds and the Halifax-based Textile Arts Group created an exhibition of
textiles which explored traditional techniques and the construction of Japanese armour, in the context of theircontemporary uses. In addition to the exhibition, members of the Group held public sessions to demonstrate techniques
used in the artworks and to discuss the inspiration for the contemporary works and their links to the collection andJapanese heritage.
The Society again supported the Wasurenagusa project, a valuable initiative which aims to tell the story of the Japanesecommunity in the UK through personal narratives with a grant in 2016 enabling the project to be extended to include
interviews in the North of England, Scotland and further afield. Funding made to the Devon Guild of Craftsmen
supported music and theatre performances to accompany an exhibition of the work of four Japan-based potters. The
ground-breaking Yo no Bi project entered its second phase, with sound artists Oshiro Makoto and Suzueri touring theNorth of England, producing new sonic works and holding performances and talks. Small grants also supported
community-based Japan festivals in Cambridge, Edinburgh, Glasgow, Kent, Lincoln and Sheffield.
Japan Society Awards
Japan Society Awards were not presented in 2016.
Library
During 2015 work continued on cataloguing and documenting ephemera and loose correspondence held in the library. A
small number of researchers visited, primarily to use the historical archive and copies of the Transactions andProceedings of the Society.
Publications
At the end of 2014, the board re-established a publications committee (comprising Sir Hugh Cortazzi, Sean Curtin, Janet
Hunter, Stephen McEnally, Heidi Potter, Alison Scott (Chair), Jenny White) with a brief to review the Society's work inpublishing and identify material for future consideration. Following a second invitation for proposals issued in early
2016, nine were received which were reviewed by the committee alongside some 2015 proposals carried forward forfollow up. It was decided to proceed with publication of a selection of short stories by Japanese women writers.
The tenth volume in the series, Japan and Britain, Biographical Portraits was published in 2016 and launched at theAnnual General Meeting in June. Containing some 69 portraits, the volume brought the collection of memoirs to a
cumulative total of nearly 500. Turning the spotlight onto individuals and organisations that have contributed to therelationship between Japan and the UK, this series has been instrumental in fulfilling the Society’s mission to promotelearning in respect of the two countries. In October, the Society launched a second publication: Japanese Studies in
Britain: a survey and history, which assesses the state of Japanese studies in the UK today and argues that this should
remain a priority at a time when Britain is going through a radical re-evaluation of its role in the world.
2016 also saw the launch of the Japan Society e-library which currently includes thirteen volumes, including the
Biographical Portraits series and related publications. The ability to search by keyword and theme enables readers to
discover new connections within the wealth of content contained in these publications.
Schools Education
The schools education programme has been developed out of a belief in the value to young people in the UK ofgrowing up with an awareness and understanding of Japan and its culture. In addition to historical and business reasonsfor learning about a key international partner, there are more general benefits of broadening horizons and raising
aspirations. Through its activities for schools, the Society supports teachers who may have limited experience of Japanthemselves in providing these opportunities for their students.
Throughout the year, the Society's education team provides advice and resources to schools engaged in teaching andlearning activities relating to Japan. As well as working in partnership with local authorities, it offers materials directly
to schools throughout the country, including loan resources supplied to approximately 70 schools each year.
Other targeted activities include:

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Japan in Your Classroom visits
During the year over 60 visits were made by volunteers in Greater London, Brighton, Derby, Manchester and South
Wales. For most students a Japan in Your Classroom visit is their first opportunity to meet a Japanese person and tohear about Japan first-hand; the visits have a lasting impact. A series of training sessions was held to support thevolunteers, covering both general matters such as classroom management and techniques for engaging pupils actively,
and subject specific content.
School links
Support for school links has continued to be an important element of the Society's work. During 2016, new partnerships
were established and existing links strengthened through exchange trips. Kobe University Fuzoku Junior High School
again visited the UK, this time taking students to participate in exchanges with Cirencester Deer Park School andAlleyn's School in London. Takamatsu Daiichi Senior High School again visited County Upper School in Bury St
Edmunds, for an exchange focused on science activities, with Newstead Wood School joining this partnership in theautumn. A number of primary school exchanges also took place: Cropwell Primary School in Nottingham had anothersuccessful visit from their partner, Komaki Elementary School in Nagano and teachers from Reepham Primary Schoolparticipated in an exchange visit to Japanese partner, Sadako Azuma Kindergarten in Saitama. In January, Escomb
Primary School, Bishop Auckland hosted a visit from their partner school Ogawara Minami Elementary School near
Sendai before making a reciprocal visit in October. In the virtual world, Japan UK LIVE! and related services continued
to support schools in developing their links and work began to redevelop the site to take advantage of improvements intechnology available to schools. Ysgol Gymuned Y Fali and its partner, Kitauchi Elementary School in Nara Prefecture,completed a joint musical collaboration Welsh Breeze. Students in the two schools worked together to compose andwrite lyrics for a song, which was recorded and edited with footage of their localities, to create an inspiring video recordof the friendships developed online.
Teacher in-service training
The Japan Conference for Schools organised with the Japan Foundation at the Embassy of Japan involved over 50
teachers taking part in a series of practical workshops alongside discussion groups on topics including school linking;preparation for speaking exams; the Online Resource for Japanese Archaeology and Cultural Heritage (ORJACH); andan update from Pearson on changes to GCSE Japanese. In this year's key note lecture, Baroness Coussins (Co-Chair of
the All-Party Parliamentary Group on Modern Languages) spoke about the importance of language education.
Sixth form study day
Following the success of the annual sixth form study day, which had been held regularly in London since 2010, the2016 event was planned at Manchester University. Under this new initiative, which aims to make the event accessible tostudents over a wider geographic area, it is our intention that the event take place in alternate years in London andanother university city with strong Japanese studies department. After a slow take up of places for this November event,it was decided to postpone the 2016 workshop to March 2017 and then to review plans.
Communication and marketing
The website and regular email notices continued to be important and efficient tools for communicating information
about the Society and its activities. At the same time, monthly event calendars distributed by post on request provided aback-up for those without regular access to the internet. Facebook and Twitter are for many the first contact with theSociety, with steady growth in following on these media.
Financial review
In 2016 the Society showed a deficit of (£9,584), which reflected the decision to draw down some reserves in order to
employ someone in Japan, to further develop the education programme with schools in that country.
During the year individual and corporate members continued to provide invaluable support through the higher-level
giving scheme both for the general mission and for the schools education programme.
The following companies and individuals have given support at a level above that of regular membership (minimum
amounts for each level are given in brackets):

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for the Year Ended 31 December 2016

FINANCIAL REVIEW
Companies

Individuals

President's Circle (£25,000)

Corporate Donor (£2,000)

Principal Benefactor (£1,000 +)JTI
Mitsubishi Corporation International(Europe) Plc
Mitsui & Co Europe Plc
Nomura International Plc

Aberdeen Asset Management PLC
Allen & Overy LLP
All Nippon Airways Co Ltd
BDO LLPDAKS Simpson Group plc*Greenback Alan LLP
Holman Fenwick Willan LLP
Japan Airlines Co Ltd
The Japan Centre Group Ltd
Japan Post Bank Co Ltd*"K" Line (Europe) Ltd
King & Wood Mallesons LLP¶Linklaters LLP
Mitsubishi Heavy Industries Europe
Ltd
Mitsui Sumitomo Insurance Group*NEC (Europe) Ltd
Ricoh (Europe) plc
Tokio Marine Kiln Insurance Ltd
Toshiba of Europe Ltd¶Winton Capital Management

Koichi Nezu
Martin & Noriko Barrow
Hugh & Elizabeth Cortazzi
Bill Emmott
Akihiro & Noriko Tsuchiya

Platinum Circle (£17,500)
Itochu Europe Plc
Softbank Group
Sumitomo Corporation Europe Ltd
Chairman's Circle (£10,000)*¶Chugai Pharma Europe Ltd
Mitsubishi UFJ Financial Group
Corporate Patron (£7,500)*¶Astellas Pharma Inc*¶Canon Europe Ltd*¶Central Japan Railway Company*¶Eisai Europe Ltd
Ernst & Young LLP
Marubeni Europe plc
Mizuho Financial Group¶NSK Europe Ltd*NYK Group Europe Ltd*¶PricewaterhouseCoopers LLP
SMBC Europe Ltd
Corporate Benefactor (£5,000)

All or part of the donation fromcompanies marked with anasterisk (*) has been designated insupport of the schools educationand small grants programmes.
Those with a pilcrow sign (¶) havegiven their support through a five
year agreement.

Clifford Chance LLP
Dai-ichi Life International Europe
Daiwa Capital Markets Europe Ltd¶Hitachi Europe Ltd
Honda Motor Europe
HSBC Holdings International
KPMG LLP*¶Mitsubishi Electric Europe BV
Nikko Asset Management Europe Ltd¶Olympus KeyMed
Sompo Japan Nipponkoa Insurance Co of Europe Ltd
Toyota (GB) Plc

Benefactor (£500)
Anna Dingley
Christopher & Phillida Purvis
Principal Donor (£250)
Penelope Elias
Michael Faber
Ruth Martin
James Noble
Heidi Potter
Donor (£100)
Mark Allsup
Clive & Vivien Bradley
Stephen Codrington
Robin Fox
Lydia Gomersall
Keiko ItohPeter Job
Kathleen KimuraDavid Mytton
Pernille Rudlin
Andrew Smithers

Individual Supporter (£58)
D G R Bentliff
Reg Clark
Gerard Dempsey
Suzanne Hudson
Rosemary Morgan
Suzanne Perrin
Jairaj Thakkar

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Reserves
In the current uncertain political and economic climate, the board has reviewed its reserves policy and has decided thatit should maintain reserves of at least 75 per cent of total annual expenditure. Current reserves of approximately 80 per
cent of annual expenditure have been built up as a result of prudence at a time of general economic downturn whenprospects for fundraising were uncertain. This guards against risks to the Society's core activity should it fail to meetprojected income targets and provides some financial security to a charity which currently relies for almost all its
funding on annual donations. Funds have been designated in respect of known maintenance costs and for theemployment of a member of staff in Japan as outlined in note 14. As noted above, this has entailed drawing down some
£9,500 of reserves during the year. As at 31 December 2016, unrestricted reserves less tangible fixed assets were£407,699. The cash reserves are held on deposit.
PLANS FOR THE FUTURE
In 2017, the Japan Society will continue to develop its programme of events, particularly those of interest to the youth
audience, while also maintaining and developing its business and academic programmes. Providing support in Japan forour schools education programme remains a priority. The need to educate the next generation to look beyond nationalboundaries and equip them for work in a global economy, means that support for school partnerships and work todevelop resources for teachers remain extremely relevant.
Two books selected by the Publications Committee in 2015 and 2016 are due to be issued in 2017. Work will also
continue to develop content within the e-library portal to make accessible material from the Society's archives.
The trustees have been kept informed of developments regarding the establishment of "Japan House" in London under
the auspices of the Japanese Government, which is due to open in late 2017. The Society looks forward to working
closely with this new organisation as appropriate, in order to provide increased opportunities for the public to engage
with Japan. The Japan Society Chairman sits on the steering committee of Japan House.
Although in a strong financial position at the start of 2017, the Society continues to be faced with a need to raisesignificant funds each year in order to maintain and develop the level of services for members and the wider
community. This task will not be easy against a background of continued economic uncertainty, but it is anticipated that
the Society's record in doing important educational work will continue to be persuasive and that support from higherlevel donors will be sustained.

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STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Japan Society is a company limited by guarantee and as such is governed by its Memorandum and Articles of
Association. It is a registered charity.
The members of board who served during the year were:
Sir David Warren, KCMG - Chairman
Graham Holman - Vice Chairman
Motohiko Kato - Vice Chairman
Jenny White - Vice Chairman
Satoru Yoshida- Hon Treasurer
Nigel Wellings - Hon Solicitor
Alison Scott - Hon Editor
Hideki Asari(Resigned 12 July 2016)
Tom Burn
Anna Dingley(Resigned 22 June 2016)
Lydia Gomersall
Tetsuro Hama
Janet Hunter
Shinichi Iida
(Appointed 27 July 2016)
Masahiro Imai
(Resigned 22 June 2016)
Jason James
Shinichiro Masunaga(Resigned 22 June 2016)
Mami Mizutori
Morihiko Okudaira(Elected 22 June 2016)
Sarah Parsons(Elected 22 June 2016)
Yoji Saito(Elected 22 June 2016)
Akihiro Tsuchiya
Eiji Wakiwaka

Page 10

THE JAPAN SOCIETYREPORT OF THE TRUSTEES (CONTINUED)
for the Year Ended 31 December 2016

STRUCTURE, GOVERNANCE AND MANAGEMENT
Recruitment and appointment of new trustees
As set out in the Articles of Association, the Board of the Japan Society consists of a Chairman, up to two ViceChairmen, up to four appointed officers (Solicitor, Treasurer, Editor and Librarian), two ex officio trustees (oneadditional Vice-Chairman, the deputy head of mission at the Japanese Embassy, and one ordinary trustee, a member of
the Japanese Embassy) with up to 20 trustees in total.
Vice Chairmen are elected annually by the board from their number. It is also the board which appoints the four
officers: solicitor, treasurer, editor and librarian. There is no maximum term to these four appointments, but any
appointments should be re-confirmed every three years. The board has the right but no obligation to appoint ViceChairmen, solicitor, treasurer, editor and librarian.
All other members of the board (with the exception of the two ex officio trustees from the Embassy) are elected for aterm of three years. At the end of the first term, trustees may stand for re-election for a second three year term. No one
may serve as an ordinary trustee for more than six consecutive years.
At the annual general meeting in June 2017, two trustees, Lydia Gomersall and Akihiro Tsuchiya will be standing down
having served on the board for six years; Tom Burn is resigning on being posted overseas. Jenny White will be standing
down at the end of a three year term, and Mami Mizutori will retire by rotation; both are eligible for reelection.
The board meets at regular intervals in order to provide strategic direction and to monitor and review the activities of
the Society. During the year the board met four times, one being an extended meeting at which the board and executive
considered together issues facing the Society in the medium to long term. The day-to-day running of the Society is
carried out by the permanent staff under the leadership of Heidi Potter, who regularly reports to the chairman and theboard. She is supported by Hiroko Kimura, head of education, and a team of paid staff and occasional interns. The
activities of the Society are organised by the office, with support also provided by activity group sub-committees(particularly awards, business, conversation, publications and small grants), which meet on an ad hoc basis and whose
members are volunteers. Teams of Japan in Your Classroom volunteers are essential to the running of the Society's
popular school visit programme.
A nominations committee (comprising David Warren, Tom Burn, Shinichi Iida,and Heidi Potter) reviews the skills thatare required on the board from time to time and the succession policy, making recommendations to the board on
possible future appointments. The following skills / interests have been identified as particularly relevant to the Japan
Society and are represented on the current board: the arts; the Japan-related business community; education;
fundraising; the general Japanese community. The board in turn makes proposals to the members of the Society inadvance of the annual general meeting. The recommendations for election at the forthcoming annual general meetingare detailed in the chairman's letter at the start of this report as well as in the papers for the annual general meeting. The
role of the board and the organisation's expectations of its board members are discussed with new trustees prior to theirelection. In 2017, the nominations committee has been extended to include members (Marie Conte-Helm, Andrew
Fraser, Tetsuro Hama and Mami Mizutori) with broad experience and networks, as well as in depth knowledge of theorganisation, in order to consider and advise on the future chairmanship of the Society .
The audit committee (comprising Heidi Potter, David Warren and Satoru Yoshida) considers the accounts and theperformance of the auditors. The membership committee (chaired by Graham Holman, with Martin Barrow, Jon Fisher,
Akiho Horton, Michael Jefferson, Junko Kohama, Midoriko Nakajima, Heidi Potter, Julie Rogers, Emma Routh andChris Stuart) focuses on membership issues and recruitment.
Pay policy
The pay of staff is reviewed annually and normally increased in accordance with average earnings. In view of the natureof the charity, the trustees benchmark against pay levels in other similar organisations.
All trustees give of their time freely and no trustee received remuneration in the year. Details of trustees' expenses andrelated party transactions are disclosed in notes 11 and 19 to the accounts.

Page 11

THE JAPAN SOCIETYREPORT OF THE TRUSTEES (CONTINUED)
for the Year Ended 31 December 2016

STRUCTURE, GOVERNANCE AND MANAGEMENT
Risk management
Members of the board review the major risks to which the Society is exposed and the systems established to mitigate
this risk. A Risk Management Register is maintained and formally reviewed annually by the board.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating
to small companies.
Approved by order of the board of trustees on ............................................. and signed on its behalf by:.............................................
Satoru Yoshida – Hon. Treasurer

Page 12

THE JAPAN SOCIETY
STATEMENT OF TRUSTEES RESPONSIBILITIES
for the Year Ended 31 December 2016

The trustees (who are also the directors of The Japan Society for the purposes of company law) are responsible forpreparing the financial statements in accordance with applicable law and United Kingdom Accounting Standards(United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fairview of the state of affairs of the charitable company and of the incoming resources and application of resources,
including the income and expenditure, of the charitable company for that period. In preparing those financial
statements, the trustees are required to-

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that thecharitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time
the financial position of the charitable company and to enable them to ensure that the financial statements comply with
the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence fortaking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:-

there is no relevant audit information of which the charitable company's auditor is unaware; andthe trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit
information and to establish that the auditor is aware of that information.

Page 13REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES OF
THE JAPAN SOCIETY

We have audited the financial statements of The Japan Society for the year ended 31 December 2016 on pages sixteen
to twenty eight. The financial reporting framework that has been applied in their preparation is applicable law andUnited Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the charitable company's trustees, as a body, in accordance with Section 145 of theCharities Act 2011 and regulations made under Section 154 of that Act. My audit work has been undertaken so that wemight state to the charitable company's trustees those matters we are required to state to them in an auditor's report andfor no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone otherthan the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or forthe opinions we have formed.
Respective responsibilities of trustees and auditor
As explained more fully in the Statement of Trustees Responsibilities set out on page thirteen, the trustees (who are also
the directors of the charitable company for the purposes of company law) are responsible for the preparation of thefinancial statements and for being satisfied that they give a true and fair view.
The trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011 rather
than the Companies Act 2006. Accordingly we have been appointed as auditor under Section 145 of the Charities Act
2011 and report in accordance with regulations made under Section 154 of that Act.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law andInternational Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices
Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to givereasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or
error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company's
circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant
accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read
all the financial and non-financial information in the Chairman's Report and the Report of the Trustees to identify
material inconsistencies with the audited financial statements and to identify any information that is apparently
materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing
the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications
for our report.
Opinion on financial statements
In our opinion the financial statements:
give a true and fair view of the state of the charitable company's affairs as at 31 December 2016 and of its
incoming resources and application of resources, including its income and expenditure, for the year then ended;have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; andhave been prepared in accordance with the requirements of the Companies Act 2006.

Page 14REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES OF
THE JAPAN SOCIETY

Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you
if, in our opinion:
the information given in the Report of the Trustees is inconsistent in any material respect with the financial
statements ; orthe charitable company has not kept adequate accounting records; orthe financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

Richard Place Dobson Services Limited
Chartered Accountants
Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006
1-7 Station Road
CrawleyWest Sussex
RH10 1HT
Date: .............................................

Page 15

THE JAPAN SOCIETY
STATEMENT OF FINANCIAL ACTIVITIES(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)
for the Year Ended 31 December 2016

Unrestricted
fund
Notes
£

DesignatedFund£

Restrictedfund£

31.12.16
Total funds

31.12.15
Total funds££

61,863443,122

466,439

-

1,045
-

33,494451
22,54330,333441
20,207436,702-62,908499,610

517,420

7,614

-

-

7,614

11,677

72,128201,643
142,544-318
22,102-37,40725,43872,446201,643
202,053
25,438

181,744
135,293
172,337
32,228

Total

423,929

22,42062,845509,194533,279NET
INCOME/(EXPENDITURE)

12,773(22,420)63(9,584)(15,859)

Total funds brought forward

275,137

637,384149

912,670928,529

TOTAL FUNDS CARRIEDFORWARD

287,910

614,964212

903,086

912,670

INCOME FROM
Donations and legacies2381,259-

Fundraising activities
Investment income
Other income

34
532,449451
22,543

Total

EXPENDITURE ON
Raising funds
Charitable activities
Membership and publications
EventsSchools education
Small grants

6
7

RECONCILIATION OF
FUNDS

CONTINUING OPERATIONS
All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 16

THE JAPAN SOCIETY
BALANCE SHEETAt 31 December 2016

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets

DesignatedFund£

Restrictedfund£

31.12.16
Total funds

31.12.15
Total funds

£

£

14

13,440481,735-

495,175

503,178

15

125,985
193,590

133,229212

125,985
327,03165,793
397,561

319,575

133,229212

453,016

463,354

CREDITORS
Amounts falling due within one
year
16(45,105)--(45,105)(53,862)

NET CURRENT ASSETS

274,470

133,229212

407,911

409,492

TOTAL ASSETS LESSCURRENT LIABILITIES

287,910

614,964212

903,086

912,670

NET ASSETS

287,910

614,964212

903,086

912,670

287,910
614,964

275,137
637,384

Restricted funds

902,874212

912,521
149

TOTAL FUNDS

903,086

912,670

CURRENT ASSETS
Debtors
Cash at bank

FUNDS
Unrestricted funds:
General fund
Designated Fund17

The notes form part of these financial statements

Page 17

continued...

THE JAPAN SOCIETY
BALANCE SHEET - CONTINUED
At 31 December 2016

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year
ended 31 December 2016.
The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of thesefinancial statements.
The trustees acknowledge their responsibilities for(a)ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of theCompanies Act 2006 and(b)
preparing financial statements which give a true and fair view of the state of affairs of the charitable company asat the end of each financial year and of its surplus or deficit for each financial year in accordance with therequirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act
2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

The financial statements were approved by the Board of Trustees on ............................................. and were signed on its
behalf by:.............................................
Sir David Warren KCMG, Chairman.............................................
Satoru Yoshida, Hon. Treasurer

The notes form part of these financial statements

Page 18

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2016

1.

ACCOUNTING POLICIESBasis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been
prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statementof Recommended Practice applicable to charities preparing their accounts in accordance with the Financial
Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)',
Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of
Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical costconvention, as modified by the revaluation of certain assets.
IncomeGrants - where entitlement is not conditional on the delivery of a specific performance by the charity, grants arerecognised when the charity becomes unconditionally entitled to the income.
Subscriptions are credited to the Statement of Financial Activities in respect of the year to which they relate.
Donations and similar incoming resources are included in the year in which they are receivable, which is when
the charity becomes entitled to the resource.
Investment income includes interest receivable and is included in the accounts when the charity becomes
entitled to the income
Fundraising income includes event income and income for courses and resources. This income is included in
the year in which it is receivable, which is when the charity becomes entitled to the resource.
Other incoming resources includes the sale of books and royalties. This income is included when the risks andrewards of ownership are passed from the charity to the buyer.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing thecharitable companycharity to that expenditure, it is probable that a transfer of economic benefits will be requiredin settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an
accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs
cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent
with the use of resources.
Expenditure includes VAT which cannot be fully recovered and is reported as part of the expenditure to which it
relates.
Costs of raising funds comprise the costs associated with attracting voluntary income and costs of fundraising.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and thosecosts of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory requirements ofthe charity and include audit fees.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but
not accrued as expenditure.

Page 19

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2016

1.

ACCOUNTING POLICIES - continued
Allocation and apportionment of costs
Support costs are those functions that assist the work of the charity but do not directly undertake charitable
activities. Support costs include back office and governance costs which support membership and publications,
events, school education and small grant activities. These costs have been allocated and apportioned to thevarious charitable activates. A percentage basis has been used to apportion the support costs to the charitable
activities.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual valueof each asset over its estimated useful life.

Fixtures, fittings & equipment - 20% Straight LineIT Equipment - 33% Straight LineThe library is not depreciated as a policy of revaluation has been adopted due to the fact the library contains rarebooks which tend to increase in value over time.
All assets costing more than £500 are capitalised.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Designated funds are unrestricted funds earmarked by the trustees for particular purposes.
Restricted funds can only be used for particular restricted purposes within the objects of the charity.
Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at thebalance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange rulingat the date of transaction. Exchange differences are taken into account in arriving at the operating result.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis
over the period of the lease.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to thecharitable company's pension scheme are charged to the Statement of Financial Activities in the period to which
they relate.

Page 20

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2016

1.

ACCOUNTING POLICIES - continued
Debtors, cash and creditors
Debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at
the amount prepaid net of any trade discounts due.
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of
three months or less from the date of acquisition or opening of the deposit or similar account.
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably
results in the transfer of funds to a third party and the amount due to settle the obligation can be measured or
estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any discounts
due.

2.

DONATIONS AND LEGACIESCorporate Membership Subscriptions
Corporate Donations
Corporate Sponsorship
Individual Membership Subscriptions
Individual Donations

3.

Restricted
funds£
61,863-31.12.16
Total
funds
£
82,129299,91425,00023,681
12,39831.12.15
Total
funds
£
90,404
320,855
24,007
24,432
6,741

381,259

61,863443,122

466,439

Unrestricted
funds£
32,449-Restricted
funds
£
1,045

31.12.16
Total
funds
£
32,4491,045

31.12.15
Total
funds
£
27,0303,303

32,4491,045

33,49430,333

Unrestricted
funds
£
451

Restricted
funds
£
-

31.12.16
Total
funds
£
451

31.12.15
Total
funds
£
441

FUNDRAISING ACTIVITIESEvents income
Education income and direct projects

4.

Unrestricted
funds£
82,129238,051
25,00023,681
12,398INVESTMENT INCOME

Deposit account interest

Page 21

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2016

5.

OTHER INCOME

Publication and sale of books
Rental income
Secretariat income

6.

Unrestricted
funds
£
4,243
10,8007,500

Restricted
funds
£
-

31.12.16
Total
funds
£
4,243
10,8007,500

31.12.15
Total
funds
£
4,657
10,8004,750

22,543-22,543

20,207

Unrestricted
funds
£
2,379
5,235

Restricted
funds
£
-

31.12.16
Total
funds
£
2,379
5,235

31.12.15
Total
funds
£
3,675
8,002

7,614

-

7,614

11,677RAISING FUNDS
Raising donations and legacies

Fund raising activities
Marketing, website & database

7.

CHARITABLE ACTIVITIES COSTS

Direct costs

Membership and publications
EventsSchools education
Small grants£
36,10099,917130,106
266,123

8.

Grantfunding ofactivities Support costs(See note 8)(See note 9)££
36,346
101,726
71,94725,43825,438

Totals£72,446201,643
202,053
25,438210,019

501,580

31.12.16£
25,43831.12.15£
21,295

GRANTS PAYABLE

Small grants

Page 22

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2016

8.

GRANTS PAYABLE - continued
Material grants paid to institutions during the year:

Action factory
Blueprint 22
Blueprint: Film Foundation
British cartographic Society
Devon Guild of Craftsmen
Japan Society North West
Modern Culture/M J Colthorpe
Mu:arts
Ryoko Akama
The Common Guild
The Pagoda North project
Theatre Lapis
Town Hall Events Wirksworth
University of StirlingMusicity Limited
University for the Creative Arts
Satsuma 150
Greenthorpe CE Primary School
Foundation for Art & Creative Culture
Other small grants paid to 22 (27) institutions

9.

31.12.16£

31.12.15
£

1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
10,438

1,000
1,000
1,000
1,000
1,000
1,000
14,29524,43821,295SUPPORT COSTS

Membership and publications
EventsSchools education

Management£
23,45465,722
46,424Other£
11,33431,651
22,437

Governance
costs
£
1,558
4,353
3,086

Totals£36,346
101,726
71,947

135,600

65,422

8,997

210,019

Support costs, included in the above, are as follows:

Page 23

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2016

9.

SUPPORT COSTS - continued

Wages
Social security
Pensions
Establishment expenses
Depreciation of tangible
and heritage assets
Office expenses
General expenses
Consultancy
Auditors' remuneration
Bank charges

10.

31.12.16

31.12.15

Schools
education£
23,756
1,911
18,012

Total
activities£
69,272
5,572
52,753

Total
activities£
19,1161,040
541
67,235

3,872
11,644511
19,496
3,387
966

2,745
8,254
362
13,821
2,401
685

8,003
24,068
1,055
40,2997,000
1,997

10,496
15,537
6,790
2,160
6,950
1,219

101,726

71,947210,019

131,084

31.12.16
£
7,000
8,003
24,06831.12.15
£
6,950
9,770
15,537

Membership
andpublications£
12,002965
9,101

Events£33,514
2,696
25,640

1,386
4,170
182
6,982
1,212
346
36,346NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration
Depreciation - owned assets
Other operating leases

11.

TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2016 nor for the year
ended 31 December 2015.
Trustees' expenses
During the year one member of the board was reimbursed for expenses:
Sir David Warren - £116 (2015: £254) in relation to miscellaneous expenses
The charity carried indemnity insurance for its trustees, for which a premium of £1,085 (2015: £1,085) was paid.

Page 24

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2016

12.

STAFF COSTS

Wages and salaries
Social security costs
Other pension costs

31.12.16£
213,599
14,991
9,423

31.12.15£
200,749
19,046
9,911

238,013229,706

31.12.16
9

31.12.15
9

The average monthly number of employees during the year was as follows:

Employees

No employees received emoluments in excess of £60,000.
13.

2015 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIESUnrestricted
fund£

DesignatedFund£

Restricted
fund£

Total funds

INCOME FROM
Donations and legacies

373,484

30,00062,955

466,439

Fundraising activities
Investment income
Other income

27,030441
20,183

-

3,303
24

30,333441
20,207

Total

421,138

30,00066,282

517,420£EXPENDITURE ON
Raising funds
Charitable activities
Membership and publications
EventsSchools education
Small grants

11,677--

11,677

179,755
125,595
101,049
10,93328,314
9,698-(26,325)
71,28821,295

181,744
135,293
172,337
32,228

Total

429,009

38,012

66,258533,279

NET INCOME/(EXPENDITURE)(7,871)(8,012)24(15,859)

Transfers between funds(5,661)

5,661

-

-

Net movement in funds(13,532)(2,351)

24(15,859)

Page 25

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 201613.

2015 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES – continued
Unrestricted
fund£

DesignatedFund£

Restricted
fund£

Total funds

Total funds brought forward

288,670

639,734

125

928,529

TOTAL FUNDS CARRIED FORWARD

275,138

637,383149

912,670

Library£

Fixtures andfittings£

Totals£481,735

44,491

526,226

DEPRECIATION
At 1 January 2016
Charge for year-

23,0488,003

23,0488,003

At 31 December 2016-

31,051

31,051

NET BOOK VALUEAt 31 December 2016

481,735

13,440495,175

At 31 December 2015

481,735

21,443503,178£

RECONCILIATION OF
FUNDS

14.

TANGIBLE FIXED ASSETS

COST
At 1 January 2016 and 31 December 2016

The last professional valuation of the library was undertaken by Maggs and Sons in 2005. After due
consideration and consultation with relevant professionals, a collective decision was taken by the board oftrustees not to alter the value of the library. Under Accounting and Reporting by Charities: Statement ofRecommended Practice applicable to charities preparing their accounts in accordance with the Financial
Reporting Standard for Smaller Entities (effective 1 January 2015) paragraph 10.34 the charity trustees are
required to ensure that valuations are carried out by an experience valuer, although the Charities SORP permits
this to be carried out by a trustee or member of staff who has the relevant experience and knowledge.
15.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Prepayments and accrued income

Page 26

31.12.16£
102,833
23,15231.12.15£
42,667
23,126125,985

65,793

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2016

16.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
VAT
Other creditors
Accruals and deferred income

17.

31.12.16
£
(20)
5,170
302
39,65331.12.15
£
60
5,146
5,110
12,88030,66645,10553,862

MOVEMENT IN FUNDS
Restricted funds:
The funds of the Society include restricted funds. The following are the unexpended balances of such funds:

Tohoku Earthquake Fund
Education Fund

Tohoku Earthquake Fund
Education Fund

Balance at
01.01.16£

Incoming
Resources£

Resources
Expended£

Balance at
31.12.16
£

149
-

63
62,84562,845212-

149

62,90862,845

212

Balance at
01.01.15£

Incoming
resources£

Resources
expended£

Balance at
31.12.15
£

125
-

24
66,25866,258149-

125

66,282

66,258149

Certain funds are restricted to expenditure relating to schools education and small grants.
Tohoku Earthquake Fund represents the donations made specifically for the Japan Society Tohoku Relief Fundby members and the general public. During 2011, the Society entered into an agreement with the SanaburiFoundation in Sendai to provide a framework for the disbursement of these funds in Tohoku.

Page 27

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 201617.

MOVEMENT IN FUNDS – continued
Designated funds:
The income funds of the charity include the following designated funds which have been set asideout of unrestricted funds by the trustees for specific purposes:

LibraryJapan office fund
Maintenance fund
Digitisation of books fund

LibraryJapan office fund
Maintenance fund
Digitisation of books fund

Balance at
01.01.2016£

Incoming
resources£

Resources
expended£Transfers£

Balance at
31.12.2016£

481,735
127,347
8,000
20,302-

22,102318-

481,735
105,245
8,000
19,984

637,384-

22,420-614,964

Balance at
01.01.2015£

Incoming
resources£

Resources
expended£Transfers£

Balance at
31.12.2015£

481,735
150,000
8,000-

30,00022,653
5,661
9,698

5,661
-

481,735
127,347
8,000
20,302639,735

30,00038,012

5,661

637,384

The library fund represents the funds of the charity tied up in the library.
The Japan office fund represents the funds the charity has set aside to cover the cost of a Japan based office andemployee over a three to four year period. This is a new venture, with particular responsibility for working on
education projects. Designating funding for this purpose ensures that this is a sustainable development in theSociety's activity.
The maintenance fund is an amount set aside to cover the Japan Society's share (20%) of the building
maintenance work at 13/14 Cornwall Terrace. This work is stipulated by Crown Estates and carried out on afive year cycle.
J Paul Getty donated £30,000 to the Society during the year, which was restriction free, but they indicated theywould like the donation to assist with the costs of digitising the library books.
18.

RELATED PARTY DISCLOSURESThe Japan Society is a corporate director of Japan Matsuri. The Japan Society gave a contribution of £2,716(2015: £2,500) during the year.

Page 28