April 2015

Subsidized Project Administration Manual

Budget and Accounts Division, Minister's Secretariat
Ministry of Economy, Trade and Industry
Note)This is a tentative translation by Management Office for the Project of Decommissioning and Contaminated
Water Management (Mitsubishi Research Institute Inc.). Only the original Japanese texts of the laws andregulations, guides have legal effect, and this translation is to be used solely as reference materials to aid in
the understanding of Japanese laws and regulations. The government of Japan is not responsible for theaccuracy, reliability or currency of this translation, or for any consequence resulting from use of thistranslation.

Table of Contents

Page

Purpose of use and matters to bear in mind ··················································· 2<Purpose of use> ·································································· 2I.

Accounting process manual ··································································· 3
1. Basic concept of accounting process of subsidized projects ························· 3<Definition of subsidy> ···························································· 3<Basic rules of accounting process> ·········································· 3<Matters to bear in mind while project is under way>····················· 7<Standard flowchart of subsidized projects> ································ 7<Main cost items and their definitions> ······································· 8
2. Arrangement of related documents ························································ 10<Purpose of implementation> ················································· 10<Specific implementation method> ·········································· 10
3. Accounting process on personnel cost ···················································· 11<Basic concept> ··································································· 11<*1Calculation method of hourly rate> ······································· 11<*2Calculation of the number of (work) hours> ··························· 13<Implementation method of accounting process> ······················· 14
4. Accounting process for travel expenses ················································· 16<Basic concept> ·································································· 16<Implementation method of accounting process> ······················· 16
5. Accounting process for meeting expense and gratuities ····························· 18<Basic concept> ·································································· 18<Implementation method of accounting process> ······················· 19
6. Accounting procedures regarding equipment expenses and rental and hire
fees ································································································ 21<Basic concept> ·································································· 21<Accounting procedures> ······················································ 21
7. Accounting procedures regarding supplies expenses ································ 23<Basic concept> ·································································· 23<Accounting procedures> ······················································ 23
8. Accounting procedures regarding outsourcing expenses ···························· 25<Basic concept> ·································································· 25<Accounting procedures> ······················································ 25
9. Accounting procedures regarding printing and binding expenses ················· 27<Basic concept> ·································································· 270<Accounting procedures> ······················································ 27
10. Accounting procedures regarding assistant personnel costs ····················· 29<Basic concept> ·································································· 29<Accounting procedures> ······················································ 29
11. Accounting procedures regarding other miscellaneous expenses ··············· 31<Basic concept> ·································································· 31<Accounting procedures> ······················································ 31
12. Accounting procedures regarding expenses for commission ····················· 32<Basic concept> ·································································· 32<Accounting procedures> ······················································ 32<Determining the payment amount for a subcontractor> ·············· 32
13. Preparing a performance report ·························································· 34<Basic concept> ·································································· 34<Accounting procedures> ······················································ 34II.

On-site survey ····················································································· 36
1. Outline of inspections ········································································· 36
2. Aim of inspections ············································································· 36
3. When conducting inspections ······························································· 37

III. Subsequent tasks ················································································ 40
1. Accounting procedures relating to consumption tax deductions for taxable
purchase ························································································· 40<Applicable cases and outline of the procedures> ······················ 40<Specific procedures> ·························································· 40
2. Procedures for managing and disposing of assets ···································· 41< Applicable cases and outline of the procedures>······················ 41<Specific procedures> ·························································· 41
3. Procedures for paying earnings ···························································· 42< Applicable cases and outline of the procedures>······················ 42<Specific procedures> ·························································· 42
4. Procedures for reimbursement of VAT ···················································· 42< Applicable cases and outline of the procedures > ····················· 42<Specific procedures> ·························································· 42
IV. Others ································································································ 44
1. About Handling of Confidential Correspondence ······································ 44

1

Purpose of use and matters to bear in mind
<Purpose of use>
This Manual describes basic matters including materials to be prepared upon accounting
process, implementing inspection and other procedures pertaining to subsidized
projects. We hope this Manual will help implement inspection, etc. properly andeffectively between a party to undertake subsidized projects (hereinafter called“Subsidized Company”) and the Ministry.

<Matters to bear in mind> The accounting process of subsidy is different from general business transactions andbusiness customs (*).
 This Manual gives a basic concept of accounting process and some other process
different from the Manual may also be accepted so long as it is based on a concept
appropriate to the situations.
 Administrative and accounting processes different from ordinary ones are required
such as the maintenance of forms including a business log and management methodof acquired property. Pay careful attention to avoid such an awkward situation thatmaterials are not available on the day of inspection (on-site survey).
*  The concept of actual payment (exclude profitability and pay the cost actually
incurred by Subsidized Company on a project).
 Categorized management of cost (there are limitations to diversions) Categorized management between subsidized project and other projects
 Chronological arrangement of materials (ensure the traceability of implementationdate).

2

I. Accounting process manual
1. Basic concept of accounting process of subsidized projects<Definition of subsidy>
Subsidies in the Act Concerning Regulation of Budget Execution Pertaining to Subsidies
mean (1) subsidy (2) burden charge (excluding share of expenses under international
treaties) (3) interest subsidy (4) other reasonable benefits without counter-performance
which are provided for in Article 2 of the Enforcement Ordinance for the Act Concerning
Regulation of Budget Execution Pertaining to Subsidies.

<Basic rules of accounting process>Upon executing accounting process of subsidized projects, expenses subject tosubsidization shall be clearly classified for the process. Also note that there aredifferences from ordinary accounting process and administration as shown in various
limitations to ensure appropriate accounting process and management method ofacquired property.
It must also be noted that if any unlawful act is found in the inspection or the like such as
false report of cost or receipt of subsidy for inflated bills, the party is subject to thedisposition including cancellation of subsidization decision, order for a return(non-issuance) of the subsidy in whole or in part, payment of additional amount,announcement of the wrong content, suspension of subsidization, or a criminal
complaint. It is therefore requested to always observe appropriate accounting process.
Since the cost subject to subsidy (hereinafter called “Subsidization Cost”) differs fromone system to another, carefully check with the Subsidization Outline, etc. from the stageof the project start whether or not the expected costs can be approved as Subsidization
Cost.
 The cost to be recorded are those accrued (placed an order) on or after the date of
subsidization decision and ended (paid) during the project period*1.
 The cost must be consistent with the project purpose and data needs to beorganized to verify the use in the project concerned.
 The cost for receiving a final inspection or the like, cost for preparing a track record
report after the end of the project, charges for fund transfer to financial institutions,exchange losses and the like are not subsidized in principle. However, if moneytransfer charge is borne by trading partner and is included in the transaction price, it
can be posted as the subject of subsidization.
 In the case of in-house procurement, profit included in the procurement price must
be excluded*2.
 To secure the objectivity of evidence of payment, effect all payments by banktransfer in principle unless other payment method is specified. For the inspection forsettlement of subsidy amounts, retain and arrange what can be a proof of payment(such as a receipt of bank transfer). Also, when paying by means other than banktransfer, retain and arrange a proof of payment as in the case of bank transfer.
Especially for cash payment, the copies of cashbooks and such shall be retained
3










and arranged in addition to the proof of payment above. Please be advised that you
may be required to clarify the reasons for making payments by cash.
Even if bill payable is specified as a payment method, the amount paid by endorsed
bills cannot be admitted as Subsidization Cost.
Calculate the yen equivalent of foreign currencies spent for overseas outsourcing,procurement of equipment, overseas business trip, etc. by applying the exchange
rate at the time of use of such foreign currency or other practical method.
Round off in principle any fractional figures after decimal point that occurs in thecourse of calculating the amount of Subsidization Cost. If treatment of fractional
figures has been specified in internal rules, etc., however, posting after suchtreatment may be approved upon consultation with staff in charge at the Ministry of
Economy, Trade and Industry.
When posting consumption tax paid for subsidized projects as the subject ofsubsidization, there is a possibility of the accrual of the tax deductions for the taxable
purchase pertaining to subsidy*3. Therefore, if the tax deductions for the taxable
purchase is known by the tax return of the consumption tax, the tax deductions forthe taxable purchase pertaining to said subsidy must be reported.
When holding an exhibition, trade show, exposition or trade fair (hereinafter called“exhibition, etc.”), value added tax (hereinafter called “VAT”) imposed on some costs
which cannot locally be treated as tax-exempt may be reimbursed after application
procedures in accordance with the county’s regulation. Therefore, in principle, if you
post VAT as a Subsidization Cost, you must consider a possibility of reimbursementof the VAT, and if the amount of the reimbursement is known after completion of thesubsidized project, you must report the amount of the reimbursement of the VAT
pertaining to subsidy.

[*1 Judgment examples of whether or not procurement may be subsidized insubsidized projects]<Period of subsidized project>
Estimate

X

Estimate

Estimate Order

Order

Delivery

Order

Delivery

DeliveryAcceptanceinspection

AcceptanceinspectionNote

Acceptanceinspection

Invoice

X*

InvoiceInvoice

Payment

Payment

Estimate

Estimate

Order

Payment

Delivery

Order

Acceptanceinspection

Delivery/Acceptance inspection ...

Invoice

Payment

Note

Acceptance inspection refers to the inspection to see whether the delivered goods conform to
the particulars of order.

*

As an exception, even payment outside the period of subsidized project is acceptable as
Subsidization Cost if the following requirements are met.
Cost accrues during the period of subsidized project for the fixed amount of cost (obligatory expenditure)4and when there is a reasonable cause* for not having paid during the project period.

(Examples of reasonable causes)(1) Personnel cost (there are many cases of payment such as salary payment closed at the endof month and paid in the following month)(2) The cost accrues just before the end of the project period in terms of the progress of project,but it is difficult to effect payment during the project period for the convenience of accounting
process.
* If payment procedure is taken after the end of project period, it must be reported to the
Ministry of Economy, Trade and Industry promptly upon the completion of the payment andchecked by the staff in charge. If any question or doubt arises as a result of the check by thestaff in charge at the Ministry of Economy, Trade and Industry, measures including aninspection may be taken as needed.

[*2 The concept of excluding profit when procuring in-house in subsidized project]
If Subsidization Cost includes the procurement of own product of Subsidized Company
in the subsidized project, it is considered not appropriate in view of the purpose of thesubsidization that the results of the subsidized project include the amount corresponding
to the profit of Subsidized Company. We therefore post profit excluded cost(manufacturing costs of procured goods, etc.) as Subsidized Cost for in-houseprocurement and such. *If there is any difficulty in calculating the manufacturing costbecause of the industry sector of subsidized entities, profit excluded cost may be
admitted as Subsidization Cost with rational explanations.

5[*3 What are tax deductions for the taxable purchase for consumption tax pertaining to
subsidy?]
The tax deductions for the taxable purchase for consumption tax is a system under which, unless it is abusiness operator who is not subject to tax deductions for the taxable purchase (tax exemptedbusiness operator, etc.), the amount of consumption tax (consumption tax payable) paid during theperiod can be deducted from the amount of taxable consumption tax (suspense receipt of consumptiontax) through reporting of the consumption tax.
Under the taxation system, subsidy is not taxable proceeds for consumption tax but restricted receipts,
so when a subsidy including consumption tax is issued to a business operator, the consumption tax
received as a part of the subsidy is not subject to suspense receipt of consumption tax.
However, the consumption tax received as a subsidy and paid in subsidized project is, in whole or inpart, subject to consumption tax payable, so the Subsidized Company will receive tax deductions forthe taxable purchase for consumption tax for the subsidy which was not borne by itself, along with
consumption tax payable for other than the subsidized project.
Therefore, when tax deductions for the taxable purchase are received also for consumption tax paid by
the subsidy, the amount of subsidy portion in the deductions must be returned to the state inaccordance with the Subsidization Summary. (See the chart below.)
Suppose final returns are filed with the consumption tax on sales as a result of business activities (suspense
receipt of consumption tax) being 10 million yen and the consumption tax for purchase (consumption tax payable)
being 7 million yen.
If this business operator has not received any subsidy from the state, it has to pay the consumption tax for 3 million
yen only (10 million - 7 million) to the tax office. <CASE 1>
However, if the business operator has received a subsidy and suppose that 2 million yen out of the 7 million
consumption tax payable is by the subsidy. In this case, said 2 million yen is not appropriated as suspense receipt
of consumption tax of 10 million yen but appropriated as the consumption tax payable of 7 million yen. Therefore,
in addition to CASE 1 (payment to the tax office), it becomes necessary to return the 2 million yen not borne byitself to the state. <CASE 2>(Note) It is assumed here that the full deduction of the consumption tax amount 7 million yen has been approved.
(Unit: 10,000 yen)

CASE 1. Without the subsidy

Consumption tax payment is 300 after deducting theconsumption tax payable 700 from the suspense receipt
of consumption tax 1,000

Consumption tax subject totaxation (suspense receipt ofconsumption tax)

Consumption tax for purchase(consumption tax payable)

1,000

Consumption tax to be paid

700

300

CASE 2. With the subsidy

Out of consumption tax 700 to be deducted, 200 is
appropriated by the subsidy and is not borne by thebusiness operator itself. Therefore, it must be returned tothe state.

Consumption tax subject totaxation (suspense receipt ofconsumption tax)
Subsidy income is outof taxation!

Consumption tax for purchase(consumption tax payable)

1,000

Consumption tax to be paid

700
(Including the subsidy
portion 200)

6300

<Matters to bear in mind while project is under way>
In cases where the originally planned project has been cancelled or changes areneeded, or the project is not proceeding as originally planned, prescribed procedures are
required in accordance with Subsidization Summary, etc. Subsidized Company shouldcarefully read materials such as Subsidization Summary, Guidelines for Public Offeringand this Manual and keep close contact with the staff in charge at the Ministry of
Economy, Trade and Industry to clarify any doubt or questions for smooth
implementation of the project.

[Points to be confirmed]

 There are cases where Subsidized Company is required by the staff in charge at the
Ministry of Economy, Trade and Industry to report on the progress situation of the
project.
 In the event of the change of project details, change of distribution amount exceedinga certain rate (10%, etc.) specified in the Subsidization Summary, etc. among theclassification of cost, or suspension or cancellation of the whole or part of the project,application for the approval of plan change must be filed in advance with the Ministry of
Economy, Trade and Industry.
 If it is expected that the project will not be finished within the scheduled time frame,
accident (delay) report must be submitted in advance to the Ministry of Economy,
Trade and Industry to receive further instructions from the Ministry.

7(1) Report of the amount of the tax
deductions for the taxable purchasefor consumption tax(2) Management of acquired
property(3) Payment of revenues

Guidance for the preparation andarrangement of related documents

Finalization of the amountFinal inspection

Report of the performance

Completion of the projectIntermediate inspection

Start of the project

Decision of subsidization<Standard flowchart of subsidized projects>

<Main cost items and their definitions>
Cost items which can be appropriated as subject cost differ from one project to another.
Carefully read materials such as Subsidization Summary, Guidelines for Public Offeringand this Manual and keep contact with the staff in charge at the Ministry of Economy,
Trade and Industry to clarify any doubt or questions for proper appropriation of costs.
Cost item
I. Personnel cost

Description
Personnel cost for working hours of those engaged
in the project.

II. Project cost
Travel expenses

Cost for domestic business travels and overseas
business travels necessary for performing the
project.

Meeting expense

Cost for meetings, seminars, symposiums and thelike necessary for performing the project (rent of avenue, rental charges of equipment and materials,
cost for refreshments (coffee money), etc.)

Gratuities

Gratuities necessary for performing the project(gratuities for external experts who attended
meetings, seminars, symposiums, etc., gratuities forgiving seminars, writing of drafts, cooperation withresearch, etc.)

Fittings and appliances

Cost for purchase or manufacture of goods
necessary for performing the project (limited,
however, to those serviceable for over one year)(Rent and hire)

Cost for lease and rental of machinery, equipment
and the like necessary for performing the project

Supplies expense

Cost for the purchase of goods necessary for
performing the project but not belonging to fittings
and appliances (however, only those verifiable forthe use in the project)

Outsourcing cost

Cost for outsourcing to other business operator what
Subsidized Company cannot implement on its own
or not appropriate to do so (contract for work)

Printing and bookbinding cost

Cost for printing and bookbinding of pamphlets,
leaflets, performance reports, etc. used for the
project

Cost for subsidiary personnel

Cost for subsidiary personnel (part-timer, etc.)
necessary for performing the project

Other miscellaneous cost

Cost necessary for performing the project which
does not belong to any other category. In principle,
those which can be identifiable and verifiable for theuse in the project.
Example)– Communication and transportation cost
(postage, transportation charge,

8

–

–
–
–

III. Commission fee

communication and telephone charges, etc.)
Utility charges (electricity, water, gas. For
example, the charges used for the project canbe calculated by reading a dedicated meter in alarge-scale research institute, etc.)
Cost for repair and maintenance of facilities
Cost for translation, interpretation andstenography
Cost for the purchase of literatures, charges forstatutory inspection, testing fees, cost for patentapplication, etc.

Cost for commissioning other business operator to
do what Subsidized Company cannot implement on
its own or is not appropriate to do so (commission
contract)92. Arrangement of related documents<Purpose of implementation>
As a prerequisite for the implementation of effective and efficient accounting process, it isnecessary that the related documents pertaining to the start of subsidized project,
implementation status, etc. are put in order. Appropriate arrangement of related
documents also leads to prompt and proper implementation of inspection in the on-site
survey mentioned later.

<Specific implementation method>(1) Arrange and store related documents (see the main related documents below) inchronological order.
(2) If any guidance is given by the staff in charge at the Ministry of Economy, Trade andIndustry regarding arrangement and storage status, record the details of theguidance and arrange and store according to the guidance.
(Reference) Main related documents
 Project plan (copy), application for subsidization (copy), subsidization notice(original), Progress status report (copy (if applicable)), Application for the approval of plan change (copy (if applicable)), Approval notice ofplan change (original (if applicable)), Invoice for the payment by rough estimate (copy (if applicable)), Accident (delay) report (copy (if applicable)), Approval notice of accident (delay)report (original (if applicable)), Performance report (copy),
 Management ledger of acquired property, etc. (original (if applicable)) andManagement statement of acquired property, etc. (copy (if applicable)), Other documents to be submitted (if applicable)103. Accounting process on personnel cost
<Basic concept>
Personnel cost refers to the salary and other allowances of personnel engaged insubsidized projects (hereinafter called “Project Personnel”) for their working hours. To
check business operations and operation management, prepare data to show thedivision of roles of Project Personnel pertaining to subsidized project (such as anorganization chart).
Personnel cost is basically calculated for each component by the following formula.
Hourly rate*1 is calculated for each and every Project Personnel by the calculation
method described later. In addition, the calculation method of hourly rate, etc. is fixed at
the time of subsidization decision and cannot be changed later at the time of
performance report or finalization (the amount of hourly rate may be changed according
to the concept at the time of subsidization decision).
Also, appropriate only the number of hours*2 engaged in the project concerned.
Preparation of a work log will be the basis of calculating the number of hours.
The following treatment is the basic method for a general employee working underordinary working arrangements, hence for the case of managerial staff (whose treatment
is partly described in this document) or staff working under flexible working
arrangements, the working hours of whom are not fixed, treatment specific to individual
cases may be needed in the Subsidized Company.
Personnel cost = Hourly rate*1 x Number of (work) hours*2<*1Calculation method of hourly rate>
Hourly rate is basically added up by the following formula (hereinafter called “Actual Rate
Calculation”).

[Technique 1: Actual Rate Calculation](1) How to add up hourly rate of personnel cost for regular staff, loaned staff andtemporary staff
Hourly rate of personnel cost = (Total annual payment + Annual statutory welfare cost) /Total theoretical annual working hours* Statutory welfare cost includes a portion of health insurance premiums, welfare pension
insurance premiums (including premiums for welfare pension fund), labor insurance
premiums, contributions to the child care funds, compensation for absence from work
under the Labor Standards Act, etc. to be borne by Subsidized Company.
* Total theoretical annual working hours are the number of hours obtained by first
calculating the number of prescribed annual business days from annual business calendar,etc. and then calculating prescribed working hours per day from work rules, etc. and finallymultiplying the number of days by the number of hours.
The total annual payment may include basic salary and various allowances such asadministrative allowance, urban allowance, housing allowance, family allowance andcommutation allowance as well as bonus, but those subsidized under welfare program
such as overtime allowance and meal allowance cannot be included (the same shall apply
hereinafter).

11

* The total annual payment and annual statutory welfare cost for the loaned staff andtemporary staff are the annual salary and annual statutory welfare cost borne by
Subsidized Company.
* The hourly rate used for appropriating overtime work is calculated from the total overtime
allowance paid by Subsidized Company and the total overtime hours.
(2) How to add up hourly rate for managerial staff without overtime allowance
Hourly rate of personnel cost = (Total annual payment + Annual statutory welfare cost) /Total theoretical annual working hours* Cost to engage in overtime work for the project can only be appropriated when suchprescribed overtime cost is borne by Subsidized Company.

However, if the subsidized project is to use the hourly rate calculated based on thepremiums table of standard monthly income (hereinafter called “Health Insurance Grade
Rate Calculation”), hourly rate is calculated based on the following concept.

[Technique 2: Health Insurance Grade Rate Calculation]
This calculation is carried out by confirming the appropriation method of health insurance
grade rate in the subsidized project and the rate chart, etc.
 The concept of hourly rate
The application of hourly rate in using the Health Insurance Grade Rate Calculation isbasically as shown in the following table. When using this rate, the uniform rate shall apply
irrespective of being within working hours, overtime or holiday.*1
Employment
relationship
Employees underhealth insurance
grade

Other thanemployees underhealth insurance
grade*2

SalaryHourly rate

All

Select the classification in the hourly rate list according
to the bonus frequency and apply the hourly rate
corresponding to health insurance grade.

Annual salarysystemMonthly salarysystemCalculate the amount of monthly salary*3 and apply thehourly rate corresponding to the range of monthly salaryin the hourly rate list.

Instead of applying the hourly rate list, apply the rate
(less than one yen to be discarded) obtained by dividing
day rate*4 by prescribed working hours.
Hourly wage system Apply the hourly wage*4 instead of the hourly rate list.
Day-rate system*1 However, in cases where personnel cost based on the health insurance grade rate substantially exceeds
personnel cost borne by business operator, hourly rate needs to be adjusted.
*2 The bonus to be paid within the project period (including the one whose payment has been set for the last
day of the following month of the last day of the project period) may be added to the calculation of hourlyrate. As for the method of the addition, when adding to monthly salary, add the amount of bonus paid ineach period of first half (April to September) and last half (October to March) to monthly amount ofrespective periods (divided by corresponding number of months), and when adding to day rate, add theamount obtained by further dividing the above-mentioned method by the prescribed working days permonth to the day rate (less than one yen to be discarded).
*3 Calculation of standard monthly income for health insurance shall apply to the calculation of monthly
salary from annual salary.
*4 Add to the hourly rate the amount obtained by dividing commutation allowance per day (to be calculated
from the contract of employment, etc.) by prescribed working hours.
*5 For part-time workers (those for whom shortened working hours are specified in labor contract, etc.
regardless whether they are part-time employees or short-time regular employees and so on) whose
working hours are shorter than the prescribed working hours specified in the rules of employment, etc.,12the rate adjusted to the ratio of prescribed working hours can be used.

In applying the health insurance grade, use the rate based on the grade applied at the start ofthe subsidized project, and when there is any revision during the project period, the rate
based on the new health insurance grade shall apply from the month of the revision.

<*2Calculation of the number of (work) hours>
Prepare a work log to calculate the hours of engagement.
[Work log entry example 1] (In case of the duplication with other multiple projects, etc.)(April)Department

SectionTotal
A: (XX) h
B: (XX) h
C: (XX) h
D: (XX) h
A: NEDO Subsidy
B: JETRO Commission
C: METI Subsidy (xx subsidized project)
D: Communication with xx Co. (independent project) (3)[Work log entry example 2] (In case of no duplication with other project or insignificant
duplication, etc.)
Work Log / April 20XX
* Engagement for any other METI's project : Yes
A : Project of XXX
B : Project of XXX* Engagement for non-METI's project : No

Check if working full-time or not.

If not working full-time, describe the details of other work.
Project Personnel
Date

Day

4/1

Wed.

4/2
4/3

Thurs.
Fri.

・・・

・・・

4/29
4/30

Holiday
Thurs.

○○ Department △△ Section
Manager: Manager of ○○ Department
Name:
□□ ××
(seal) Name:▲▲ ◇◇(seal)
Working Hours (enter time in 24-hour notation) Elimination Working Detailed research contents, details of work
Start
End
Start
End
Hours
Hours *To set up individual holidays, enter "holiday."
AM: Meeting for XXX development
9:00
12:00
15:00
17:00
0:30
4:30
PM: Preparation of XXX meeting materials
13:00
18:00
5:00
XXX meeting

TOTAL

9:30

13

(1) Maintain a work log for each Project Personnel who is subject to personnel cost. (Carefulattention needs to be paid in the entry so as not to mix up the subsidized project withthe hours of engagement and contents of other projects commissioned or
subsidized and independent projects.)(2) Entry to work log should be made every day by the person who are engaged in
the project. (Avoid entering the details of several weeks at one time or having someone
else enter the details to prevent erroneous facts from being described.)(3) Enter hours engaged in the subsidized project. In addition, the cases of work outsideprescribed hours (overtime, holiday work, etc.) being included in the hours ofengagement are as follows: If overtime work on weekdays is indispensable from the nature of the subsidized
project and when Subsidized Company is providing overtime allowance.
 If holiday work (e.g. holding of symposium on weekend, etc.) is necessary from thenature of the subsidized project and when Subsidized Company is providing holiday
work allowance. Even in the case of non-provision, the same shall apply if
Subsidized Company is providing substitute holidays.
(4) Exclude lunch break and recess (Enter in the “Hours to be excluded” in the format inaccordance with the Work log entry example 2).
(5) Describe in such a way that specific details of engagement (business travel, meeting,research, etc.) in the subsidized project is known. In addition, travelling time in abusiness travel, etc. can also be appropriated as the time spent for the subsidized
project.** Consideration needs to be given to the division of the trip schedule including otherprojects like an independent project and appropriation of the travel outside prescribedworking hours.
(6) In the case of being concurrently engaged in operations other than the subsidized
project, ensure that the status of engagement between other project and subsidized
project can be identified.
(7) Responsible person should print its name and affix its seal only after having confirmedthat the data does not contradict with such forms as a time card (attendance record iftime card is not available) and there is no duplication of description with other project.
(8) If it is necessary from a viewpoint of the protection of personal information, takeappropriate measures including masking.

<Implementation method of accounting process>[To calculate by actual rate calculation](1) Maintain the salary ledger or pay roll, calculation table of the prescribed annual working
hours (annual business calendar, rules of employment, etc.) to be the basis of the hourly
rate calculation and calculate hourly rate based on the materials thus maintained.
Prepare and arrange the table* for the calculation of hourly rate of Project Personnel
pertaining to the subsidized project as well as the table tabulating the monthly personnel
cost for each individual.
* When using statutory welfare cost (to be borne by Subsidized Company) for the calculation of hourly
rate, appropriate the ratio of the amount to be borne by Subsidized Company based on thepremiums table of health insurance and welfare pension insurance, and prepare and arrange thedocuments indicating the grounds. If there has been any change in insurance grade or premiumrate, calculate the statutory welfare cost taking the effect of the change into account.

14

[To calculate by the Health Insurance Grade Rate Calculation](1)’ Health insurance grade certificate* (standard income decision notice, standard income
revision notice, premiums table of standard monthly income) needs to be maintained for
employees under health insurance grade, and salary payment certificate* (pay roll,
employment contract, etc.) needs to be maintained for inapplicable employees.
* Certification shall be made by the chief of the department responsible for the pay roll and thecertification shall be made after the expiration of the project period.

(2) Maintain documents to verify the amount of salary payment (receipt of bank transfer,etc.), time card or attendance record, and documents to verify the payment for overtime
if overtime is concerned.
(3) By the time of reporting the performance, finish payment of salary and statutory welfare
cost in principle. If payment is not completed within the project period, however, finalize
the amount of payment obligation.
(4) If it is not possible to confirm the payment results at the time of final inspection, havethem confirmed by the staff in charge at the Ministry of Economy, Trade and Industry bysubmitting a report of payment results at a later date, etc.
Caution If salary, etc. of Project Personnel are being paid by other than Subsidized
Company, such as for loaned personnel from other organization or otherbusiness operator, appropriate only the portion borne by Subsidized Company!
(Appropriate after deducting the portion paid by other than Subsidized Company,
or calculate hourly rate by deducting such portion upon its calculation.)(Reference) Filing example of documents on personnel cost15

4. Accounting process for travel expenses<Basic concept>
This refers to the cost for domestic business travels and overseas business travels
necessary for performing the project (travel expenses, accommodation expenses, daily
allowances). Persons to receive travel expenses are Project Personnel and people
including external experts who attend meetings and other events necessary for
performing the project.
Appropriate accounting process should be exercised for travel expenses based on theexisting internal rules and by arranging forms like a business travel requisition andbusiness travel report. (Assumed general flow is: business travel requisition -> businesstravel report -> payment)
In case there is no internal rule or the like, keep in mind a practical operation such as byformulating rules on travel expenses for subsidized projects. In formulating rules, study
to use for reference the operation of others of the same industry and size in the same
territory.

<Implementation method of accounting process>
General remarks
 Assignment of business travel must be the one necessary for performing the project.
 The number of persons to go on a business travel must be the minimum possible toperform the project.
 If business travel includes other projects like an independent project, only the portionof the subsidized project (such as by dividing between a return trip) should betreated as Subsidization Cost.
Business travel requisition
 It must be the one appropriately ordered according to internal rules, etc.
Business travel report –> Payment
 To clearly indicate the engagement in the project, describe in business travel reportas to when, with whom, where and what was done, as well as the name of theperson on a business travel, destination, date and purpose.
 Travel expenses should be properly calculated according to internal rules, etc. Also,in the case of using a taxi or taking a route other than the shortest route, describe
clear and valid reason for them in a business travel report, etc.
 Clarify the fact of payment (payee (person on a business travel), payment date,payment amount and any other details) by a receipt of bank transfer, etc.

16

(Reference) Filing example of documents on travel expenses

17

5. Accounting process for meeting expense and gratuities<Basic concept>
Meeting expense refers to the cost (rent of a venue, rental charges of equipment andmaterials, cost for refreshments (coffee money), etc.) for meetings, seminars,
symposiums and the like (hereinafter called “Meetings”) necessary for performing the
project. Also, gratuities mean gratuities paid to external experts who attended Meetingsand gratuities for giving seminars, writing of drafts, cooperation with research, etc.
In the case of using a meeting room owned by Subsidized Company, rent of a venue
does not occur in principle. If it becomes necessary to rent a paid venue (including paid
meeting room within the company) while there is own meeting room, carefully review its
necessity.
Cost for refreshments should be the minimum possible after checking attendance andhandle according to the existing internal rules, etc.*1
If any cost is required other than a rent of a venue and cost for refreshments, arrange
various kinds of forms as in the case of meeting expense and other cost items so that its
necessity and fairness can be explained.
As for gratuities, after checking the necessity for giving gratuities in order to perform the
project, effect payment, etc. properly according to the existing internal rules, etc.* 2*1 If there is no internal rule or the like for the cost of refreshments, several hundred
yen per participant will be considered standard. Under special circumstances (suchas entertainment of foreign VIP), however, the above standard can be exceeded by
preparing materials substantiating such circumstances and having it acknowledged
as appropriate expense by the staff in charge at the Ministry of Economy, Trade andIndustry. Also, lunch cost may be spent only when a meeting lasts from the morning
to the afternoon and the amount will be in the region of between 1,000 and 2,000yen.
*2 If there is no internal rule or the like for gratuities, the following table may be used asa standard and can be spent within the range. Under special circumstances,
however, the standard may be exceeded by preparing materials substantiating suchcircumstances and having it acknowledged as appropriate expense by the staff incharge at the Ministry of Economy, Trade and Industry.
CautionThe meeting expense and gratuities shown in *1 and *2 shall not preclude expenditureless than their unit prices. Considering the regional situations, the nature of the meetingand other factors, try to cut down on meeting expense and gratuities as much as
possible.

18

[Reference] Standard payment levels of gratuities(Unit: yen)Standard unit price

Positions by category, etc.

Unit
Division price perhour

Positions at university(1)

11,300 University president level(2)9,700 University vice president level(3)8,700 University dean level

(4)
(5)

Average service
years of those inuniversity positions

Private sector

Local
government, etc.

Chairman,president,
director level

Governor, mayorsof municipalities

7,900 University professor level 1

Plant manager
level

Department
manager level

7,000 University professor level 2

Department
manager level

University associate professorlevel

17 years or more

12 years or more-

Section manager Section manager
level
level

(6)

6,100

(7)

5,100 University lecturer level

(8)

4,600

University research associate
and assistant level

(9)

3,600

University assistant level 1 or
lower

Less than 12 years

Person in charge
Section staff 1
1

(10)

2,600

University assistant level 2 orlower

Less than 8 years

Person in charge
Section staff 2
2

(11)

1,600

University assistant level 3 orlower

Less than 4 years

Person in charge
Section staff 33Less than 12 years

Deputy section
manager level

Office manager
level

Subsection chiefand chief level

Assistant section
manager level<Implementation method of accounting process>[Rent for a venue]

Review the necessity for holding Meetings outside. Select a meeting room by taking
into consideration the size of a meeting, expected attendance, etc.
When there are internal rules, etc., the expenditure must be based on them.
Prepare materials such as an estimate or price table to verify the rent for the venue(room charge for a meeting room, lease charge of a venue).
Prepare an invoice and receipt (receipt of a bank transfer).

[Cost of refreshments]

Review the necessity for serving refreshment at Meetings.
When there are internal rules, etc., the expenditure must be based on them.
Arrange an attendance list or minutes of meeting so that the attendance of Meetings
can be confirmed.
Prepare an estimate, invoice and receipt (receipt of a bank transfer).

[Gratuities]

Arrange documents evidencing requests to external experts for attending Meetingsor giving lectures (for example: written request for assuming a post of committee

19








member, acknowledgement of appointment, business request, letter of acceptance,etc.)
Prepare materials to show the date and time, attendees, contents of Meetings (forexample: opening notice, attendance list, minutes of meeting, etc.)
Arrange an attendance list or minutes of meeting of Meetings to clarify the payment
to the attendee himself/herself. If payment is made to any substitute attendee,
arrange data (proxy) to verify that the substitute attended the meeting on behalf ofthe committee member.
When there are internal rules, etc., the expenditure must be based on them.
Clarify the fact of payment (payee, payment date, paid amount, etc.) by a receipt ofbank transfer, etc.
Withhold tax on gratuities (implementation of “deposits received” accounting
process by the business operator or payment to tax office) and arrange data to verify
such processing.

(Reference) Filing examples of documents on meeting expense

20

6. Accounting procedures regarding equipment expenses and rental andhire fees<Basic concept>
Equipment expenses are expenses for purchasing or manufacturing items necessary to
carry out a project (items that can be used continuously for one year or more). Rental
and hire fees are expenses for leasing or renting machinery and appliances necessary to
carry out a project.
As a rule, equipment expenses and rental and hire fees shall be processed in thefollowing order:
Specifications -> Quote -> Purchase order -> Delivery -> Inspection -> Payment
Equipment acquired must only be used for the project concerned. As such, please
clearly differentiate the equipment from other equipment etc. (Attach a sticker on a visible
location), and be careful not to use it for any other purposes than the project concerned(e.g. non-subsidized project).

<Accounting procedures>














Organize documents in accordance with the following workflow:
Specifications -> Quote (General competition, etc.) -> Purchase order -> Delivery ->Inspection -> Payment
From the viewpoint of economy, obtain competitive quotes from multiple business
operators wherever possible, and select the one who presented the lowest priceamong competitive quotes (General competition, etc.). If competitive quotes are notobtained or the one who presented the lowest price is not selected, prepare adocument stating the reason for such selection.
If an order was placed via the Internet or by email and a purchase order is not
obtained, prepare a document that substitutes a purchase order (A document
printed from electronic media, etc.).
Check deliverables to see if they match the details of what were ordered.
State the inspection date on a delivery slip and have the inspector affix his/her seal
on it in accordance with internal regulations, etc.
Differentiate the item from other machinery and appliances by attaching a
sticker or through other forms of display to identify the item was purchased
for the project concerned. Also, differentiate the project concerned from otherprojects when entering on accounting books.
The item must not be used for a non-subsidized project or any other projects thanthe project concerned.
Payment to a supplier shall be made in the name of Subsidized Company.
Obtain a bank transfer receipt, etc. to evidence that payment was made (The payee,
the payment date and the paid amount, etc.)21<Handling of procurement through leasing or rental>
If procuring equipment necessary for the project concerned through leasing or rental(hereinafter referred to as leasing, etc.), such leasing or rental fees (fixed monthly
payments) may be recorded as expenses only for the period of the project concerned (aslong as payment can be verified). However, if an order is placed or payment is madebefore the decision to grant a subsidy was made, such expenses will not be consideredapplicable expenses. Documents, etc. to be prepared are the same as those preparedfor equipment expenses.
In regards to equipment that was already being leased or rented for a non-subsidized
project, etc. when the decision to grant a subsidy was made, only those for which
payment can be verified may be recorded as expenses for the period of the project
concerned.
If fixed monthly payments are not made (e.g. a lump sum payment was made inadvance*), expenses that can be recorded shall be calculated using the formula below.
* For a subsidized project, advance payment shall not be made in principle. (As a rule,
payment shall be made after a lease has been completed.)[Formula]
The contract amount for leasing, etc. X (The entire lease period/the period for the project
concerned in the lease period)(e.g.) If the period of a subsidized project is 10 months, when the lease amount is960,000 yen for 4 years (48 months).
960,000 yen X (48 months/10 months) = 200,000 yen(Reference) Example of filing documents relating to equipment expenses

22

7. Accounting procedures regarding supplies expenses<Basic concept>
Supplies expenses are expenses for purchasing items necessary to carry out a project
but are not classified as equipment expenses (However, those identified as being used
only for the project concerned). For example, raw materials and parts, etc. areconsidered supplies.
As a rule, supplies expenses shall be processed in the following order:
Specifications -> Quote -> Purchase order -> Delivery -> Inspection -> Payment
If it is difficult to judge that the purchase or consumption was actually made due to thenature of the item, (e.g. the item perishes after being processed), it is necessary toevidence the consumption through receipt/payment ledger, etc.

<Accounting procedures>












Organize documents in accordance with the following workflow:
Specifications -> Quote (General competition, etc.) -> Purchase order -> Delivery ->Inspection -> Payment
From the viewpoint of economy, obtain competitive quotes from multiple business
operators wherever possible, and select the one who presented the lowest priceamong competitive quotes (General competition, etc.)*. If competitive quotes are notobtained or the one who presented the lowest price is not selected, prepare adocument stating the reason for such selection.
* In the case of not having to obtain competitive quotes because of the existing
internal rules, etc., their collection and the document stating the reason for selection
may be omitted.
If an order was placed via the Internet or by email and a purchase order is not
obtained, prepare a document that substitutes a purchase order (A document
printed from electronic media, etc.).
Check deliverables to see if they match the details of what were ordered.
State the inspection date on a delivery slip and have the inspector affix his/her seal
on it in accordance with internal regulations, etc.
The item must not be used for a non-subsidized project or any other projects thanthe project concerned.
Payment to a supplier shall be made in the name of Subsidized Company.
Obtain a bank transfer receipt, etc. to evidence that payment was made (The payee,
the payment date and the paid amount, etc.)23

<Supplies and raw materials receipt/payment ledger>
In regards to supplies necessary for the project concerned, it is important to manage
them at the time of purchase and delivery, differentiating them strictly for the project
concerned, in order to clarify the use of such supplies.
If the above-mentioned requirements are met, it would be suffice to write necessary
information, such as the date of receipt and the quantity of materials received, by thetype or use of material at the time of purchase and to write stock when the project has
ended. If these requirements are not met, necessary information, such as date of receipt
and the quantity of materials received, shall be written each time such materials arereceived or payment is made.
As a rule, the national account is settled for each year. Therefore, only the quantity used
for the period of the project concerned will be covered by subsidies.

(Reference) Example of filing documents relating to supplies expenses

24

8. Accounting procedures regarding outsourcing expenses<Basic concept>
Among expenses for carrying out a project, there are some work that cannot be done
directly or are not suitable to be done by Subsidized Company. Outsourcing expenses
are expenses for outsourcing such work to other business operators (Service contract).
Examples of such work include building construction, designing, manufacturing,
modifying, repairing and installing machinery and equipment and tools, appliances andparts, developing and modifying computer programs, creating contents, such as media
programs, transporting goods, and manufacturing and analyzing and examining
samples.
As a rule, outsourcing expenses shall be processed in the following order:
Specifications -> Quote -> Purchase order -> Delivery -> Inspection -> Payment
In addition, it is necessary to demonstrate that appropriate transactions are carried out,by presenting design drawings, specifications and deliverables, etc.

<Accounting procedures>












Organize documents in accordance with the following workflow:
Specifications -> Quote (General competition, etc.) -> Purchase order -> Delivery ->Inspection -> Payment
From the viewpoint of economy, obtain competitive quotes from multiple business
operators wherever possible, and select the one who presented the lowest priceamong competitive quotes (General competition, etc.). If competitive quotes are notobtained or the one who presented the lowest price is not selected, prepare adocument stating the reason for such selection.
If an order was placed via the Internet or by email and a purchase order is not
obtained, prepare a document that substitutes a purchase order (A document
printed from electronic media, etc.).
Check deliverables to see if they match the details of what were ordered.
State the inspection date on a delivery slip and have the inspector affix his/her seal
on it in accordance with internal regulations, etc.
The item must not be used for a non-subsidized project or any other projects thanthe project concerned. In addition, the content of deliverables shall be sorted out.
Payment to a supplier shall be made in the name of Subsidized Company.
Obtain a bank transfer receipt, etc. to evidence that payment was made (The payee,
the payment date and the paid amount, etc.)25

(Reference) Example of filing documents relating to outsourcing expenses

26

9. Accounting procedures regarding printing and binding expenses<Basic concept>
Printing and binding expenses are expenses relating to printing and binding pamphlets,
leaflets, business performance reports and other documents used in a project.
As a rule, printing and binding expenses shall be processed in the following order:
Specifications -> Quote -> Purchase order -> Delivery -> Inspection -> Payment
Note that only the number of print copies* necessary for the project shall be recorded as
expenses.
* “Number of print copies necessary for the project” refers to

The number of copies if recipients (Distribution list, etc.) and the schedule, etc. are
specifically indicated in the project plan or similar documents for the project
concerned.
The number of copies used during the period of the project concerned, unlessspecifically indicated in the plan

<Accounting procedures>












Organize documents in accordance with the following workflow:
Specifications -> Quote (General competition, etc.) -> Purchase order -> Delivery ->Inspection -> Payment
From the viewpoint of economy, obtain competitive quotes from multiple business
operators wherever possible, and select the one who presented the lowest priceamong competitive quotes (General competition, etc.). If competitive quotes are notobtained or the one who presented the lowest price is not selected, prepare adocument stating the reason for such selection.
If an order was placed via the Internet or by email and a purchase order is not
obtained, prepare a document that substitutes a purchase order (A document
printed from electronic media, etc.).
Check deliverables to see if they match the details of what were ordered.
State the inspection date on a delivery slip and have the inspector affix his/her seal
on it in accordance with internal regulations, etc.
The item must not be used for a non-subsidized project or any other projects thanthe project concerned.
Payment to a supplier shall be made in the name of Subsidized Company.
Obtain a bank transfer receipt, etc. to evidence that payment was made (The payee,
the payment date and the paid amount, etc.)27

(Reference) Example of filing documents relating to printing and binding
expenses28

10. Accounting procedures regarding assistant personnel costs<Basic concept>
Assistant personnel costs refer to wages, etc. for assistant workers who are provide
administrative support, etc. necessary to carry out a project (part-time workers, etc.).

<Accounting procedures>











Manifest the content of an assistant worker’s duties through a contract, etc.
Calculate an assistant worker’s hourly rate from the hourly rate stated in a contract,etc.
Prepare attendance records or time cards
In the following cases, extra working hours (overtime or working on a holiday) are
included in the hours worked:
 If working extra hours on weekdays is essential due to the nature of a subsidized
project, and Subsidized Company is paying overtime pay.
 If working on holidays is essential due to the nature of a subsidized project (e.g.
Holding a symposium on weekends), and Subsidized Company is paying holiday
pay. The same applies to the cases where Subsidized Company is giving time off
in lieu even if holiday pay is not paid.
If an assistant worker has worked any other projects than the project concerned,
have a work log ready to manifest the hours worked in the project concerned.
Prepare documents which prove payment of wages to assistant workers (Banktransfer receipts, etc.).
If payment records cannot be verified at the time of a confirmatory test, have themverified by the person in charge at METI at a later date, such as submitting a reporton payment records.
Prepare documents showing taxes deducted from assistant personnel costs(Whether such taxes were processed by Subsidized Company as deposits or were
paid to the taxation authorities).

29

(Reference) Example of filing documents relating to assistant personnel costs

30

11. Accounting procedures regarding other miscellaneous expenses<Basic concept>
With regards to other expenses which are allowed by each system to be recorded as
expenses, various documents and forms shall be verified based on the transaction flow,
etc. according to other expenses to clarify the need for and the adequacy of transactions
and the appropriateness of the period. Generally in many cases, the following expenses
are not approved as expenses covered by a subsidy. Therefore, ask the person in charge
at METI whether or not such expenses can be recorded as expenses covered by a
subsidy, as well as checking the subsidy guidelines.
 Bond, deposit and broker's commission on rental properties, etc.
 Interest paid on debts, etc. and delinquency charges
 Payment for consumables, such as newspaper bills, and membership fees fororganizations, etc.
 Expenses paid for tax accountants and chartered accountants, etc. to prepare tax
returns and financial statements, etc., and legal fees for lawsuits, etc.
 Taxes and public dues and insurance costs<Accounting procedures>
Other miscellaneous expenses shall be processed according to other expenses(equipment expenses, etc.).

31

12. Accounting procedures regarding expenses for commission<Basic concept>
Among operations for carrying out the project concerned, there are some operations thatcannot be done directly or are not suitable to be done by Subsidized Company.
Expenses for commission are expenses for commissioning such operations to otherbusiness operators (Mandate agreement or quasi- mandate agreement). Examples ofsuch work include commissioning administrative work for expenses on research
operations and technical guidance, etc.
To determine the payment amount for a subcontractor, Subsidized Company must checkvarious documents and forms in accordance with this manual.

<Accounting procedures>











Organize documents in accordance with the following workflow:
Specifications -> Quote (General competition, etc.) -> Contract -> Completion report-> Inspection -> Payment
From the viewpoint of economy, obtain competitive quotes from multiple business
operators wherever possible, and select the one who presented the lowest priceamong competitive quotes (General competition, etc.). If competitive quotes are notobtained or the one who presented the lowest price is not selected, prepare adocument stating the reason for such selection.
Prepare documents including a service agreement, a technical guidance
agreement, a completion report and technical guidance report, stipulating thecontent of work commissioned or guidance in detail. Please note that all rights to theservice agreement concerned must belong to Subsidized Company.
Use a completion report to check if the administrative work or operationcommissioned has been completed.
State the inspection date on a completion report and have the inspector affix his/her
seal on it in accordance with internal regulations, etc.
Payment to a supplier shall be made in the name of Subsidized Company.
Obtain a bank transfer receipt, etc. to evidence that payment was made (The payee,
the payment date and the paid amount, etc.)<Determining the payment amount for a subcontractor>

In executing commissioned operations, instruct a subcontractor to follow thesame accounting procedure in this manual
If you have received a report on the completion of commissioned operations,determine the payment amount after conducting an appropriate inspection,
by reviewing the report and by conducting an on-site survey as needed.

32

(Reference) Example of filing documents relating to expenses for commission

33

13. Preparing a performance report<Basic concept>
The content and results of the project concerned and its accounting procedures shall besorted out according to a particular format. It is necessary to prepare a performance
report properly as the amount of a subsidy to be provided is determined based on a
performance report.

<Accounting procedures>







Write a report according to the format specified in the subsidy guidelines.
With regard to the content of the project, write details of what were implemented in
the project concerned, comparing them to the initial plan. Write the process of
executing the project in an easy-to-understand manner, using graphs, diagrams andphotographs, etc.
Write the rate of achieving the project goals indicated in the subsidy application as
specific as possible.
Ensure that the category and type of expenses paid are consistent with the subsidy
application.
Submit the report by the due date specified in the subsidy guidelines.

<Preparing an acquired property management ledger (Detailed list)>
If a facility, machine or equipment with a unit price of 500,000 yen or more is acquired or
improved in a subsidized project, an acquired property management ledger (Detailedlist) needs to be prepared. If transferring or discarding such a property or using it foranother purpose during the period in which disposition of such properties is restricted,
approval must be obtained in advance from the government agency granting the subsidy.
[Key points in preparing an acquired property management ledger]
 “A unit price of 500,000 yen” refers to “The price of a set of properties which canprovide functions necessary to execute a project is 500,000 yen.” (Do not divide aproperty more than necessary.) However, if properties that make up such a set ofproperties have different periods of restrictions on disposition, the breakdown of suchproperties shall be listed.
 “Ministry of International Trade and Industry Notification No. 360 in 1978” shall beapplied to “Period of restrictions on disposition”.
 Such properties acquired using a subsidy are subject to advanced depreciation. If
using advanced depreciation, it must be stated clearly. However, when disposing ofsuch a property, its book value shall be calculated including the value of a subsidy, not
the reduced book value after advanced depreciation.

<Product of the project, such as intellectual property>
With regards to projects in which intellectual property is acquired in the course ofbusiness, it is stipulated in the subsidy guidelines, etc. that notification is required when34

intellectual property has been acquired. Therefore, if this applies, notification shall begiven.

<Request for and payment of subsidies>
Payment procedures by the government need to be completed within the accountadjustment term (by the end of April in the following year). As soon as receiving noticethat the amount of a subsidy has been determined, submit a written request for final
payment stipulated in the subsidy guidelines, etc.

35II. On-site survey
1. Outline of inspections
Inspections refer to written inspections and on-site survey conducted as needed toensure the project concerned is carried out properly. Written inspections are conductedin the following manner: Subsidized Company sends or brings in documents necessary
for inspections and the person in charge at METI inspects them. On-site survey isconducted in the following manner: The person in charge at METI visits the location of
the project or other locations to check progress of the project, how purchased goods aremanaged and used, expenses incurred, how documents are organized and how
accounts procedures stated in I. are being followed. The types of inspections are as
follows:
Interim inspection: An interim inspection is conducted as needed before the project
concerned is completed. The aim of an interim inspection is to
distribute the load of determining the subsidy amount at the endof a fiscal year and to promptly correct misunderstandings orerrors.
Final inspection:

A final inspection is conducted after the project concerned iscompleted and results are reported. Based on a performance
report, the results of the project concerned and whether or not
the accounting procedures were followed will be checked. The
amount of a subsidy will be determined by this inspection.

Other inspections: These inspections are conducted after the project period has
ended if they are deemed necessary in addition to theabove-mentioned inspections.

2. Aim of inspections
In addition to checking if the project concerned is carried out in accordance with its
project plan (Checks include if the project started and ended within the project period andif the project conforms to the aim of the subsidy.), inspections will be conducted to checkif the following points are observed in regard to accounting procedures.
(1) If such expenses are necessary for the project concerned(2) If such expenses were generated and paid during the period of the project
concerned(3) If such subsidy was used with other funds(4) If accounting procedures are appropriate according to laws and internal
regulations, etc.
(5) If such expenses are used in consideration of economy and efficiency

36

3. When conducting inspections
Before the date of an interim or final inspection, use the following checklist to check if
documents are prepared or obtained in accordance with “I. Accounting process manual”.
In regards to matters pointed out or instructed in an interim or final inspection, share yourunderstanding with the person in charge at METI and take corrective or appropriate
action before the time when the final amount is determined.
<Notes on inspections>
It is required that inspections be conducted reasonably and efficiently as enormous
amounts of documents must be checked within a limited time. Therefore, please ensurethat inspections are conducted efficiently by organizing accounting documents and by
performing self-inspection using the checklist.
<Checklist (example)>
Prepared: MM/DD/YYYY

The Checklist of ＸＸＸ Subsidized Entity (example)
Targeted Examination Period: MM/DD/YYYY - MM/DD/YYYY
Name of Entity:
Checked by (Accounting Manager):
Serial (Entity) Number:□□□□□□□□－□
Targeted Item

Check
Box

*Entry Column for METI
Department in Charge: ○○Division ××Department
Examiner:▲▲ ■■ , ◇◇ ▽▽Check Point
Reported expenses are dated from the day of granting subsidy to the end of project and were paid
during such a period.
Reported expenses meet the purpose of and were spent for the project.
There is no expenses reported which are out of range of subsidy (bank transfer fee, foreign
currency transaction gain etc).
Expenses are in the range of distributed amount for each expense category andmisappropriatedmoney does not exceed the approvable amount.

Overall
Expenses

For in-house procurement, the profit was excluded.
In the case of foreign currency payment, appropriate calculation methods, e.g. exchange rates offoreign currency, are applied to the conversion of foreign currencies into yen.
All the vouchers which verify respective payment methods are attached.
Number of digits after decimal point are truncated.

Example of documents
Result of
to be checked:
Examination
・Project plan (copy), application for
subsidization (copy)
・Subsidization notice (original)・Application for the approval of planchange (copy, if applicable)
・Approval notice of plan change(original, if applicable)
・Accident report (copy, if
applicable)
・Approval notice of accident(original, if applicable)
・Progress status report (copy, if
applicable)
・Performance report (copy) ）・Management ledger or acquired
property (original, if applicable),Management statement of acquired
property (copy, if applicable)

Relative documents are arranged in chronological order.
[General Items]
Personnel costs which are only necessary for the subsidized project are reported according to theimplementation plan and implementation organization chart etc.
Verification documents for the payment of personnel costs are orderly arranged.
Working rules, employment agreements, annual business calendar, attendance records, time cards
and the like are orderly arranged.
Granted hourly rates are used.
[In the case of calculating unit price by Performance]
Hourly rates are calculated based on total amount of salary and total theoretical working hours.
If statutory welfare costs are included in hourly rate, documents indicating the rate and amountshared by the entity are orderly arranged.
[In the case of calculating unit price by employee's health insurance grade]
The Verifications of Employee's Health Insurance Grade were signed by a certifier at department incharge of wage.

Personnel Cost

Hourly rate on such verifications is applied.
[Work Log]
Working hours recorded on work logs are in consistency with the entity's record of working hours
etc.
Contents of the implementation plan etc. are in consistency with those of work logs.
The difference between full-time and part time is clearly stated.
No other projects (including the entity's own projects) are overlapped or included in work log.
Work logs are checked and sealed appropriately by the manager (the person in charge).
Only the working hours recorded on work logs are reported.
Details of work are clearly stated.
[Others]
No personnel costs for unpaid loaned employees etc. is reported.

37

・Lists of implementation structure
・Working rules
・Employment agreement
・Calculation table of annual regular
working hours
・Attendance record、time cards
etc.
・Pay statement
・Work log
・Bank transfer receipts etc.
・Calculation table by personnel andmonth[In the case of calculation by unit
price in accordance withperformance]
・Documents indication the paymentof statutory welfare costs（Salary ledger etc.）
・Documents indicating the grounds
for statutory welfare costs（Notice of determination for
average amount of health insurance
and employees pension insuranceand Notice of determination for
average amount of insured
personnel）[In the case of calculating hourly
rate of health insurance grade]・Certificates of health insurance
grade（Notice of determination for
average amount, Notice of change
in average amount, List of
insurance amount and averagemonthly payment）

Column for
Examiner

Business travels which are only necessary for the subsidized project are reported.
・Internal rules for travel expense
If other projects are included, the expenses are calculated by distribution etc.
etc.
Attendance records, time cards etc. are consistent with each other.
・Request for business travel
Written requests, certificates of approval, reports, calculation sheets or quasi-documents are・Travel requisition
orderly arranged.
・Travel report
Amounts are calculated based on internal rules (for travel expense) etc in a rational and・Calculation sheet of travel
Travel Expenses
economical matter.
expensesReceipts (for taxies and air tickets etc.) are orderly attached in the case of time and material
・Receipts (airplane, taxi etc.)
settlement.
・Bank transfer receipts (for cash
The facts of actual payments can be affirmed by bank transfer receipts, receipts, financial records payments, receipts and cashbooks.
Same for the below.)of cash etc.
[Rent of Venue][Common]Documents which show meetings needed to be held at a meeting room (scheduled number of・Opening noticeattendees, reasons not to be able to held inside the entity etc.) are orderly arranged.
・Attendance list
Money was expended based on internal rules (for meetings) etc. If there exists no internal rules[Costs of venue and refreshments)and such, it is proper expenditure.
・Internal rules for meetings etc.
Quotes, price lists, invoices and receipts (bank transfer receipts) are orderly attached.
・Quotes or pricing lists
The number of attendees can be confirmed by the enrollment, meeting minutes etc.
・Purchase order, agreements[Costs for Refreshment]
・Delivery slips (for refreshments)
Documents which indicate refreshments are necessary to be served are orderly arranged.
・Receipts
Money was expended based on internal rules (for meetings) etc. If there exists no internal rules
・Bank transfer receipts etc.
and such, it is proper expenditure.
[Rewards]
Meeting expense
Quotes, price lists, invoices and receipts (bank transfer receipts) are orderly prepared.
・Internal rules for rewards etc.
The number of attendees can be confirmed by the enrollment, meeting minutes etc.
and rewards
・Written request for post,[Rewards]
Acknowledgement (business
Written request for assuming a post of committee member, Acknowledgement of Appointment
request and acknowledgement)(business request, letter of acceptance) etc are properly prepared.
・Meeting minutes
Documents which show opening time and date, attendees, details are orderly arranged.
・Bank transfer receipts etc.
Money was expended based on internal rules (for rewards) etc. If there exists no internal rules and ・Documents indication the process
such, it is proper expenditure.
for amount of withholding
If some payment is made to the substitution, it can be verified the company actually is thesubstitute of committee with a authorization letter etc.
Receipts (bank transfer receipts) are orderly arranged.
Documents indicating the payment or accounting process of withholdings are made to the tax
office are orderly arranged.
・Catalogues, Specifications
Transactions were processed in general procedures (specifications→quotes→order→delivery→
・Quotes (ground for selection)
acceptance inspection→payment).
If no competitive quote was requested, documents of reasons for selection is properly arranged and ・Purchase orders, documents
indications actual orders
the reasons are appropriate.
・Agreements
For online transactions, outputs of order details screen etc. are orderly arranged.
・Delivery slips (completion report)
・Invoice
Delivery slips were inspected and accepted (with date and seal) by the person in charge of・Receipt
acceptance inspection.
・Bank transfer receipt
Equipment
Equipment such as purchased or manufactured facilities etc. is clearly organized so that they are[In-kind Inspection]
Expenses andreadily identifiable as those obtained for the subsidized project at once.
・Management status (actuals,
Rental and Hire
Purchased equipment was not used for other projects. (For PCs, check and see if there are any
identification seals etc.), operation
fees
problems with folders and files.)status (movement etc.)
Purchased equipment was used enough according to the subsidized project plan (there is no・Management ledger of acquired
problem with its usage history).
property, Management statement of
The facts of actual payments can be affirmed by bank transfer receipts, receipts, financial records acquired propertyof cash etc.
・Warranties
For equipment of which unit value is half a million yen or more, management ledger of acquired
・Equipment's usage history
property and management statement of acquired property are orderly arranged.
・PC's folders and files
For leased or rented equipment, only the fees charged for the subsidized project period arereported.
Transactions were processed in general procedures (specifications→quotes→order→delivery→
・Catalogues, Specifications
acceptance inspection→payment).
・Quotes (grounds for selection)
・Purchase order, documents
Procedures were taken based on internal rules (for accounting) etc.
If no competitive quote was requested regardless of internal rules and such, documents of reasons indicating actual orders
・Agreements
for selection is properly arranged and the reasons are appropriate.
・Delivery slips
For online transactions, outputs of order details screen etc. are orderly arranged.
Supplies
・Invoices
Delivery slips were inspected and accepted (with date and seal) by the person in charge of
Expenses・Receipts
acceptance inspection.
・Bank transfer receipts
Purchased goods are used only for the subsidized project.
The facts of actual payments can be affirmed by bank transfer receipts, receipts, financial records [In-kind Inspection]
・Receiving and paying ledgers etc.
of cash etc.
Accounting ledgers which show acceptance and stock quantity or actual usages are orderly
・Inventory and consumption statusarranged.
・Catalogues, Specifications
Transactions were processed in general procedures (specifications→quotes→order→delivery→
・Quotes (grounds for selection)
acceptance inspection→payment).
・Purchase order, documents
If no competitive quote was requested, documents of reasons for selection is properly arranged and indicating actual orders
・Agreements
the reasons are appropriate.
・Delivery slips (completion reports)
・Invoices
For online transactions, outputs of order details screen etc. are orderly arranged.
・Receipts
Outsourcing
・Bank transfer receipts etc.
Expenses[In-kind Inspection]
Delivery slips were inspected and accepted (with date and seal) by the person in charge of・Management status (actuals,
acceptance inspection.
identification seals etc.), Operation
status (movement etc.)
Equipment such as purchased or manufactured facilities etc. is clearly organized so that they arereadily identifiable as those obtained for the subsidized project at once.
・Management ledger of acquired
property, Management statement of
The facts of actual payments can be affirmed by bank transfer receipts, receipts, financial records acquired property
・Warranties
of cash etc.

Printing andBinding
Expenses

Transactions were processed in general procedures (specifications→quotes→order→delivery→
・Catalogues, Specifications
acceptance inspection→payment).
・Quotes (grounds for selection)
If no competitive quote was requested, documents of reasons for selection is properly arranged and ・Purchase orders, documents
the reasons are appropriate.
indicating actual orders
For online transactions, outputs of order details screen etc. are orderly arranged.
・Agreements
Delivery slips were inspected and accepted (with date and seal) by the person in charge of・Delivery slips
acceptance inspection.
・Invoices
Purchased goods are used only for the subsidized project.
・Receipts
The facts of actual payments can be affirmed by bank transfer receipts, receipts, financial records ・Bank transfer receipts
of cash etc.
[In-kind Inspection]
Accounting ledgers which show acceptance and stock quantity or actual usages are orderly
・Status of inventory and usage
arranged.

38

Work contents of assistant workers are confirmed to be related to the subsidized project.
Basic calculation of hourly rate can be confirmed by agreements etc.
Assistant
Personnel Costs

Other Expenses

Expenses forCommission

Deductions ofConsumption
Tax and
Purchase Tax(Show theapplicability by acircle or crossmark. If all items
are applicable,purchase tax
deductions may
be arise(deduction fromapplication for
subsidy andreturn to thegovernment）).

Considerations
about VAT
Refund System

Actual working statement can be confirmed by attendance records, time cards etc.

・Temporary employment /employment agreement,
Appointment letter・Documents indicating work details(instructions etc.)
・Attendance records, time cards
・Bank transfer receipts

Verification documents which shows the actual payment of assistant personnel costs are orderly
arranged.
Documents indicating the payment or accounting process of withholdings are made to the tax
office are orderly arranged.
Transactions were processed in general procedures (specifications→quotes→order→delivery→
・Quotes (grounds for selection)
acceptance inspection→payment).
・Purchase order, documents
If no competitive quote was requested, documents of reasons for selection is properly arranged and indicating actual orders
the reasons are appropriate.
・Agreements
For online transactions, outputs of order details screen etc. are orderly arranged.
・Delivery slips (completion reports)
Delivery slips were inspected and accepted (with date and seal) by the person in charge of・Invoices
acceptance inspection.
・Receipts
Equipment such as purchased or manufactured facilities etc. is clearly organized so that they are
・Bank transfer receipts
readily identifiable as those obtained for the subsidized project at once.
The facts of actual payments can be affirmed by bank transfer receipts, receipts, financial records
of cash etc.
・Specifications
Transactions were processed in general procedures (specifications→quotes→order→delivery→
・Quotes (grounds for selection)
acceptance inspection→payment).
If no competitive quote was requested, documents of reasons for selection is properly arranged and ・Purchase orders, documents
indicating actual orders
the reasons are appropriate.
・Agreements
・Delivery slips
Details of outsourced work can be confirmed with outsourcing agreements etc.
・Certification indicating
Delivery slips were inspected and accepted (with date and seal) by the person in charge ofaccountings of outsourcing
acceptance inspection.
company・Invoices
It is provable that the subsidized entity confirmed that outsourcing company has done the・Receipts
accounting process same as the subsidized project.
The facts of actual payments can be affirmed by bank transfer receipts, receipts, financial records ・Bank transfer receipts etc.
of cash etc.
[Non-taxable Entity]
The subsidy is applied/granted with consumption tax.
・Corporate tax return of thesecond preceding fiscal year of thesubsidized project （Explanatory
This entity is taxable (not non-taxable or simple taxation entity).
statement of overall condition of
corporate business and attached Ｐ
The entity does not fall under the category of companies whose rate of specific income exceed 5% Ｌ or documents indicating sales
which listed in Appendix 3 of Consumption Tax Act.
amount such as detailed statementof sales amount by office.）*Write a circle mark if the entity corresponds to any of the following and a cross mark if not[Simple Taxation Entity]
corresponding to any of these.
・The final return of consumption
tax in fiscal years of subsidized
1) The entity's taxable sales rate is 95％ or more and the amount of taxable sales is half a billion
project
yen or less.
[Corporate boy whose specificincome rate is more than 5％]2) The entity's taxable sales rate is less than 95％ or the amount of taxable sales is more than half
・The final return of consumption
a billion yen, but the lump-sum proportional distribution system is deployed.
tax in fiscal years of subsidized
project （including calculation
3) The entity's taxable sales rate is less than 95％ or the amount of taxable sales is more than half
sheets of taxable sales rates,
a billion yen and the individual correspondence system is deployed. In addition, it the spending ofpurchase tax targeted for deduction
the subsidized project falls under the category of purchases other than those needed only for nonetc and calculations of specifictaxable sales.
income rates.）
The entity gives exhibitions and such in targeted countries for ＶＡＴ refund system.
[In case of no VAT refund]The subsidized entity closed an agreement directly with a local company and pays the cost of・Documents indicating grounds theexhibitions etc including VAT.
reasons for not refunding VAT etc.
The VAT paid by the subsidized entity is designated as subsidy by METI.
* If the entity corresponds to all the above, fill out the following items regarding VAT refund. （If[In case of VAT refund]the entity corresponds to more than one item, write a circle mark for all the corresponding items. ) ・Vouchers related to VAT refund
1. No VAT refund
procedures such as agreements
1) The amount of VAT per country is about three hundred thousand yen or less and the entitywith VAT refund agencies etc.
cannot get a refund which is appropriate for the expense.
2) The VAT refund is assumed to be difficult considering advices of VAT agencies, the status ofeach country etc.
3) Consultations for VAT refund are difficult due to geographical conditions of VAT refund
agencies.
4) The VAT refund was deemed unreasonable for other reasons (attach the result of simple
proforma calculation etc).
2. ＶＡＴ will be refunded. (Choose the entity's state of VAT refund from the followings.)
1) The procedures for ＶＡＴ refund is all completed and the report is already given at the time ofthe settlement of amount.
2) ＶＡＴ refund is being applied now and the report of VＡＴ refund will be delivered later.

39

Planned Report
Date: around
MM/DD/YYYY

III. Subsequent tasks
These tasks are to be carried out after the subsidy amount has been determined andpayment of the subsidy has been completed. Depending on the type of a subsidized
project, the following tasks may be required.

1. Accounting procedures relating to consumption tax deductions fortaxable purchase<Applicable cases and outline of the procedures>
If a subsidy is provided for consumption tax paid in a subsidized project, there may beconsumption tax deductions for taxable purchase pertaining to subsidy. In this case, it
must be reported promptly after a consumption tax return is filed.
If the amount of consumption tax deductions for taxable purchase has been determined
and this has been reported by Subsidized Company, Subsidized Company will be orderto return the subsidy pertaining to such consumption tax deductions for taxable
purchase.
For details of this system, refer to “Consumption tax deductions for taxable purchasepertaining to subsidy” under “I. Accounting process manual”, “1. Understanding thesubsidy system”.

<Specific procedures>

If consumption tax deductions for taxable purchase pertaining to subsidy are
identified after a consumption tax return is filed, prepare a report promptly inaccordance with the format stipulated in the subsidy guidelines.
If there is no consumption tax deduction for taxable purchase pertaining to subsidy,
prepare documents showing the reason.

Note If the amount of consumption tax deductions (or refunds) for taxable purchasepertaining to subsidy is known when preparing a performance report, report theamount after deducting such amount.
 As deductions (or refunds) are normally given after the final inspection is conducted
and a consumption tax return is filed (May in the following year, if Subsidized
Company’s business period is from April to March, make sure to perform thisprocedure if a subsidy was provided including consumption tax).

40

2. Procedures for managing and disposing of assets< Applicable cases and outline of the procedures>
If a facility, machine or equipment with a unit price of 500,000 yen or more is acquired or
improved in a subsidized project, a Subsidized Company shall manage them with a careof a good manager even after the completion of the Subsidized Project, and strive toeffectively make use of them in accordance with the purpose of the grant of the Subsidy.
When attempting to dispose of the acquired assets in the period of restrictions on
disposition (conversion, transfer, lending, disposition, demolition or taking out amortgage on such assets), the Minister’s approval must be obtained in advance.






Article 22 of the Act on Regulation of Execution of Budget Pertaining to Subsidies, etc.
Article 13 and 14 of Order for Enforcement of the Act on Regulation of Execution of Budget
Pertaining to Subsidies, etc.
Period of restrictions on disposition of acquired assets or assets with increased utility as aresult of subsidized projects (Ministry of International Trade and Industry Notification No. 360
in 1978)
Handling of disposition, etc. of acquired assets or assets with increased utility as a result ofsubsidized projects (June 10, 2004)<Specific procedures>A Subsidized Company shall prepare and manage acquired asset management
ledger and strive to effectively make use of them in accordance with the purpose of
the project.
If disposing of acquired assets during the period of restrictions on disposition of
acquired assets, approval or other procedures must be done. If income is gained or
expected, a Subsidized Company may be ordered to pay all or some of the income
to the government.
If acquired assets are disposed of without obtaining the Minister’s approval during
the period of restrictions on disposition of acquired assets, punitive action may betaken, such as canceling the decision to grant a subsidy.

41

3. Procedures for paying earnings< Applicable cases and outline of the procedures>
If earnings are generated by the completion of a subsidized project, or if industrial
property rights are acquired based on the outcome of a subsidized project and suchrights are transferred, license is granted or other results are provided, a Subsidized
Company shall report thereon to METI in accordance with the subsidy guidelines.

<Specific procedures>

In accordance with the provisions of the subsidy guidelines, a Subsidized Company
shall submit notification concerning the acquisition of intellectual property rights.
In accordance with the provisions of the subsidy guidelines, a Subsidized Company
shall report on commercialization, transfer of industrial property rights, grant oflicense or provision of other results.
If METI has determined, based on the report, that income was generated, theSubsidized Company may be ordered to pay all or some of the income to thegovernment.

4. Procedures for reimbursement of VAT< Applicable cases and outline of the procedures >When holding an exhibition, trade show, exposition or trade fair, VAT imposed on somecosts which cannot locally be treated as tax-exempt may be reimbursed after application
procedures in accordance with the country’s regulation. Therefore, if you post VAT as a
Subsidization Cost, you must consider a possibility of reimbursement of the VAT, and if
the amount of the reimbursement is known after completion of the subsidized project,
you must promptly report the amount of the reimbursement of the VAT pertaining to thesubsidy. As for the costs needed to be reimbursed and paid to an agent, even though
they are not subject to the subsidy, it can be deducted from the amount of the VAT
reimbursement, if it was paid solely for the said reimbursement(*) and the evidence was
attached with the report.
If the amount of the VAT reimbursement is settled and the Subsidized Company notifies
us of the reimbursement, we may order the Company to return the subsidy pertaining tothe VAT reimbursement.
(*If you have proceeded with the procedures for reimbursement of the VAT including thepart which is not the subject of the subsidy, you have to use a reasonable method, forexample, pro rata distribution, to calculate the amount which can be covered with thesubsidy and the one which cannot be covered with the subsidy.)<Specific procedures>In application for reimbursement of VAT, technical knowledge is needed, forexample, some countries allow only licensed agents to proceed with the procedure.
Hence, you have to consult with the agent, consider whether or not VAT can bereimbursed, and write the result on the check sheet.

42





If you choose “The VAT reimbursement procedure is ongoing, and report the resultat a future date.” in the check sheet, make the report promptly using the format
designated in the Grant Guidelines if you are reimbursed.
On the procedures for VAT reimbursement, the deadline for application or theprocedures may vary between countries. Therefore, in submission of the said report,
you have to check when to make it.

!! Attention !!
In the grant decision of the Subsidy, if the VAT amounts of each country are less thanaround 300 thousand yen, it is supposed that the expected amount of thereimbursement commensurate with the corresponding cost cannot be received,
therefore you are allowed not to apply for the VAT reimbursement. Even in this case,however, if you are reimbursed at a future date, please submit the report using theformat designated in the Grant Guidelines.

If the amount of the VAT reimbursement is already known in making a performance
report, please deduct the amount from the costs in the report and choose “Theprocedures for VAT reimbursement have already been completed and reported in
Finalization of the amount.” in the check sheet.
If you cannot prepare the original documents pertaining to the application for VAT
reimbursement because of submission of the receipts, etc. to the tax authorities,
please prepare alternative evidence such as copies of the original ones.

43

IV. Others
1. About Handling of Confidential Correspondence
In the case where subsidized entities ask to conduct questionnaire surveys or to handout some written materials etc. in this project, please consider if those written materials
are categorized as confidential correspondence and be careful so that written materials
will be sent in appropriate ways.
*For the definition of confidential correspondence etc., please visit the following website.
The guideline of confidential correspondence (on the web page of Ministry of Internal
Affairs and Communications)
http://www.soumu.go.jp/yusei/shinsho_guide.html

44