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 2018

THE JAPAN SOCIETY
CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2018

Page
Reference and Administrative Details

1

Report of the Trustees

2 to 9Statement of Trustees Responsibilities

10

Report of the Independent Auditors

11 to 12

Statement of Financial Activities

13

Balance Sheet

14 to 15

Cash Flow Statement

16

Notes to the Cash Flow Statement

17

Notes to the Financial Statements

18 to 28

Detailed Statement of Financial Activities

29 to 30

THE JAPAN SOCIETY
REFERENCE AND ADMINISTRATIVE DETAILSFOR THE YEAR ENDED 31 DECEMBER 2018
Patron

HRH The Duke of Gloucester, KG, GCVO

President

HE The Japanese Ambassador

Vice Presidents

Yasuyuki Fujitani
Isao Kano
Yasuo Kashiwagi
Daniel Sciamma

Honorary Vice-Presidents

Shin Ebihara
Hiroaki Fujii
Haruko Fukuda OBE
Sadayuki Hayashi
Hiroshi Kitamura
Prof. Ian Nish, CBE
Yoshiji Nogami
Masaki Orita
Christopher Purvis CBEViscount Trenchard
Ben Thorne, CMG, MBE
David Warren KCMG

Officers and Trustees(as at 8 April 2019)

Bill Emmott, Chairman
Martin Hatfull, Deputy Chairman
Takashi Okada, Vice Chairman
Jenny White, Vice Chairman
Nigel Wellings, Hon Solicitor
Satoru Yoshida, Hon Treasurer
Tetsuro Hama
Tim Harding
Sue Hudson
Janet Hunter
Shinichi Iida
Jason James
Yuuichiro Nakajima
Sarah Parsons
Julie Rogers
Yoji Saito
Eiji Wakiwaka

Chief Executive and Company 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 1HT~1~

THE JAPAN SOCIETY
TRUSTEES’ REPORTFOR THE YEAR ENDED 31 DECEMBER 2018
The Trustees, who are also Directors of the charity for the purposes of the Companies Act 2006, present their report with thefinancial statements of the charity for the year ended 31 December 2018. The Trustees have adopted the provisions ofaccounting and reporting by Charities: Statement of 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.)
Structure, governance and management
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(Resigned 31 December 2018)
Bill Emmott – Chairman(Elected 18 July 2018, with effect from 1 January2019)
Martin Hatfull – Deputy Chairman(Elected 18 July 2018)
Graham Holman - Vice Chairman(Resigned 18 July 2018)
Takashi Okada – Vice Chairman
Jenny White - Vice Chairman
Satoru Yoshida- Hon Treasurer
Nigel Wellings - Hon Solicitor
Tetsuro Hama
(Elected 18 July 2018)
Tim Harding
Sue Hudson
Janet Hunter
Shinichi Iida
Jason James
Yuuichiro Nakajima
Morihiko Okudaira(Resigned 31 August 2018)
Sarah Parsons
Julie Rogers(Elected 18 July 2018)
Yoji Saito
Eiji Wakiwaka
Appointment of Trustees
As set out in the Articles of Association, the Board of the Japan Society consists of a Chairman, up to two Vice-Chairmen, up
to four appointed officers (Solicitor, Treasurer, Editor and Librarian), two ex officio Trustees (one additional 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 Vice-Chairmen, solicitor, treasurer,
editor and librarian. In 2018, the board appointed Martin Hatfull as Deputy Chairman to take on a more formal role
supporting the Chairman.
All other members of the board (with the exception of the two ex officio Trustees from the Embassy) are elected for a term 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.
Morihiko Okudaira stood down from the board in August on completing his posting in the UK and returning to Japan. At theAnnual General Meeting in 2019, Tetsuro Hama will be standing down having served on the board for six years and Sarah
Parsons having served for one term of three years. Yoji Saito will be standing down at the end of a three-year term, and iseligible to stand for re-election.
The board meets at regular intervals in order to provide strategic direction and to monitor and review the activities of theSociety. During the year the board met five 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 carriedout by the permanent staff under the leadership of Heidi Potter, who regularly reports to the Chairman and the board. She issupported by a team of paid staff and occasional interns. The activities of the Society are organized by the office, withsupport also provided by activity group sub-committees (particularly business, conversation 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 therunning of the Society’s popular school visit programme.

~2~THE JAPAN SOCIETY
TRUSTEES’ REPORTFOR THE YEAR ENDED 31 DECEMBER 2018 (CONTD)
A nominations committee (in 2018 comprising David Warren, Marie Conte-Helm, Andrew Fraser, Tetsuro Hama, Shinichi
Iida, Mami Mizutori and Heidi Potter) reviews the skills that are 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 themembers of the Society in advance of the Annual General Meeting. The recommendations for election at the forthcoming
Annual General Meeting are detailed in the papers for the Annual General Meeting. The role of the board and theorganization's expectations of its board members are discussed with new Trustees prior to their election.
The audit committee (comprising in 2018, 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, Niraja Singh and Chris
Stuart) focuses on membership issues and recruitment.
Pay Policy
The pay of staff is reviewed annually by a remuneration committee (David Warren, Stephen McEnally, Aki Tsuchiya, Jenny
White) and normally increased in accordance with average earnings. In view of the nature of the charity, the Trustees
benchmark against pay levels in other similar organizations.
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.
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.
MissionThe Society's objects are:a)to promote learning and advance education in the subject of and with regard to Japan;b)
to promote the study of Japan and its people in all their aspects, traditional and modern, and to make the results of suchstudy more accessible to the general public;c)
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 and oflinks 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 of bothcountries, opportunities for people to meet in more informal settings, the provision of research facilities through our library,or the provision of small grants in support of Japan-related projects that are organized by others.
The board regularly reviews the Society's activity to ensure that its key objectives are being met as well as to confirm theircontinuing relevance. In the aftermath of the UK's decision to leave the EU, and with increasing global tendencies for nations
to look 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 when planning andevaluating our activities and in ensuring that a significant proportion is accessible to the wider community beyond theSociety’s membership. Many events are open to non-members, while the schools education programme and the small grants
scheme extend throughout the UK, beyond the Society’s base in London.
The Society encourages any who have an interest in Japan and the broad UK-Japan relationship to become members andparticipate in activities. Reduced membership fees for students and those under 25 years of age are set in order to makemembership accessible to the next generation, who will take the relationship forward in the coming years. In recent years wehave 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.
Achievements and performance
The main areas of activity of the Society are: events, schools education, publications. small grants, the library and awards.
The Society is grateful to the companies and individuals who share its belief in the importance of promoting a good mutual
understanding between the UK and Japan, and who provide essential financial support. This enables the Society to include asignificant number of low cost or free events to provide opportunities to people from a variety of backgrounds regardless ofability to pay. This is an important factor in ensuring that the Society achieves its charitable objective to promote
understanding and awareness of Japan. Where charges are levied, these are set at a level to cover direct costs to the Society,excluding overheads. A significant number of events, including the monthly lecture programme, are also open to
non-members. The majority of the Society’s schools education services are provided free of charge; membership of the~3~THE JAPAN SOCIETY
TRUSTEES’ REPORTFOR THE YEAR ENDED 31 DECEMBER 2018 (CONTD)
Society is not a prerequisite to using these services. In addition, up to £20,000 was set aside in the year for disbursement
through the small grants programme in support of events organized by others which are in furtherance of the Society's
objectives and which provide opportunities for new audiences across the UK to gain understanding of Japan.
EventsThe Society in 2018 arranged some 70 different events spanning a wide range of subject and format, both independently andin partnership with other organizations. 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 the generalpublic to learn about Japan.
The 2018 general events programme included:
10 business-related events
13 conversation group events
4 events aimed at younger members or families
16 lectures
6 art & culture events
The annual dinner, held in November 2018, introduced members to the incoming Chairman and gave us the opportunity tothank Sir David for his leadership of the Society over the past six years. Both were also present at the annual Christmas Party,
kindly hosted by the Embassy of Japan.
The business events programme in 2018 included a large proportion of events with a focus on the implications of the UK
leaving the European Union, though also included sessions on other topical issues. The Chairman held a series of lunches
hosted by corporate members, in which key figures were invited to meet senior members of the Society. These events
provided opportunities for decision makers to share ideas and information, and ensured that those involved in business andgovernment were well informed on topical issues relating to the Japan-UK relationship. The three guests of honour in 2018provided insights and analysis on issues around Brexit: Sir Martin Donnelly, former Permanent Secretary for the Department
for International Trade; The Rt Hon Keir Starmer MP, Shadow Secretary of State for Exiting the EU, and Bobby McDonagh,
Former Irish Ambassador to the UK, Italy and the EU.
Other business lectures and seminars were also generously hosted by corporate members of the Society, or organized inpartnership with others. During the year, these included a seminar by Alastair Morgan, British Ambassador to Pyongyang,
who gave a briefing on the situation in North Korea and the implications for security in the region; by Hiroshi Watanabe,
President of the Institute for International Monetary Affairs, and by Naomi Hirose, Executive Vice Chairman, Fukushima
Affairs, TEPCO, who gave an update on the management of the Fukushima accident. At the end of his first year as British
Ambassador to Japan, Paul Madden spoke about the work of the Embassy and developments in the UK-Japan relationship.
The Society organised two joint lunches in conjunction with the Japanese Chamber of Commerce and Industry in the UK, atwhich guest speakers were the Japanese Ambassador, and Graham Stuart MP, Minister for Investment.
The conversation group continues to play an important role in the Society, providing a valuable opportunity for members tomaintain and develop their language skills. Its monthly meetings allow Japanese and non-Japanese, members andnon-members, to get together in a friendly and informal setting, with language-based activities devised by a dedicatedcommittee who also organize occasional special events, such as the annual hanami picnic..
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 at Daiwa Foundation Japan House, where regular and occasional
participants engaged in lively discussions on a wide range of books including literary classics, anthologies and contemporary
fiction.
Other events included gallery talks and museum visits, cultural workshops, food and drink tastings, golf tournaments, andsocial events. The Japan Society collaborated with the Japanese Embassy and the Japanese business community in London,in managing the installation of a new gate and avenue of stone lanterns at the Japanese garden in Hammersmith Park. A
ceremony was held to celebrate these additions and to share the history of this garden, which was originally created for theJapan-British Exhibition in 1910. This was followed by a Japanese Garden Party, which brought together the local
community and the Japanese community in London. The tenth annual Japan Matsuri was held in Trafalgar Square on 30
September. The Japan Society has a formal role as Corporate Director of the Japan Matsuri company, with Heidi Potter its
nominated board representative.
The lectures programme as usual covered a wide range of subject matter. The monthly lecture series formed the core of this
aspect of our public programming and the Society is grateful to the academics who generously share their research. Subjects~4~

THE JAPAN SOCIETY
TRUSTEES’ REPORTFOR THE YEAR ENDED 31 DECEMBER 2018 (CONTD)
in 2018 included: the art of Japanese basketry; the story of Collingwood ‘Cherry’ Ingram and cherry blossom in Japan;
photographic magazines in 1930s Japan; the films of Imamura Shohei in the context of the Japanese studio system; Tango intwentieth century Japan; Oswald White and the Japan Consular Service; and the North Korean community in Japan. The
ninth annual lecture in memory of Dr Carmen Blacker took place in London and Norwich, organized jointly with the
Sainsbury Institute for the Study of Japanese Arts and Cultures, with Professor Peter Nosco speaking on Individuality inModern Japan. In January, a one-day conference organized with the Victorian Society marked Meiji at 150 by examining thelinks between Meiji Japan and Victorian Britain, with panels on diplomacy, exhibitions, the visual arts, and home and garden.
This was followed in September by a seminar, held for the first time at the newly opened Japan House, in which a panel of
speakers focused on Meiji from a British perspective.
Japan Society Small Grants
In 2018 £20,000 was given in grants to support 25 small-scale projects and events related to Japan. These grants provide
opportunities for people throughout the UK to participate in education and exchange relating to Japan and thus contribute toraising 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.
Twelve grants were awarded for projects taking place in schools or for activity involving young people. This included Taikodrumming workshops for children at a primary school in Brighton, complementing the activities of the school’s Japan Club;and the third annual ‘Fuji Festival’ in Edinburgh enabling Scottish school children to participate in karate, sushi making,origami workshops, music and other Japan related activities. Whitley Academy presented its students with a unique insight
into life in Tokyo through a performance by Tokyo-based theatre company, Tarinainanika specialising in corporeal mime.
The performance was followed by workshops, which gave the students the opportunity to try out corporeal mime forthemselves, as well as a Q&A session and interviews with the group.
During one project in rural Northern Ireland, local traditional Irish musicians collaborated with experienced shinobue andtaiko drum facilitators to learn a traditional Japanese piece of music, through which they were able to discover both thesimilarities and differences between their cultural traditions. The piece was in turn taught to local children and young people
who went on to perform on the showcase stage at the 2018 Foyle O-bon Festival.
‘Scored in Silence’, a digital artwork and performance piece by deaf concept artist, Chisato Minamimura, gave over 50 deaf
and hearing young people the opportunity to learn of the experience of deaf hibakusha (survivors of the atomic bomb). A
project by Clod Ensemble shared learning about Noh with artists and the general public through events, workshops andonline resources; and ‘Flight Paths’, a collaborative production telling the stories of three visually impaired artists and theirmigration to the UK, used Japan Society small grant funding to create an online digital resource to provide background andcontext for the show as it toured the UK in early 2019.
Small grants were also given in support of a series of workshops including tenugui screen printing, wood block printing andhaiku run by the West Yorkshire Print Workshop in conjunction with its Japanese summer exhibition; a Japanese translation
workshop at the School of Modern Languages in Cardiff; the 2018 Japanese Avant-Garde and Experimental Film Festival,
and Japan Now 2018, a festival exploring contemporary Japanese literature, film and culture.
Library
During 2018 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 and Proceedings of
the Society.
Publications
Two new publications were released in 2018. Heaven’s Wind, an anthology of short stories by five contemporary women
writers, with translation in parallel text format and an extended essay by translator, Angus Turvill, was formally launched in
March. At the launch, Professor Jay Rubin joined Turvill to discuss the art of translation. British Foreign Secretaries andJapan 1850-1990 was launched at the Society’s Annual General Meeting in July, with presentations by co-editors HughCortazzi and Antony Best. Work continued on a history of British Royal and Japanese Imperial Relations and on a reprint of
The Thames and I, a translation of the future Emperor’s memoir of his time studying at Oxford, both for 2019 publication.
Schools Education
The schools education programme has been developed out of a belief in the value to young people in the UK of growing up
with an awareness and understanding of Japan and its culture. In addition to historical and business reasons for learning about~5~THE JAPAN SOCIETY
TRUSTEES’ REPORTFOR THE YEAR ENDED 31 DECEMBER 2018 (CONTD)
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 Japan themselves in providing theseopportunities for their students.
Throughout the year, the Society's education team provides advice and resources to schools engaged in teaching and learning
activities relating to Japan.
Teacher in-service training
A workshop in Cardiff in May focused on opportunities for cross-curricular work on Japan through haiku, sport and manga.
In October, a Japan Conference for Schools, organized with the Japan Foundation and hosted by the British Council, gave
teachers the opportunity to meet counterparts to share information and participate in workshops and discussion groups.
Topics covered in 2018 included manga as a gateway to learning; curriculum ideas for the secondary classroom; teachingmaths through Japanese; and art in the Japanese classroom. Looking toward Tokyo 2020, the keynote speech was given by
Rebecca Bolland, co-ordinator of the Coventry Young Ambassadors project.
Japan in Your Classroom visits
During the year some 40 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 to hear about Japanfirst-hand; the visits have a lasting impact.
School links
Support for school links has continued to be an important element of the Society's work. During 2018, Takamatsu Daiichi
Senior High School again carried out a science-based exchange with County Upper School, Bury St Edmunds, and Newstead
Wood School, London. Annual exchange visits took place from Komaki Elementary School, Nagano, to schools in
Nottingham and between staff at Reepham Primary School, Norfolk and Sakado Azuma Kindergarten in Saitama.
Sixth form study day
This was held in London in November attended by over 100 students and staff, who participated in a day of lectures andworkshops on Japanese themes. Representatives from universities throughout the UK attended to provide information on
opportunities for further study.
Communication and marketing
The website and regular email notices continued to be important and efficient tools for communicating information about theSociety and its activities. At the same time, monthly event calendars distributed by post on request provided a back-up for
those without regular access to the internet. Facebook and Twitter are for many the first contact with the Society, with steady
growth in following on these media.
Financial Review
In 2018 the Society showed a surplus of £30,000, which reflected an extended period of under-staffing due to turnover instaff during the year, as well as remaining income restricted for use in relation to the Hammersmith Garden project.
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):~6~THE JAPAN SOCIETY
TRUSTEES’ REPORTFOR THE YEAR ENDED 31 DECEMBER 2018 (CONTD)
Companies
President's Circle (£25,000)
JTI
Mitsubishi Corporation International(Europe) Plc
Mitsui & Co Europe Plc
Nomura International Plc
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*¶Mitsubishi Electric Europe BV
Mizuho Financial Group¶NSK Europe Ltd*NYK Group Europe Ltd*¶PricewaterhouseCoopers LLP
SMBC Europe Ltd

Corporate Donor (£2,000)
Aberdeen Standard Investments
Allen & Overy LLP
All Nippon Airways Co Ltd
BDO LLPDAKS Simpson Group plc*Greenback Alan LLP
Holman Fenwick Willan LLP
Japan Airlines Co Ltd
Japan Post Bank Co Ltd*"K" Line (Europe) Ltd¶Linklaters LLP
Mishcon de Reya LLP
Mitsubishi Heavy Industries Europe
Ltd
MSIG Holding (Europe) Ltd*NEC (Europe) Ltd
Out-Sourcing Incorporated UK
Ricoh (Europe) plc
Sompo Japan Nipponkoa Insurance Co
of Europe Ltd
Tokio Marine Kiln Insurance Ltd
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.

Corporate Benefactor (£5,000)
Clifford Chance LLP
Dai-ichi Life International Europe
Daiwa Capital Markets Europe Ltd¶Hitachi Europe Ltd
Honda Motor Europe Ltd
HSBC Holdings International
KPMG LLP
Nikko Asset Management Europe Ltd¶Olympus KeyMed
Toyota (GB) Plc

Individuals
Patron (£2,500 +)Hugh Cortazzi
Principal Benefactor (£1,000 +)Martin & Noriko Barrow
Bill Emmott
Midoriko Nakajima and Martin L
O’Neill
Benefactor (£500)
Peter Job
Principal Donor (£250)
Michael Faber
Ruth Martin
James Noble
Yoshio Noguchi
Heidi Potter
Jeremy Raper
Adrian ThorpeDavid Warren
Donor (£100)
Mark Allsup
Clive Bradley
Stephen Codrington
Joe Earle
Robin Fox
Lydia Gomersall
Tom Hall
Keiko Itoh
Kathleen KimuraDavid Mytton
Mr & Mrs Morihiko Okudaira
Pernille Rudlin
M.R. Smith
Yuko Takano
Individual Supporter (£58)
D G R Bentliff
Suzanne Hudson
Marilyn Malin
Janusz Mondry
Rosemary Morgan
Stephen O’Neill
Suzanne Perrin
Elizabeth Sinclair-House
Jairaj Thakkar
Ian Walker~7~

THE JAPAN SOCIETY
TRUSTEES’ REPORTFOR THE YEAR ENDED 31 DECEMBER 2018 (CONTD)

Reserves
In the current uncertain political and economic climate, the board has reviewed its reserves policy and has decided that itshould maintain reserves sufficient for 9 – 12 months’ expenditure. Current reserves of over 80 per cent of annual
expenditure have been built up as a result of prudence at a time of general economic downturn when prospects for
fundraising were uncertain. This guards against risks to the Society’s core activity should it fail to meet projected incometargets 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 the employment of a member of staff in Japan as
outlined in note 17. As at 31 December 2018, the value of unrestricted reserves less tangible fixed assets was £432,067. The
cash reserves are held on deposit.
Plans for the future
In 2019, 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. Our schools education programme
remains a priority, and work is well underway on the development of a new suite of teaching resources which reflect recentchanges to the national curriculum and current needs. The Japan Society is playing an active part in the 2019-2020 Japan
Season of Culture in the UK, and particularly in the Sakura Cherry Tree project, where we are coordinating the Cherry Trees
for Schools initiative.
Although in a strong financial position at the start of 2019, the Society continues to be faced with a need to raise significant
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 higher-level donors will be sustained,
despite competing claims on donors’ generosity.

On behalf of the Board
Satoru Yoshida - Hon. Treasurer
Dated: .........................

~8~

THE JAPAN SOCIETY
STATEMENT OF TRUSTEES RESPONSIBILITIES
for the Year Ended 31 December 2018

The trustees (who are also the directors of The Japan Society for the purposes of company law) are responsible forpreparing the Report of the Trustees and 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;
state whether applicable accounting standards have been followed, subject to any material departures disclosed
and explained in the financial statements;
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 auditors are 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 auditors are aware of that information.

~9~

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF
THE JAPAN SOCIETY

OpinionWe have audited the financial statements of The Japan Society (the 'charitable company') for the year ended
31 December 2018 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement
and notes to the financial statements, including a summary of significant accounting policies. The financial reporting
framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards(United Kingdom Generally Accepted Accounting Practice).
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 2018 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.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of thefinancial statements section of our report. We are independent of the charitable company in accordance with the ethicalrequirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,
and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report toyou where:
the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; orthe trustees have not disclosed in the financial statements any identified material uncertainties that may castsignificant doubt about the charitable company's ability to continue to adopt the going concern basis ofaccounting for a period of at least twelve months from the date when the financial statements are authorised for
issue.
Other information
The trustees are responsible for the other information. The other information comprises the information included in theannual report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise
explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doingso, consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies orapparent material misstatements, we are required to determine whether there is a material misstatement in the financial
statements or a material misstatement of the other information. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we are required to report that fact. We have nothing toreport in this regard.
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.

~ 10 ~REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF
THE JAPAN SOCIETY

Responsibilities of trustees
As explained more fully in the Statement of Trustees Responsibilities, the trustees (who are also the directors of thecharitable company for the purposes of company law) are responsible for the preparation of the financial statements andfor being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary
to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or haveno realistic alternative but to do so.
Our responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of
the Independent Auditors.
Use of our report
This report is made solely to the charitable company's trustees, as a body, in accordance with Section 144 of theCharities Act 2011 and regulations made under Section 154 of that Act. Our 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 auditors' 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.

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: .............................................

~ 11 ~

THE JAPAN SOCIETY
STATEMENT OF FINANCIAL ACTIVITIES(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)
for the Year Ended 31 December 2018

Unrestricted
fund
Notes
£

DesignatedFund£

Restrictedfund£

31.12.18
Total funds

31.12.17
Total funds££

INCOME FROM
Donations and legacies2362,466-

67,500429,966

405,607

Charitable activities
Investment income
Other income

34
524,442437
26,561-

76,294-

100,736437
26,561

24,57486
25,053413,906-

143,794557,700

455,320

22,723--22,723

4,015

136,660
156,097
78,213277-

50,505
17,76665,429136,660
156,097
128,718
17,76665,706

120,476
183,802136,265
19,982-

Total

393,970-

133,700

527,670

464,540NET
INCOME/(EXPENDITURE)

19,936-

10,09430,030(9,220)Total funds brought forward

273,902619,964-

893,866

903,086

TOTAL FUNDS CARRIEDFORWARD

293,838

619,964

10,094

923,896

893,866

Total

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

6
7

RECONCILIATION OF
FUNDSThe notes form part of these financial statements~ 12 ~

THE JAPAN SOCIETY
BALANCE SHEETAt 31 December 2018

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets

DesignatedFund£

Restrictedfund£

31.12.18
Total funds

31.12.17
Total funds

£

£

14

1,383

481,735-

483,118

488,460

15

89,464242,465

138,229

10,09489,464
390,788

129,775
309,393

331,929

138,229

10,094

480,252

439,168

CREDITORS
Amounts falling due within one
year
16(39,474)--(39,474)(33,762)

NET CURRENT ASSETS

292,455

138,229

10,094

440,778

405,406

TOTAL ASSETS LESSCURRENT LIABILITIES

293,838

619,964

10,094

923,896

893,866

NET ASSETS

293,838

619,964

10,094

923,896

893,866

293,838
619,964

273,902619,964

Restricted funds

913,802
10,094

893,866-

TOTAL FUNDS

923,896

893,866

CURRENT ASSETS
Debtors
Cash at bank

FUNDS
Unrestricted funds:
General fund
Designated Fund17

The notes form part of these financial statements~ 13 ~

THE JAPAN SOCIETY
BALANCE SHEET - CONTINUED
At 31 December 2018

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year
ended 31 December 2018.
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 144 of the Charities Act 2011.

The financial statements were approved by the Board of Trustees on ............................................. and were signed on its
behalf by:.............................................
B Emmott -Trustee.............................................
S Yoshida -Trustee

The notes form part of these financial statements~ 14 ~

THE JAPAN SOCIETY
CASH FLOW STATEMENT
for the Year Ended 31 December 2018

Cash flows from operating activities:
Cash generated from operations

Notes

31.12.18£

31.12.17£

1

81,547(17,724)

81,547(17,724)

(589)
437

86

(152)

86

Net cash provided by (used in) operating
activities

Cash flows from investing activities:
Purchase of tangible fixed assets
Interest received
Net cash provided by (used in) investing
activities

Change in cash and cash equivalents in thereporting period
Cash and cash equivalents at the beginning of
the reporting period

81,395(17,638)

309,393

327,031

Cash and cash equivalents at the end of thereporting period

390,788309,393

The notes form part of these financial statements~ 15 ~

THE JAPAN SOCIETYNOTES TO THE CASH FLOW STATEMENT
for the Year Ended 31 December 2018

1.

RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROMOPERATING ACTIVITIES
31.12.17
31.12.18££
Net income/(expenditure) for the reporting period (as per the statement(9,220)of financial activities)
30,030Adjustments for:
Depreciation charges
6,715
5,931
Interest received
(86)
(437)
Decrease/(increase) in debtors(3,790)40,311
Increase/(decrease) in creditors(11,343)
5,712
Net cash provided by (used in) operating activities~ 16 ~

81,547(17,724)

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2018

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.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the charitable company's accounting policies, the trustees are required to make judgements,
estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent fromother sources. The estimates and associated assumptions are based on historical experience and other factors thatare considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised where the revision affects only that period, or in the
period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect onamounts recognised in the financial statements:
Valuation of the Library
The valuation of the books which are included within fixed assets is a material figure in the accounts and isprimarily based on the historical cost value that the society paid a number of years ago. Given that many ofthese items are not available to be purchased on the open market, it has been estimated that their value has notfluctuated since the original cost incurred by the society.
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.
rewards of ownership are passed from the charity to the buyer.

~ 17 ~

This income is included when the risks andTHE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2018

1.

ACCOUNTING POLICIES - continued
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing thecharitable company to that expenditure, it is probable that a transfer of economic benefits will be required insettlement 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.

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.

~ 18 ~

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2018

1.

ACCOUNTING POLICIES - continued
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.

~ 19 ~

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2018

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.
Basic financial instruments
The charitable company has elected to apply the provisions of Section 11 'Basic Financial Instruments' andSection 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the balance sheet when the charitable company becomes party to thecontractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there
is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or
to realise the asset and settle the liability simultaneously.
Employee benefits
The costs of short-term employee benefits are recognised as a liability and as an expense, unless those costs are
required to be recognised as part of the cost of stock or fixed assets.
The costs of any unused holiday entitlement is recognised in the period in which the employee's services arereceived.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed
to terminate the employment of an employee or to provide termination benefits.

2.

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

Unrestricted
funds£
75,996
236,550
14,16725,16010,593

Restricted
funds£
67,500-31.12.18
Total
funds
£
75,996
304,050
14,16725,16010,59331.12.17
Total
funds
£
78,535
293,630
5,000
23,457
4,985

362,466

67,500429,966

405,607~ 20 ~

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2018

3.

CHARITABLE ACTIVITIES

Hammersmith Garden Project
Events income
Education income and direct projects

4.

31.12.18
Total
funds
£
75,52324,442771

31.12.17
Total
funds
£
24,165409

24,442

76,294

100,736

24,574

Unrestricted
funds
£
437

Restricted
funds
£
-

31.12.18
Total
funds
£
437

31.12.17
Total
funds
£
86

Unrestricted
funds
£
5,635
14,0996,827

Restricted
funds
£
-

31.12.18
Total
funds
£
5,635
14,0996,827

31.12.17
Total
funds
£
5,230
12,3237,500

26,561-

26,561

25,053

Unrestricted
funds£
18,374
4,349

Restricted
funds
£
-

31.12.18
Total
funds
£
18,3744,349

31.12.17
Total
funds
£
15
4,000

22,723-22,723

4,015

OTHER INCOME

Publication and sale of books
Office services income
Secretariat income

6.

Restricted
funds£
75,523771

INVESTMENT INCOME

Deposit account interest

5.

Unrestricted
funds£
24,442-RAISING FUNDS
Raising donations and legacies

Fund raising activities
Marketing, website & database~ 21 ~

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 20187.

CHARITABLE ACTIVITIES COSTS

Direct costs£
85,982
102,348
79,02565,706-

Membership and publications
EventsSchools education
Hammersmith Garden project
Small grants

333,0618.

Grantfunding ofactivities Support costs(See note 8)(See note 9)££50,67853,74949,693
17,766
17,766

Totals£136,660
156,097
128,718
65,706
17,766

154,120504,947

31.12.18£
17,76631.12.17£
19,98231.12.18£

31.12.17
£

1,000
1,500
2,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
5,266

1,000
1,000
1,000
-

17,776

19,982

GRANTS PAYABLE

Small grants

Material grants paid to institutions during the year:

AME
Blueprint: Film Foundation
British cartographic Society
CCC Howes Primary School LMS
Chisato Minamimura
DCC KEVICC
Japanese Garden Society
Japan Society North WestJapanese Avant
Judith Adams
Keys of Change CIO
Kotatsu Animation Festival
Modern Culture/M J Colthorpe
Occidents (Silver Salt Films)
Oldham Council
Ormiston Anademies Trust - Tenbury
Sally Crabtree t/a Poetree
Synergy Multi-Academy Trust
Takehiko Iseki
West Yorkshire Print Workshop
Whiteley Academy
Other small grants paid to 10 (22) institutions~ 22 ~

1,000
1,000
1,000
1,000
1,000
1,000
1,000
9,982

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2018

9.

SUPPORT COSTS

Membership and publications
EventsSchools education

Management£
28,65230,39027,785

Other£
19,006
20,15618,980Governance
costs
£
3,020
3,203
2,928

Totals£
50,67853,74949,69386,827

58,142

9,151

154,120

31.12.18

31.12.17

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

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

10.

Membership
andpublications
£
7,238
166
95
19,196

Events
£
7,677
176
101
20,360Schools
education
£
7,019
161
92
18,615

Total
activities£
21,934503
288
58,171

Total
activities£
103,8698,359
4,681
62,604

1,957
7,622
298
11,086
2,359
661

2,076
8,083
316
11,757
2,503
700

1,898
7,390
289
11,301
2,288
640

5,931
23,095903
34,144
7,150
2,001

6,715
14,624
3,708
35,4887,150
1,001

50,67853,74949,693

154,120

248,19931.12.18
£
7,150
5,931
23,09531.12.17
£
7,150
6,715
14,624NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration
Depreciation - owned assets
Other operating leases~ 23 ~

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 201811.

TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2018 nor for the year
ended 31 December 2017.
Trustees' expenses
During the year no member of the board was reimbursed for expenses: (2017 – 1
The charity carried indemnity insurance for its trustees, for which a premium of £2,722 (2017: £2,673) was paid.

12.

STAFF COSTS

Wages and salaries
Social security costs
Other pension costs

31.12.18£
180,490
13,4137,686

31.12.17£
210,977
16,9829,553

201,589

237,512

31.12.18
7

31.12.17
8

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

Employees

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

2017 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIESUnrestricted
fund£

DesignatedFund£

Restricted
fund£

Total funds

INCOME FROM
Donations and legacies

340,227-

65,380405,607

Fundraising activities
Investment income
Other income

24,165
86
25,053-409-

24,57486
25,053

Total

389,531-65,789455,320£EXPENDITURE ON
Raising funds
Charitable activities
Membership and publications
EventsSchools education
Small grants

4,015

-

-

4,015

120,264
183,80290,458--212
45,807
19,982

120,476
183,802136,265
19,982

Total

398,539-

66,001

464,540~ 24 ~

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 201813.

2017 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES – continued
Unrestricted
fund£

DesignatedFund£

Restricted Total funds
fund
£
£

NET INCOME/(EXPENDITURE)(9,008)-(212)(9,220)Transfers between funds(5,000)

5,000

-

-

Net movement in funds(14,008)

5,000

(212)

(9,220)Total funds brought forward

287,910

614,964212

903,086

TOTAL FUNDS CARRIED FORWARD

273,902619,964-

893,866

Library£

Fixtures andfittings£

Totals£COST
At 1 January 2018
Additions481,735-

44,491
589

526,226
589

At 31 December 2018

481,735

45,080526,815

DEPRECIATION
At 1 January 2018
Charge for year-

37,766
5,931

37,766
5,931

At 31 December 2018-

43,697

43,697

NET BOOK VALUEAt 31 December 2018

481,735

1,383

483,118

At 31 December 2017

481,735

6,725

488,460

RECONCILIATION OF
FUNDS

14.

TANGIBLE FIXED ASSETS

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.

~ 25 ~

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2018

15.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Prepayments and accrued income

16.

31.12.17£
106,088
23,68789,464

129,775

31.12.18
£
1,369
5,964
134
32,00731.12.17
£
1,594
4,452
129
27,58739,47433,762

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
VAT
Other creditors
Accruals and deferred income

17.

31.12.18£
66,047
23,417

MOVEMENT IN FUNDS
Restricted funds:
The funds of the Society include restricted funds.

The following are the unexpended balances of such funds:

Balance at
01.01.18£

Incoming
Resources£

Resources
Expended£

Balance at
31.12.18£-

68,271
75,523(68,271)(65,429)

10,094-

143,794(133,700)

10,094

Balance at
01.01.17£

Incoming
resources£

Resources
expended£

Balance at
31.12.17£

212-

65,789(212)(65,789)-

212

65,789(66,001)-

Education Fund
Hammersmith Garden Fund

Tohoku Earthquake Fund
Education Fund

Certain funds are restricted to expenditure relating to schools education and small grants.
Tohoku Earthquake Fund represented the donations made specifically for the Japan Society Tohoku Relief
Fund. During 2011, the Society entered into an agreement with the Sanaburi Foundation in Sendai to provide aframework for the disbursement of these funds in Tohoku. The fund was closed in 2017
The Hammersmith Garden Fund represents the contributions made specifically for installation of a new gate andavenue of stone lanterns at the Japanese garden in Hammersmith Park, and for activities linked to this.

~ 26 ~

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 201817.

MOVEMENT IN FUNDS - continued

Designated funds:
The income funds of the charity include the following designated funds which have been set aside out ofunrestricted 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
01.01.2018£

Incoming
resources£

Resources
expended£Transfers£

Balance at
31.12.2018£

481,735
105,245
13,00019,984---

481,735
105,245
13,00019,984

619,964---

619,964

Balance at
01.01.2017£

Incoming
resources£

Resources
expended£Transfers£

Balance at
31.12.2017£

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

-

-

5,000
-

481,735
105,245
13,00019,984

614,964

-

-

5,000

619,964

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 , which was restriction free but they indicated they would like the
donation to assist with the cost of digitising the library books.
18.

RELATED PARTY DISCLOSURESThe Japan Society is a corporate director of Japan Matsuri.
(2017: £2,722) during the year.

~ 27 ~The Japan Society gave a contribution of £2,579

THE JAPAN SOCIETY
DETAILED STATEMENT OF FINANCIAL ACTIVITIES
for the Year Ended 31 December 2018

Unrestricted
funds£

Restrictedfunds£

31.12.18
Total
funds
£

31.12.17
Total
funds
£

75,996
236,550
14,16725,16010,59367,500-75,996
304,050
14,16725,16010,59378,535
293,630
5,000
23,457
4,985

362,466

67,500429,966

405,60724,442-75,523771

75,52324,442771

24,165409

24,442

76,294

100,736

24,574

437

-

437

86

5,635
14,099
6,827

-

5,635
14,0996,827

5,230
12,3237,500

26,561-

26,561

25,053413,906

143,794557,700

455,320

18,374
4,349-

18,374
4,349

15
4,000

22,723-22,723

4,015

127,152
12,9107,398
69,390216,850

31,404
19,10150,505

158,556
12,9107,398
69,39019,101
267,355

107,108
8,623
4,872
56,901
14,840
192,344

INCOME
Donations and legacies
Corporate Membership Subscriptions
Corporate Donations
Corporate Sponsorship
Individual Membership Subscriptions
Individual Donations

Charitable activities
Hammersmith Garden Project
Events income
Education income and direct projects

Investment income
Deposit account interest
Other income
Publication and sale of books
Office services income
Secretariat income

Total incoming resources

EXPENDITURE
Raising donations and legacies
Fund raising activities
Marketing, website & database

Charitable activities
Wages
Social security
Pensions
Events and Publications
Education
Carried forward

This page does not form part of the statutory financial statements~ 28 ~

THE JAPAN SOCIETY
DETAILED STATEMENT OF FINANCIAL ACTIVITIES
for the Year Ended 31 December 2018

Unrestricted
funds£

Restrictedfunds£

31.12.18
Total
funds
£

31.12.17
Total
funds
£

216,850277-

50,50565,42917,766

267,355
65,706
17,766

192,344
19,982

217,127

133,700

350,827

212,326

21,934503
288
58,171
5,931-

21,934503
288
58,171
5,931

103,8698,359
4,681
62,604
6,715

86,827-86,827

186,228

23,095903
30,595
2,353
552
701
(57)

-

23,095903
30,595
2,353
552
701
(57)

14,624
3,708
32,773
2,715-

58,142-58,14253,820

7,150
2,001

-

7,150
2,001

7,150
1,001

9,151

-

9,151

8,151

Total resources expended

393,970

133,700

527,670

464,540

Net income/(expenditure)

19,936

10,09430,030(9,220)Charitable activities
Brought forward
Projects
Grants to institutions

Support costs
Management
Wages
Social security
Pensions
Establishment expenses
Fixtures and fittings

Other
Office expenses
General expenses
Consultancy costs
Irrecoverable VAT
Library Maintenance Expenses
Entertainment
Exchange rate loss/gain

Governance costs
Auditors' remuneration
Bank charges

This page does not form part of the statutory financial statements~ 29 ~